What is Red Cat Holdings, Inc.'s Shariah compliance score?

Red Cat Holdings, Inc. (RCAT) has a Shariah compliance score of 0/100 (Grade: F, Non-Compliant). AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%.

Does Red Cat Holdings, Inc. pass AAOIFI screening?

Red Cat Holdings, Inc. (RCAT) does not pass AAOIFI Shariah screening. AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. RCAT's debt-to-market-cap is 0.1%.

How much purification is needed for Red Cat Holdings, Inc.?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the percentage and amount for Red Cat Holdings, Inc. (RCAT) using the latest financial data.

Where can I screen Red Cat Holdings, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Red Cat Holdings, Inc. (RCAT) and 8,200+ securities. US-listed stocks and ETFs are screened under AAOIFI Standard No. 21. Bursa Malaysia securities carry the Securities Commission Malaysia's official status. Coins are screened separately, under published scholarly opinion. The verdict is free, with no credit card or signup required for basic screening. The compliance grade, score, and debt ratio are free too; the full ratio breakdown is part of Pro.

RCATNot HalalF

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Compliance Status

Not Halal

Screened on Oct 19, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Red Cat Holdings, Inc. (RCAT) halal? Not Halal. Based on AAOIFI screening, Red Cat Holdings, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Red Cat Holdings, Inc. (RCAT) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 19, 2026. Source: https://halalscreener.app/en/stock/RCAT

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

0.1% of 30.0% limit

PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding RCAT

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

RCAT: Is Red Cat Holdings, Inc. Halal?

Red Cat Holdings, Inc.

NASDAQIndustrialsUS

$4.72

-3.67%

Market Cap: 720.8M

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About Red Cat Holdings, Inc.

Red Cat Holdings, Inc. (RCAT) operates as a multifaceted provider within the drone industry, offering a comprehensive suite of products, services, and innovative solutions. The company develops and supplies unmanned aerial vehicle (UAV) technology tailored for both commercial and government sectors, addressing critical applications such as reconnaissance, public safety, and detailed inspection. Its product portfolio also includes immersive First Person View (FPV) video goggles, alongside specialized software and hardware designed to enable drones to perform inspection tasks even in environments where global positioning systems are inaccessible. Furthermore, Red Cat Holdings actively markets and sells FPV drones and related equipment, predominantly serving the consumer marketplace. The company's operations are headquartered in San Juan, Puerto Rico.

Sector: Industrials · Industry: Aerospace & Defense

Why this does not pass

Interest-bearing deposits are over the 30% limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 19, 2026

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Institutional-grade Shariah analysis

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PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

Compliance History

Not Halalnow
since Sep 2026
Doubtful
until the change above
Halal
until the change above
Doubtful
until the change above
Halal
until the change above
Not Halal
until the change above
Halal
before we began tracking

Tracked since Apr 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR

Halal Alternatives in Industrials

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is Red Cat Holdings, Inc. (RCAT) halal to invest in?

Red Cat Holdings, Inc. (RCAT) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Red Cat Holdings, Inc. get a F compliance rating?

Red Cat Holdings, Inc. (RCAT) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 0.1% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Red Cat Holdings, Inc.'s Shariah verdict?

Red Cat Holdings, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Red Cat Holdings, Inc. re-screened for Shariah compliance?

Red Cat Holdings, Inc. (RCAT) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 19, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.