RCAT (Red Cat Holdings) Operating Income: $-81.42 Mil (TTM As of Mar. 2026)

What is Red Cat Holdings Operating Income?

Red Cat Holdings RCAT -3.16% 80 Operating Income is $-81.42 Mil as of Mar. 2026. GuruFocus rates RCAT with a GF Score™ of 80/100 and a GF Value™ of $7.96 (Modestly Overvalued). The stock has 4 warning signs investors should review.

Red Cat Holdings's Operating Income for the three months ended in Mar. 2026 was $-27.30 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $-81.42 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Red Cat Holdings's Operating Income for the three months ended in Mar. 2026 was $-27.30 Mil. Red Cat Holdings's Revenue for the three months ended in Mar. 2026 was $15.47 Mil. Therefore, Red Cat Holdings's Operating Margin % for the quarter that ended in Mar. 2026 was -176.47%.

Good Sign:

Red Cat Holdings Inc operating margin is expanding. Margin expansion is usually a good sign.

Red Cat Holdings's 5-Year average Growth Rate for Operating Margin % was 9.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Red Cat Holdings's annualized ROC % for the quarter that ended in Mar. 2026 was -95.06%. Red Cat Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -138.10%.

Red Cat Holdings (NAS:RCAT) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Red Cat Holdings's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

	ROC % (Q: Mar. 2026 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2025 )	+	Invested Capital (Q: Mar. 2026 ))	/ count )
=	-109.208 * ( 1 - 0% )	/	( (97.106	+	132.65)	/ 2 )
=	-109.208	/	114.878
=	-95.06 %

where

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	273.677	-	8.706	-	( 167.865	-	max(0, 14.846	-	226.938	+	167.865	))
=	97.106

	Invested Capital		(Q: Mar. 2026 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	281.885	-	17.316	-	( 131.919	-	max(0, 19.081	-	209.662	+	131.919	))
=	132.65

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Red Cat Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2026 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2025		Q: Mar. 2026
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-109.208	/	( ( (20.922 + max(50.106, 0))	+	(26.984 + max(60.146, 0)) )	/	2 )
=	-109.208	/	( ( 71.028	+	87.13 )	/	2 )
=	-109.208	/	79.079
=	-138.10 %

where Working Capital is:

	Working Capital		(Q: Dec. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(26.155	+	23.452	+	9.466)	-	(8.706	+	0.261	+	1.7763568394003E-15)
=	50.106

	Working Capital		(Q: Mar. 2026 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(10.571	+	50.53	+	16.642)	-	(17.316	+	0.281	+	3.5527136788005E-15)
=	60.146

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Red Cat Holdings's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2026 )	/	Revenue (Q: Mar. 2026 )
	=	-27.302	/	15.471
	=	-176.47 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Red Cat Holdings Operating Income Related Terms

Red Cat Holdings Operating Income Historical Data

* Premium members only.

The historical data trend for Red Cat Holdings's Operating Income can be seen below:

Red Cat Holdings Operating Income Chart

Red Cat Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Apr20

Apr21

Apr22

Apr23

Apr24

Dec25

Operating Income

Get a 7-Day Free Trial

-4.88

-13.00

-23.51

-18.89

-66.60

Red Cat Holdings Quarterly Data
	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24	Mar25	Jun25	Sep25	Dec25	Mar26
Operating Income	Get a 7-Day Free Trial															-12.48	-12.65	-17.53	-23.94	-27.30

80GF Score

Red Cat Holdings Inc RCAT

Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.

View Full Analysis

Red Cat Holdings Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-81.42 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of $-81.42 Mil mean?

Red Cat Holdings (RCAT) has a Operating Income of $-81.42 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Red Cat Holdings and its competitors.

Is Red Cat Holdings' Operating Income too high?

Red Cat Holdings' current Operating Income is $-81.42 Mil. Overall, Red Cat Holdings has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Red Cat Holdings' Operating Income compare to CDRE and VOYG?

Red Cat Holdings' Operating Income of $-81.42 Mil can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Operating Income for an Aerospace & Defense company?

A good Operating Income depends on the Aerospace & Defense industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Operating Income mean?

A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Red Cat Holdings and its competitors. Red Cat Holdings's current Operating Income is $-81.42 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Red Cat Holdings stock overvalued right now?

Based on GuruFocus' analysis, Red Cat Holdings (RCAT) is currently considered Modestly Overvalued. The stock's GF Value™ is $7.96, compared to a current price of $10.11 — trading 27% above its estimated fair value. The current Operating Income is $-81.42 Mil. Red Cat Holdings' overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Operating Income calculated?

Operating Income is calculated from a company's financial statements. For Red Cat Holdings (RCAT), the current Operating Income is $-81.42 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Red Cat Holdings (RCAT) Overvalued in 2026?

Based on GuruFocus' analysis, Red Cat Holdings stock appears to be overvalued. The current stock price of $10.11 is trading 27% above its estimated GF Value™ of $7.96. GuruFocus considers Red Cat Holdings to be Modestly Overvalued.

Key valuation signals for RCAT:

Operating Income: $-81.42 Mil
GF Value™: $7.96 vs. price of $10.11 (27% above fair value)
GF Score™: 80/100 with 4 warning signs

No single metric tells the full story. See the RCAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Red Cat Holdings Business Description

Industry Industrials Aerospace & Defense

Comparable Companies CDRE VOYG AVEX NPK EVEX HAWK PKE SATL SWBI RDW SPCX GE RTX XPAR:AIR BA XPAR:SAF LSE:RR.LMT HWM GD

Other Exchanges 1RCAT:Italy BQ73:Germany

Address 2800 South West Temple, Suite 5, South Salt Lake, UT, USA, 84115

Website https://www.redcat.red

Red Cat Holdings Inc is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Its suite of solutions includes the Arachnid family of ISR and precision strike drones, which includes the Black Widow, a small unmanned ISR system; and WEB (Warfighter Electronic Bridge) GCS, designed to command and control an entire drone family of systems for military operations. Its other offerings include Edge 130 Blue drone systems, Trichon, a fixed-wing VTOL for extended endurance and range, and FANG FPV drones optimized for military operations with precision strike capabilities. The firm's Division includes Teal, FlightWave, and Blue Ops.

80GF Score

Get the complete analysis for RCAT

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$10.11

Price

$7.96

GF Value

View RCAT Analysis

See Operating Income data for all stocks →