Archer Aviation Inc. today announced operating and financial results for the fourth quarter and full year ended December 31, 2025. The Company issued a shareholder letter from founder and CEO, Adam Goldstein discussing highlights from the quarter.

Commenting on fourth quarter 2025 results, Adam Goldstein said:

“Everything we’ve built over the past seven years is converging, and our strategy is paying off in ways the market is only beginning to understand.”

Recent Highlights:

- Piloted VTOL Operations on Track for eIPP and UAE with Expanded Midnight Fleet

Archer is growing its Midnight fleet and expanding its flight test program. The newest aircraft is now in its VTOL flight test campaign and will work through progressively more advanced test points ahead of full piloted transition flight.

Archer will continue to expand its piloted Midnight fleet throughout 2026, with several aircraft in various stages of completion.

With its growing fleet, Archer is on track for piloted vertical take-off and landing operations as part of the White House’s eVTOL Integration Pilot Program later this year.

Archer is also on track for piloted VTOL operations in the UAE, where it plans to deliver additional Midnight aircraft.

Archer is targeting its first passenger-carrying flights in 2026.

- 100% FAA Acceptance of Midnight’s Means of Compliance

Archer became the first company to achieve 100% FAA acceptance of its eVTOL aircraft’s Means of Compliance.

Means of Compliance is the FAA-agreed-upon criteria by which Archer will demonstrate Midnight meets its airworthiness requirements.

Completing the Means of Compliance unlocks Archer’s ability to finalize the acceptance of its remaining certification plans with the FAA. Archer expects those to be resolved in the coming quarters, clearing the path for Type Inspection Authorization (TIA) activities to begin on its Midnight program as soon as this year.

- Expanded Defense Opportunities and Powertrain Sales

Archer’s partnership with Anduril is at the core of its defense strategy, and it continues to expand. The two companies are designing an autonomous, hybrid-electric VTOL aircraft built for dual use.

In November, Archer announced its first third-party powertrain deal with Anduril and UAE’s EDGE Group to power their Omen autonomous air vehicle—an example of how Archer’s proprietary technologies can be adapted and sold for other applications.

Archer also announced its new UK engineering hub in Bristol. This facility will primarily support Archer’s local collaboration with Anduril UK and GKN, initially focused on their joint work to support uncrewed vehicle programs in the UK.

- Ended Quarter With ~$2 Billion in Liquidity

Archer ended FY’25 with ~$2.0 billion in liquidity. Archer continues to be disciplined about its spend profile and met its Adjusted EBITDA loss guidance for the quarter.

Fourth Quarter & Full Year 2025 Financial Results

We reference several non-GAAP metrics in the financial discussion that follows. Unless otherwise noted or defined, our non-GAAP metrics are calculated by starting with the equivalent GAAP metric. A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided below in the section titled “GAAP to Non-GAAP Reconciliation”.

Key Financial Highlights

Liquidity

- FY 2025 cash, cash equivalents and short-term investments of $1,964.7 million, an increase of $1,130.2 million from FY 2024, and highest quarter ending liquidity watermark in Archer’s history.

- Cash used in operating activities: $432.9 million for FY 2025

- Cash used for investment in property and equipment: $78.8 million for FY 2025

- Cash used for acquisitions: $152.1 million for the acquisitions of Hawthorne Airport and Lilium and Overair IP

- Cash provided by financing activities: $1,796.4 million for FY 2025, primarily driven by the three registered direct offerings with gross proceeds of $1.8 billion.

Operating Expenses & Net Loss

- FY 2025 Operating Expenses increased by $219.9 million from FY 2024 to $729.6 million as we continued to invest in the development, test, certification and production activities for our aircraft. We also expanded investments in our go-to-market strategy and support infrastructure to enable the early bring-up of our air taxi operations globally. The increase in operating expenses included a $114.7 million increase in non-cash stock-based compensation expense.

- Q4 2025 Operating Expenses increased by $59.9 million from Q3 2025 to $234.7 million primarily driven by $36.1 million increase in non-cash stock-based compensation expenses, and other spend related to growing headcount and our supply chain efforts.

- FY 2025 Net Loss increased by $81.4 million from FY 2024 to a loss of $618.2 million primarily driven by $219.9 million increase in operating expenses, offset by $107.4 million decrease in non-cash charges within other income (expense), net and $30.9 million increase in interest income, net.

- Q4 2025 Net Loss increased by $59.0 million from Q3 2025 to a loss of $188.9 million primarily driven by the $59.9 million increase in operating expenses as described above.

Adjusted EBITDA

- Q4 2025 Adjusted EBITDA was a loss of $137.9 million, which is within the guidance range of $110 million - $140 million. The loss was a planned increase of $21.8 million over Q3 2025 mainly due to increase in people and vendor related expenses.

- FY 2025 Adjusted EBITDA Loss increased by $112.9 million over FY 2024 due to the investment in the development, test, certification and production activities for our aircraft as mentioned earlier.

Q1 2026 Financial Estimates

Archer’s financial estimates for first quarter of 2026 are as follows:

- Adjusted EBITDA to be a loss of $160 million to $180 million.

We have not reconciled our Adjusted EBITDA estimates because certain items that impact non-GAAP metrics are uncertain or out of our control and cannot be reasonably predicted. In particular, stock-based compensation expense and change in fair value of warrants is impacted by the future fair market value of our common stock and warrants along with other factors, all of which are difficult to predict, subject to frequent change, or not within our control. The actual amount of these expenses during 2026 will have a significant impact on our future GAAP financial results. Accordingly, a reconciliation of non-GAAP metrics is not available without unreasonable effort.