Red Cat stock soars after NATO approves Teal Drones system

Published 11/09/2025, 12:46
© Reuters.

Investing.com -- Red Cat Holdings, Inc. (NASDAQ:RCAT) stock jumped 10% in pre-market trading Thursday after the company announced its Teal Drones Black Widow™ System has been approved for the NATO Support and Procurement Agency (NSPA) catalogue.

The approval enables NATO member nations and eligible partners to procure the Black Widow drone system through NSPA-managed channels, including direct catalogue ordering and sponsored tenders. This designation streamlines the acquisition process for allied forces seeking U.S.-manufactured drone technology.

"Black Widow gives allied forces a rugged, rapidly deployable ISR capability with minimal training burden," said Geoffrey Hitchcock, Chief Revenue Officer at Red Cat. "Being available through NSPA simplifies cross-border acquisition and sustainment, helping customers move from requirement to fielding faster."

The Black Widow is a small uncrewed aerial system (sUAS) that was previously selected by the U.S. Army as one of two vendors to manufacture systems for its Short Range Reconnaissance program. The drone weighs under 3 pounds, offers 45+ minutes of endurance, and comes equipped with advanced EO/IR sensors for day and night operations.

The system is designed for tactical intelligence, surveillance, and reconnaissance missions, as well as perimeter security and overwatch operations. It features NDAA compliance, encrypted communications, and a modular payload architecture that supports third-party integrations.

The NSPA catalogue inclusion is based on a three-year contract with options for two additional years at NSPA’s discretion, potentially opening new revenue streams for the Puerto Rico-based drone technology provider.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.