- UAE launch is on schedule for later this year, with plans to provide the piloted Midnight aircraft to the UAE this summer.
- The Midnight “Launch Edition” initiative introduces its initial clients: Abu Dhabi Aviation and Ethiopian Airlines.
- In partnership with Palantir, Archer is developing artificial intelligence to advance next-generation aviation technology.
- The company’s cash reserves exceed $1 billion, positioning it as a leader in the industry, with Q1 2025 expenditures within anticipated figures.
SANTA CLARA, Calif.–(BUSINESS WIRE)–
Archer Aviation Inc. (“Archer” or the “Company”) (NYSE: ACHR) has reported its operational and financial performance for the first quarter ending March 31, 2025. The Company issued a letter to shareholders detailing these results and projected outcomes for the second quarter of 2025.
Recent image from Archer’s flight testing facility in California
Regarding the first quarter of 2025, Archer’s founder and CEO, Adam Goldstein, commented:
“Archer is breaking new ground and will transform the aviation landscape for years ahead. This quarter, we have made significant strides in our civil and defense projects while also enhancing our strategic partnerships in preparation for launching in the UAE this year.”
Webcast Details
Archer will conduct a live webcast to present its results today at 2:00 p.m. Pacific Time. The webcast and its recording can be accessed through the investor relations section on our website or via conference call at 404-975-4839 (domestic) or +1 833-470-1428 (international) using the access code 250266.
Key Highlights from the First Quarter
UAE Launch Progress
Archer is set to deliver its inaugural Midnight aircraft to the UAE in the upcoming months, preparing for a planned launch later this year. To facilitate this, the company has received design approval for the first hybrid heliport in the UAE, located in Abu Dhabi.
Introduction of New “Launch Edition” Clients
During the previous quarter, Archer initiated its “Launch Edition” program, designed to provide a systematic approach for commercial deployment of the Midnight aircraft into select early adopter markets. The first two customers announced are Abu Dhabi Aviation and Ethiopian Airlines.
Artificial Intelligence Collaboration with Palantir
Archer has established a strategic alliance with Palantir to develop advanced artificial intelligence aimed at enhancing next-gen aviation systems. This collaboration intends to create software solutions utilizing AI for a variety of aviation applications.
Air Taxi Network Development with United
Last month, Archer held an event in New York City with United Airlines to outline plans for connecting Manhattan with nearby airports using Midnight aircraft, aiming to reduce typical travel time from one to two hours down to flights lasting 5-15 minutes, significantly alleviating traffic delays.
First Quarter Financial Overview
|
Q1 2025 (GAAP) |
Q1 20251 (Non-GAAP) |
||
|
Total Operating Expenses |
$ |
144.0M |
$ 113.1M |
|
Net Loss |
$ |
(93.4M) |
NA |
|
Adjusted EBITDA |
NA |
$ (109.0M) |
|
|
Cash and Cash Equivalents |
$ |
1,030.4M |
NA |
|
|||
Financial Projections for Second Quarter 2025
Archer’s financial forecasts for the second quarter of 2025 include:
- Adjusted EBITDA loss projected between $100 million to $120 million.
Due to the unpredictable nature of certain items affecting non-GAAP metrics, we have not provided a reconciliation for our Adjusted EBITDA estimates. Specifically, the stock-based compensation expense can be affected by the future market value of our shares, among other factors. The actual costs will significantly influence our future GAAP financials, making a reconciliation of non-GAAP metrics impractical without excessive effort.
About Archer
Archer is focused on the design and development of key technologies and aircraft required for a sustainable aviation future. To discover more, visit www.archer.com.
Forward-Looking Statements
This announcement contains predictions regarding Archer’s future operations and expectations, including anticipated financial outcomes for the second quarter of 2025, strategies and plans, aircraft performance, design specifications, timelines for development and commercialization of the planned eVTOL aircraft, business expansion, and the projected demand for Archer’s services. Additionally, it highlights agreements with third parties that are contingent upon further definitive agreements which may have varying terms. These projections are subject to change based on various factors. The risks associated with these forward-looking statements are addressed in our filings with the Securities and Exchange Commission (SEC), including our most recent Annual Report on Form 10-K, which can be found on our investor relations website and the SEC’s site at www.sec.gov.
Reconciliation of Selected GAAP to Non-GAAP Results for Q1 2025
Below is the reconciliation of total operating expenses (in millions; unaudited) for the three months ended March 31, 2025:
|
Three Months Ended March 31, 2025 |
||
|
Total operating expenses |
$ |
144.0 |
|
Adjusted to exclude the following: |
||
|
Warrant expense from Stellantis(1) |
(0.8) |
|
|
Stock-based compensation(2) |
(30.1) |
|
|
Non-GAAP total operating expenses |
$ |
113.1 |
|
(1) Non-cash costs classified as research and development related to warrants issued to Stellantis N.V. |
||
|
(2) Includes stock compensation for options and restricted stock awarded to employees and non-employees, including the grant to our founder linked to the business combination’s conclusion. |
||
Reconciliation of Adjusted EBITDA (in millions; unaudited): This section details the adjustments from net loss to Adjusted EBITDA for the three months ended March 31, 2025:
|
Three Months Ended March 31, 2025 |
||
|
Net loss |
$ |
(93.4) |
|
Adjusted to exclude the following: |
||
|
Other income, net(1) |
(42.0) |
|
|
Interest income, net |
(8.7) |
|
|
Income tax expense |
0.1 |
|
|
Depreciation and amortization expense |
4.1 |
|
|
Stellantis warrant expense(2) |
0.8 |
|
|
Stock-based compensation(3) |
30.1 |
|
|
Adjusted EBITDA |
$ |
(109.0) |
|
(1) Includes variations in fair value of public and private warrants, classified as warrant liabilities. |
||
|
(2) Non-cash costs tied to warrants provided to Stellantis for certain services offered. |
||
|
(3) Compensation related to stock options and restricted stock units granted to employees and other individuals, including a grant to our founder linked to the business combination. |
||
Understanding Non-GAAP Financial Measures
Archer supplements its financial data prepared according to GAAP with various non-GAAP measures to facilitate analyzing overall business performance, making operational decisions, and planning for future periods. We believe that these measures provide valuable insights into our current financial standing and operational trends.
While non-GAAP metrics are intended to enhance understanding of particular financial aspects, they should not replace or be viewed as superior to GAAP measures. We consider the presentation of non-GAAP metrics beneficial for investors seeking additional context regarding our financial and operational achievements.
In assessing our business for the quarter ending March 31, 2025, we accounted for the following categories in our non-GAAP metrics:
Stock-Based Compensation Expenses: Excluding these expenses improves the comparability of financial results across periods. Companies utilize various equity awards and methodologies to derive these costs, and excluding them provides clearer insights into our operational performance.
Warrant Expenses and Gains or Losses from Warrant Revaluation: These recurring (but non-cash) expenses and the resulting fair value fluctuations are excluded from our financial analyses for transparency and comparability purposes, similar to stock-based compensation.
Each non-GAAP measure should be used in conjunction with GAAP measures, as they may differ from similar metrics utilized by other firms, limiting their comparative value. We mitigate these limitations by providing detailed reconciliations related to GAAP amounts excluded from non-GAAP metrics.