Red Cat Holdings Inc. (NASDAQ:RCAT) is trending Thursday after the company announced its Teal Drones subsidiary received a $2.49 million firm-fixed-price contract from the U.S. Air Force for Black Widow small, unmanned aircraft systems.

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US Air Force Tests Red Cat’s Black Widow Drone as Teal 2 Successor

The award includes Black Widow systems, train-the-trainer support, batteries, spares, and shipping. The equipment will be used by the U.S. Air Force Security Forces Center to conduct a technical and operational assessment of Black Widow as a potential successor to the Air Force Security Forces’ current Teal 2 fleet, spanning active-duty, Air National Guard, and Air Force Reserve Defenders. The contract calls for delivery by August 24, 2026.

“We are proud to support the U.S. Air Force across active-duty, Air National Guard, and reservists, as the AFSFC evaluates Black Widow for missions at the tactical edge,” said Jeff Thompson, CEO of Red Cat. “This assessment of the Black Widow reflects growing recognition across the Department of War that secure, American-made systems are essential for the operations our national defense and security organizations carry out every day.”

Why It Matters

Black Widow is Red Cat’s flagship short-range reconnaissance system and was previously selected as the U.S. Army’s platform for its Short-Range Reconnaissance Program. The assessment builds on that momentum, positioning Black Widow as a potential successor across the Air Force Security Forces Center’s broader Teal 2 fleet.

RCAT Price Action: At the time of publication, Red Cat shares are trading 2.51% higher at $6.94, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.