Marvell shares spike amid report SoftBank explored possible takeover
JACKSONVILLE, Fla. - Redwire Corporation (NYSE:RDW) announced Tuesday that its subsidiary Edge Autonomy has formed a partnership with Red Cat (NASDAQ:RCAT) to integrate drone technologies for U.S. Army missions. Red Cat, whose stock has surged over 320% in the past year and currently trades near its 52-week high of $16.70, has been one of the standout performers in the defense technology sector.
The collaboration will combine Red Cat’s Teal Drones Black Widow, a compact quadcopter, with Edge Autonomy’s Stalker, a fixed-wing vertical takeoff and landing unmanned aerial system. According to the press release, the integration aims to support military operations requiring surveillance and reconnaissance capabilities. InvestingPro data shows Red Cat maintains a strong financial position with a current ratio of 3.8, indicating robust liquidity to support its military contracts.
The Stalker system will serve as a carrier and launch platform for the Black Widow drone, which can be mounted under the center wing. This configuration is designed to extend mission range with the Stalker also functioning as a communications relay.
"Our Stalker is combat proven with exceptional long-range reconnaissance capabilities," said Steve Adlich, President of Edge Autonomy, in the statement.
The Black Widow drone was selected by the Army for its Short Range Reconnaissance Tranche 2 program in November 2024, according to the announcement.
Jeff Thompson, CEO of Red Cat, stated that the integration "represents a major step forward in how tactical drones are deployed across multiple echelons."
Edge Autonomy, a wholly owned subsidiary of Redwire, provides unmanned aerial systems and other technologies to the Department of Defense, U.S. Federal Civilian Agencies, and allied governments. The company reports its products are deployed in nearly 80 countries.
The announcement did not include financial details of the partnership or specific timelines for implementation. While analysts tracked by InvestingPro expect sales growth this year, they don’t anticipate profitability in the near term. Investors seeking deeper insights into Red Cat’s valuation and 10+ additional ProTips can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Red Cat Holdings announced a significant financial move by raising approximately $172.5 million through a public offering of common stock, which includes the full exercise of the underwriters’ option to purchase additional shares. This capital is earmarked for general corporate purposes and operational expenses related to its new unmanned surface vessel division. Additionally, Red Cat has priced another public offering, aiming to generate around $150 million in gross proceeds. In a separate development, Unusual Machines has received an $800,000 order from Red Cat for various drone components to be used in their FANG drones. Meanwhile, Needham has initiated coverage on Red Cat with a Buy rating, citing growth in the defense drone sector. However, Red Cat is facing scrutiny after a short report by Fuzzy Panda Research alleged that the company’s Army contract is significantly smaller than previously claimed. According to the report, the contract is worth $12.9 million, which contrasts with the $30-55 million figure suggested by analysts and management. These developments highlight the dynamic and multifaceted nature of Red Cat’s current business activities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.