ACHR Stock Tumbles Overnight On Earnings Miss: Archer CEO Calls Midnight's LA Push Its 'Most Important' Milestone Yet

(MENAFN- AsiaNet News)

• Archer beat Q3 revenue estimates with $5.1 million but reported a wider $274.5 million net loss.
• Archer's Midnight aircraft has arrived in Los Angeles after receiving FAA clearance for local flights. 
• Archer's planned acquisition of Boeing's Wisk, SkyGrid and Insitu businesses is nearing completion.

Archer Aviation (ACHR) stock fell overnight after the company's third-quarter (Q3) earnings missed Street expectations, despite securing a key FAA approval for its Midnight air taxi in Los Angeles. CEO Adam Goldstein outlined plans for passenger flights ahead of the 2028 Olympics, while adding that the company's pending Boeing acquisition is nearing completion. 

Archer Aviation stock traded 5% lower overnight, ahead of Tuesday. 

Archer Aviation Reports Wider Loss For Q3 

Archer generated $5.1 million in revenue for the quarter, exceeding the analysts' consensus estimate of $3.57 million, as per Fiscal. However, its net loss widened to $274.5 million, compared with $263.2 million in Q2 and $129.9 million last year. Loss per share came in at $0.35, missing the estimate of $0.34. 

Archer finished September with $1.4 billion in cash, cash equivalents and short-term investments. The company's Midnight aircraft secured a Market Survey Special Airworthiness Certificate from the Federal Aviation Administration (FAA), allowing Archer to begin piloted operations in Los Angeles. 

The company intends to use the approval to prepare for passenger services through the agency's eVTOL Integration Pilot Program and activities associated with the LA28 Olympic Games.

FAA Approval Opens Door For Archer's Los Angeles Operations

During the Q3 earnings call, Goldstein said Archer's Midnight aircraft has arrived at Hawthorne Airport in Los Angeles after receiving a Market Survey Special Airworthiness Certificate from FAA. The authorization allows the company to begin local flight activities and work toward introducing passengers before completing the aircraft's full type-certification process.

“This is undoubtedly our most important commercialization milestone to date. Los Angeles is where we are writing the blueprint for every city that follows,” said Goldstein.

The company plans to use Los Angeles as a testing ground for its broader urban air mobility strategy. Archer expects to gradually expand Midnight's capabilities over the next several quarters. The initial focus will be on conventional takeoff and landing (CTOL) flights, followed by vertical takeoff and landing (VTOL) operations. The company then intends to introduce flights involving both pilots and passengers. 

Archer's Boeing Business Acquisition Nears Completion

Goldstein also provided an update on Archer's proposed purchase of Wisk, SkyGrid and Insitu fromThe Boeing Co. (BA). Announced in August, the transaction was initially expected to close before the end of 2026.

“When we announced the transaction in August, we said we expected to close by the end of the year. Since then, the team has worked through nearly 20 governmental and third-party approvals and one remains, and we believe closing will be soon.” 

Wisk and SkyGrid will help Archer develop and expand its air taxi business. Archer plans to test and improve Wisk's self-flying technology through its Halo platform first. Insitu is expected to bring in revenue sooner through its drone business. 

ACHR Stock: Retail View 

On Stocktwits, retail sentiment around the stock jumped to 'bullish' from 'bearish'. The stock recorded a 1,690% surge in message volume over the past 24 hours. 

A user said,“7 weeks max for transition, close the Boeing deal, and maybe finally complete a couple more aircraft. I'm not that excited about the whole ctol campaign but transition is what moves the needle.”

Another user said Archer has $1.4 billion in cash and finished the quarter with spending at the lower end of its forecast. The user also highlighted nine Midnight aircraft, including piloted versions, being built. 

ACHR stock has cratered 36% year-to-date. 

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