Archer Aviation (ACHR) Stock Rises after Earnings Beat as Air Taxi Launch Gets Closer

TLDR

• Archer reported Q1 revenue of $1.6 million and an adjusted EBITDA loss of $172.5 million, beating Wall Street’s $175 million estimate.
• Net loss widened to $217.7 million as spending rose on FAA certification work, flight tests, and defense projects.
• Archer became the first eVTOL company to complete Phase 3 of the FAA’s four-phase Type Certification process.
• The company ended Q1 with roughly $1.8 billion in cash and still expects U.S. operations to begin in 2026.
• ACHR stock rose around 6% in after-hours trading, though it remains down 26% over the past 12 months.

Archer Aviation’s Q1 results were never going to be about the revenue line. At $1.6 million, the number is more placeholder than proof of business. What investors were watching was the FAA path, the cash position, and whether the 2026 launch timeline was still intact. On all three, Archer delivered.

ACHR stock climbed around 6% in after-hours trading to roughly $6.96 following the results. The stock is still down 26% over the past 12 months.

Archer Aviation Inc., ACHR

The adjusted EBITDA loss came in at $172.5 million, within Archer’s own guidance range of $160 million to $180 million and slightly better than the Wall Street estimate of $175 million. Net loss widened to $217.7 million, compared with $188.9 million in the previous quarter, as spending rose across FAA certification, flight testing, and new defense work.

Revenue ticked up to $1.6 million from $0.3 million in Q4 2025. That money came from Archer’s expanded operations at Hawthorne Airport in Los Angeles, not from paying passengers.

FAA Milestone Takes the Spotlight

The headline from the quarter wasn’t financial. In April, Archer said it became the first eVTOL company to close Phase 3 of the FAA’s four-phase Type Certification process. The company is now in Phase 4, where it must demonstrate that its Midnight aircraft meets FAA air safety standards through testing and review.

That’s a reference to its growing defense work. Archer is developing a hybrid defense aircraft in partnership with Anduril, adding a second track alongside its commercial launch plans.

Archer also confirmed it is preparing to serve as the official air taxi provider at the LA28 Olympic Games.

Cash Burn Is the Number to Watch

Archer ended Q1 with about $1.8 billion in liquidity. But cash dropped by $188.8 million from Q4, with $149.1 million used in core operations and $32.6 million in capital spending.

Wall Street expects Archer to burn around $600 million in 2026 and $740 million in 2027, with positive free cash flow not arriving until 2029, when annual revenue is projected at $1.6 billion.

For Q2, Archer guided for an adjusted EBITDA loss of $170 million to $200 million. That puts Wall Street’s current $177 million estimate comfortably inside the range.

The company did not mention the UAE in its Q1 shareholder letter. Archer had previously planned to begin commercial service there in 2026, and geopolitical tensions may be affecting that timeline.

Five Wall Street analysts cover the stock with a Strong Buy consensus and an average price target of $14.25, implying around 117% upside from current levels.

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