Why Did Archer Aviation Stock Drop in Premarket Today?

Archer Aviation Inc. (ACHR) shares tumbled nearly 10% in premarket trading on Friday, November 7, 2025, following the company’s third-quarter earnings release and major strategic announcements. The electric vertical takeoff and landing (eVTOL) aircraft developer reported a wider-than-expected quarterly loss despite securing substantial new funding and announcing a significant Los Angeles airport acquisition.

The stock decline came despite what management characterized as transformative developments for the company’s air taxi ambitions, reflecting investor concerns about the company’s mounting losses and substantial capital deployment.

Earnings Miss and Cash Drain Undermine Positive Updates

Archer Aviation’s third-quarter 2025 results revealed deteriorating financials that contributed to Friday’s premarket sell-off. The company reported total operating expenses of $174.8 million, resulting in a net loss of $129.9 million compared to $115.3 million in the same quarter last year.

Adjusted EBITDA widened to negative $116.1 million from negative $93.5 million a year ago, indicating accelerating cash burn as the company advances its flight testing and commercialization efforts. The company’s cash balances decreased by $82.7 million during the quarter, primarily due to operating and investing activities.

Despite the widening losses, Archer maintained a strong liquidity position with $1.64 billion in cash, cash equivalents, and short-term investments at quarter-end. The company provided fourth-quarter guidance projecting adjusted EBITDA losses between $110 million and $140 million, signaling continued substantial cash consumption.

While Archer achieved notable technical milestones during the quarter, including a 55-mile flight and reaching 10,000 feet altitude with its Midnight aircraft, investors appeared focused on the financial trajectory rather than operational progress.

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Archer Doubles Down on Air Taxi Network and Funding Strength

Concurrent with its earnings announcement, Archer revealed plans to acquire control of Hawthorne Airport in Los Angeles for $126 million in cash. The historic airport, built in the 1920s and also known as Jack Northrop Field, sits on an 80-acre site with approximately 190,000 square feet of facilities, positioned less than three miles from LAX.

Archer intends to transform the location into an operational hub for its planned Los Angeles air taxi network, including services for the LA28 Olympic Games, while also using it as a testbed for next-generation AI-powered aviation technologies including air traffic and ground operations management.

To support its expansion plans, Archer successfully raised $650 million in new equity capital, bringing total liquidity to over $2 billion and reinforcing what the company describes as a sector-leading balance sheet. The capital raise, managed by Moelis & Company and Cantor Fitzgerald, provides runway for continued development and commercialization activities.

Additionally, Archer closed its acquisition of Lilium’s patent portfolio of approximately 300 advanced air mobility assets for €18 million, expanding its intellectual property holdings to over 1,000 global assets. However, the combination of widening losses and substantial capital deployment for the airport acquisition appears to have overshadowed these strategic moves in investors’ immediate assessment.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.