Archer Aviation's 7.21% Plunge Amid Weak Earnings and 263rd in Session's Activity

Market Snapshot

Archer Aviation (ACHR) closed November 6, 2025, , marking one of the day’s weakest performers. Trading volume reached $0.51 billion, ranking 263rd in market activity for the session. The drop followed the company’s third-quarter earnings report, . The stock’s performance was further pressured by a downward revision in full-year 2025 revenue and earnings forecasts, , respectively, from earlier projections.

Key Drivers

The primary catalyst for ACHR’s sharp decline was its mixed earnings report and revised guidance. While the company narrowly exceeded Wall Street’s expectations for Q3, the results underscored persistent financial challenges. , . , though improved year-over-year, failed to offset concerns about the company’s ability to scale revenue. Additionally, , expected to raise $171 million to fund its acquisition of Hawthorne Airport in Los Angeles for $126 million. The equity raise, coupled with the acquisition’s cash outlay, likely dampened investor confidence, as it signaled a reliance on dilutive financing to advance its commercialization plans.

Another critical factor was the downward revision of revenue and earnings estimates. Over the past 90 days, 2025 revenue forecasts dropped from $22.60 million to $18.80 million, . Earnings per share for 2025 and 2026 also worsened, to -$1.12 and -$1.18, respectively. These revisions reflect growing skepticism about Archer’s ability to monetize its eVTOL (electric vertical take-off and landing) aircraft. The company’s pre-revenue status and reliance on partnerships—such as its collaboration with Korean Air to deploy the Midnight eVTOL—highlight its dependence on external validation for commercial viability. Analysts noted that while Archer has achieved technical milestones, including a 7,000-foot altitude test flight, regulatory and market adoption hurdles remain significant.

The earnings report also revealed strategic shifts, including the acquisition of Hawthorne Airport as a hub for its Los Angeles air taxi network. While the move aligns with Archer’s long-term vision for urban air mobility (UAM), the $126 million cash outlay and $171 million in expected net proceeds from the stock offering raised questions about capital allocation efficiency. Critics argue that the company’s focus on infrastructure (e.g., airport redevelopment) rather than direct aircraft sales could delay profitability. Furthermore, Archer’s Q3 adjusted EBITDA loss of $116.1 million, , underscores its cash-burn challenges. Despite ending the quarter with over $1.7 billion in cash, the downward revision in guidance and the need for continuous fundraising may erode investor patience.

Broader market dynamics also contributed to the selloff. Archer’s stock, , . Analysts at Zacks Investment Research highlighted that while the company’s eVTOL milestones and partnerships (e.g., with the Los Angeles Sports Commission) signal progress, the sector’s long-term risks—such as regulatory delays, public safety concerns, and high production costs—remain unresolved. The lack of a clear path to profitability, combined with supply chain disruptions and labor shortages, further complicates Archer’s ability to meet its commercialization timeline.

In summary, , revised guidance, and structural challenges in the eVTOL industry. While the company’s technical advancements and strategic partnerships offer long-term potential, the current trajectory suggests that investors are prioritizing caution over optimism. The upcoming fourth-quarter results and FAA certification progress for the Midnight aircraft will be critical in determining whether the stock can regain momentum.