News about Red Cat Holdings

Red Cat Holdings (RCAT) rose about 8% to $5.10 after announcing a proposed all-cash voluntary public offer for all outstanding shares of Austrian engine maker Steyr Motors. Anchor shareholder B&C Group has irrevocably committed to tender its shares. The deal could add an in-house engine supplier to Red Cat's propulsion stack for the Variant 7 uncrewed surface vessel and its Black Widow drone. Red Cat ended Q2 FY2026 with $325.55 million in cash, but revenue of $20.19 million, up 527% year over year, missed the $22.58 million consensus, and the GAAP loss of $0.26 per share was wider than the $0.17 expected. Full-year revenue guidance of $150 million to $180 million was reaffirmed. Completion depends on enough shareholders tendering to meet the minimum acceptance threshold and on regulatory approvals, and the company said the offer may not close.