Archer Aviation’s Q2 Losses Deepen Even as Certification Milestones Advance

Archer Aviation reported second-quarter sales of $5 million, primarily from operating Hawthorne Airport in Los Angeles, against a net loss of $263 million. Adjusted EBITDA—a non-GAAP measure the company tracks—declined to $177.1 million, up from $172.5 million in the prior quarter and well above the $118.7 million loss recorded a year earlier. Management guided to a third-quarter adjusted EBITDA loss of $170 million to $200 million, indicating that the company expects losses of similar magnitude for the next quarter.

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In April, Archer completed the third phase of the Federal Aviation Administration’s four-phase type-certification process for its Midnight eVTOL, becoming the first firm in the sector to do so. The company entered the final certification phase, which requires formal testing to demonstrate compliance. In July, Midnight conducted its first piloted city-to-city flights in California. Over the coming months, Archer plans to launch passenger service from Hawthorne Airport in Los Angeles and, later in the year, to begin operations in Texas under the White House’s eVTOL Integration Pilot Program.

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Archer announced a pending transaction that would bring Insitu—an unmanned-military-aircraft builder with over $200 million in annual revenue—under its umbrella, along with autonomy developer Wisk Aero and air-space-software firm SkyGrid. Boeing is slated to take an equity stake and invest in Archer as part of the deal, which is expected to close before the end of 2026. In a shareholder letter, CEO Adam Goldstein said the integration would be “thoughtful and synergistic” and would not structurally increase the company’s overall cash burn. The acquired businesses are not yet reflected in the current quarter’s numbers.

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At the end of June, Archer held $1.56 billion in cash, cash equivalents, and short-term investments, down from $1.78 billion in March and $1.96 billion in December. Cash and investments fell by $215 million during the quarter, with $156 million used for operations and the remainder allocated to capital expenditures and the $25 million purchase of the Hawthorne Airport operator business. At the top end of the third-quarter loss guidance, the cash balance would cover roughly two years of losses.

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The company’s financial trajectory shows widening quarterly losses despite progress toward commercial operations and a pending strategic partnership with Boeing and Insitu. The runway provided by the current cash balance offers a buffer, but the realization of revenue from Midnight flights and the integration of new businesses will be critical to narrowing the loss gap. Investors must weigh the speculative nature of the projected operational launches against the company’s cash durability and the potential upside from the upcoming partnerships.

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