Archer Aviation (ACHR) Q4 2025 earnings summary

Executive summary

• Achieved significant milestones in flight testing, including piloted VTOL and CTOL campaigns, and began the next phase of Midnight's flight test program for certification and commercialization in the U.S. and UAE.

• Achieved 100% FAA acceptance of Means of Compliance for eVTOL aircraft, paving the way for certification and commercial operations in the US and UAE in 2026.

• Secured partnerships with major industry players (Anduril, SpaceX, NVIDIA, Palantir) and expanded the order book to include seven of the world's largest airlines and new partners like Saudi Arabia's PIF and the Serbian government.

• First eVTOL manufacturer to establish a restricted type certificate program with the GCAA in the UAE, enabling piloted and passenger operations and vertiport network buildout.

• Opened a new UK engineering hub to support uncrewed vehicle programs and international collaborations.

Financial highlights

• Ended FY 2025 with record liquidity of $1.96 billion, up $1.13 billion year-over-year, driven by $1.8 billion in direct offerings.

• Q4 spending was tightly aligned to prior guidance, reflecting disciplined capital allocation.

• FY 2025 net loss was $618.2 million, an increase of $81.4 million year-over-year, mainly due to higher operating expenses and stock-based compensation.

• FY 2025 Adjusted EBITDA loss was $481.8 million, up $112.9 million year-over-year; Q4 2025 Adjusted EBITDA loss was $137.9 million, within guidance.

• Estimated Adjusted EBITDA loss for Q1 is projected between $160 million and $180 million, reflecting deliberate investment in growth.

Outlook and guidance

• On track to begin deploying Midnight in U.S. cities and the UAE in 2026, with commercial operations targeted for the 2028 Olympics.

• Anticipates increased but disciplined spending in 2025 to support manufacturing ramp, hybrid aircraft development, and software platform expansion.

• Expects near-term opportunities for defense contracts and early revenues from software and air taxi operations.

• Plans to expand piloted Midnight fleet and advance certification activities with the FAA in 2026.