RedCloud Holdings plc (RCT) AI Stock Analysis

• Market Cap: $48.65M
• Dividend Yield: N/A
• Average Volume (3M): 3.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.28
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 930
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 44,226,635
• 10 Day Avg. Volume: 765,506
• 30 Day Avg. Volume: 3,818,618
• PEG Ratio: -0.09
• Price to Book (P/B): -1.59
• Price to Sales (P/S): 2.35
• P/FCF Ratio: -2.83
• Enterprise Value/Market Cap: 2.45
• Enterprise Value/Revenue: 5.13
• Enterprise Value/Gross Profit: 8.75
• Enterprise Value/Ebitda: -6.20
• 1Y Price Target: $5.83
• Price Target Upside: 273.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $1.00 ▼(-35.90% Downside)

The score is primarily weighed down by weak financial health: heavy losses, negative cash flow, and a balance sheet showing negative equity despite strong revenue growth. Technicals add pressure as the stock is in a clear downtrend with negative momentum, though oversold indicators slightly offset the downside. Valuation impact is limited because P/E and dividend yield were not provided.

Positive Factors

Revenue growth momentum

Sustained >100% revenue growth reflects strong product-market fit and rapid adoption in target markets. Durable top-line expansion supports scale benefits, improves bargaining with partners, and provides runway to invest in product and distribution if cash constraints are managed.

Improved gross margin

A near-60% gross margin indicates scalable unit economics and pricing power in core payments services. Higher contribution margin gives management room to cover fixed costs and drive operating leverage as revenues grow, aiding a durable path toward profitability.

Recurring fees and distribution partnerships

A mix of transaction fees, subscription revenue and alliances with banks/telecoms creates recurring, sticky revenue and broad distribution. This structural revenue diversity lowers customer acquisition costs and supports steady cash generation as network adoption increases.

Negative Factors

Negative shareholders' equity and leverage

Negative equity signals a weakened capital base and elevated leverage, constraining financial flexibility. Over time this increases refinancing risk, limits access to debt markets, and may force dilutive capital raises or restructuring to restore a sustainable balance sheet.

Persistent cash burn

Ongoing negative operating and free cash flows undermine the firm's ability to self-fund growth and invest in product or expansion. Persisting cash burn raises the probability of external financing needs, which can dilute shareholders and constrain long-term strategic options.

Rising losses and operating cost pressure

Widening operating losses despite revenue growth show cost structure issues and weak operating leverage. Without sustainable expense control or improved unit economics, profitability remains elusive, increasing capital needs and threatening long-term viability.

RedCloud Holdings plc Business Overview & Revenue Model

Company Description

RedCloud Holdings plc (RCT) is a technology-driven company specializing in the provision of digital financial services and solutions in emerging markets. The company operates primarily in the fintech sector, focusing on facilitating digital commerce, financial inclusion, and mobile payments. RCT's core products include a robust mobile payment platform, digital wallets, and value-added services that empower consumers and businesses to conduct transactions seamlessly and securely across multiple channels.

How the Company Makes Money

RedCloud Holdings generates revenue through several key streams. Primarily, the company earns income from transaction fees charged on digital payments processed through its platform. Additionally, RCT monetizes its services by offering subscription-based models for businesses that utilize its digital wallet and payment solutions. The company also benefits from partnerships with local banks, telecom operators, and other financial institutions, which enhance its distribution network and broaden its customer base. Furthermore, RedCloud may engage in strategic alliances that provide additional revenue opportunities through co-branded services and promotions.

RedCloud Holdings plc Financial Statement Overview

Summary

Despite very strong revenue growth (+114.59%) and improved gross margin (58.59%), the company remains deeply unprofitable (net margin -109.07%) with negative EBIT/EBITDA margins. Balance sheet risk is elevated due to negative shareholders’ equity and leverage concerns, and cash flow remains negative with ongoing cash burn.

Income Statement

RedCloud Holdings plc has shown significant revenue growth of 114.59% in the latest year, indicating strong sales momentum. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -109.07% and negative EBIT and EBITDA margins. The gross profit margin has improved to 58.59%, but overall, the company remains unprofitable.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, resulting in a concerning debt-to-equity ratio of -1.06. This indicates high leverage and potential financial instability. Return on equity is positive at 73.75%, but this is due to negative equity, which is not a sustainable situation.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a slight improvement in free cash flow to net income ratio at 1.11. However, the company is still burning cash, and the negative operating cash flow to net income ratio highlights ongoing cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2022
Income Statement
Total Revenue	46.50M	19.81M	2.81M	2.81M
Gross Profit	27.24M	5.49M	-4.61M	-4.61M
EBITDA	-38.48M	-25.60M	-13.16M	-16.03M
Net Income	-50.72M	-32.39M	-16.56M	-16.56M
Balance Sheet
Total Assets	17.56M	7.34M	7.92M	7.92M
Cash, Cash Equivalents and Short-Term Investments	800.74K	587.15K	2.25M	2.25M
Total Debt	73.18M	25.61M	21.51M	21.51M
Total Liabilities	86.33M	29.91M	22.36M	22.36M
Stockholders Equity	-68.77M	-22.57M	-14.45M	-14.45M
Cash Flow
Free Cash Flow	-38.57M	-23.74M	-13.21M	-13.21M
Operating Cash Flow	-34.68M	-22.14M	-12.55M	-12.55M
Investing Cash Flow	-3.89M	-1.60M	-662.55K	-662.55K
Financing Cash Flow	35.05M	19.91M	14.61M	14.61M

RedCloud Holdings plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDN	62 Neutral	$114.76M	558.59	1.17%	―	14.20%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PSQH	48 Neutral	$40.15M	-0.65	-451.95%	―	35.79%	14.85%
LPSN	47 Neutral	$36.52M	-0.11	-605.44%	―	-23.03%	-107.34%
NXTT	44 Neutral	$20.09M	<0.01	93.25%	―	259.01%	-61.05%
RCT	43 Neutral	$48.65M	―	―	―	―	―
RDZN	43 Neutral	$146.64M	-14.98	―	―	3.42%	93.90%

RedCloud Holdings plc Corporate Events

RedCloud Holdings Reports Increased Losses in H1 2025

RedCloud Holdings plc released its unaudited condensed consolidated financial statements for the six months ending June 30, 2025. The company reported a net loss from operations of $19,997,067, a significant increase from the $16,550,543 loss in the same period of 2024. Despite a revenue increase to $17,973,748 from $16,075,466, the company’s operating expenses rose sharply, contributing to the larger deficit. The financial report highlights ongoing challenges in managing costs and improving profitability, impacting stakeholders’ confidence in the company’s financial health.

The most recent analyst rating on (RCT) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on RedCloud Holdings plc stock, see the RCT Stock Forecast page.

RedCloud Holdings Announces CFO Transition with New Appointment

RedCloud Holdings plc announced that Neil Woodman, the Executive Vice President of Finance, will not return after his contract ends on December 31, 2025. Consequently, the company has appointed Maria Magdalena Gonzalez as the new Chief Financial Officer, effective January 5, 2026. Gonzalez, who has been a board member and part of the audit committee, will receive a salary of £320,000 per annum with potential bonuses and equity-based compensation. This leadership change is expected to impact the company’s financial strategy and operations, potentially influencing stakeholder confidence and market positioning.

The most recent analyst rating on (RCT) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on RedCloud Holdings plc stock, see the RCT Stock Forecast page.