Archer Aviation Inc. (ACHR), an air taxi and aerospace firm that is building electric vertical takeoff and landing aircraft, reported a wider first-quarter loss as it spent more on flight tests, FAA work, and new defense projects.
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Trade ACHR with leverageDespite the growing cash burn, CEO Adam Goldstein described the quarter as “another banner quarter for Archer.” He added that the firm made “tremendous progress towards beginning operations in the U.S. later this year,” while also noting that Archer is now “far more than an air taxi company.”
Meanwhile, ACHR shares rose 2.14% in after-hours trading, signaling the market’s positive reaction to its results.
Modest Revenue As FAA Progress Takes Center Stage
The company said Q1 revenue rose to $1.6 million, up from $0.3 million in Q4 2025. However, that revenue came from expanded work at Hawthorne Airport in Los Angeles, not from paid air taxi rides. Archer took over the airport this year and sees it as a key base for its planned LA air taxi network.
Still, costs rose as the company moved deeper into its launch plan. Total costs reached $256.2 million, up from $234.7 million in Q4. Net loss widened to $217.7 million, compared with $188.9 million in the prior quarter. Adjusted EBITDA loss was $172.5 million, which was within Archer’s own guide of a $160 million to $180 million loss.
However, the main story for Archer was not sales, but its FAA path. In April, Archer said it became the first eVTOL firm to close Phase 3 of the FAA’s four-phase Type Certification process. The company is now working through Phase 4, where it must show that Midnight meets FAA air safety rules through tests and review.
Archer also said it still expects U.S. operations to begin in 2026 under the White House eVTOL Integration Pilot Program. The company is also preparing for the LA28 Olympic Games, where it plans to serve as the official air taxi provider.
Cash Burn Remains the Key Watch Item
On the balance sheet, Archer ended Q1 with about $1.8 billion in cash, cash-like assets, and short-term funds. That gives the company a large cash base as it moves toward launch. However, cash fell by $188.8 million from Q4, due in part to $149.1 million used in core work and $32.6 million spent on property and gear.
Looking ahead, Archer expects a Q2 adjusted EBITDA loss of $170 million to $200 million. That means cash burn is likely to remain high as the firm continues funding Midnight tests, FAA work, factory-scale AI systems, and its new hybrid defense aircraft with Anduril.
For now, Archer’s story is still based on progress rather than profit. The company is moving closer to launch, has a strong cash pile, and is adding new paths in defense and AI. Even so, investors will likely want to see clear signs that early operations can turn into real revenue, not just more spend.
Is ACHR Stock a Good Buy?
Turning to the Street, analysts remain upbeat. Based on five top Wall Street analysts, Archer Aviation has a Strong Buy rating, with an average ACHR stock price target of $14.25. That points to about 117% upside from the current price.
