Archer Aviation (ACHR), the eVTOL pioneer, has generated real excitement among industry experts and investors, while also carrying numerous potential risks. Over the past 18 months, Archer has built a global network and secured key partnerships in preparation for its first commercial flights, which are planned for late 2025 or possibly 2026. However, TipRanks’ AI Analyst holds a Neutral rating with a score of 49. This reflects a balanced view of the company’s opportunities and challenges. Let’s look at why our AI Analyst is taking a cautious stance on Archer.
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Strong Cash and Global Partnerships Fuel Growth Plans
First, Archer Aviation has built a strong cash position. After a recent $850 million capital raise, the company ended the second quarter with $1.7 billion in cash and cash equivalents. This provides room to fund production, research, and global expansion. In addition, Archer signed a deal to be the official air taxi provider for the 2028 Los Angeles Olympics. This is an important marketing opportunity and signals strong government support for its technology.
Furthermore, the company is expanding its footprint outside the United States. Archer has announced partnerships in the United Arab Emirates, Ethiopia, and Indonesia. These agreements include plans for revenue in the next two years through a launch edition program and a multiyear deal with Abu Dhabi Aviation and the Abu Dhabi Investment Office. The company also emphasized its defense capabilities through the acquisition of patents and a composite facility, aiming to establish Archer Defense as a key business segment.
Heavy Losses, FAA Delays, and Market Pressure
However, our AI Analyst points to the numbers, which show a different side. Archer Aviation has not yet generated recurring revenue. The company posted a net loss of $206 million for the second quarter of 2025, with adjusted EBITDA at a loss of $190 million. Cash used in operations and investing reached $127 million in the quarter. Over the last year, free cash flow was negative by $472 million. This pattern signals heavy reliance on financing to keep plans moving forward.
Moreover, certification remains a challenge. Only about 15% of the compliance work for the Midnight aircraft is approved by the Federal Aviation Administration (FAA). Any delay could affect the commercial timeline and revenue goals. The company projects an adjusted EBITDA loss between $110 million and $130 million for the next quarter as it invests in manufacturing and global operations.
Is Archer Aviation Stock a Good Buy?
Despite the stock’s speculative nature, Wall Street analysts remain optimistic about the company. Based on eight recent ratings, Archer Aviation boasts a “Strong Buy” consensus with an average 12-month price target of $12.06. This implies a 30.10% upside from the current price.
Takeaway
TipRanks AI Analyst places Archer at 49, which shows why the stock is a speculative play. The positive side includes a record cash balance, strong partnerships, and international growth prospects. The negative side includes zero operating revenue, ongoing cash burn, and regulatory delays. For now, the stock remains a high-risk name in a sector that still has much to prove.