Archer Aviation Inc. shares edged down 2.5 cents to $6.49 on Wednesday, with approximately 39 million shares changing hands. The stock fluctuated between $6.315 and $6.72 during the session, reflecting ongoing investor scrutiny over the company's financial health and progress toward commercial operations. The electric air-taxi developer now holds a market capitalization near $5.0 billion.
The company reported a first-quarter net loss of $217.7 million on revenue of $1.6 million, a significant increase from the $300,000 in revenue recorded in the prior quarter. Archer ended the quarter with $1.78 billion in cash, cash equivalents, and short-term investments, along with $7.3 million in restricted cash. Despite the cash reserves, analysts are closely watching the company's burn rate as it moves toward certifying its Midnight aircraft for regular commercial service.
On the certification front, Archer announced it had completed Phase 3 of the Federal Aviation Administration's four-step type certification process, making it the first eVTOL manufacturer to reach this milestone. CEO Adam Goldstein described the quarter as “another banner quarter,” highlighting “record FAA certification progress” alongside increased focus on defense contracts and AI software development. The company is working to secure defense contracts through its partnership with Anduril, with Goldstein noting that the defense aircraft is “pretty far into the development” phase, but warning that if a contract does not materialize, “we will immediately cut the spend.”
Investor focus remains on Archer's cash burn. The company posted an adjusted EBITDA loss of $172.5 million for the first quarter, within its guidance range. Adjusted EBITDA, which excludes interest, taxes, depreciation, amortization, and other items, provides a measure of core operating losses. Archer projected a second-quarter adjusted EBITDA loss between $170 million and $200 million. According to Barron’s, Wall Street had anticipated a first-quarter adjusted EBITDA loss near $175 million and sales of $1.7 million. Analysts do not expect positive free cash flow until 2029, when forecasts call for $1.6 billion in sales.
The broader market context added pressure on growth stocks. U.S. equities slipped Wednesday, with the SPDR S&P 500 ETF and the Invesco QQQ Trust, which tracks the Nasdaq-100, both declining in early afternoon trade. Archer shares remain well below their 52-week high of $14.62 but above the low of $4.80.
Archer's main U.S.-listed rival, Joby Aviation, also saw its shares decline, falling 15 cents to $11.37. Another competitor, Eve Holding, edged up a penny to trade at $3.22. The eVTOL sector continues to face challenges in certification, production, and establishing a viable passenger market.
Risks for Archer remain significant. Certification timelines could slip, production may lag, and losses could persist if early revenue fails to ramp up as expected. The company has cautioned that its plans depend on meeting development, certification, manufacturing, and deployment milestones, and that some deals are not yet finalized. As investors weigh these factors, Archer's stock performance will likely remain tied to progress in both its commercial and defense initiatives.
