NEW YORK, March 4, 2026, 09:02 EST
- Archer shares dropped after the company forecast a first-quarter adjusted EBITDA loss in the range of $160 million to $180 million.
- The FAA has now signed off on 100% of Midnight’s “Means of Compliance,” marking a major milestone in the certification process, the company said.
- Archer wrapped up 2025 holding roughly $2.0 billion in liquidity, but posted a net loss of $618.2 million.
Archer Aviation projected a first-quarter adjusted EBITDA loss that topped analyst estimates, sending the stock down 10.6% to $6.72 at Tuesday’s close. Cantor Fitzgerald’s Andres Sheppard called the company’s progress “on track.” Over at Deutsche Bank, Edison Yu bumped his price target on the stock to $14 from $12. Barron’s
The wider loss projection comes as investors keep a close eye on whether the eVTOL industry can move from flight tests to FAA-approved passenger flights—without depleting their cash reserves. In a letter to shareholders, Archer’s CEO said the FAA has now signed off on 100% of the “Means of Compliance” for the company’s Midnight aircraft. That step, which sets the technical bar for airworthiness, effectively opens the door to Type Inspection Authorization (TIA), letting the FAA kick off its own certification checks. SEC
Archer finished 2025 holding $1.96 billion in cash, cash equivalents and short-term investments, after raising $1.8 billion—mainly through registered direct offerings. Revenue for the year came in at just $0.3 million. Net loss: $618.2 million. The company reported $432.9 million in cash outflows from operating activities. Spending on acquisitions reached $152.1 million, picking up assets such as Hawthorne Airport and IP from Lilium and Overair.
The update, along with the shareholder letter, landed in a March 2 filing with the U.S. Securities and Exchange Commission.
Archer, as outlined in a Reuters company profile, is working on aircraft and tech for both commercial and defense sectors. The company’s Midnight model—pitched as a four-passenger aircraft with a pilot—features a distributed electric propulsion system.
This FAA milestone isn’t the same as certification. Archer has more to do: finalizing certification plans, inspections, and flight tests all remain before passengers can board. That process has delayed plenty of new aircraft programs before.
Archer is touting its defense contracts and propulsion unit sales as an alternative revenue stream to go with its air-taxi ambitions, with startups increasingly seeking quicker income sources that don’t hinge on waiting for a full passenger rollout.
The company joins a crowded pack—Joby Aviation among them—of eVTOL hopefuls chasing certifications and scrambling for those first city routes. Everyone wants that early legitimacy. Trouble is, expenses hit the books long before revenue does.
The risk is clear enough: any delays in certification or manufacturing could postpone passenger flights and might mean Archer has to burn more cash for a longer stretch, despite its sizable reserves. Investors are keeping an eye on just how quickly Archer’s quarterly losses balloon as the company heads deeper into more FAA-focused testing.
