Archer Aviation Q1 Earnings Call Highlights

Key Points

• Archer Aviation ended Q1 with $1.8 billion in liquidity and less than $100 million in debt, while warning that Q2 adjusted EBITDA losses are expected to widen to $170 million to $200 million as spending increases across civil, defense and software initiatives.
• The company said it became the first eVTOL firm to close Phase 3 of FAA type certification and is expanding its Midnight flight-test program, with a goal of completing piloted transition flight and entering the eIPP later this year.
• Archer is pushing into defense and aviation software alongside its air taxi business, including a new hybrid aircraft project with Anduril and partnerships with Palantir, NVIDIA and Starlink, while also advancing launch plans in Los Angeles, New York, Florida and the UAE.

Archer Aviation NYSE: ACHR executives said the company is increasing investment across its civil air taxi, defense and aviation software efforts as it advances aircraft certification, prepares for U.S. test operations and develops a new hybrid aircraft with defense technology company Anduril.

On the company’s earnings call, Archer said it ended the first quarter with $1.8 billion in liquidity and less than $100 million in debt. Priya Gupta, Archer’s interim CFO, said the company’s first-quarter spending came in within guidance and that the planned increase in spending reflects opportunities across “civil, defense and software.”

For the second quarter, Gupta said Archer expects an adjusted EBITDA loss of $170 million to $200 million. She said revenue began to grow in the first quarter as Archer expanded operations at Hawthorne Airport in Los Angeles and is expected to increase in the second quarter as the company continues to modernize the airport and its operations.

Certification and flight testing remain central priorities

Archer said it became the first eVTOL company to close Phase 3 of the Federal Aviation Administration’s four-phase type certification process and has been advancing Phase 4 in parallel. Benjamin Lyon, Archer’s president of aircraft OEM, said the milestone indicates the company does not have “unsolvable technical challenges” remaining and is now focused on execution and administrative approvals with the FAA.

The company also said it expanded its Midnight flight test program during the quarter, conducting piloted vertical takeoff and landing and conventional takeoff and landing flights across its fleet on a near-daily basis, sometimes multiple times per day.

In response to an analyst question, Lyon said Archer is progressing through more complex test points ahead of piloted transition flight, with software verification and validation a key focus. He said Archer’s goal is to complete piloted transition and enter operations under the eVTOL Integration Pilot Program, or eIPP, this year.

Archer said it currently has two aircraft flying and is building toward an initial fleet of eight to 10 aircraft. The company said those aircraft will be allocated across certification flight testing, eIPP, its Launch Edition program and other activities. Archer is also working to put in place production infrastructure that could support up to 50 aircraft per year, while also pursuing a production certificate that it aims to time with type certification progress.

Company plans U.S. air taxi testing and Los Angeles operations

Archer said it was selected as a partner in three winning eIPP applications across eight states and remains on track to begin flying under the program in U.S. cities later this year. The company said it is still finalizing details with cities and partners, including specific routes.

Archer also said it has taken over operations at Hawthorne Airport in Los Angeles and has begun modernizing it to serve as an air taxi and mobility hub for Los Angeles and surrounding communities. The company also described Hawthorne as an innovation hub for next-generation airspace technology it is developing with partners.

Executives discussed infrastructure work in New York, Florida and California. Archer said it has worked with the Port Authority and private airports in New York, with Related and Hard Rock in Florida on routes from Miami to West Palm Beach, and with SoFi Stadium, USC and major fixed-base operators in Los Angeles ahead of the 2028 Olympic Games. Archer has said it is collaborating with the L.A. 2028 Olympic Games, the Department of Transportation, the FAA, surrounding communities and other stakeholders as the official air taxi provider for the games.

Defense aircraft development with Anduril draws increased spending

Archer described defense as a growing area of focus, particularly through its partnership with Anduril. Tom Muniz, Archer’s CTO, said the company initially evaluated whether a version of Midnight could be used for defense, but concluded that larger opportunities require a new clean-sheet design.

Muniz said Archer and Anduril are developing a hybrid aircraft optimized around a different mission than Midnight, with specific payload, speed, range and cost targets. He declined to provide details on those targets but said the aircraft is “pretty far into development” and that Archer aims to show it later this year and win phased down-selects in 2026.

Archer also said it is competing with Anduril for an active U.K. Ministry of Defence procurement process. Muniz said interest in vehicles like the one Archer is developing exists around the world.

Asked about the company’s spending plans, Adam said Archer’s increased confidence in winning defense contracts has allowed it to spend more on the platform. He said contract awards could help offset spending, but added that if Archer does not win a defense contract, it would “immediately cut the spend.” Gupta said elevated spending is expected to be short-lived and could come down afterward.

AI software and air traffic control modernization

Archer executives also discussed air traffic control modernization and the company’s aviation software ambitions. Adam said the current national airspace system could constrain the long-term scale of air taxis and advanced air mobility, even if it can handle expected traffic growth over the next three to five years.

The company said it has partnered with Palantir, NVIDIA and Starlink on next-generation capabilities for Midnight and broader airspace systems. Adam noted that Palantir was recently down-selected as a finalist for the FAA’s SMART program and said Archer has been working for several years on AI products related to air traffic control.

In response to an analyst question, Adam said Archer has focused on the application layer of software that could be used in airspace management, while describing Palantir as more focused on the integration layer. He said Archer has not yet shown its solutions publicly because the area remains competitive, but intends to do so “pretty soon.”

International launch efforts continue

Archer also discussed its work in the United Arab Emirates. Adam said the company has been transitioning Midnight into a restricted type certification program, an internationally recognized pathway that could allow limited commercial operations. He said the effort is intended to help accelerate Archer’s Launch Edition program in the UAE and support early commercial operations in Abu Dhabi with Abu Dhabi Aviation.

Executives said the broader strategy is to create a “flywheel” across civil aircraft, defense platforms and software, with technologies developed for one area eventually reinforcing the others. Adam said he believes the civil opportunity remains larger than defense over time, but defense could move faster because it does not require the same FAA type certification process and could allow Archer to deploy advanced materials and processes before they are used in commercial aircraft.

About Archer Aviation NYSE: ACHR

Archer Aviation, Inc NYSE: ACHR is a California-based aerospace company developing electric vertical takeoff and landing (eVTOL) aircraft designed to serve as sustainable urban air mobility solutions. Founded in 2018 by Adam Goldstein and Brett Adcock, Archer focuses on the design, development and certification of zero-emissions air taxis aimed at reducing traffic congestion in densely populated metropolitan areas. The company's flagship prototypes, “Maker” and “Midnight,” have been engineered to deliver quiet, efficient short-haul flights with ranges of up to 100 miles per charge.

Headquartered in Palo Alto, California, Archer operates a manufacturing facility in nearby Santa Cruz County and maintains research partnerships with automotive and energy companies, including a collaboration with Stellantis to integrate advanced battery systems.

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