Red Cat Holdings, Inc.

Greetings and welcome to the REDCAT Quarterly Earnings. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ankit Hira, Investor Relations. Thank you, Ankit. You may begin.

Good afternoon and welcome to REDCAT's fourth quarter and full year 2025 earnings call. Joining us are Red Cat CEO Jeff Thompson, COO Chris Erickson, and CFO Christian Morrison. Please note that certain information discussed on the call today will include forward-looking statements for our future events and Red Cat's business strategy and future financial and operating performance. These forward-looking statements are only predictions and are subject to risk, uncertainties, and assumptions that are difficult to predict and may cause actual results to differ materially from those stated or implied by those statements. Certain risks, uncertainties, and assumptions are discussed in REDCAT's SEC filings, including its most recent annual report on Form 10-K and other SEC filings. These forward-looking statements reflect management's beliefs, estimates, and predictions as of the date of this live broadcast, March 18th, 2026, and REDCAT undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. In addition, our comments on the call today contain references to non-GAAP financial measures such as adjusted EBITDA and key business metrics. Non-GAAP measures should be viewed in addition to and not as an alternative for the company's reporting GAAP results. A reconciliation of these non-GAAP measures to their most directly comparable GAAP measures, as well as definitions of the key business metrics reference and management's reasons for including the non-GAAP measures and key business metrics reference may be found in the press release. Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link available on the Investor Relations section of the company's website at ir.redcatholdings.com. With that, I'll now turn the call over to Jeff.

Thanks, Sinkit. Good afternoon, and thank you for joining RedCat's Q4 2025 earnings call. I'm going to let Chris Erickson, our COO, and Chris Morrison, our CFO, discuss last year's extraordinary Q4 results. which annualized would be over $100 million. I am going to cover Blue Ops, Black Widow work in Ukraine, drone dominance and guidance. A year ago on the same call, we announced our new mission, Maritime USVs. We found a management dream team in the early summer to build this division. The new team spent many weeks in Europe to learn how these boats were so successful against the Russian Navy. By August, we had preliminary designs, and by December, we had a boat in the water driving autonomously and out-of-the-box ATAC capable. We found a boat factory in Georgia, signed a lease for 155,000 square feet. That factory just went operational approximately one month ago and will have full-rate production tooling later this month. We believe and are confident that they can build over 100-plus USVs in 2026 as we ramp up production capability to thousands. BlueOps is a strategic and important part of RedCat's family of systems. It opens the rest of the globe for RedCat. our family of systems was limited to 30% of Earth. With our new Variant 7 and other hulls, we can now launch from 100% of the globe. We believe that our Blue Ops USVs can keep our warfighters out of harm's way and make them more lethal. We believe Blue Ops could be very helpful in Venezuela, in the USVIs, the Gulf of America, Cuba, and urgently in the Strait of Hormuz. Blue Ops demonstrated partners on Innovation Day that was timely. We demonstrated short-range and long-range counter-drone capability. For short-range, we have the ACS Bullfrog on the front of the Variant 7 that can shoot down FPV drones up to 1,500 yards and can do the same to a Shaheed 136. For long-range, we had the Aeon Zeus that can travel 20 kilometers and take out Shahi's 136 at a very low cost. The two weapon systems combined on the Variant 7, controlled miles away, can deliver a potent deadly deterrent for short-range and long-range counter-drone operations. Let's move on to recent work in Ukraine with the Black Widow. Last fall, we deployed a team to Ukraine in hopes to get them a drone to replace the Chinese ISR drones and to verify the drones we are delivering to soldiers would work in an actual battlefield. The team received an MOU and an LOC and recently, LOR, a letter of request. I'm going to have Chris Erickson, who just got back from Ukraine last night, give more details on this mission. I also want to thank the Red Cat ICC team for this hard and dangerous work. Drone dominance. As you know, we do not make the cut at Drone Dominance Gauntlet 1. I have a ton of excuses, but I'm not going to go there. We are preparing for Gauntlet 2 and hope to have better results. But we believe even if we lose every stage of the gauntlet, we will still be one of the larger beneficiaries of the program. there's going to be a total award of 350,000 FPV drones. Going by the Ukrainian ratio of 20 to 1, that requires 17,500 ISR drones or 8,750 SR systems. Sensor shooter requires a sensor, and that's what the Black Widow is. We will support the drone dominance program in any way we can. Guidance. We are not currently ready to offer official guidance. We want to have our government contracts in hand before we give guidance. We do not want a replay of last year during the continuing resolution. Fortunately, we have a budget for 2026, which also just received an additional $150 billion. It looks like we'll be getting another $50 billion for Iran. We don't have to wait until the next quarterly to give an update on guidance, and as soon as we have the contracts in hand, we will update the market. And with that, I will hand this to Chris Erickson.