Red Cat Holdings announced a leadership reshuffle that will see its current Chief Financial Officer, Christian Ericson, move to the role of Chief Operating Officer, while Christian Morrison will take over as Chief Financial Officer. Ericson, who joined the company in March 2025, will now oversee day‑to‑day operations, supply‑chain management, and production efficiency as the company ramps up its new drone platforms.
Morrison brings more than two decades of corporate finance experience, including senior roles at Skullcandy and Varex Imaging. He will focus on financial strategy, capital structure, and investor relations, and is expected to strengthen the balance sheet and support the capital‑intensive production scale required for the U.S. Army’s Short‑Range Reconnaissance (SRR) program and other upcoming government orders.
The SRR contract, which replaces Skydio, is a five‑year, 5,880‑system order that is a key driver for Red Cat’s growth. The company’s Q3 2025 revenue of $9.65 million, a 200 % sequential increase, beat analyst estimates of $8.45 million, while EPS of –$0.16 missed the –$0.09 estimate. The revenue beat was driven by strong demand for the Black Widow sUAS and other drone platforms, but the loss was largely due to ongoing investment in manufacturing capacity and higher raw‑material costs.
Management highlighted that the leadership change is part of a broader strategy to accelerate production and tighten financial discipline. CEO Jeff Thompson said, “Christian’s financial acumen and proven track record in scaling businesses will be invaluable as we strengthen our balance sheet and pursue growth opportunities globally.” Ericson added, “I am excited to focus on operational excellence and customer success as we deliver cutting‑edge technology to define aerial intelligence.”
Red Cat’s full‑year 2025 revenue guidance was updated to $34.5 million–$37.5 million, up from the prior $34.0 million–$36.0 million range, reflecting confidence in continued demand for its drone systems. The company also reiterated its commitment to expanding manufacturing capacity through a partnership with ESAero for AS9100‑certified production of the Black Widow drone.
Investors reacted with a muted after‑hours move, indicating that the market is awaiting further financial updates while recognizing the strategic importance of the leadership shift and the Army contract.
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