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

Red Cat Holdings, Inc. (RCAT) has a Shariah compliance score of 85/100 (Grade: A, Very 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) passes 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: 0.0%), (3) interest-bearing deposits below 30% (RCAT: 17.6%), and (4) prohibited income below 5% (RCAT: 0.0%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

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

Red Cat Holdings, Inc. (RCAT) has a non-permissible income ratio of 0.00%. Muslim investors should purify this percentage of any dividends received and capital gains realized from RCAT shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation 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 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. 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

Halal

Screened on Jul 19, 2026 · AAOIFI Standard 21

Very Good

85Score

Is Red Cat Holdings, Inc. (RCAT) halal? Halal. Based on AAOIFI screening, Red Cat Holdings, Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 85/100 (Grade: A).

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%.

0.0% of 30.0% limit

What this means for you

You can own RCAT

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

No purification owed

Based on the latest screening, none of its income comes from prohibited sources.

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

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 19, 2026

Compliance History

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

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

Fiscal: Q1 2026Data source: EDGAR

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Frequently Asked Questions

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

Based on AAOIFI Standard 21 screening, Red Cat Holdings, Inc. (RCAT) is rated Halal with a compliance grade of A (Very Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

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

Red Cat Holdings, Inc. (RCAT) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 0.0% (limit 30%); interest-bearing deposits of 17.6% (limit 30%); prohibited income of 0.00% (limit 5%). 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: Jul 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.