Archer Aviation Q3: $5.1M Revenue, Narrower-Than-Feared EBITDA Loss

Archer Aviation reported $5.10 million in third-quarter revenue on Monday, beating analyst estimates of $3.57 million by roughly 43%. The San Jose-based eVTOL (electric vertical takeoff and landing) developer posted a loss of $0.35 per share, missing the consensus estimate of ($0.34) by a penny.

The market liked what it heard. Shares closed up $0.40, or 8.9%, at $4.83 on volume of 39.1 million shares — above the 34.6 million average.

What drove the revenue beat?

Initial engine deliveries for Anduril's Omen program powered part of the quarter's $5.1 million in revenue. The adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss came in at $178.5 million — within management's guidance. Archer ended the quarter with $1.4 billion in liquidity, a cushion that matters for a company still pre-revenue at scale.

The company also logged more than 260 piloted test flights to date, with management saying piloted transition flights remain on track for a milestone by year-end. They acknowledged certification is still a rigorous process. Takeaway: the cash runway is intact, and the flight-test count keeps climbing.

What does the FAA certificate change?

The FAA granted Midnight a Market Survey Special Airworthiness Certificate, allowing Archer to begin flights in Los Angeles and advance toward passenger-carrying operations. The authorization covers the aircraft's current CTOL (conventional takeoff and landing) configuration, and Archer plans to pursue the same process for VTOL operations.

Archer also said it's in the final phase of FAA type certification — the regulatory approval needed before commercial service. The company expects its pending acquisition of Wisk, SkyGrid and Insitu from Boeing to close soon, with one approval still outstanding. Management noted Insitu has historically generated more than $200 million in annual revenue with positive operating cash flow, though post-close growth and integration plans remain to be detailed. In plain words: the regulator is greenlighting real flights, and Boeing's assets could soon add actual revenue.

What's the guidance?

For the fourth quarter, Archer forecast:

• Standalone revenue of $5 million to $6 million
• Adjusted EBITDA loss of $185 million to $205 million — wider than Q3, reflecting continued investment in certification, flight testing and development programs

What are insiders doing?

Two insiders sold shares in August. Eric Lentell sold 100,000 shares on Thursday, August 20 at an average of $6.31, totaling $631,000 — a 54.05% cut in his position that left him with 85,011 shares. The sale was executed under a pre-arranged Rule 10b5-1 trading plan (a schedule set in advance to avoid insider-trading concerns). CFO Priya Gupta sold 10,015 shares on Monday, August 17 at an average of $6.41, for $64,196.15, to cover tax withholding on vesting equity awards. Over the past 90 days, insiders sold 176,657 shares worth $1,122,371. Corporate insiders own 5.55% of the stock.

What do analysts say?

Six analysts rate the stock a Buy, one a Hold and one a Sell, for a consensus of "Moderate Buy" and an average price target of $11.50, per MarketBeat.com. Recent moves:

• Needham & Company reissued a Buy with a $9.00 target (August 11)
• Wells Fargo set an $18.00 objective (August 11)
• HC Wainwright reiterated Buy (August 11)
• Barclays upgraded from Equal Weight to Overweight and raised its target from $4.50 to $8.00 (October 9)
• UBS restated Overweight (August 11)

By the numbers, Archer trades at a $3.72 billion market cap with a debt-to-equity ratio of 0.06, a current ratio of 10.21, and a 52-week range of $3.62 to $9.29. Founded in 2018 by CEO Adam Goldstein and Brett Adcock, the company is betting its Midnight aircraft — a piloted eVTOL carrying four passengers plus a pilot — reaches commercial service in the U.S. and abroad. Q4's wider loss projection shows that bet still costs real money.