tiprankstipranks
Trending News
More News >
Archer Aviation (ACHR)
NYSE:ACHR
US Market

Archer Aviation (ACHR) AI Stock Analysis

Compare
15,295 Followers

Top Page

ACHR

Archer Aviation

(NYSE:ACHR)

Select Model
Select Model
Select Model
Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
$7.50
▼(-10.93% Downside)
The score is held down primarily by weak financial performance (pre-revenue, large losses, and heavy cash burn) and bearish technical positioning (below major moving averages with negative MACD). The latest earnings call provides a meaningful offset via strengthened liquidity and operational/certification progress, but valuation support is limited due to negative earnings and no dividend.
Positive Factors
Strategic Partnerships
This partnership provides Archer with a revenue-generating opportunity and margin-positive contracts, enhancing its market position and competitive edge in early adopter markets.
Financial Position
A strong liquidity position, bolstered by substantial cash reserves, provides Archer with financial flexibility to support growth initiatives and manage operational challenges.
Manufacturing Milestones
Achieving manufacturing milestones positions Archer as a leader in scaling commercial production of eVTOL aircraft, crucial for capturing market share and driving long-term growth.
Negative Factors
FAA Certification Challenges
Delays in FAA certification can hinder Archer's ability to commercialize its aircraft, impacting revenue generation and competitive positioning in the eVTOL market.
High Operating Expenses
Rising operating expenses, driven by investments in development, can strain financial resources and delay profitability, posing a risk to long-term financial health.
Negative Cash Flow
Persistent negative cash flow reflects ongoing cash consumption without offsetting income, challenging Archer's ability to sustain operations without continuous financing.

Archer Aviation (ACHR) vs. SPDR S&P 500 ETF (SPY)

Archer Aviation Business Overview & Revenue Model

Company DescriptionArcher 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 MoneyArcher 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 Key Performance Indicators (KPIs)

Any
Any
Operating Expense Breakdown
Operating Expense Breakdown
Details core costs like R&D, marketing, and admin, offering insight into how efficiently the company runs and where it’s prioritizing investment.
Chart InsightsArcher Aviation's operating expenses have been rising, with Research and Development costs consistently increasing, reflecting their focus on innovation and product development. The General and Administrative expenses show volatility, including a notable negative value in late 2023, likely due to accounting adjustments. The earnings call highlights increased expenses due to higher headcount and material costs, aligning with their strategic initiatives like the Midnight Aircraft program. Despite financial losses, Archer's strong liquidity and strategic partnerships position them well for future growth, particularly with the upcoming UAE launch.
Data provided by:The Fly

Archer Aviation Earnings Call Summary

Earnings Call Date:Nov 06, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, such as the acquisition of Hawthorne Airport, successful equity raising, and international partnerships, which underscore strong strategic positioning and growth potential. While there were some challenges, notably from the government shutdown affecting certification timelines and high operating expenses, the positive developments and strategic initiatives outweigh these lowlights.
Q3-2025 Updates
Positive Updates
Hawthorne Airport Acquisition
Archer Aviation has signed definitive agreements to acquire control of Hawthorne Airport in Los Angeles, providing a strategic hub for air taxi operations, especially ahead of the LA28 Olympic Games. The airport is already profitable and offers significant expansion opportunities.
Successful Equity Raise
Archer raised $650 million in new equity capital, reinforcing its balance sheet with over $2 billion in liquidity, providing strategic advantages for future opportunities.
Midnight Aircraft Testing Milestones
Midnight aircraft achieved significant testing milestones, including flights over 55 miles, flight times exceeding 30 minutes, altitudes up to 10,000 feet, and speeds over 150 mph. The aircraft also demonstrated its capabilities at the California International Air Show.
International Expansion and Partnerships
Archer solidified partnerships with Korean Air and Japan Airlines, which selected Archer as their exclusive air taxi partner. Archer also progressed with its Launch Edition program in the UAE, receiving initial payments for commercial operations.
Lilium Patent Portfolio Acquisition
Archer acquired Lilium's patent portfolio, enhancing its technological capabilities in ducted fan propulsion and advanced flight controls, and expanding its global patent assets to over 1,000.
Defense Opportunities
Archer is actively engaged in developing hybrid electric VTOL aircraft for defense, with promising engagement from allied countries worldwide.
Negative Updates
Government Shutdown Impact
The certification process faced challenges due to the U.S. government shutdown, affecting some FAA resources and potentially impacting timelines.
High Operating Expenses
Archer reported GAAP operating expenses of $175 million for Q3 2025, with a net loss of $130 million, though this was partially offset by noncash impacts.
Company Guidance
During Archer Aviation's Q3 2025 earnings call, the company provided several forward-looking statements and metrics. Notably, they announced the acquisition of Hawthorne Airport, a strategic asset in Los Angeles, ahead of the LA28 Olympic Games. This acquisition, valued at $126 million, along with development rights, totals $171 million. Archer raised an additional $650 million in equity capital, bolstering their liquidity to over $2 billion. The company plans to ramp up production to 50 aircraft per year across 700,000 square feet of facilities in California and Georgia. Recent test flights have achieved 55 miles of range, over 30 minutes of flight time, and speeds exceeding 150 mph, validating their engineering approach. With the UAE expecting certification as early as Q3 2026, Archer has begun receiving initial payments from their Launch Edition program. Their Q3 net loss was $130 million, with GAAP operating expenses of $175 million, and adjusted EBITDA loss of $116 million. For Q4, they project an adjusted EBITDA loss between $110 million and $140 million.

Archer Aviation Financial Statement Overview

Summary
Archer Aviation is in its developmental phase with no revenue and relies heavily on financing for cash flow. While it has a solid equity base and cash reserves, the absence of operational income and negative cash flows pose a significant challenge to long-term sustainability.
Income Statement
Archer Aviation has reported consecutive years of zero revenue, reflecting a pre-revenue stage typical for companies in development phases, especially in aerospace & defense. Persistent negative EBIT and EBITDA highlight operational challenges. The lack of revenue growth indicates no commercial operations yet, affecting profitability metrics.
Balance Sheet
The company maintains a solid equity base, highlighted by a favorable equity ratio and substantial cash reserves relative to debt. The debt-to-equity ratio remains low, suggesting prudent financial management. However, without revenue, the long-term sustainability of asset growth through equity raises remains uncertain.
Cash Flow
Archer Aviation's cash flow shows significant negative free cash flow, common for companies in heavy R&D phases. Operating cash flow is negative, indicating cash consumption without offsetting income. Financing activities provide substantial cash inflows, crucial for ongoing operations without revenue generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-4.80M0.00-5.80M-7.70M0.00-103.00K
EBITDA-586.40M-498.00M-451.60M-309.60M-239.70M-24.40M
Net Income-627.40M-536.80M-457.90M-317.30M-347.80M-24.80M
Balance Sheet
Total Assets1.90B1.00B554.30M573.80M768.40M41.80M
Cash, Cash Equivalents and Short-Term Investments1.64B834.50M464.60M531.20M746.90M36.60M
Total Debt88.60M79.00M23.20M22.20M23.10M3.20M
Total Liabilities245.30M248.60M187.20M80.50M69.50M5.90M
Stockholders Equity1.65B752.60M367.10M493.30M698.90M35.90M
Cash Flow
Free Cash Flow-481.50M-450.60M-315.90M-207.30M-111.90M-24.70M
Operating Cash Flow-408.00M-368.60M-271.60M-200.40M-108.40M-22.80M
Investing Cash Flow-1.13B-82.00M420.70M-464.30M-3.50M-1.90M
Financing Cash Flow1.63B820.40M250.10M-9.90M822.20M51.20M

Archer Aviation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price8.42
Price Trends
50DMA
8.46
Negative
100DMA
9.29
Negative
200DMA
9.49
Negative
Market Momentum
MACD
-0.03
Negative
RSI
52.55
Neutral
STOCH
82.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACHR, the sentiment is Neutral. The current price of 8.42 is above the 20-day moving average (MA) of 8.12, below the 50-day MA of 8.46, and below the 200-day MA of 9.49, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 52.55 is Neutral, neither overbought nor oversold. The STOCH value of 82.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ACHR.

Archer Aviation Risk Analysis

Archer Aviation disclosed 48 risk factors in its most recent earnings report. Archer Aviation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Archer Aviation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
57
Neutral
$5.06B-2.24%8.63%72.72%
49
Neutral
$6.46B-7.11-59.13%11.14%
49
Neutral
$1.76B-3.09-50.08%-0.63%-163.11%
47
Neutral
$697.25M-5.40%95.23%89.44%
45
Neutral
$604.96M-0.68
43
Neutral
$1.03B-32.74-24.59%23.58%20.74%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACHR
Archer Aviation
8.42
-0.55
-6.13%
MRCY
Mercury Systems
84.80
42.90
102.39%
EH
Ehang Holdings
14.16
-0.32
-2.21%
EVTL
Vertical Aerospace
6.23
-2.83
-31.24%
SKYH
Sky Harbour Group
9.20
-1.91
-17.19%
RDW
Redwire
9.83
-5.68
-36.62%

Archer Aviation Corporate Events

Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Archer Aviation Files Prospectus for Share Resale
Positive
Dec 10, 2025

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.

Business Operations and StrategyProduct-Related Announcements
Archer Aviation Partners with Karem for VTOL Advancements
Positive
Dec 2, 2025

On December 1, 2025, Archer Aviation announced an exclusive collaboration with Karem Aircraft to integrate Karem’s advanced military-grade rotor and tiltrotor technologies into Archer’s next-generation autonomous, hybrid-propulsion VTOL aircraft. This strategic alliance aims to enhance Archer’s dual-use vertical lift platform, which is designed to modernize legacy capabilities for the U.S. and allied militaries. The collaboration, along with Archer’s recent acquisitions of Overair’s and Lilium’s patented technologies, positions Archer to deliver an advanced aircraft capable of operating in contested airspace with low thermal and acoustic signatures. This move underscores Archer’s expansion into the dual-use and hybrid VTOL space, leveraging its core technologies across commercial and defense programs.

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.

Business Operations and StrategyPrivate Placements and Financing
Archer Aviation Issues Shares to Strengthen Market Position
Positive
Nov 26, 2025

On November 26, 2025, Archer Aviation Inc. announced the issuance of 1,517,618 shares of Class A common stock as part of a license agreement with certain parties. This move is part of their strategic efforts to strengthen their market position and expand their operational capabilities.

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.

Legal Proceedings
Archer Aviation Faces Lawsuit from Joby Aero
Negative
Nov 21, 2025

On November 18, 2025, Joby Aero, Inc. filed a lawsuit against Archer Aviation Inc. in the Superior Court of California, alleging trade-secret misappropriation, breach of contract, and interference with Joby’s contracts and economic prospects following Archer’s hiring of a former Joby employee. Archer Aviation disputes these allegations and plans to defend itself vigorously, which could impact its legal standing and stakeholder relations.

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.

Private Placements and FinancingRegulatory Filings and Compliance
Archer Aviation Files Prospectus for Stock Resale
Neutral
Nov 19, 2025

On November 19, 2025, Archer Aviation Inc. filed a prospectus supplement with the SEC for the resale of 1,095,321 shares of Class A common stock, initially issued under a Stock Retainer Agreement dated November 5, 2025. This filing is part of the company’s ongoing efforts to manage its capital structure and enhance liquidity, potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (ACHR) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Archer Aviation stock, see the ACHR Stock Forecast page.

Business Operations and StrategyM&A Transactions
Archer Aviation Acquires Hawthorne Airport Lease
Positive
Nov 12, 2025

On November 5, 2025, Archer Aviation entered into agreements to acquire the master lease of Hawthorne Airport and related subleases for $126 million. The acquisition includes an option to purchase a majority stake in the airport’s fixed base operator business and plans for additional hangar development. This strategic move is expected to enhance the company’s operational capabilities and market positioning in the aviation industry.

The most recent analyst rating on (ACHR) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Archer Aviation stock, see the ACHR Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Archer Aviation Announces $650 Million Stock Offering
Positive
Nov 6, 2025

On November 6, 2025, Archer Aviation Inc. announced a registered direct offering of 81,250,000 shares of its Class A common stock, expected to raise $650 million. The proceeds will be used for the acquisition and redevelopment of Hawthorne Airport and other corporate purposes. This move is part of Archer’s strategy to establish the airport as a hub for its air taxi network and a testbed for AI-powered aviation technologies. Additionally, Archer has made significant strides in its Midnight aircraft’s certification process and expanded its international reach with partnerships in the UAE and Asia, further solidifying its position in the eVTOL market.

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.

Business Operations and StrategyM&A Transactions
Archer Aviation Acquires Lilium’s Patent Portfolio
Positive
Oct 17, 2025

On October 15, 2025, Archer Aviation Inc. announced its successful bid to acquire Lilium GmbH’s patent portfolio for 18 million euros. This acquisition, expected to close by the end of 2025, significantly enhances Archer’s patent assets and strengthens its position in next-generation electric aviation, particularly in eVTOL technology. The move is part of a broader industry consolidation and aims to bolster Archer’s leadership in the advanced air mobility sector.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025