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Red Cat Holdings, Inc. RCAT Convertible Note Payable Fair Value Adjustment

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Other financials

Income statement

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Revenue$15.5M+849%
Gross profit$2.0M+331%
Operating income-$27.3M-119%
Net income-$26.6M-14.8%
EPS (diluted)-$0.22+18.5%

Balance sheet

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Cash & equivalents$131.9M+1,608%
Total debt$14.1M-49.1%
Total equity$238.7M+726%
Total assets$281.9M+373%

Cash flow

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Operating cash flow-$31.9M-101%
CapEx$6.8M+2,385%
Free cash flow-$38.7M-139%

Valuation

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Market cap$1.42B+110%
Enterprise value$1.3B+87.2%
P/S26.1×-28.7×

Profitability

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Gross margin7.5%+4.1pp
Operating margin-149.2%-58.6pp
Net margin-138.4%-61.7pp
FCF margin-216.8%

Returns & leverage

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Return on equity-56.4%-24.3pp
Debt / equity0.1×-0.9×
Current ratio11×+10.0×

Where this comes from

Reported directly by Red Cat Holdings, Inc. in its filing.

Tagged under the XBRL concept rcat:ConvertibleNotePayableFairValueAdjustment.

The official record: Red Cat Holdings, Inc.’s 10-Q, filed May 7, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Red Cat Holdings, Inc.'s convertible note payable fair value adjustment?
Red Cat Holdings, Inc. (RCAT) reported convertible note payable fair value adjustment of -$867K in Q1 2026.
How has Red Cat Holdings, Inc.'s convertible note payable fair value adjustment changed year-over-year?
Red Cat Holdings, Inc.'s convertible note payable fair value adjustment increased by 91.9% year-over-year, from -$10.7M to -$867K.
What does convertible note payable fair value adjustment mean?
This represents the periodic non-cash adjustment to the carrying value of convertible debt instruments measured at fair value. It reflects changes in the market value of the debt liability due to fluctuations in the company's stock price, interest rates, or credit risk. Investors monitor this to isolate non-operating volatility from core operational performance.