RCAT

Drone stocks such as AeroVironment NASDAQ: AVAV, Red Cat Holdings NASDAQ: RCAT, and Kratos Defense & Security Solutions NASDAQ: KTOS are down significantly in 2026, driven by macroeconomic and sector-specific headwinds and company-specific hurdles that mask the mounting potential. While near-term events have weighed on their stock prices, backlogs continue to swell.

SALT LAKE CITY, July 02, 2026 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc.  (Nasdaq: RCAT) (“Red Cat” or the “Company”), a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security, today announced that Teal Drones Inc. has advanced to Gauntlet II of the Drone Dominance Program. According to the program's Phase 2 participant list, Teal is among 19 companies invited to participate in Gauntlet II at Fort Carson, Colorado, in August 2026, following the Phase 2 Qualifier.

Ukraine's largest drone attack on Russia spotlights military drone makers and ETFs like JEDI as demand for unmanned systems accelerates.

ONDS and RCAT are drawing investor attention as drone tech plays, with each pursuing defense demand through different growth paths.

Red Cat Holdings is positioned for transformative growth, targeting a $1+ billion manufacturing capacity and a $2 billion pipeline, pending major contracts. The drone company provided a near-term revenue target of $150–$180 million, but actual 2026 guidance remains uncertain due to government contract timing. Red Cat executed a poorly timed $259 million secondary offering, but the business now has $385 million of cash to fund aggressive expansion.

Red Cat Holdings is transitioning from a niche drone maker to a fully integrated, multi-domain autonomous defense platform targeting recurring, multi-year government contracts. RCAT's recent Kymeta and Quaze partnerships address key bottlenecks—persistent connectivity and wireless power—enabling self-sustaining, networked autonomous fleets across air, land, and sea. The Blue Ops Variant 7 uncrewed surface vessel has entered full-rate production, mirroring the Black Widow's commercialization path and positioning RCAT for scaled DoD contracts.

Red Cat Holdings is rated STRONG BUY with a $16.50 12-month price target, driven by 849% YoY revenue growth and gross margin recovery. RCAT's Black Widow drone gains traction beyond the U.S. Army, securing NATO and Japanese defense contracts, expanding its addressable market, and reducing customer concentration risk. Pro forma cash of $351 million and significant inventory build position RCAT to capture upcoming defense spending tailwinds and support near-term growth without immediate financing needs.

SALT LAKE CITY, June 15, 2026 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc.  (Nasdaq: RCAT) (“Red Cat” or the “Company”), a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security, today introduced Hellcat™, a dual-use small unmanned aircraft system (sUAS) built on the proven Black Widow™ platform and designed for rapidly evolving operational environments.

ONDS lands a $4.8M SOUTHCOM contract as World View deploys high-altitude balloons for maritime ISR missions targeting illicit activity.

AVENTURA, Fla., June 02, 2026 (GLOBE NEWSWIRE) -- Safe Pro Group Inc. (Nasdaq: SPAI) (“Safe Pro” or the “Company”), a developer of artificial intelligence (AI)-enabled defense, security, and situational awareness solutions, announced today that it has received a U.S. Army order for a Threat Analysis “Kit”.