All eyes are on Red Cat Holdings as the company prepares to release its third-quarter financial performance after market close on Thursday, November 13, 2025. This earnings announcement arrives at a pivotal moment for the struggling stock, with conflicting signals creating uncertainty about its future direction.
Pentagon Certification Offers Strategic Breakthrough
Amid the prevailing negative sentiment, Red Cat recently achieved a significant operational milestone. The company’s FANG™ FPV drone system has received official inclusion on the Department of Defense’s Blue UAS Cleared List. This certification represents far more than routine approval—it validates that the system meets the Pentagon’s rigorous standards for cybersecurity and supply chain integrity. This development could potentially unlock substantial government contracting opportunities in the long term, providing a notable positive counterpoint to recent challenges.
Technical Indicators Paint Bearish Picture
Current technical analysis reveals substantial downward pressure on Red Cat shares. As of November 11, an overwhelming majority of technical indicators—twenty out of twenty-six—signal a continuing downtrend. With only six indicators suggesting potential upward movement, the technical landscape appears decidedly bearish heading into the earnings release.
Insider Selling Raises Concerns
Potentially more troubling for investors has been the activity of company insiders. Over the past ninety days, corporate executives and directors have collectively disposed of 86,833 shares. A particularly notable transaction occurred on September 11, when a single director sold 30,000 shares. Such concentrated selling activity traditionally draws market scrutiny, as insiders typically possess the most current understanding of the company’s operational health and prospects.
Should investors sell immediately? Or is it worth buying Red Cat?
Modest Expectations Set Stage for Volatility
Financial analysts have set relatively low expectations for the upcoming report, anticipating a loss of $0.07 per share on revenue approximating $8.175 million. The critical question remains whether Red Cat can meet or potentially exceed these modest projections. Given the current nervous market sentiment surrounding the stock, even minor deviations from these estimates could trigger significant price movements.
Key Data Points:
* Quarterly results scheduled for November 13 after market close
* Projected loss per share: $0.07 on revenue of $8.175 million
* Technical analysis shows 20 of 26 indicators signaling decline
* Insiders have sold 86,833 shares over 90 days
* FANG drone system gains Pentagon certification
The central question facing investors is whether the company’s operational achievements, particularly the Pentagon certification, can outweigh the concerning technical signals and insider selling activity. Market participants await the answer with just hours remaining until the financial disclosure.
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