Archer Aviation Reports $93.4 Million Net Loss in Q1 2025, Improves from Last Year

Archer Aviation Inc. reported a net loss of $93.4 million for the first quarter of 2025, a significant improvement compared to a net loss of $116.5 million in the same period last year. The company’s total operating expenses increased slightly to $144.0 million from $142.2 million, driven primarily by a 24.2% rise in research and development costs, which reached $103.7 million. This increase reflects Archer's ongoing investment in the development of its electric vertical take-off and landing (eVTOL) aircraft, Midnight. General and administrative expenses, however, decreased by 31.3% to $40.3 million, largely due to reduced stock-based compensation expenses.

In terms of financial position, Archer's cash and cash equivalents rose to $1,030.4 million as of March 31, 2025, up from $834.5 million at the end of 2024. This increase was bolstered by significant financing activities, including a registered direct offering that generated approximately $289.5 million in net proceeds. The company also completed a private placement of Class A common stock, which contributed an additional $9.6 million. As a result, Archer's total assets increased to $1.21 billion, while total liabilities decreased to $203.3 million, down from $248.6 million at the end of the previous fiscal year.

Operationally, Archer has made strides in its manufacturing capabilities, having completed the construction of its high-volume manufacturing facility in Covington, Georgia, in December 2024. Production of the Midnight aircraft commenced in the first quarter of 2025, marking a critical step towards commercialization. The company is actively working with aviation authorities to obtain necessary certifications for its aircraft, which is essential for launching its urban air mobility services.

Archer's workforce has expanded significantly, contributing to the increase in research and development expenses. The company is focused on advancing its eVTOL technology and plans to continue hiring to support its growth. As of March 31, 2025, Archer had a total of 548.9 million shares of Class A common stock outstanding, reflecting its ongoing efforts to raise capital and support its operational needs. The company anticipates that its existing cash reserves will be sufficient to fund operations for at least the next 12 months, although it may need to seek additional financing to support its ambitious growth plans.

Looking ahead, Archer remains committed to its strategic objectives of developing advanced aviation technologies and expanding its market presence. The company is focused on achieving certification for its Midnight aircraft and building out its urban air mobility networks in major cities worldwide. However, it acknowledges that delays in obtaining necessary approvals could impact its timeline for generating significant revenues.