Archer Aviation Stock 2025 Recap: New Deals, CEO Outlook, and 2026 Revenue Path

Archer Aviation (ACHR) is ending 2025 with major developments across its electric aircraft program, global partnerships, and early revenue plans. While the company remains pre-revenue and continues to face high expenses, it now holds more than $2 billion in liquidity and is pivoting its design to clear key flight certification hurdles. Additionally, Archer says its first small revenue will arrive in early 2026.

Meanwhile, ACHR shares are down 18.46% in 2025.

Global Network and Defense Partners Expand Reach

Throughout 2025, Archer has focused on building out a launch network for its air taxi operations. It secured deals across the U.S., Saudi Arabia, the UAE, Korea, and Japan. Recently, the company completed a deal to take control of Hawthorne Airport in Los Angeles, aiming to use it as a core hub. It also launched plans to supply its electric powertrain to defense partners like Anduril and EDGE Group for a drone program, offering a separate revenue path from passenger flights.

In Saudi Arabia, Archer joined a national program with the Red Sea Global project and the country’s main helicopter operator. In Japan, Archer was selected as part of a consortium led by Japan Airlines for an early eVTOL test program in Tokyo. In the UAE, Archer flew its Midnight aircraft in test campaigns and partnered on hospital vertiport plans. In Korea, Korean Air selected Archer as its exclusive eVTOL partner.

These partnerships could help Archer launch regional air taxi routes faster once the company clears certification.

Midnight Aircraft Completes Major Flight Tests

In parallel with its partnerships, Archer has made progress on aircraft testing. Its Midnight vehicle completed several key milestones this year. It flew more than 55 miles in a single flight, reached 10,000 feet in altitude, and hit cruise speeds above 150 mph. Midnight also flew publicly at the California International Air Show.

However, while the company met many test goals, it also had to make changes to its rotor system. The change affects how the aircraft handles the shift from vertical to forward flight, a critical transition for safety and comfort.

Rotor Blade Redesign Targets Transition Vibration

Archer’s Midnight aircraft has six tilt rotors in the front and six fixed rotors in the rear. The rear lift rotors were originally designed with two blades each. During flight tests, engineers observed strong vibration and loading as these rotors passed through crosswinds at high speed. The issue came from large gaps in the rotor disk, which caused pulses that shook the aircraft. This did not come from a defect in the blade material, but from the two-blade design.

Archer has since confirmed that it will certify the aircraft with four-blade rotors instead of two. This change reduces vibration and improves control. The tradeoff is added weight and drag, which could affect range and efficiency. Still, the company believes this is the most stable and certifiable option.

Certification and Funding Remain Key to Timeline

Archer raised $650 million in new equity in 2025, which at the time brought its cash and short-term assets to about $1.6 billion. The company had a net loss of $627 million over the trailing twelve months. Operating expenses in the third quarter were $175 million. Despite these figures, Archer still maintains a strong balance sheet, which gives it room to keep building and testing through 2026.

^{Archer’s operating costs have steadily shifted toward research and development, signaling a continued push toward aircraft certification and long-term scale.}

Certification is still the most significant hurdle. A U.S. government shutdown in 2025 temporarily slowed the process, as some FAA resources were delayed. Archer’s ability to enter service depends on how quickly it can finish certification on its updated aircraft setup.

On a final note, Archer’s CEO, Adam Goldstein, has stated in an interview with Bloomberg Businessweek Daily that the company expects to report its first revenue in the first quarter of 2026. That revenue is likely to come from its Middle East deals, and possibly from powertrain supply agreements or airport operations. Passenger air taxi flights will depend on FAA approval, which may take longer to obtain. Still, Archer now has more options than before, with non-passenger business lines starting to take shape.

Archer Aviation Stock a Good Buy?

Despite volatility in Archer’s shares in 2025, Street analysts remain optimistic about the company’s prospects. Based on six recent ratings, Archer Aviation boasts a “Moderate Buy” consensus with an average ACHR stock price target of $12.17. This implies a 53.08% upside from the current price.

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