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

No, as of August 2026, Red Cat Holdings, Inc. stock (RCAT) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Red Cat Holdings, Inc. currently does not meet the threshold for the non-permissible income screen. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Red Cat Holdings, Inc. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Red Cat Holdings, Inc. RCAT reviewed for Shariah compliance?

Tabadulat reviews Red Cat Holdings, Inc. RCAT for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Red Cat Holdings, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Red Cat Holdings, Inc. RCAT pass the AAOIFI Non Permissible Income criteria?

No, as of August 2026, Red Cat Holdings, Inc. stock (RCAT) does not pass the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Red Cat Holdings, Inc.'s income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does Red Cat Holdings, Inc. RCAT pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Red Cat Holdings, Inc. stock (RCAT) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Red Cat Holdings, Inc.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Red Cat Holdings, Inc. RCAT pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Red Cat Holdings, Inc. stock (RCAT) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. Red Cat Holdings, Inc.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for Red Cat Holdings, Inc. RCAT stock?

Red Cat Holdings, Inc. (RCAT) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If Red Cat Holdings, Inc. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Red Cat Holdings, Inc. RCAT pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Red Cat Holdings, Inc. stock (RCAT) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Red Cat Holdings, Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Red Cat Holdings, Inc.

NASDAQ

Shariah-Compliant

Not Shariah

RCAT

About

Red Cat Holdings, Inc.

RCAT

Red Cat Holdings, Inc. is a drone technology company specializing in the integration of robotic hardware and software for military, government, and commercial applications. Through its subsidiaries, including Teal Drones and FlightWave Aerospace, Red Cat develops a diverse Family of Systems designed to meet complex operational needs. Notable products include the Black Widow™, a compact unmanned system recognized by the U.S. Army for short-range reconnaissance; TRICHON™, a fixed-wing VTOL drone optimized for endurance and range; and FANG™, the industry's first NDAA-compliant FPV drone tailored for precision strike military missions. In addition to supporting battlefield intelligence, surveillance, and reconnaissance, Red Cat’s technologies assist first responders and public safety agencies, providing real-time situational awareness and actionable intelligence. The company is headquartered in San Juan, Puerto Rico, and continues to broaden its reach, recently expanding into unmanned surface vessel technology to diversify its offerings within the aerospace and defense sector. Red Cat Holdings occupies a significant role in advancing next-generation unmanned systems for both defense and civil markets.

Sector:

Industrials

Industry:

Aerospace & Defense

Employees:

115

Website:

https://redcat.red

RCAT

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Red Cat Holdings, Inc.

About

Red Cat Holdings, Inc.

RCAT

Frequently asked questions

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

How often is Red Cat Holdings, Inc. RCAT reviewed for Shariah compliance?

Does Red Cat Holdings, Inc. RCAT pass the AAOIFI Non Permissible Income criteria?

Does Red Cat Holdings, Inc. RCAT pass the AAOIFI Interest Bearing Investments criteria?

Does Red Cat Holdings, Inc. RCAT pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Red Cat Holdings, Inc. RCAT stock?

Does Red Cat Holdings, Inc. RCAT pass the AAOIFI Preference Share screen?

Can I buy Red Cat (RCAT) stock on Tabadulat?

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