Red Cat Holdings, Inc.
RCAT Industrials Aerospace & Defense
In the quarter to June 2026, revenue grew 527.2%, EPS fell 73.3%, free cash flow fell 298.2% and total debt rose 154.9%, each against the same quarter a year earlier.
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Red Cat Holdings, Inc. (RCAT) Altman Z-score
Red Cat Holdings, Inc.'s Altman Z-score for fiscal 2025 is 16.18, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 16.18 | (87.99) |
| FY2024 | 104.17 | 95.80 |
| FY2024 | 8.37 | 5.65 |
| FY2023 | 2.72 | (5.30) |
| FY2022 | 8.03 | 2.26 |
| FY2021 | 5.77 | (0.62) |
| FY2020 | 6.39 | 101.99 |
| FY2018 | −95.60 | (73.47) |
| FY2016 | −22.13 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.77 | — | 0.93 | |
| Retained earnings / total assets | (0.72) | — | −1.01 | |
| EBIT / total assets | (0.24) | — | −0.80 | |
| Market value of equity / total liabilities | 28.18 | — | 16.91 | |
| Sales / total assets | 0.15 | — | 0.15 | |
| Altman Z-score | Safe zone | 16.18 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 10.37 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| PKE Park Aerospace Corp. compare | 27.0× |
| RCAT Red Cat Holdings, Inc. | 16.2× |
| RGR Sturm, Ruger & Company, Inc. compare | 9.2× |
| TATT TAT Technologies Ltd. compare | 8.4× |
| NPK National Presto Industries, Inc. compare | 7.4× |
| SWBI Smith & Wesson Brands, Inc. compare | 5.7× |
| CDRE Cadre Holdings, Inc. compare | 3.8× |
| SATL Satellogic Inc. compare | −2.2× |
| EVEX Eve Holding, Inc. compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets