This analyst just hiked his price target on RedCloud Holdings

Roth Capital Markets analyst Rohit Kulkarni reiterated a “Buy” rating on RedCloud Holdings (RedCloud Holdings Stock Quote, Chart, News, Analysts, Financials NASDAQ:RCT) in a Jan. 20 report and raised his 12-month price target to $5.50 from $4.50, citing stronger-than-expected FY25 results, accelerating joint-venture momentum, and a growing pipeline of near-term catalysts.

Kulkarni said RedCloud’s unaudited FY25 flash results came in above both company guidance and his expectations, with revenue of $53.7-million, up 15% year-over-year and above management’s prior $51-million to $53-million range. Total transaction value on the company’s FMCG trading platform reached $3.2-billion in 2025, representing 31% growth year-over-year, with implied second-half transaction value of approximately $2.0-billion. He attributed much of the upside to early traction from the Türkiye joint venture.

Looking ahead, Kulkarni said RedCloud’s decision to raise 2026 revenue guidance to $120-million from $100-million reflects a strategic shift toward faster-scaling joint ventures that materially expand the platform’s monetization profile. He noted that the updated outlook is well ahead of RedCloud’s post-IPO expectations, which had called for $78-million of revenue in 2026, and said the company is positioned to add further JV partners across both existing and new geographies.

Kulkarni highlighted Türkiye and Saudi Arabia as key near-term drivers, noting that both joint ventures are structured to provide upfront licensing revenue of $5-million each, alongside recurring transaction-based revenue share tied to RedCloud’s AI-driven FMCG trading infrastructure. While Türkiye is expected to ramp more quickly, he said Saudi Arabia represents a larger long-term opportunity given market scale. The analyst added that this model meaningfully diversifies RedCloud’s revenue mix beyond its historical reliance on take-rate monetization.

He also pointed to the upcoming launch of RedCloud’s RedAI platform in February as an important catalyst. The agentic AI interface is designed to embed predictive insights and automated decision-making directly into global FMCG trading workflows, leveraging RedCloud’s proprietary datasets. Kulkarni said early access deployments will be used to validate performance in live environments ahead of a broader rollout, supported by partnerships with AWS and NVIDIA through the NVIDIA Connect program.

Kulkarni said RedCloud should generate approximately $7.4-million in Adjusted EBITDA on $110.5-million in revenue in fiscal 2025, improving to about $17.4-million in Adjusted EBITDA on $141.9-million in revenue in fiscal 2026.

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