RCATRed Cat Holdings, Inc.

Services-Prepackaged Software

Revenue: $41M; 128% YoY
Operating margin: -163.5%; 51% YoY
EBITDA: −$64M; 260% YoY
Market cap: $707M
Employees: 244; $167K revenue each
Net debt / EBITDA: —; −$65M net debt
AI in 10-K: 5.8; mentions per 10K words

Takeover score 4 of 13

Fixable underperformance 2 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
$2M median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCYes
26% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
9% of assets
Over 40% of assets
Shareholder dissentYes
39% lowest support
Any vote under 80% support

Buyer economics 2 of 4

Low revenue per employeeYes
$167K · 9th pct
Bottom quartile of its SIC industry
Quiet on AINo
5.8 per 10K words · 85th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
—
More cash than debt, positive EBITDA
Buyout-sizedYes
$707M market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$8M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$5M	$6M	$1M	$18M	$41M	128%
Operating income	—	—	−$26M	−$19M	−$67M	245%
Net income	−$13M	−$12M	−$27M	−$24M	−$72M	200%
Operating cash flow	−$1M	−$16M	−$29M	−$18M	−$89M	403%
Capex	—	$364K	$2M	$259K	$7M	2466%
Stock-based comp	$3M	$3M	$4M	$4M	$11M	193%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Nov 12, 2020	French Gregory Ralph	SC 13D	21.0%	Passive
May 16, 2019	Thompson Jeffrey M	SC 13D	55.2%	Passive
Jan 7, 2019	READ JONATHAN R	SC 13D	50.0%	Passive

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $8M · 8
Net: −$8M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	$7M	$263K	391	—
FY2024	$2M	$2M	38	—
FY2023	$826K	$826K	22	—