Archer Aviation (ACHR) FY Conference Summary Industry Overview - **Industry**: Urban Air Mobility and eVTOL (Electric Vertical Takeoff and Landing) Aircraft - **Company**: Archer Aviation, publicly listed on the New York Stock Exchange, focusing on developing eVTOL aircraft for urban air mobility Key Points and Arguments 1. **Urban Air Mobility Opportunity**: The demand for urban air mobility is driven by increasing congestion in cities, with the need for efficient transportation solutions that outpace road bandwidth growth [1][2] 2. **Company Foundation and Vision**: Archer was founded with a commercial mindset to quickly bring eVTOL aircraft to market, aiming for deployment in major cities globally [3][4] 3. **Aircraft Development**: The Archer Midnight aircraft is designed for 20 to 50-mile trips, carrying a pilot and four passengers at speeds of approximately 150 miles per hour, with a focus on being quieter and safer than helicopters [9][10] 4. **Partnerships and Orders**: Archer has secured over $6 billion in orders, including a $1.5 billion order with United Airlines, and partnerships with major airlines globally [17][18][19] 5. **Launch Edition Agreements**: Archer has established agreements with countries like the UAE, Indonesia, and Ethiopia to deploy aircraft ahead of certification, with significant revenue opportunities from these contracts [20][21][22] 6. **Regulatory Partnerships**: Collaborations with local regulators, such as the GCAA in the UAE, facilitate early deployment of aircraft and create pathways for future operations [24] 7. **Defense Applications**: Archer is exploring defense applications through partnerships, focusing on developing purpose-built vehicles for military use [27][28] 8. **Manufacturing Capacity**: Archer has two manufacturing facilities, with a goal to produce up to 650 aircraft per year, aiming for a near-term production rate of 50 aircraft annually [32][33] 9. **Integration with Airports**: Archer is working with major airports to secure landing spots and integrate eVTOL operations, enhancing passenger experience and reducing congestion [41][42] 10. **Acoustic and Thermal Signatures**: The aircraft are designed to be significantly quieter than helicopters, addressing community concerns and enhancing operational feasibility in urban environments [52][53] Additional Important Content - **Olympics Partnership**: Archer is the official air taxi partner for the LA Olympics in 2028, which serves as a critical milestone for scaling operations [34][35] - **FAA Support**: The current administration is actively supporting the eVTOL industry, with initiatives to upgrade air traffic control systems to accommodate increased air traffic from eVTOLs and drones [56][57] - **Technological Collaborations**: Archer has partnered with Palantir to enhance AI and software integration for air traffic management systems [58] This summary encapsulates the strategic direction, operational plans, and market positioning of Archer Aviation within the urban air mobility sector, highlighting both opportunities and challenges ahead.

Archer Aviation Inc. (NYSE: ACHR ) is down over 12% in pre-market trading on Tuesday after the company reported Q2 '25 with a wider loss year over year, with adjusted expenses up 28% to $123.5I’m a retired Wall Street PM specializing in TMT; since kickstarting my career, I’ve spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of ‘08, and, more recently, with the AI boom. In one word, what I’d like my service to rev ...

JPMorgan: Archer's second-quarter results highlighted ongoing uncertainties about the timing of certification. The team is focused on meeting FAA requirements and preparing for "future commercial and defense opportunities," Peterson said. The company expects to add six more Midnight aircraft to its fleet, bringing the total to eight. Archer failed to achieve any sequential percentage increase in FAA acceptance of compliance verification documents. This may disappoint some investors. However, it "reflects a ...

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U.S. stock futures were slightly lower this morning, with the Dow futures falling around 0.1% on Tuesday. Shares of Celanese Corporation CE fell sharply in pre-market trading after the company reported second- quarter financial results and issued third-quarter adjusted EPS guidance below estimates. Celanese said it sees third-quarter adjusted earnings of $1.10 to $1.40 per share, versus market estimates of $1.73 per share. Celanese shares dipped 15.5% to $40.00 in the pre-market trading session. Here are so ...

Financial Data and Key Metrics Changes - The company closed Q2 2025 with $1.7 billion in cash and cash equivalents, marking the fourth consecutive quarter of record liquidity, nearly double that of the next competitor in the sector [41] - The net loss for Q2 2025 was $206 million, with an adjusted net loss of $114 million, reflecting planned investments primarily in personnel [42][43] - GAAP operating expenses for Q2 2025 were $176 million, an increase of $32 million quarter over quarter, primarily due to increased personnel-related costs [43] Business Line Data and Key Metrics Changes - The company is ramping up its manufacturing capabilities, with six Midnight aircraft in various stages of production, three of which are in final assembly [12][33] - The focus remains on advancing the piloted Midnight aircraft through early commercial deployment and certification in the U.S. and UAE [41] Market Data and Key Metrics Changes - The company has signed definitive agreements with Abu Dhabi Aviation and the Abu Dhabi Investment Office, setting up for tens of millions in payments over the next 18 to 24 months [52] - The company is expanding its Launch Edition Program internationally, with partners in the UAE, Ethiopia, and Indonesia, indicating growing demand from global operators and governments [18][20] Company Strategy and Development Direction - The company is committed to furthering America's lead in advanced aviation by building and deploying eVTOLs domestically and exporting innovation globally [9] - The focus is on scaling commercial air taxi operations in the U.S. and select cities worldwide, with the 2028 LA Olympics as a key milestone [10][11] - Recent strategic acquisitions aim to enhance defense capabilities and build a proprietary moat in the industry [23][38] Management's Comments on Operating Environment and Future Outlook - Management highlighted unprecedented support from the U.S. government for the advanced aviation sector, with multiple executive orders and a national priority on air taxis [6][8] - The company is positioned to validate Midnight's performance and safety in real-world conditions ahead of the Olympics, with early operations planned to begin next year [11][12] Other Important Information - The company is focused on developing a hybrid electric aircraft for defense, with significant advancements expected in the coming months [37][38] - The FAA has approved about 15% of compliance verification documents for the Midnight certification program, with ongoing alignment on TIA plans [35][91] Q&A Session Summary Question: When will mass production be seen? - The company is focused on achieving scale for the Olympics, with two phases of manufacturing in place, refining processes in California before deploying them in Georgia [46][47] Question: What is the vision for commercialization in the UAE? - The company has signed agreements for revenue-generating operations in the UAE, focusing on flight testing and infrastructure readiness [51][52] Question: What are the preparations needed for early deployments of the Midnight aircraft? - The company has a comprehensive infrastructure strategy in place across major cities, with ongoing efforts to position aircraft for operations [57][58] Question: What is the roadmap for the UAE over the next 12 to 18 months? - The company plans to grow its fleet and obtain commercial authority from the GCAA, with exhibition flights expected to mimic actual passenger routes [63][66] Question: How will the defense opportunity be capitalized on? - The company does not separate capital allocation between commercial and defense, leveraging engineering resources across both sectors [68] Question: What is the status of certification plans? - The company is in the final stages of policy with the FAA, with ongoing work to finalize compliance verification documents [75][92]

Archer Aviation (ACHR) Q2 2025 Earnings Call August 11, 2025 05:00 PM ET Company ParticipantsEric Lentell - Chief Legal & Strategy OfficerAdam Goldstein - Founder, CEO & ChairmanTom Muniz - Chief Technology OfficerPriya Gupta - Interim CFOMackenzie Holleran - Equity Research AssociateEdison Yu - DirectorSavanthi Syth - Managing DirectorAustin Moeller - Director - Equity ResearchBill Peterson - Equity ResearchConference Call ParticipantsAndres Sheppard - MD & Senior Equity AnalystAmit Dayal - Managing Direct ...

Financial Data and Key Metrics Changes - Archer Aviation closed Q2 2025 with $1.7 billion in cash and cash equivalents, marking the fourth consecutive quarter of record liquidity, nearly double that of its closest competitor in the sector [43] - The net loss for Q2 2025 was $206 million, with an adjusted net loss of $114 million, reflecting planned investments primarily in personnel [44][45] - GAAP operating expenses increased by $32 million quarter-over-quarter, totaling $176 million, driven by increased personnel costs [46] Business Line Data and Key Metrics Changes - The company is ramping up its manufacturing capabilities, with six Midnight aircraft in various stages of production, three of which are in final assembly [13][35] - The focus remains on advancing the piloted Midnight L Taxi through early commercial deployment and certification in the U.S. and UAE [43] Market Data and Key Metrics Changes - Archer has signed definitive agreements with Abu Dhabi Aviation and the Abu Dhabi Investment Office, setting up for tens of millions in revenue over the next 18 to 24 months [55] - The company is expanding its international flight testing program, with operations launched in the UAE and plans for further expansion into Asia [18][21] Company Strategy and Development Direction - Archer is committed to establishing a competitive moat through investments in top-tier talent, technology, and strategic partnerships, focusing on both commercial air taxis and defense [48] - The company aims to be the exclusive air taxi provider for the 2028 LA Olympics, which has become a national priority for showcasing air taxis at scale [10][12] Management's Comments on Operating Environment and Future Outlook - Management highlighted unprecedented support from the U.S. government for the advanced aviation sector, emphasizing a coordinated national effort to lead in this industry [8][9] - The company is focused on executing its plans efficiently to meet the demands of both commercial and defense markets, with a strong emphasis on operational execution [42][48] Other Important Information - Archer completed two strategic acquisitions in the quarter, enhancing its capabilities in defense technology and manufacturing [24][40] - The FAA has approved about 15% of compliance verification documents for the Midnight certification program, with ongoing audits and testing [37][94] Q&A Session Summary Question: When will mass production be seen? - The company is focused on achieving scale for the Olympics, with two phases of manufacturing in place, refining processes in California before scaling in Georgia [49][50] Question: What is the vision for commercialization in the UAE? - The company has launched its first edition programs in the UAE, with plans for pilot training and infrastructure preparation, leveraging existing helipads for eVTOL use [54][56] Question: What is the roadmap for the next 12-18 months in the UAE? - The company plans to grow its fleet and obtain commercial authority from the GCAA, with exhibition flights and full commercial operations expected [66][69] Question: How much of the capital will go towards defense opportunities? - The company does not separate capital allocation between commercial and defense, as the engineering team works across both sectors [71] Question: What is the status of FAA certification? - The company is still working through policy issues with the FAA, with plans to use the six aircraft currently in production for TIA testing [78][80] Question: What is the goal of the Mission Critical Composites acquisition? - The acquisition aims to enhance in-house capabilities for advanced composites, which will benefit both defense and civil applications [84]

Part I—Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company reported a Q2 2025 net loss of $206.0 million and holds $1.72 billion in cash from financing activities [Consolidated Condensed Balance Sheets](index=5&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Total assets grew to $1.94 billion by June 2025, driven by a significant increase in cash to $1.72 billion Consolidated Condensed Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,724.0 | $834.5 | | Total current assets | $1,757.0 | $858.4 | | Total assets | $1,938.3 | $1,001.2 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $78.8 | $71.1 | | Total liabilities | $257.4 | $248.6 | | Total stockholders' equity | $1,680.9 | $752.6 | | Accumulated deficit | $(1,985.0) | $(1,685.6) | [Consolidated Condensed Statements of Operations](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) The Q2 2025 net loss widened to $206.0 million from $106.9 million year-over-year due to higher operating expenses Statements of Operations Summary (in millions) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Research and development | $122.4 | $89.8 | $226.1 | $173.3 | | General and administrative | $53.7 | $31.4 | $94.0 | $90.1 | | Total operating expenses | $176.1 | $121.2 | $320.1 | $263.4 | | Loss from operations | $(176.1) | $(121.2) | $(320.1) | $(263.4) | | Net loss | $(206.0) | $(106.9) | $(299.4) | $(223.4) | | Net loss per share | $(0.36) | $(0.32) | $(0.53) | $(0.68) | [Consolidated Condensed Statements of Cash Flows](index=10&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Financing activities provided $1.12 billion in cash, offsetting operational and investing outflows for H1 2025 Cash Flow Summary for Six Months Ended June 30 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(198.0) | $(167.0) | | Net cash used in investing activities | $(34.1) | $(38.2) | | Net cash provided by financing activities | $1,121.3 | $100.8 | | **Net increase (decrease) in cash** | **$889.2** | **$(104.4)** | - Financing activities in the first six months of 2025 were primarily driven by **$1,151.8 million in proceeds from a registered direct offering** and $10.0 million from a PIPE financing[36](index=36&type=chunk) [Notes to Consolidated Condensed Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) Notes detail the eVTOL business, confirm liquidity for 12 months, and disclose financing, litigation, and loan details - The company is developing an electric vertical take-off and landing (eVTOL) aircraft and plans to operate in two business lines: **Commercial and Defense**[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) - As of June 30, 2025, the company had cash and cash equivalents of **$1,724.0 million**, which management believes is sufficient to fund operations for at least the next 12 months[41](index=41&type=chunk) - The company has a **$65.0 million credit agreement** with Synovus Bank for the construction of its manufacturing facility in Covington, Georgia, which has been fully drawn down[77](index=77&type=chunk)[81](index=81&type=chunk) - The company is involved in a **consolidated class action lawsuit** alleging breaches of fiduciary duties in connection with its merger, though the court has narrowed the claims[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - Significant financing was raised through registered direct offerings, including **$289.5 million in February 2025** and **$816.8 million in June 2025**[103](index=103&type=chunk)[105](index=105&type=chunk) - Total stock-based compensation expense was **$81.9 million for the six months ended June 30, 2025**, a notable increase from $63.5 million in the same period of 2024[134](index=134&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses rising operating expenses for eVTOL development and a strong liquidity position of $1.72 billion [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q2 2025 operating expenses rose 45.3% to $176.1 million, driven by increased R&D and G&A costs Comparison of Operating Results (in millions) | Expense Category | Q2 2025 | Q2 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Research and development | $122.4 | $89.8 | $32.6 | 36.3% | | General and administrative | $53.7 | $31.4 | $22.3 | 71.0% | | **Total operating expenses** | **$176.1** | **$121.2** | **$54.9** | **45.3%** | | **Net loss** | **$206.0** | **$106.9** | **$99.1** | **92.7%** | - The increase in R&D expenses for Q2 2025 was driven by an **$11.8 million increase in stock-based compensation** and a $10.1 million increase in personnel costs[173](index=173&type=chunk) - The increase in G&A expenses for Q2 2025 was primarily due to a **$21.2 million increase in stock-based compensation**[175](index=175&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds $1.72 billion in cash, sufficient for the next 12 months, bolstered by over $1.1 billion from recent offerings - Principal sources of liquidity as of June 30, 2025, were **cash and cash equivalents of $1,724.0 million**[179](index=179&type=chunk) - The company closed a registered direct offering on June 16, 2025, selling 85,000,000 shares for **net proceeds of approximately $816.8 million**[184](index=184&type=chunk) - The company closed another registered direct offering on February 12, 2025, selling 35,500,000 shares for **net proceeds of approximately $289.5 million**[183](index=183&type=chunk) - In July 2025, subsequent to the reporting period, the company sold 3,921,875 shares under its ATM Program for **net proceeds of $46.3 million**[159](index=159&type=chunk)[181](index=181&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk from its variable-rate debt and investments, and credit risk from cash deposits - The company is exposed to interest rate risk from its **variable-rate loan (SOFR + 2.0%)** and its cash equivalent investments in money market funds[198](index=198&type=chunk) - Credit risk is concentrated in cash and cash equivalents held at several U.S. financial institutions, where **balances may exceed FDIC insurance limits**[199](index=199&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - The CEO and CFO concluded that as of June 30, 2025, the company's **disclosure controls and procedures were effective**[200](index=200&type=chunk) - **No material changes** were made during the quarter ended June 30, 2025, that are reasonably likely to materially affect the company's internal control over financial reporting[202](index=202&type=chunk) Part II—Other Information [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a class action lawsuit related to its merger, with details in Note 7 of the financials - A description of material pending legal proceedings can be found in **Note 7 - Commitments and Contingencies**, which details the Delaware Class Action Litigation[204](index=204&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the company's Form 10-K and Form 8-K for a comprehensive overview of investment risks - The company refers to its **Annual Report on Form 10-K** and a **Current Report on Form 8-K** (filed June 13, 2025) for a full description of risk factors[205](index=205&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) The company plans to issue $28.0 million in stock to vendors and a warrant for 314,760 shares in August 2025 - On or about August 11, 2025, the company will issue **$28.0 million of Class A common stock** to vendors for services and goods[211](index=211&type=chunk) - On or about August 11, 2025, the company will issue a **warrant to purchase 314,760 shares** of Class A common stock at an exercise price of $0.01 per share[212](index=212&type=chunk) - During Q2 2025, **no directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement**[214](index=214&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists key filed exhibits, including agreements, legal opinions, and required officer certifications - Key exhibits filed include the **Form of Warrant to Purchase Shares (4.1)**, Opinion of Fenwick & West LLP (5.1), a Securities Purchase Agreement (10.1), and CEO/CFO certifications[215](index=215&type=chunk)

[Q1 2025 Shareholder Letter](index=1&type=section&id=Q1%202025%20Shareholder%20Letter) [Operational and Financial Highlights](index=2&type=section&id=Operational%20and%20Financial%20Highlights) Archer reports significant progress in Q2 2025 across key areas: ramping up Midnight aircraft manufacturing, securing a partnership for the LA 2028 Olympics supported by a White House executive order, launching its first international program in the UAE, accelerating its defense division with strategic acquisitions, and strengthening its financial position to over $1.7 billion in cash - Six Midnight aircraft are in production, with three in final assembly, as the company progresses towards its production certificate with the FAA[3](index=3&type=chunk) - Selected as the Official Air Taxi Provider for the LA 2028 Olympic Games, with a White House Executive Order promoting U.S. leadership in eVTOL technology[4](index=4&type=chunk) - Activated its first international Launch Edition program in the UAE, delivering the first Midnight aircraft and commencing the flight test program in Abu Dhabi[5](index=5&type=chunk) - Accelerated the Archer Defense program through two strategic acquisitions: a patent portfolio and talent from Overair, and defense composite manufacturing assets from Mission Critical Composites[6](index=6&type=chunk) - Achieved a sector-leading cash position surpassing **$1.7 billion** following a Q2'25 capital raise of **$850 million**[7](index=7&type=chunk) [Manufacturing Capabilities and Production Certificate Progress](index=3&type=section&id=Manufacturing%20Capabilities%20and%20Production%20Certificate%20Progress) The company is focused on ramping up manufacturing to a rate of 50 aircraft per year. Currently, six Midnight aircraft are in production across its Silicon Valley "golden line" and high-volume Georgia facility. The FAA is actively conducting reviews for the production certificate. The company is also scaling up its proprietary electric engine and battery pack production lines - The near-term focus is to ramp up production capabilities to achieve a rate of **50 aircraft per year**[10](index=10&type=chunk) - Six Midnight aircraft are in various stages of production, with three in final assembly. The FAA is concurrently conducting inspections for the production certificate[11](index=11&type=chunk) - A "golden manufacturing line" in Silicon Valley is used for early Midnight builds to inform the ramp-up of high-volume manufacturing in Covington, Georgia[12](index=12&type=chunk)[13](index=13&type=chunk) - The company is ramping production of its proprietary electric engines and its "automotive style" battery packs at its Silicon Valley facilities[20](index=20&type=chunk)[22](index=22&type=chunk) [U.S. Commercialization and Government Support](index=7&type=section&id=U.S.%20Commercialization%20and%20Government%20Support) Archer's U.S. launch is significantly advanced by its role as the Official Air Taxi Provider for the LA 2028 Olympics and a supportive White House Executive Order. The FAA's Innovate28 plan aims for scaled eVTOL operations by 2028. The executive order establishes an eVTOL Integration Pilot Program to fast-track real-world deployment, with discussions for flights as early as next year - Selected as the Official Air Taxi Provider for the LA 2028 Olympic Games, aligning federal and local stakeholders[4](index=4&type=chunk)[23](index=23&type=chunk) - The Trump Administration has committed support for the FAA's Innovate28 plan, which targets meaningful eVTOL operations by 2028, and established a White House task force for the Olympics[24](index=24&type=chunk) - A June 2025 White House Executive Order, "Unleashing American Drone Dominance," created the eVTOL Integration Pilot Program to accelerate commercialization and integration into U.S. airspace[30](index=30&type=chunk)[31](index=31&type=chunk) - Discussions are underway with the DOT and FAA for potential early deployments of Midnight aircraft as soon as next year under the new pilot program[31](index=31&type=chunk) [International Expansion: UAE Launch](index=9&type=section&id=International%20Expansion%3A%20UAE%20Launch) Archer has activated its first international "Launch Edition" program in the UAE. The company signed definitive agreements with Abu Dhabi Aviation and the Abu Dhabi Investment Office, delivered its first Midnight aircraft to the region, and has commenced its flight test program in Abu Dhabi. Initial commercial payments are expected later this year - Signed definitive agreements with Abu Dhabi Aviation and the Abu Dhabi Investment Office to activate the first Launch Edition program[36](index=36&type=chunk) - The first Midnight aircraft was delivered to the UAE, and the flight test program has commenced in Abu Dhabi[36](index=36&type=chunk) - The airline operations team is working with Etihad Aviation Training to build operational readiness for pilot training, maintenance, and security[36](index=36&type=chunk) [Archer Defense Program](index=10&type=section&id=Archer%20Defense%20Program) The Archer Defense division is experiencing strong demand from major allied defense programs. To accelerate its path to market, the company made two strategic acquisitions during the quarter: a patent portfolio and key talent from Overair, and specialized composite manufacturing assets and a facility from Mission Critical Composites - Acquired a patent portfolio and critical employees from Overair, a spin-off of Karem Aircraft, which specialized in high-efficiency tiltrotors[39](index=39&type=chunk) - Acquired key composite manufacturing assets and a ~60,000 sq ft facility from Mission Critical Composites to bring core composite fabrication in-house for rapid prototyping[40](index=40&type=chunk) [Q2 2025 Financial Review](index=12&type=section&id=Q2%202025%20Financial%20Review) Archer ended Q2 2025 with a record cash balance of $1.724 billion, bolstered by an $850 million capital raise. Total GAAP operating expenses were $176.1 million, with a net loss of $206.0 million. The company projects an Adjusted EBITDA loss of $110 million to $130 million for Q3 2025 [Summary Financials and Liquidity](index=12&type=section&id=Summary%20Financials%20and%20Liquidity) The company's cash and cash equivalents reached a record high of $1.724 billion at the end of Q2 2025, a significant increase from $1.030 billion in Q1 2025, primarily due to an $850 million registered direct offering. Cash used in operating and investing activities for the quarter was $127.5 million Summary Financials and Liquidity (in millions) | | JUN 30, 2025 | MAR 31, 2025 | JUN 30, 2024 | | :--- | :--- | :--- | :--- | | **TOTAL OPERATING EXPENSES** | $176.1 million | $144.0 million | $121.2 million | | **NET LOSS** | ($206.0 million) | ($93.4 million) | ($106.9 million) | | **NON-GAAP TOTAL OPERATING EXPENSES** | $123.5 million | $113.1 million | $96.4 million | | **ADJUSTED EBITDA** | ($118.7 million) | ($109.0 million) | ($93.8 million) | | **CASH, CASH EQUIVALENTS** | $1,724.0 million | $1,030.4 million | $360.4 million | - Ended Q2 2025 with a record **$1,724.0 million** in cash and cash equivalents, an increase of **$693.6 million** from Q1 2025, mainly due to an **$850.0 million** gross proceeds from a direct offering[50](index=50&type=chunk) [Operating Performance and Outlook](index=13&type=section&id=Operating%20Performance%20and%20Outlook) In Q2 2025, total GAAP operating expenses rose to $176.1 million, and non-GAAP operating expenses were $123.5 million, reflecting increased investment in development and operations. The net loss was $206.0 million, and the Adjusted EBITDA loss was $118.7 million. For Q3 2025, the company forecasts an Adjusted EBITDA loss between $110 million and $130 million - Q2 2025 total GAAP operating expenses were **$176.1 million**, up **$32.1 million** from Q1 2025. Non-GAAP operating expenses were **$123.5 million**, up **$10.4 million** from Q1 2025[54](index=54&type=chunk)[55](index=55&type=chunk) - Q2 2025 net loss was **$206.0 million**, an increase of **$112.6 million** from Q1 2025, primarily due to an **$82.0 million** non-cash change in fair value of warrant liability[56](index=56&type=chunk) - Q2 2025 Adjusted EBITDA was a loss of **$118.7 million**, an increase of **$9.7 million** from Q1 2025[58](index=58&type=chunk) - The company anticipates an Adjusted EBITDA loss of **$110 million to $130 million** for Q3 2025[59](index=59&type=chunk) [Consolidated Financial Statements](index=14&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail Archer's financial position as of June 30, 2025. The balance sheet shows total assets of $1.94 billion. The statement of operations reports a Q2 2025 net loss of $206.0 million. The cash flow statement indicates a net cash increase of $889.2 million for the first six months of 2025, driven by financing activities Consolidated Balance Sheets (in millions) | | JUN 30, 2025 | DEC 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,757.0 | $858.4 | | **Total assets** | **$1,938.3** | **$1,001.2** | | **Total current liabilities** | $78.8 | $71.1 | | **Total liabilities** | **$257.4** | **$248.6** | | **Total stockholders' equity** | $1,680.9 | $752.6 | | **Total liabilities and stockholders' equity** | **$1,938.3** | **$1,001.2** | Consolidated Statements of Operations (in millions, for Three Months Ended June 30) | | 2025 | 2024 | | :--- | :--- | :--- | | Total operating expenses | $176.1 | $121.2 | | Loss from operations | ($176.1) | ($121.2) | | Other income (expense), net | ($40.0) | $9.3 | | Interest income, net | $10.2 | $5.1 | | **Net loss** | **($206.0)** | **($106.9)** | | Net loss per share, basic and diluted | ($0.36) | ($0.32) | Consolidated Condensed Statements of Cash Flows (in millions, for Six Months Ended June 30) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($198.0) | ($167.0) | | Net cash used in investing activities | ($34.1) | ($38.2) | | Net cash provided by financing activities | $1,121.3 | $100.8 | | **Net increase (decrease) in cash** | **$889.2** | **($104.4)** | | Cash, end of period | $1,730.5 | $367.1 | [GAAP to Non-GAAP Reconciliation](index=17&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) This section provides detailed reconciliations of GAAP to non-GAAP financial measures. For Q2 2025, total operating expenses of $176.1 million are reconciled to non-GAAP total operating expenses of $123.5 million. Net loss of $206.0 million is reconciled to an Adjusted EBITDA loss of $118.7 million by excluding items such as stock-based compensation and changes in warrant liability value Reconciliation of Operating Expenses (in millions) | | JUN 30, 2025 | MAR 31, 2025 | JUN 30, 2024 | | :--- | :--- | :--- | :--- | | **TOTAL OPERATING EXPENSES (GAAP)** | **$176.1** | **$144.0** | **$121.2** | | Stellantis warrant expense | (0.8) | (0.8) | (2.0) | | Stock-based compensation | (51.8) | (30.1) | (22.8) | | **NON-GAAP TOTAL OPERATING EXPENSES** | **$123.5** | **$113.1** | **$96.4** | Reconciliation of Adjusted EBITDA (in millions) | | JUN 30, 2025 | MAR 31, 2025 | JUN 30, 2024 | | :--- | :--- | :--- | :--- | | **NET LOSS (GAAP)** | **($206.0)** | **($93.4)** | **($106.9)** | | Other (income) expense, net | 40.0 | (42.0) | (9.3) | | Interest income, net | (10.2) | (8.7) | (5.1) | | Income tax expense | 0.1 | 0.1 | 0.1 | | Depreciation and amortization | 4.8 | 4.1 | 2.6 | | Stellantis warrant expense | 0.8 | 0.8 | 2.0 | | Stock-based compensation | 51.8 | 30.1 | 22.8 | | **ADJUSTED EBITDA** | **($118.7)** | **($109.0)** | **($93.8)** | [Upcoming Events](index=11&type=section&id=Upcoming%20Events) Archer has outlined its participation in several upcoming investor and industry conferences throughout August and September, including events hosted by Canaccord, JP Morgan, Needham, Deutsche Bank, H.C. Wainwright, and the Global Aerospace Summit. The company also provided details for its Q2 2025 earnings webcast and conference call Upcoming Events Schedule | Date | Event | Location | | :--- | :--- | :--- | | AUG 12 | Canaccord 45th Annual Growth Conference | Boston | | AUG 13 | JP Morgan Autos Conference | New York | | AUG 18 | 14th Annual Needham Industrial, Tech & Cleantech Conference | Virtual | | SEP 3 | Needham Transportation Conference | New York | | SEP 4 | Deutsche Bank 15th Annual Aviation Forum | New York | | SEP 8 | H.C. Wainwright 27th Annual Global Investment Conference | New York | | SEP 9-11 | Global Aerospace Summit | Washington D.C. | - Details for the earnings webcast and conference call were provided, accessible via the investor relations website and a dedicated conference call line[44](index=44&type=chunk) [Forward-Looking Statements & Disclaimers](index=20&type=section&id=Forward-Looking%20Statements%20%26%20Disclaimers) This section contains standard legal disclaimers regarding forward-looking statements made within the shareholder letter. It cautions that statements about future performance, timelines for certification and manufacturing, and business plans are subject to numerous risks and uncertainties. Readers are advised that actual results could differ materially and that they should not place undue reliance on these projections - The letter includes forward-looking statements regarding future performance, financial results, business strategy, aircraft development, and commercialization timelines, which are subject to risks and uncertainties[83](index=83&type=chunk) - Actual results could differ materially due to a variety of factors, including the early-stage nature of the business, manufacturing challenges, regulatory hurdles, supplier dependencies, and market adoption risks[84](index=84&type=chunk) - The company directs readers to its SEC filings, including its Form 10-K and Form 8-K, for a more detailed discussion of risks and uncertainties[87](index=87&type=chunk)