Press Release: Archer Announces First Quarter 2026 Results, Highlighting Record FAA Certification Progress With Initial US Operations Expected In 2026

Dow Jones05-12
   --  US operations expected to begin this year under the White House's eVTOL 
      Integration Pilot Program (eIPP) and in preparation for LA28 Olympic 
      Games 
 
   --  Advanced commercial readiness with expanded piloted flight test program 
      and operations of Hawthorne Airport in LA 
 
   --  Record FAA certification progress as the first to close Phase 3 of the 
      FAA's 4-phase Type Certification process for eVTOL aircraft* 
 
   --  Significant progress on dual-use, hybrid, autonomous aircraft with 
      phased program awards expected later this year 
 
   --  Rapidly advancing AI stack through partnerships with NVIDIA, Palantir, 
      and Starlink amid the DOT's $20B ATC modernization effort 
 
   --  Ended Q1 2026 with strong liquidity of $1.8B and spending in line with 
      guidance 
SANTA CLARA, Calif.--(BUSINESS WIRE)--May 11, 2026-- 

Archer Aviation Inc. ("Archer" or the "Company") (NYSE: ACHR) today announced operating and financial results for the first quarter ended March 31, 2026. The Company issued a shareholder letter from founder and CEO, Adam Goldstein, discussing highlights from the quarter.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260511456956/en/

Archer's Midnight aircraft during a recent flight test

Commenting on first quarter 2026 results, Adam Goldstein said:

"This was another banner quarter for Archer. We made tremendous progress towards beginning operations in the US later this year, with record FAA certification progress and our most expansive flight testing to date. But what is clear to me is that Archer is far more than an air taxi company. Our defense and AI software efforts are advancing quickly, and they're opening up an even bigger future for us. We're investing and building accordingly."

Live Webcast Details

Archer will host a live webcast to discuss its results at 2:00 p.m. Pacific Time today. The live webcast and replay are accessible via Archer's investor relations website at investors.archer.com or conference call by dialing 1 833-461-5787 (domestic) or +1 585-542-9983 (international) and entering the access code 641143600.

Recent Highlights

US Operations Expected to Begin this Year Under eIPP and in Preparation for LA28 Olympic Games

Archer expects Midnight operations in American cities to begin this year as part of the White House's eIPP and in preparation to serve as the Official Air Taxi Provider of the LA28 Olympic Games, in coordination with the DOT and FAA. Archer was recently selected as an air taxi partner in 3 winning applications encompassing 8 states, including Florida, Texas, and New York.

The eIPP and the LA28 Olympic Games pave the way for Archer to showcase its air taxi technology in parallel with its continued work toward FAA Type Certification for Midnight.

Record FAA Certification Progress

In April, Archer reached a key milestone on its path to FAA Type Certification of Midnight, becoming the first eVTOL company to close Phase 3 of the FAA's 4-phase Type Certification process.*

In parallel with its work to close out Phase 3, Archer has been driving progress in Phase 4 for some time now. This is where Midnight's compliance with FAA airworthiness requirements will be demonstrated through formal testing and analysis. Phase 4 builds on the certification basis, means of compliance, and test plans established in the earlier phases.

Advanced Commercial Readiness

Archer's flight test program continued to expand this quarter, with piloted VTOL and CTOL flights across its expanded fleet occurring nearly every day, often multiple times a day. Click here to view a video of Archer's recent flight test highlights.

Archer also took over operations of Hawthorne Airport in LA, marking a key step in its plan to develop the site into the airport of the future. Located near LAX and several major LA sports and entertainment venues, Hawthorne Airport is expected to anchor Archer's planned LA air taxi operations while also serving as an innovation hub for next-generation aviation technologies.

Significant Progress on Dual-Use, Hybrid, Autonomous Aircraft

Archer's work continues alongside Anduril on its dual-use, hybrid, autonomous aircraft, with the goal of delivering one of the most sophisticated vertical lift platforms ever developed in this category. As part of this program, Archer anticipates beginning to win phased government awards this year.

Rapidly Advancing AI Stack

Archer continued to advance its AI stack this quarter through partnerships with three category-defining technology leaders. NVIDIA is integrating its IGX Thor platform to power safety-capable onboard compute and autonomy-ready flight systems. Starlink will deliver high-speed, low-latency LEO satellite connectivity for Midnight aircraft. And our partner Palantir was recently downselected as a finalist for the FAA's SMART AI project, instrumental to DOT's $20B air traffic control modernization effort.

Ended Quarter With $1.8 Billion in Liquidity

Archer continues to maintain a strong balance sheet with $1.8B in liquidity and limited debt exposure. Q1 2026 marks another quarter of demonstrating consistent financial execution, with Archer meeting its Adjusted EBITDA loss guidance for the quarter.

*Based on information available to Archer at the time of this release.

First Quarter 2026 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".

 
                         SUMMARY FINANCIALS 
                      (In millions; unaudited) 
 
                                             QUARTER ENDED 
---------------------------------  --------------------------------- 
                                     MAR 31,    DEC 31,      MAR 31, 
                                        2026       2025         2025 
REVENUE                            $    1.6   $    0.3   $      - 
TOTAL OPERATING EXPENSES              256.2      234.7      144.0 
NET LOSS                             (217.7)    (188.9)     (93.4) 
NON-GAAP TOTAL OPERATING EXPENSES     181.9      144.2      113.1 
ADJUSTED EBITDA                      (172.5)    (137.9)    (109.0) 
 
CASH, CASH EQUIVALENTS & 
 SHORT-TERM INVESTMENTS             1,775.9    1,964.7    1,030.4 
                                    -------    -------    ------- 
 

Key Financial Highlights

Liquidity & Cash Flows

   --  We ended Q1 2026 with $1,775.9 million of cash, cash equivalents, and 
      short-term investments on our balance sheet and an additional $7.3 
      million of restricted cash. 
 
   --  Our Q1 2026 cash, cash equivalents, and short-term investments 
      decreased by $188.8 million from Q4 2025, primarily due to the $149.1 
      million cash used in operating activities and $32.6 million used in the 
      purchase of property and equipment. 

Revenue

   --  Our Q1 2026 Revenue increased by $1.3 million from Q4 2025 to $1.6 
      million as we expanded operations at the Hawthorne Airport in LA. 

Operating Expenses & Net Loss

   --  Q1 2026 Operating Expenses increased by $21.5 million from Q4 2025 as 
      we continued to invest in expanding flight testing, certification efforts, 
      and production activities for our Midnight aircraft, along with the 
      investment in the design and development efforts for our hybrid 
      aircraft. 
 
   --  Q1 2026 Net Loss increased by $28.8 million from Q4 2025 primarily 
      driven by $21.5 million increase in operating expenses, $7.3 million 
      decrease in non-cash gain within other income (expense), net, and a $1.2 
      million decrease in interest income, net, offset by $1.3 million increase 
      in revenue generated. 

Adjusted EBITDA

   --  Q1 2026 Adjusted EBITDA was a loss of $172.5 million, which is within 
      the guidance range of $160 million - $180 million. The loss was a planned 
      increase of $34.6 million over Q4 2025, mainly due to the reasons 
      mentioned above for the increase in operating expenses. 

Q2 2026 Financial Estimates

   --  Archer's financial estimates for the second quarter of 2026 are as 
      follows: 
 
          --  Adjusted EBITDA expected to be a loss of $170 million to $200 
             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.

About Archer

Archer builds the aircraft and core technologies that will define the next era of flight for aerospace and defense.

To learn more, visit www.archer.com.

Source: Archer

Text: ArcherIR

Forward-Looking Statements and Disclaimers

This press release contains forward-looking statements regarding Archer's future business plans, expectations, and opportunities. These statements include those regarding its expected financial results for the second quarter of 2026; the design, safety, and target specifications of its aircraft; pace of design and regulatory progress, the timing, phasing, geographic scope and planned operations under the eIPP; its ability to timely develop, certify, test, manufacture and deploy its eVTOL aircraft and develop vertiport infrastructure, or its ability to do so at all;development of its hybrid aircraft and defense programs; timing and ability to win a defense program award; planned operations of Hawthorne Airport and its intended role as a strategic network hub; expansion of its planned business lines and development of new business opportunities; and plans and anticipated benefits of acquisitions, strategic investments, partnerships, and collaborations with third parties. In addition, this press release refers to agreements that remain conditional, subject to the future execution of definitive agreements and the satisfaction of certain conditions. Such agreements may not be completed or may contain different terms than those currently contemplated. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors. The risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in Archer's filings with the Securities and Exchange Commission ("SEC"), including its most recent Annual Report on Form 10-K, which is or will be available on its investor relations website at investors.archer.com and on the SEC website at www.sec.gov. In addition, please note that any forward-looking statements contained herein are based on current expectations and assumptions that Archer believes to be reasonable as of the date of this press release. Archer undertakes no obligation to update these statements as a result of new information or future events.

 
                           ARCHER AVIATION INC. 
                  CONDENSED CONSOLIDATED BALANCE SHEETS 
                         (In millions; unaudited) 
 
                                                       As of 
----------------------------------------  -------------------------------- 
                                            MAR 31, 2026      DEC 31, 2025 
                                          --------------  ---------------- 
Assets 
Current assets 
   Cash and cash equivalents               $      951.1    $    1,021.5 
   Restricted cash                                  7.3             7.3 
   Short-term investments                         824.8           943.2 
   Prepaid expenses                                58.1            47.3 
   Other current assets                            58.5            56.8 
                                              ---------       --------- 
      Total current assets                      1,899.8         2,076.1 
Property and equipment, net                       278.6           253.6 
Intangible assets, net                             81.6            80.2 
Right-of-use assets                                39.3            40.8 
Goodwill                                            2.4             0.1 
Other long-term assets                             21.1            15.1 
                                              ---------       --------- 
      Total assets                         $    2,322.8    $    2,465.9 
                                              ---------       --------- 
Liabilities and Stockholders' Equity 
Current liabilities 
   Accounts payable                        $       25.4    $       30.2 
   Current portion of lease liabilities             4.7             5.3 
   Accrued expenses and other current 
    liabilities                                    73.7            68.1 
   Current portion of debt                          1.4             0.8 
                                              ---------       --------- 
      Total current liabilities                   105.2           104.4 
Debt, net of current liabilities                   78.8            79.5 
Lease liabilities, net of current 
 portion                                           36.9            36.3 
Warrant liabilities                                 7.1            29.9 
Other long-term liabilities                        15.4            13.0 
                                              ---------       --------- 
      Total liabilities                           243.4           263.1 
Stockholders' equity 
   Class A common stock, $0.0001 par 
    value                                           0.1             0.1 
   Additional paid-in capital                   4,604.0         4,507.9 
   Accumulated deficit                         (2,521.5)       (2,303.8) 
   Accumulated other comprehensive loss            (3.2)           (1.4) 
                                              ---------       --------- 
      Total stockholders' equity                2,079.4         2,202.8 
                                              ---------       --------- 
      Total liabilities and 
       stockholders' equity                $    2,322.8    $    2,465.9 
                                              ---------       --------- 
 
 
                      ARCHER AVIATION INC. 
        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
    (In millions, except share and per share data; unaudited) 
 
                                   QUARTER ENDED 
-----------------  --------------------------------------------- 
                         MAR 31,        DEC 31,          MAR 31, 
                            2026           2025             2025 
                   -------------  -------------  --------------- 
Revenue            $        1.6   $        0.3   $          - 
 
Operating 
expenses: 
Cost of revenue             1.3            0.3              - 
Research and 
 development              171.7          147.1          103.7 
General and 
 administrative            83.2           87.3           40.3 
                    -----------    -----------    ----------- 
   Total 
    operating 
    expenses              256.2          234.7          144.0 
                    -----------    -----------    ----------- 
Loss from 
 operations              (254.6)        (234.4)        (144.0) 
Other income 
 (expense), net            20.6           27.9           42.0 
Interest income, 
 net                       16.4           17.6            8.7 
                    -----------    -----------    ----------- 
   Loss before 
    income taxes         (217.6)        (188.9)         (93.3) 
Income tax 
 expense                   (0.1)             -           (0.1) 
                    -----------    -----------    ----------- 
   Net loss        $     (217.7)  $     (188.9)         (93.4) 
                    -----------    -----------    ----------- 
 
Net loss per 
 share, basic and 
 diluted           $      (0.28)  $      (0.26)         (0.17) 
Weighted-average 
 shares 
 outstanding, 
 basic and 
 diluted            766,850,002    714,436,497    540,427,085 
 
 
                         ARCHER AVIATION INC. 
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
                       (In millions; unaudited) 
 
                                                    QUARTER ENDED 
----------------------------------------------  ---------------------- 
                                                  MAR 31,      MAR 31, 
                                                     2026         2025 
                                                ---------  ----------- 
Cash flows from operating activities 
   Net loss                                     $ (217.7)  $  (93.4) 
   Adjustments to reconcile net loss to net 
   cash used in operating activities: 
      Depreciation and amortization expense          7.8        4.1 
      Stock-based compensation expense              70.4       30.1 
      Change in fair value of warrant 
       liabilities                                 (22.8)     (41.7) 
      Non-cash lease expense                         1.7        0.8 
      Research and development warrant expense         -        0.8 
      General and administrative warrant 
       expense                                       1.1          - 
      Amortization of short-term investments 
       purchased at a premium                        1.6          - 
      Others                                         0.3          - 
   Changes in operating assets and 
   liabilities: 
      Prepaid expenses                              (5.4)      (1.6) 
      Other current assets                           1.9       (1.2) 
      Other long-term assets                        (6.5)      (1.7) 
      Accounts payable                              (5.2)       0.5 
      Accrued expenses and other current 
       liabilities                                  28.0        8.1 
      Operating lease right-of-use assets and 
       lease liabilities, net                       (0.3)      (1.0) 
      Other long-term liabilities                   (4.0)       1.6 
                                                 -------    ------- 
         Net cash used in operating activities    (149.1)     (94.6) 
Cash flows from investing activities 
   Purchase of property and equipment              (32.6)     (10.0) 
   Proceeds from maturities of short-term 
    investments                                    115.0          - 
   Business acquisition, net of cash acquired       (3.7)         - 
                                                 -------    ------- 
         Net cash provided by (used in) 
          investing activities                      78.7      (10.0) 
Cash flows from financing activities 
   Repayment of long-term debt                      (0.1)         - 
   Proceeds from PIPE financing                        -       10.0 
   Proceeds from issuance of common stock              -      301.8 

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