Archer Aviation Inc. (ACHR) Q1 2025 Earnings Summary

Executive Summary

• Archer reported Q1 2025 GAAP net loss of $93.4M, adjusted EBITDA loss of $109.0M, and ended the quarter with $1.03B in cash and equivalents, the highest in company history .
• Guidance: Q2 2025 adjusted EBITDA loss guided to $100–$120M; Q1 2025 spending landed within prior guidance range .
• Strategic progress: UAE launch remains on track for later 2025; first piloted Midnight delivery to UAE planned for summer; GCAA approved the first hybrid heliport design; Part 141 pilot training certification obtained; new “Launch Edition” customers (Abu Dhabi Aviation, Ethiopian Airlines); formal AI partnership with Palantir; NYC network with United .
• Consensus comparison: Q1 Primary EPS beat vs SPGI consensus (actual Primary EPS -0.1156 vs -0.2199 consensus); GAAP diluted EPS was -0.17; note definition differences between Primary/normalized and GAAP diluted EPS [Values retrieved from S&P Global]* .
• Potential stock catalysts: UAE infrastructure/regulatory momentum, imminent piloted flights, cash runway >$1B, and expanding commercialization/defense narratives .

What Went Well and What Went Wrong

What Went Well

• Liquidity and runway: Quarter-end cash and equivalents reached $1.03B, up $195.9M q/q, supported by ~$302M equity raise; third consecutive quarter of growing cash reserves while advancing the business .
• Commercialization and regulatory progress: UAE launch on track; GCAA approved hybrid heliport design; Part 141 pilot training certified; FAA alignment on Rule 2105G (total propulsion loss) without design changes .
• Management tone on execution: “2025 is an inflection point” with imminent piloted flights and integrated civil/defense vectors; “We end Q1 maintaining over $1 billion of liquidity, the highest cash balance in the industry” .

What Went Wrong

• Higher operating spend and EBITDA loss: GAAP opex rose to $144.0M (+$19.8M q/q); adjusted EBITDA loss widened to $109.0M (vs $94.8M in Q4) due to personnel and materials for certification/manufacturing ramp .
• Piloted flight timing slipped modestly: Instrumentation complexity (40,000+ parameters) caused a “trickier than we thought” setup and slight delay; first piloted flight now “within days” at time of call .
• No reported revenue yet; continued pre-revenue phase; consensus revenue figures do not translate to reported revenue this quarter [Values retrieved from S&P Global]*.

Financial Results

Summary Financials vs Prior Periods

EPS vs Prior Periods

Values marked with * retrieved from S&P Global.

Q1 2025 Actual vs SPGI Consensus (estimates)

Values marked with * retrieved from S&P Global.

KPIs and Operating Progress

Segment breakdown: Not applicable (single operating segment) .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “2025 is an inflection point for Archer… We remain on track to launch later this year in the UAE” — Adam Goldstein .
• “We end Q1 maintaining over $1 billion of liquidity, the highest cash balance in the industry” — Adam Goldstein .
• “We’re entering the next phase of our Midnight aircraft program, operating with a pilot… on track to start piloted flights… over the next week” — Thomas Muniz .
• “The FAA has now aligned industry standards addressing total propulsion loss… do not result in any necessary modifications to Midnight’s design” — Thomas Muniz .
• “Partnering with Palantir to jointly architect the AI foundation for… aviation systems across manufacturing, operations, movement control and route planning” — Adam Goldstein .

Q&A Highlights

• UAE launch mechanics: Low-level operations with a handful of aircraft; deliver to UAE in summer; validate performance in high heat/dust; proving routes; Abu Dhabi Aviation as operator .
• Launch Edition revenue potential: Could generate “tens of millions per quarter” as manufacturing scales; focus on deploying aircraft globally .
• AI monetization: Building manufacturing “factory of the future” and aviation infrastructure software with Palantir; potential to monetize beyond internal use .
• Piloted flight timing: Modest delay due to extensive instrumentation setup; first piloted flight “within days” .
• Production ramp: Balancing internal test aircraft and deliveries; ramping towards efficiency and economics; target discussed of ~2 aircraft/month by year-end .

Estimates Context

• Q1 2025 Primary EPS: actual -0.1156 vs consensus -0.2199 — beat (note SPGI “Primary” vs GAAP diluted EPS -0.17) [Values retrieved from S&P Global]* .
• Revenue: Company remains pre-revenue; consensus ($1.833M) did not translate to reported revenue this quarter [Values retrieved from S&P Global]* .
• Implications: Analysts may revise near-term EBITDA loss higher (Q2 guide widened to $(100)–$(120)M) while increasing confidence in commercialization timing given regulatory/infrastructure milestones .

Key Takeaways for Investors

• Liquidity runway is robust ($1.03B), supporting commercialization and defense development without near-term external financing pressure .
• UAE commercialization is a credible near-term catalyst: delivery in summer; hybrid heliport approved; operator/infra/pilot training in place, increasing probability of 2025 launch .
• Piloted flight commencement is imminent; successful transition to piloted testing should de-risk certification narrative and validate aircraft maturity .
• Spending elevated near-term (Adj. EBITDA loss widened) to accelerate certification/manufacturing; monitor Q2 guide and capex increases as the company builds defensible scale .
• AI/software partnership with Palantir adds an incremental revenue option and operational moat across manufacturing and movement control; watch for productization milestones .
• Defense hybrid VTOL program is advancing with dual-use potential; early milestones and acquisitions signal strategic intent; could unlock sizable programs of record .
• For trading: narrative catalysts (piloted flights, UAE infra approvals, further Launch Edition customer announcements) likely drive sentiment near-term; medium-term thesis hinges on cert progress, manufacturing ramp to 2/month, and early international deployments .

Notes:

• Values marked with * retrieved from S&P Global.
• Revenue not disclosed in Q1 2025 statements; Archer remains pre-revenue this quarter .