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

Red Cat Holdings, Inc. (RCAT) has a Shariah compliance score of 78/100 (Grade: B+, Good) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does Red Cat Holdings, Inc. pass AAOIFI screening?

Red Cat Holdings, Inc. (RCAT) partially passes with caution AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (RCAT: 0.1%), (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. HalalScreener provides free AAOIFI screening for 6,200+ stocks at halalscreener.app.

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

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 exact 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 5,100+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows the verdict, compliance grade, score, and debt ratio free. No credit card or signup required for basic screening; the full ratio breakdown is part of Pro. HalalScreener also includes an AI Islamic Scholar for follow-up questions about RCAT's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

RCAT: Is Red Cat Holdings, Inc. Halal?

Red Cat Holdings, Inc.

NASDAQTechnologyUS

$11.44

+2.14%

Market Cap: 1.2B

Compliance Status

Doubtful

Screened on Sep 1, 2026 · AAOIFI Standard 21

B+

Good

78Score

Is Red Cat Holdings, Inc. (RCAT) halal? Doubtful. Based on AAOIFI screening, Red Cat Holdings, Inc. passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 78/100 (Grade: B+).

Quote this verdict

HalalScreener rates Red Cat Holdings, Inc. (RCAT) Doubtful, 78/100, grade B+ under AAOIFI Standard 21, screened Sep 1, 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

What this means for you

You may own RCAT, with caution

Its numbers sit close to AAOIFI limits. Cautious investors may prefer alternatives or ask a scholar first.

Purification amount is Pro

We have screened RCAT's prohibited income, but the exact share you would need to purify is part of Pro.

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: Technology · Industry: Computer Hardware

Why This Stock Is Doubtful

Interest-bearing deposits are 25.8% of market cap, only 4.2 points below the 30% limit

Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.

Shariah Compliance Status

AAOIFI Standard 21Updated Sep 1, 2026

Compliance History

Doubtfulnow
since Sep 2026
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

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Frequently Asked Questions

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

Red Cat Holdings, Inc. (RCAT) is rated Doubtful under AAOIFI Standard 21. It passes the business activity screen but one or more financial ratios are approaching (though not yet exceeding) the AAOIFI thresholds (30% for debt and interest deposits, 5% for prohibited income). Consult a qualified Islamic finance scholar for a personal ruling.

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

Red Cat Holdings, Inc. (RCAT) received a grade of B+ (Good) 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: Sep 1, 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.