Red Cat Holdings, Inc. announced that its subsidiary Teal Drones has progressed to the second phase of the Department of Defense’s Drone Dominance Program, known as Gauntlet II. The program will take place at Fort Carson, Colorado, in August 2026 and will involve 19 companies that were selected from a pool of 49 that competed in the Phase 2 Qualifier at Camp Grayling, Michigan.

The Drone Dominance Program is a Pentagon initiative designed to evaluate small unmanned aerial systems (sUAS) for potential procurement. The Phase 2 Qualifier tested 79 unique drones across two mission areas: Long‑Range Strike and Tactical Assault in Close Quarters. The 19 companies that advanced to Gauntlet II will compete in a series of live‑fire exercises that simulate battlefield conditions.

Teal Drones, a Salt Lake City‑based manufacturer, produces sUAS that are intended for use by the U.S. military and allied forces. The company’s portfolio includes the Golden Eagle platform, which is marketed as a domestic solution for defense and public‑safety applications. According to its website, Teal’s systems are designed for modern operational environments and are built with an open, modular architecture. A recent contract awarded the company $2.5 million for two aircraft to NATO allies illustrates its growing presence in the international market.

Red Cat, which owns Teal, describes itself as a provider of all‑domain drone and robotic solutions for defense and national security. Its product line spans small UAS, uncrewed surface vessels, wireless power transfer, and autonomous swarming software. The company says its systems enhance situational awareness, operational effectiveness, and mission safety for military, government, and public‑safety users.

Jeff Thompson, Red Cat’s chief executive officer, said the advancement to Gauntlet II "is an honor and a meaningful validation of the work our Teal team is doing to deliver trusted, mission‑ready systems for the warfighter." He added that the program’s focus on rapidly identifying proven drone technologies aligns with Red Cat’s goal of supporting the warfighter with critical situational awareness and operational advantage.

The selection of 19 companies for Gauntlet II reflects the Pentagon’s intent to narrow the field to a small group of vendors that have demonstrated capability in the Qualifier. The upcoming exercises at Fort Carson will test endurance, payload, and integration with existing military systems. Successful performance could lead to prototype contracts worth up to $1.1 billion, as the program is designed to accelerate procurement of small‑unmanned systems.

Fort Carson, located in southern Colorado, is a major Army installation that hosts the 4th Infantry Division and several special‑forces units. The choice of this base for Gauntlet II provides a realistic training environment for the exercises.

Red Cat’s participation in the Drone Dominance Program follows its recent quarterly earnings, in which the company reported record revenue growth for the first quarter of 2026. While the earnings announcement is separate from the program, it underscores the company’s expanding role in the U.S. defense drone market.

The next phase of the program will begin in August 2026. Red Cat and Teal Drones will continue to prepare for the exercises, and the outcome of Gauntlet II will likely influence future procurement decisions by the Department of Defense and its allies.

The program’s progression highlights the growing emphasis on small‑unmanned systems in modern warfare and the Pentagon’s effort to streamline the acquisition process for these platforms.