Archer Aviation (ACHR) AI Stock Analysis

• Market Cap: $5.51B
• Dividend Yield: N/A
• Average Volume (3M): 32.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.10
• Revenue Growth: N/A
• EPS Growth: 11.14%
• Country: US
• Employees: 774
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.26
• Shares Outstanding: 732,591,550
• 10 Day Avg. Volume: 29,048,701
• 30 Day Avg. Volume: 32,969,002
• PEG Ratio: 0.25
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 15649.31
• P/FCF Ratio: -9.17
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 14.77K
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -7.42
• 1Y Price Target: $13.25
• Price Target Upside: 97.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.97
• Revenue Forecast (FY): $31.25M

• Rating: 52 Neutral
• Price Target: $7.50 ▲(11.61% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by very weak fundamentals (minimal revenue, large losses, and heavy cash burn) despite a low-leverage balance sheet. Offsetting this, the earnings call highlighted strong regulatory/flight-test milestones and substantial liquidity. Technicals and valuation contribute only modestly, with mixed trend signals and a negative P/E reflecting ongoing losses, while legal proceedings add incremental risk.

Positive Factors

Regulatory Progress (FAA Means of Compliance)

Full FAA acceptance of Midnight's Means of Compliance materially reduces regulatory ambiguity, enabling Archer to finalize certification plans and pursue TIA activities. This structural milestone meaningfully lowers a key barrier to commercialization and supports longer‑term certification timelines.

Strong Liquidity Runway

Approximately $2.0B in liquidity provides durable runway to fund ongoing certification, manufacturing ramp and software/operational investments without immediate financing. That buffer mitigates near-term funding risk and supports execution of multi‑year commercialization plans.

Commercial Partnerships & Manufacturing Readiness

A multibillion backlog and seven anchor airline partners signal structural commercial demand and potential distribution channels. Coupled with Covington production capacity and engineering hubs, these factors strengthen Archer's ability to scale manufacturing and convert orders over the medium term.

Negative Factors

Persistent Cash Burn and Minimal Revenue

Archer remains deeply loss‑making with sizable negative operating and free cash flows. Sustained burn without meaningful commercial revenue forces ongoing capital deployment or dilution risk, constraining long‑term financial flexibility and making profitable scale contingent on successful certification and production ramp.

Remaining Certification and External Approval Risk

Even with MoC acceptance, management highlights that closing the final certification steps is the most difficult phase and depends on external approvals (e.g., DOT eIPP selections). These structural dependencies can delay entry into service, increase costs, and compress the timeline for revenue realization.

Legal Overhangs and Equity Resale/Dilution Risk

Ongoing IP/legal activity and repeated prospectus filings tied to acquisitions indicate structural governance and capital‑structure risks. Litigation and share resale programs can divert management attention, increase legal costs, and expand share supply, pressuring long‑term investor returns and raising execution uncertainty.

Archer Aviation Business Overview & Revenue Model

Company Description

Archer Aviation Inc., an urban air mobility company, engages in designs, develops, manufactures, and operates electric vertical takeoff and landing aircrafts to carry passengers. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. Archer Aviation Inc. was incorporated in 2018 and is headquartered in Palo Alto, California.

How the Company Makes Money

Archer Aviation makes money primarily through the sale and potential leasing of its eVTOL aircraft. The company is focused on developing a viable urban air mobility service, which includes generating revenue from aircraft sales to commercial operators or through direct operation of its own aerial ridesharing service. Key revenue streams also include partnerships with major companies in the aerospace and automotive sectors, such as its collaboration with United Airlines for pre-orders of its aircraft, which provides a future revenue pipeline. Additionally, Archer may explore revenue from aftermarket services, maintenance, and potentially licensing its technology in the future.

Archer Aviation Financial Statement Overview

Summary

Financial profile remains high-risk: revenue is minimal ($0.3M in 2025) with large and widening net losses (–$618.2M in 2025) and significant ongoing cash burn (operating cash flow –$432.9M; free cash flow –$511.7M). The main offset is a relatively strong balance sheet with modest debt ($42.4M) versus equity ($2.20B), providing flexibility but not solving the lack of profitability.

Income Statement

Operating performance remains very weak. Revenue is effectively minimal (only $0.3M in 2025), while losses are large and widening versus prior years (net loss of $618.2M in 2025 vs. $536.8M in 2024). Profitability is deeply negative, indicating the business is still in a heavy investment/burn phase with no meaningful scale yet.

Balance Sheet

Balance sheet is a relative bright spot due to low leverage. Total debt is modest ($42.4M in 2025) against a large equity base ($2.20B), resulting in very low debt-to-equity (~0.02). The key weakness is returns: equity is not generating profits (return on equity is negative), and continued losses can pressure the equity cushion over time if funding needs persist.

Cash Flow

Cash generation is weak with persistent and sizable cash burn. Operating cash flow is negative (–$432.9M in 2025) and free cash flow is also negative (–$511.7M), reflecting ongoing investment and operating losses. A positive free cash flow growth rate in 2025 reflects year-to-year movement but does not change the core issue that cash outflows remain substantial and recurring.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	300.00K	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	-5.80M	-7.70M	0.00
EBITDA	-597.30M	-498.00M	-451.60M	-309.60M	-239.70M
Net Income	-618.20M	-536.80M	-457.90M	-317.30M	-347.80M
Balance Sheet
Total Assets	2.47B	1.00B	554.30M	573.80M	768.40M
Cash, Cash Equivalents and Short-Term Investments	1.96B	834.50M	464.60M	531.20M	746.90M
Total Debt	42.40M	79.00M	23.20M	22.20M	23.10M
Total Liabilities	263.10M	248.60M	187.20M	80.50M	69.50M
Stockholders Equity	2.20B	752.60M	367.10M	493.30M	698.90M
Cash Flow
Free Cash Flow	-511.70M	-450.60M	-315.90M	-207.30M	-111.90M
Operating Cash Flow	-432.90M	-368.60M	-271.60M	-200.40M	-108.40M
Investing Cash Flow	-1.18B	-82.00M	420.70M	-464.30M	-3.50M
Financing Cash Flow	-69.10M	820.40M	250.10M	-9.90M	822.20M

Archer Aviation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACHR, the sentiment is Negative. The current price of 6.72 is below the 20-day moving average (MA) of 7.06, below the 50-day MA of 7.78, and below the 200-day MA of 9.44, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 52.55 is Neutral, neither overbought nor oversold. The STOCH value of 86.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACHR.

Archer Aviation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRCY	55 Neutral	$5.46B	-176.10	-2.08%	―	8.63%	72.72%
ACHR	52 Neutral	$5.51B	-6.35	-59.13%	―	―	11.14%
RDW	51 Neutral	$1.83B	-4.01	-52.00%	―	-0.63%	-163.11%
SKYH	47 Neutral	$678.21M	-16.74	-5.40%	―	95.23%	89.44%
EVTL	45 Neutral	$422.68M	-0.47	―	―	―	―
EH	43 Neutral	$877.12M	-28.26	-24.59%	―	23.58%	20.74%

Archer Aviation Corporate Events

Archer Aviation Files Patent Suit Over eVTOL Technology

On February 23, 2026, Archer Aviation Inc. filed a patent infringement lawsuit in the U.S. District Court for the Eastern District of Texas against Vertical Aerospace Ltd. and Vertical Aerospace Group Ltd. Archer alleges that Vertical’s Valo eVTOL aircraft infringes multiple patents tied to Archer’s Midnight eVTOL design and technology.

The company is seeking an injunction to halt Vertical’s alleged infringing activities, along with monetary damages for past infringement, underscoring how intellectual property protection is becoming a central battleground in the competitive eVTOL sector. The case highlights rising legal and commercial stakes as rival developers race to secure technological advantages in next-generation urban air mobility.

The most recent analyst rating on (ACHR) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Archer Aviation stock, see the ACHR Stock Forecast page.

Archer Aviation Seeks Dismissal of Rival Joby Lawsuit

Archer Aviation Inc., an electric vertical takeoff and landing (eVTOL) aircraft developer, operates in the emerging urban air mobility and advanced aviation technology sector. On January 23, 2026, the company moved to dismiss a previously disclosed complaint filed by rival Joby Aero, Inc., signaling its intent to aggressively contest the litigation, though no hearing date has yet been set, and the matter remains an ongoing legal overhang for the company and its stakeholders.

The most recent analyst rating on (ACHR) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Archer Aviation stock, see the ACHR Stock Forecast page.

Archer Aviation Registers Resale Shares After Acquisition Deal

On January 22, 2026, Archer Aviation filed a prospectus supplement with the U.S. Securities and Exchange Commission to register the resale of 341,984 shares of its Class A common stock that had been issued to certain selling stockholders under stock purchase agreements dated January 17, 2026, as part of Archer’s contemporaneous acquisition of a business owned by those stockholders. The filing, which relies on an existing shelf registration statement and is supported by a legal validity opinion from Fenwick & West LLP, facilitates liquidity for the sellers tied to the acquisition while underscoring Archer’s use of equity as consideration in its expansion strategy.

The most recent analyst rating on (ACHR) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Archer Aviation stock, see the ACHR Stock Forecast page.

Archer Aviation Files Prospectus for Share Resale

On December 10, 2025, Archer Aviation filed a prospectus supplement with the SEC for the resale of over 1.17 million shares of Class A common stock, linked to its acquisition of intellectual property assets from Overair Inc. Additionally, Archer completed the first phase of acquiring control of Hawthorne Airport, which will serve as a hub for its L.A. air taxi network and future operations, including during the LA28 Olympic Games. This strategic move positions Archer to enhance its operational capabilities and leverage the airport as a testbed for next-generation aviation technologies.

The most recent analyst rating on (ACHR) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Archer Aviation stock, see the ACHR Stock Forecast page.