WISPR Systems, a U.S.-based manufacturer of secure unmanned aircraft systems, announced today that its SkyScout 2+ has been approved for inclusion on the Blue UAS list, reinforcing the platform’s readiness for deployment across federal, public safety, and regulated commercial operations. The Defense Contract Management Agency’s (DCMA) Blue UAS Cleared List evaluates unmanned aircraft systems for cybersecurity, supply chain security, and operational integrity.
Blue UAS approval reflects rigorous evaluation of the platform’s cybersecurity safeguards, supply chain integrity, system architecture, and operational reliability. Inclusion on the list streamlines federal procurement while providing infrastructure, utility, and enterprise operators added assurance that SkyScout 2+ meets stringent security and compliance standards.
“Blue UAS approval removes a significant barrier for federal and public safety agencies that need secure, NDAA-compliant systems they can deploy immediately,” said John McArthur, Chief Revenue Officer at WISPR Systems. “With SkyScout 2+, agencies don’t have to compromise between cybersecurity assurance and field performance. This designation accelerates procurement and reinforces our commitment to building mission-ready platforms in the United States.”
Operators no longer have to choose between compliance and performance. This platform provides both.
Built for Secure, Reliable Deployment:
SkyScout 2+ was engineered with compliance and operational resilience at its core. The platform incorporates AES-256 encrypted communications, vetted domestically sourced components, hardened system architecture, and secure U.S.-based design, assembly, and lifecycle support.
This foundation enables trusted deployment for federally funded programs, public safety missions, infrastructure inspection, and other regulated environments.
Performance Without Compromise:
Beyond its compliance architecture, SkyScout 2+ delivers field-ready performance across demanding operational environments. The platform features long-range obstacle detection with precision terrain following, EMI protection for high-interference operations, and intelligent power and thermal management for sustained missions in extreme conditions. Its WISPR SkyBoss
controller provides AES-256 encrypted transmission, IP55 protection, and extended runtime.
Strengthening Procurement Confidence:
Blue UAS inclusion streamlines federal procurement and supports organizations that must meet NDAA and cybersecurity compliance standards. The SkyScout 2+ is available now through WISPR Systems and authorized distributors.
For more information,
visit: https://wisprsystems.com/compliance/ + https://wisprsystems.com/skyscout2/
About WISPR Systems:
WISPR Systems designs and manufactures American-made drone technology built for secure, reliable operations across federal, public safety, infrastructure, energy, transportation, and enterprise sectors.
Founded in 2016 in Batesville, Mississippi, the company developed a platform that allows operators to maintain compliance while optimizing performance.
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Houston, TX, USA- When seconds determine safer outcomes, the ability to see and respond firsthand can define a country’s safety. Today, Paladin introduced Knighthawk 2.0, its newest autonomous NDAA-compliant drone. Built on Drone as a First Responder (DFR) technology, Knighthawk 2.0 is designed to modernize public safety infrastructure around the globe by strengthening emergency response, protecting first responders, and safeguarding communities when it matters most.
Across cities, disaster zones, and critical incidents, first responders need public safety infrastructure that is fast, reliable, and mission-ready. Knighthawk 2.0 delivers unmatched speed and precision, reaching the scene in just 70 seconds to provide real-time aerial situational awareness and enhance operational efficiency. Engineered to save lives from the very first moments of a crisis, Knighthawk 2.0 is the next breakthrough for public safety infrastructure. It has over a 40-minute flight time, operates across diverse terrain and unpredictable conditions, and is guided by advanced sensors, precision GPS, and obstacle avoidance. Its 4K Wide, Zoom, and 640p thermal camera, combined with unlimited-range 5G/LTE connectivity, keeps first responders informed and ahead of every situation.
From the United States to India and Portugal, Paladin is delivering Knighthawk 2.0 rapid-response capabilities to first responders worldwide. To enhance global impact, Paladin has partnered with Beyond Vision, a Portuguese drone manufacturer, combining Paladin’s all-in-one DFR solution with Beyond Vision’s expertise in NATO-compliant, fully autonomous UAV systems.
Knighthawk 2.0 isn’t just a drone; it’s public safety infrastructure built for the global scale. It allows countries to have immediate real-time aerial situational awareness, reduce risk, and make faster, more informed decisions in the moments where every second counts. “Public safety is the backbone of modern civilization. When people do not feel safe, everything suffers. We’re excited to launch Knighthawk 2.0 to help build safer cities, and give any city across the world less than 70 second response time for any emergency,”said Divyaditya Shrivastava, CEO of Paladin.
We invite attendees at the World Defense Show (WDS) to experience Knighthawk 2.0 up close. Paladin will showcase the capabilities of the newest drone and how it can deliver rapid aerial situational awareness, empower first responders, and strengthen public safety infrastructure globally. Paladin is sharing a booth with Beyond Vision, providing WDS attendees with the opportunity to explore the capabilities and global deployment solutions. Visit Hall 1, Booth N32 to explore the technology, meet the teams, and see how Knighthawk 2.0 is setting a new standard for public safety when every second counts.
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For more information about Paladin and Beyond Vision, please visit https://www.paladindrones.io/ and https://beyond-vision.com/
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On behalf of the U.S. Army, we are excited to announce full integration of Kraus Hamdani Aerospace’s K1000ULE with Anduril’s Lattice OS, a powerful pairing of endurance and autonomy purpose-built to meet the evolving needs of the warfighter.
The K1000ULE is the world’s longest endurance fully electric Group 2 UAS, designed for persistent overwatch, low-signature operations, and rapid deployment in contested environments.
With native integration into Lattice, Anduril’s real-time operating system for defense, the K1000ULE can now be autonomously tasked and dynamically re-tasked as part of a broader mesh of autonomous systems. This partnership brings together best-in-class flight endurance and mission flexibility with an AI-enabled command-and-control backbone, unlocking scalable, resilient, and distributed capabilities across the modern battlefield.
Together, Kraus Hamdani Aerospace and Anduril are proving out a capability that enables the Army to see farther, persist longer and act faster, in support of warfighters operating at the tactical edge.
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A trusted marketplace expanding NDAA and Blue UAS compliance services.
SALT LAKE CITY, UT – UAS Nexus known across the global drone ecosystem for its industry leadership and behind-the-scenes engineering, has launched the Drone Syndicate Store, a comprehensive and vetted marketplace for NDAA and Blue UAS compliant components.
“It can be tough to scour the globe for drone parts when you’re looking to build an NDAA or BlueUAS compliant platform, so we developed a resource for OEMs and end-users to procure hardware quickly and reliability that layers into our technical engineering services. ” said CEO Bobby Sakaki of the next step for UAS Nexus.
The launch also introduces Platform One, UAS Nexus’ MOSA-first FPV platform that is compatible with most COTs components, offering a truly modular and scalable solution that leverages decentralized manufacturing to output over 10,000 aircraft per month.
“It’s simple, and it works with just about everything on the market – so you have a truly resilient supply chain because if one vendor is maxed out, you can leverage dozens of others. Plus when you manufacture on the edge, you can customize it however you want” said Head of Mechanical, Ryan LaBarre, who designed Platform One.
The Syndicate store operates through a membership request system, reflecting UAS Nexus’ ongoing work sourcing components with limited availability and specialized compliance requirements, as well as vetting end users..
This update represents a significant brand refresh and the debut of a dedicated storefront that highlights the work UAS Nexus has been building for years.
Learn more about UAS Nexus, Platform One, and The Syndicate by visiting uasnexus.com
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- EDGE and Anduril will establish the EDGE-Anduril Production Alliance in the UAE, a jointly-owned production, sales and sustainment vehicle for next-generation autonomous systems.
- Together, the parties will collaborate on Omen, a newly-developed hover-to-cruise Autonomous Air Vehicle (AAV) designed to pack the endurance, payload, and mission flexibility of much larger systems into a novel runway-independent group 3 airframe.
- The UAE will acquire the first 50 Omen systems, creating a guaranteed production base, expanding local supply chains, and accelerating the country’s path toward domestic mass production of AAVs.
- Omen is the first in a series of autonomous systems envisioned under the joint venture.
EDGE, one of the world’s leading advanced technology and defense groups, and Anduril, a global defense technology company, will launch a joint venture to accelerate the design, development, and production of autonomous systems to support civil and defense mission sets in the Middle East and surrounding regions. The United States and United Arab Emirates have a long-standing defense partnership rooted in shared security and commercial interests. Through this collaboration, Anduril and EDGE are deepening that alliance by co-developing critical capabilities that strengthen both nations’ commercial aerospace and defense ecosystems and expand access to advanced, software-defined technologies.
The joint venture will include the formation of a new jointly-owned production, sales and sustainment vehicle, the EDGE–Anduril Production Alliance, which will serve as a center of gravity for modern commercial and defense manufacturing in the region. The parties are in the process of finalising the detailed arrangements in line with the necessary US and UAE approvals required.
The joint venture will combine EDGE’s regional presence and established trust across the Middle East with Anduril’s expertise in rapid, software-driven development and large-scale production. Together, the companies aim to deliver the kind of affordable, fieldable mass that modern deterrence requires — systems that are capable, scalable, and ready for operational use for a wide range of commercial and defense applications. The UAE has confirmed the acquisition of 50 Omen systems, representing a decisive investment that anchors production and will accelerate the development of future co-developed systems.
H.E. Faisal Al Bannai, Chairman of EDGE Group, said: “Our strategic partnership with Anduril opens new pathways for EDGE to harness some of the most advanced autonomous systems engineering in the world. Embedding that capability in the UAE fundamentally accelerates how we innovate, build and field next-generation systems. Omen exemplifies this transformation, combining deep autonomy, operational intelligence, and local production to reinforce the UAE’s position at the forefront of autonomous air capability.”
Trae Stephens, Co-Founder and Executive Chair, Anduril said: “Defense innovation is measured not by ideas, but by the pace at which those ideas translate into capability. With EDGE, we’re aligning the means of production with the urgency of modern deterrence.”
An Alliance for Speed, Scale, and Sovereignty
Under the joint venture agreements, the parties will collaborate on defined projects, coordinate related business development globally, and oversee a shared portfolio of in-scope autonomous systems for military and civilian applications. Activities proposed for partnership through the joint venture may require U.S. and UAE government approval. EDGE and Anduril will work closely with U.S. and UAE authorities to ensure full compliance with applicable laws and regulations including trade compliance rules and regulations.
For EDGE, the joint venture brings access to Anduril’s continuously updated Lattice software platform, a foundational layer of AI-driven command and control that will supercharge both new and existing in-scope joint venture systems. For Anduril, the joint venture creates a trusted production base in the Middle East, allowing systems conceived in California and built in Ohio to be designed, adapted, and manufactured in Abu Dhabi for regional customers. Both companies share a philosophy: move fast, invest ahead of need, and deliver real capability.
Introducing Omen
The first of many systems that will be co-developed and locally produced is Omen, a hover-to-cruise Autonomous Air Vehicle (AAV) that will combine the endurance, payload, and autonomy of larger systems with the flexibility of a compact, runway-independent airframe. Omen builds on Anduril’s $850 million investment in mission autonomy technology and Group 3 VTOL development, paired with nearly $200 million in new investment from EDGE. Together, the companies will take the aircraft from development to full-rate production by the end of 2028.
The UAE has finalized an initial acquisition of 50 Omen systems, creating a guaranteed production base and manufacturing system, expanding local supply chains, and accelerating the country’s path toward domestic mass production of autonomous dual use aircraft, establishing a clear transition from co-development to serial production, operational deployment, and future export to regional and international customers.
Systems for the UAE and other allies will be produced locally by the EDGE-Anduril Production Alliance in the UAE, while U.S. orders are expected to be fulfilled at Anduril’s Arsenal-1 facility in Ohio.
Designed for Multi-Domain and Dual-Use Missions
Omen will provide long-range and high payload for distributed and expeditionary operations. Powered by Anduril’s Lattice for Mission Autonomy software, multiple aircraft will coordinate flight paths, share sensor data, and adapt behavior in real time, enabling new missions that bring the capabilities of much larger systems to smaller, more expeditionary units.
Its lightweight, foldable frame will allow a two-person team to transport, assemble, and launch the aircraft in minutes without specialized infrastructure. Built for endurance and heavy payloads, Omen will support missions ranging from maritime surveillance and logistics resupply to air defense sensing and communications relay.
Its open, modular architecture will enable reconfiguration for diverse missions across defense and civilian domains. Beyond military use, Omen will be optimized for a variety of commercial mission sets. For example, Omen could serve as an airborne cell tower to restore connectivity after natural disasters, support humanitarian relief, or deliver critical supplies to remote areas when ground access is cut off.
Built and Produced in the UAE
In addition to the EDGE-Anduril Production Alliance’s expected production and sustainment facilities, Anduril is establishing a permanent UAE presence with a 50,000-square-foot research, development, and virtual simulation centre, purpose-built to expand and evolve with future programmes. The facility will serve as a regional hub for engineering, design, and prototyping — supporting the development, integration, and testing of advanced autonomous systems and related hardware.
By co-investing ahead of need and embedding production capacity in the UAE, EDGE and Anduril are shortening the distance between concept and fielded capability. The joint venture represents a concrete step toward a more agile, self-reliant commercial and defense industrial base—one designed to produce real systems, at scale for the missions that matter most.
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| Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“Draganfly” or the “Company”), an industry-leading developer of drone solutions and systems, today announced its selection by the U.S. Army to provide Flex FPV drone systems. |
| Under the initial order, Draganfly will deliver Flex FPV drones designed for high-performance operations as well as help establish on-site manufacturing of the Flex FPV (First Person View) within overseas U.S. Forces facilities to accelerate deployment and reduce supply-chain timelines. The Company will also provide both flight and manufacturing training to enable Army personnel to sustain operations, and will manage logistics to ensure a secure, NDAA-compliant supply chain practice. This marks a significant milestone in evolving critical drone capabilities closer to the theater of operations, reducing logistical vulnerabilities and enhancing force readiness. |
| Recent exercises have underscored the importance of FPV technology for U.S. forces. During the Swift Response 2025 exercise in Lithuania, paratroopers operated and detonated in-house-built FPV drones against dismounted and vehicle-sized autonomous targets. The unit has also established its own drone lab for design, training, and rapid innovation. In August 2025, the U.S. Army executed the first-ever air-to-air kill with an armed FPV drone, advancing the evolution of drone warfare. Draganfly’s Embedded Manufacturing Program and the Flex FPV Drone systems are in direct support of this strategic shift to decentralized and agile innovation. |
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| “We are honored to support the U.S. Army as it moves critical drone capabilities closer to front lines,” Cameron Chell, President & CEO |
| “We are honored to support the U.S. Army as it moves critical drone capabilities closer to front lines,” said Cameron Chell, President & CEO of Draganfly. “By combining advanced Flex FPV Drone systems, embedded manufacturing, training and secure logistics, we are helping reinforce operational agility and sustainment for forward-deployed forces. This helps ensure personnel have the tools, training and capabilities required when and where they need them most.” |
| About Draganfly |
| Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) is a pioneer in drone solutions and robotics. With over 25 years of innovation, Draganfly has been at the forefront of drone technology, providing solutions for public safety, agriculture, industrial inspections, security, mapping, and surveying. The Company is committed to delivering efficient, reliable, and industry-leading technology that helps organizations save time, money, and lives. |
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Meet the immediate Tether Solution from ARASTELLE for Parrot ANAFI UKR, the only energy-sufficient ultra-portable tether made for Defense, Public Safety, Government agencies and Enterprise.
This tether solution turns in seconds the recently announced Parrot ANAFI UKR into a powerful watchtower.
https://www.parrot.com/en/drones/anafi-usa
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WISPR Systems and NW Blue are proud to partner together to form an alliance focused on showcasing the best in American-made drone technology and advancing the conversation around precision, reliability and real-world applications. Through this partnership, the two companies are setting a new standard in unmanned systems, driven by a mutual commitment to performance, compliance and customer success.
Precision Platforms Meet Proven Components
WISPR Systems, headquartered in Batesville, Mississippi, designs and manufactures rugged, high-performance drones for mapping, surveying and inspection. The SkyScout, WISPR’s flagship UAV platform, is purpose-built for demanding field conditions and delivers industry-leading accuracy. Equipped with customizable payload options—including the 24MP Mapper, Sony ILX-LR1 and LiDAR units from Inertial Labs and YellowScan—the SkyScout empowers professionals across industries like construction, engineering and utilities to collect precise data with efficiency and ease.
This collaboration integrates NW Blue’s Herelink Blue, an all-in-one solution for ultra-low latency video, telemetry and control links up to 20 km. Manufactured in the USA of US and imported parts, the intuitive interface provides real-time feedback, giving drone pilots unmatched situational awareness and responsiveness in the field. Built for reliability, the Herelink Blue system aligns with both companies’ commitment to professional-grade usability and mission-critical performance.
The Orange Cube helps future-proof our platforms, said John McArthur, VP of sales and marketing for WISPR Systems. It was an easy decision to invest in the best.
Powered by CubePilot
A key component in this collaboration is WISPR’s utilization of the CubePilot Cube Orange+ a Blue UAS Framework listed flight controller, distributed by NW Blue. This industry trusted autopilot with its redundant and isolated sensors is stress-tested by freezing/heating multiple times over a 24-hour period. Any detected IMU anomaly would cause its rejection—enabling WISPR drones to remain at the forefront of UAV performance.
A Shared Mission for U.S. Drone Leadership
This partnership reflects more than just technical integration—it’s about creating lasting value through American-made innovation and support. NW Blue isn’t just a top-tier manufacturer and distributor; it’s a partner committed to helping clients thrive.
At NW Blue, we’re driven not just by delivering the industry’s most trusted UxV components, but by building lasting partnerships through unmatched support, said Hillary Bierschank co-founder of NW Blue. Our greatest success is watching our partners such as WISPR grow and thrive.
Whether mapping power lines, surveying land, or training future operators, these integrated systems are designed to perform today and tomorrow.
Together, WISPR Systems and NW Blue aren’t just building drones. They’re building a smarter, more secure and more sustainable future for the U.S. drone industry.
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The changing landscape of U.S. tech manufacturing spearheaded by the dynamic drone sector reflects a broader push to reduce reliance on Chinese components and bolster national security. Industry stakeholders must stay informed and proactive in navigating these evolving regulatory environments.
The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) has recently sanctioned Jiangzi Xintuo Enterprise Co. Ltd, also known as T-Motor, a major global supplier of rotor components used in unmanned aerial systems (UAS). This follows the Department of Commerce’s 2024 decision to place T-Motor on the Bureau of Industry and Security’s Entity List due to its support of foreign military capabilities. These actions highlight growing concerns about supply chain security and national security objectives in the U.S.
While motors are not currently covered under National Defense Authorization Act (NDAA) restrictions, as trade organization AUVSI points out in a policy blog, ‘T-Motor Sanctions: AUVSI’s Analysis and Recommendations’ U.S. companies must be aware that non-defense government actions, like OFAC sanctions and the Commerce Department Entity List, pose significant compliance risks for continued reliance on these components. Industry leaders are working to identify and transition to alternative suppliers, though challenges in availability, cost, and performance remain.
Made in the USA
The drive to find alternatives to Chinese-made unmanned aerial vehicles (UAVs) and components is gaining momentum. Legislative measures and lists of approved vendors, such as the US Defense Innovation Unit’s (DIU) Blue UAS Cleared List, are steering buyers away from vendors like DJI and T-Motor. For example, North Dakota’s state government, supported by the governor, is proposing a $15 million investment to replace Chinese drones used by state agencies.
Florida’s state government also requires its agencies to purchase drones from an approved list based on recommendations from the Department of Management Services. This trend is not confined to the U.S.; Ukraine’s Ministry of Strategic Industries recently showcased its domestic UAV manufacturers to promote non-Chinese vendors.
Both public and private sectors are working to find alternatives to Chinese drone vendors and component suppliers. Trade and lobby groups such as AUVSI, the United States National Drone Association and National Drone Association of America (NDAOA) are marshalling the voice of users, operators and supply chains, as manufacturers in China have begun limiting or stopping deliveries of essential UAV components to the U.S. and Europe.
Public safety
Meanwhile, the environment and technologies employed to support public safety in the United States are undergoing a transformative shift, driven by advancements in and the adoption of drone technology. This evolution is set against a backdrop of increased demands for de-escalation, enhanced situational awareness, and more efficient resource allocation amidst public safety staffing shortages and challenges, as reported by law enforcement news portal Police 1.
Types of Drones Used in Public Safety
Public safety agencies utilize different types of drones based on their specific needs. Here are the primary categories:
- Fixed-Wing Drones – These drones are designed for long-range surveillance, mapping, and large-area search and rescue operations. They provide extended flight times and are used for disaster response and border security.
- Multi-Rotor Drones – These are the most commonly used drones in public safety, offering agility, ease of use, and the ability to hover. They are widely employed by law enforcement, fire departments, and emergency response teams.
- Hybrid VTOL (Vertical Take-Off and Landing) Drones – These drones combine the benefits of fixed-wing and multi-rotor designs, making them suitable for extended missions requiring both endurance and maneuverability.
Key Applications of Drones in Public Safety
Law Enforcement
- Surveillance and Reconnaissance: Drones assist in monitoring criminal activity, gathering intelligence, and providing real-time data.
- Crowd Control and Event Security: Law enforcement uses drones to oversee large public gatherings, protests, and sporting events.
- Tactical Support: SWAT teams deploy drones for situational awareness before entering potentially dangerous situations.
Firefighting
- Wildfire Management: Drones equipped with thermal imaging cameras help locate hotspots and track the spread of wildfires.
- Structural Fire Assessment: Firefighters use drones to assess burning buildings and determine safe entry points.
Search and Rescue (SAR)
- Disaster Response: After natural disasters, drones help locate survivors and assess damage.
- Missing Persons Search: Equipped with infrared cameras, drones assist SAR teams in locating lost individuals in difficult terrains or low-visibility conditions.
Emergency Medical Services (EMS)
- Medical Supply Delivery: Some agencies are testing drone delivery of defibrillators, first aid kits, and other emergency supplies.
- Accident Scene Analysis: Drones provide aerial views of accident sites, helping EMS teams coordinate their response.
At the forefront of this evolution are American drone manufacturers like BRINC Drones (Washington), Flock Safety (Atlanta) , which recently acquired Aerodome (California), Skydio (California) Impossible Aerospace (California) and AeroVironment (Virginia), TeledyneFlir (Oregon) and Parrot Anafi USA (Massachusetts ). These companies are innovating and are positioned to lead the market as competition intensifies, particularly in light of a potential ban on Chinese-made drones, such as those produced by DJI. The potential banning of DJI drones, due to security concerns and increasing scrutiny of Chinese technology, may create a unique opportunity for American manufacturers to dominate the U.S. market. However, many public safety agencies currently consider DJI drones to be more capable and significantly cheaper than their domestic counterparts. With DJI’s significant penetration in public safety agencies, a vacuum created by its potential absence will spark an arms race among U.S.-based companies to develop superior products tailored for public safety use.
This competition is expected to drive rapid innovation, improve product quality, and potentially lower costs, making advanced drone technology more accessible to police departments, fire departments, and other governmental agencies nationwide. As these manufacturers vie for market share, the ultimate winners will be public safety agencies and the communities they serve.
Home-grown supply chain
In this fast-moving space, AUVSI encourages members to assess their supply chain exposure and consider alternative sourcing strategies. In active conversations with the Department of Defense, Department of Commerce, and Capitol Hill, AUVSI is exploring efforts, including invoking the Defense Production Act, to provide financial assistance to U.S. companies for building, expanding, or modernizing production facilities.
These measures aim to support domestic supply chains for critical technologies that are challenging to source outside of China.
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We are short shares of Red Cat Holdings, a $1 billion drone manufacturer that’s added more than $900 million in market capitalization over the last 9 months mostly in anticipation of an award for the production of the US Army’s short range reconnaissance (SRR) drone and the supposedly massive market opportunity unlocked by such a high-profile endorsement.
But expectations for both the SRR contract size and the potential for follow-on sales bear almost no
relationship to reality.
Army budget documents clearly delineate an SRR budget for 2025 of just under $25 million, and an expectation of about the same in the medium term. The Army also intends to refresh the SRR model every 2-3 years while remaining open to switching contractors. That contrasts sharply with Red Cat management’s crafty portrayal of a sole-source contract worth close to $400 million over 5 years, and $80 million in 2025. Investors should also consider that Red Cat preemptively announced the program win without the Army’s permission, weakening its position in contract negotiations and even, in a worst-case scenario, endangering the award.
Red Cat’s depiction of a huge follow-on market consisting of the other US military services, US government agencies, and US-allied militaries is also a fantasy. The Air Force has little infantry and thus little use for an infantry drone, and the Marines and Coast Guard have preexisting drone programs. The only other relevant government agency is Customs and Border Patrol, and its budget documents indicate near term drone procurement of just $1 million. Meanwhile, management has been talking about massive imminent drone sales to NATO allies for the last 3 years with nothing to show for it, which could be because European militaries are more inclined to modify cheaper and better Chinese drones or because there’s an array of smaller homegrown European drone suppliers already supplying these customers.
Just like those elusive NATO contracts, Red Cat has been setting near-term deadlines for a “mass production” facility since 2022, but having devoted almost no capex to one, still can’t manufacture large quantities of drones. 2025 guidance, though, assumes that Red Cat will produce 3 new drone models, each at triple the speed of the company’s historical best seller.
One of those new drones, the Edge 130, comes to Red Cat through a 2024 acquisition and has never been produced as more than a prototype.
Red Cat’s declarations and projections rarely materialize, and we believe the same will be true of both the company’s 2025 guidance and the parameters of the SRR contract. Almost immediately following the SRR win, two key executives – including George Matus, the brains behind the SRR-winning drone – resigned and sold most of their stock. Share sales have also been made by other insiders. Having set almost impossible expectations, Red Cat is set to be blown out of the sky.
Read the full Kerrisdale Capital report.
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