So, the dust has finally settled on Archer Aviation’s Q2 2025 earnings call, and if you just looked at the headline numbers, you’d probably want to look away. A $206 million net loss. Yeah, that’s a lot of zeros. For a company that technically hasn't sold a single commercial ticket yet, seeing those kinds of losses can feel like watching a slow-motion car crash—or in this case, a very expensive aircraft landing.
But honestly, the market didn't panic. Actually, the stock did that weird thing where it initially dipped and then started to climb. You’ve probably seen this before with high-growth tech: the "bad" news was already baked in, and the "good" news was tucked away in the footnotes.
The Reality of the Archer Aviation Stock Loss Q2
Let’s get the ugly stuff out of the way first. Archer reported a net loss of $206.0 million for the quarter ending June 30, 2025. Compare that to the $106.9 million loss they posted in the same period last year. It’s a massive jump.
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Why is it so high? Basically, it’s expensive to build the future. Research and development (R&D) costs alone shot up to $122.4 million. They are hiring engineers like crazy and pouring money into the "Midnight" aircraft. If you’re trying to get the FAA to say "yes" to a flying taxi, you can't exactly cut corners on the testing.
Interestingly, a huge chunk of that $206 million wasn't even cash leaving the building. About $82 million of the loss was a non-cash adjustment related to warrant liabilities. In plain English: it’s an accounting quirk that makes the loss look deeper than the actual "burn" of cash.
Where the Money is Going
- The Georgia Factory: They finally finished construction on their high-volume manufacturing facility in Covington, Georgia. It’s roughly 400,000 square feet of high-tech floor space.
- Production Lines: They aren't just drawing pictures anymore. Archer currently has six Midnight aircraft in various stages of production, with three of them sitting in final assembly.
- Certification Hurdles: The FAA is notoriously tough. Archer is currently grinding through the "Type Certification" process, which is the holy grail for eVTOL companies.
Why Investors Aren't Running for the Hills
You’d think a $200 million hole would send shareholders sprinting toward the exit. It didn't.
Actually, the stock has been surprisingly resilient. The big reason is the cash hoard. Archer ended Q2 with a staggering $1.72 billion in liquidity. Most of that came from a massive $816.8 million stock offering they pulled off in June 2025.
Think about that. They have enough cash to keep the lights on for at least another two years, even at this insane burn rate. For a pre-revenue company, cash is oxygen. Right now, Archer is breathing just fine.
The Stellantis Safety Net
One name you keep hearing in these earnings calls is Stellantis. The automotive giant (the folks behind Jeep and Ram) isn't just a passive investor; they are basically Archer’s manufacturing backbone. They’ve pledged hundreds of millions to cover labor costs and manufacturing setup.
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It’s a smart move. Archer gets to use world-class automotive manufacturing techniques, and Stellantis gets a front-row seat to the future of transportation.
The "Midnight" Flight Path: Abu Dhabi and Beyond
If you're looking for where the first actual dollar of revenue is coming from, look toward the Middle East. Archer has been making serious moves in the UAE.
They’ve already delivered a Midnight aircraft to Abu Dhabi for flight testing. While U.S. commercial flights are still a ways off—targeting 2026 for the most part—international "Launch Edition" programs might start bringing in cash as early as late 2025.
What Most People Get Wrong
A lot of folks assume that because Archer hasn't started flying passengers in New York or LA yet, they’re failing. That’s a fundamental misunderstanding of how aviation works.
Boeing and Airbus take a decade to bring new planes to market. Archer is trying to build a brand-new category of vehicle while also building the infrastructure (vertiports) and the software to run it. It’s a heavy lift.
Is the Stock a Buy or a Trap?
Honestly, it depends on your stomach for volatility. Archer’s stock is what traders call "high beta." It moves. A lot.
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On one hand, you have a $6 billion order backlog from companies like United Airlines and various groups in the UAE. On the other, you have a company that lost nearly a quarter-billion dollars in three months.
The Bull Case
- Massive Liquidity: $1.7B means no immediate "going out of business" risk.
- Strategic Backing: Stellantis and United Airlines are literally invested in their success.
- First-Mover Advantage: They are neck-and-neck with Joby Aviation to be the first to market.
The Bear Case
- Regulatory Risk: If the FAA moves the goalposts, Archer’s timeline could slip into 2027 or 2028.
- Dilution: That $816 million raise was great for the balance sheet, but it meant issuing a lot of new shares, which dilutes existing owners.
- Manufacturing Scale: Moving from building six prototypes to 650 planes a year is a nightmare task.
Actionable Insights for Investors
If you're holding or eyeing Archer Aviation stock after the Q2 update, here’s how to navigate the next few months:
- Watch the FAA Registry: Keep a close eye on "Type Certification" milestones. Every time they clear a "G-1" or "G-2" issue paper, the risk profile of the stock drops.
- Monitor the Georgia Ramp-Up: The facility in Covington is the key. If they can hit their goal of producing two aircraft per month by the end of 2025, it proves they can actually build these things at scale.
- Don't Fixate on Net Loss: For the next year, the "Net Loss" figure is almost irrelevant. Focus on Net Cash Used in Operating Activities. That tells you the real story of how fast the bank account is draining.
- Look for UAE Revenue: Any small "milestone payments" from Abu Dhabi in late 2025 will be a massive psychological win for the stock. It proves the business model can actually generate a check.
The Archer Aviation stock loss Q2 was big, but it wasn't a surprise. In the world of air taxis, you have to spend a billion dollars to make a billion dollars. Archer just happens to be one of the few players with the bank account—and the partners—to actually see it through.
Strategic Next Steps:
- Check Archer’s SEC Form 10-Q for the specific breakdown of "Stock-Based Compensation" to see how much of the loss was non-cash.
- Compare Archer’s cash burn rate against Joby Aviation’s Q2 results to see who is managing their "runway" more efficiently.
- Review the recent White House Executive Order on "Advanced Air Mobility" to see how federal policy might fast-track these certifications.