Archer Advances to Final FAA Test Phase While Carrying Heavy Losses

Overview

• Archer reported Q1 2026 results showing about $1.8 billion in liquidity, a net loss of $217.7 million, and revenue of $1.6 million from expanded Hawthorne Airport activity.
• The company closed FAA Phase 3 of the four‑phase Type Certification and has entered Phase 4, which is the FAA‑supervised final validation step that includes formal flight testing and compliance checks.
• Engineers have flagged a remaining technical risk in the Midnight design: a vertical‑to‑wing transition issue that must be resolved and revalidated during Phase 4 flight tests.
• Archer expects continued heavy cash burn and has guided Q2 Adjusted EBITDA losses of $170 million to $200 million while it funds certification, testing, and early production.
• The firm is preparing for limited operations under the White House eVTOL Integration Pilot Program and the LA28 air‑taxi role, and it is building technology and operational partnerships with NVIDIA, Palantir, Starlink and others as investors watch certification timing closely.