Archer stock falls 12% after share sale, airport purchase

The company posted a net loss of $129.9 million, less than FactSet's estimate of $178.6 million.

sarah

Nov 7, 2025 - 21:37

Archer stock falls 12% after share sale, airport purchase

However, Archer issued a $650 million stock offering for 81.25 million shares to support its $126 million acquisition of Hawthorne Airport in Los Angeles to use as a hub for its air taxi operations. Archer has been selected as the official air taxi provider for the 2028 Olympics in Los Angeles.

This move will dilute the value of existing shareholders' stock. Archer's weighted average outstanding shares have increased to approximately 660.9 million from 397.5 million a year ago.

Interest in electric aircraft manufacturers has surged in recent months as major players move closer to certification. Earlier this week, Beta Technologies went public on the NYSE.

Archer, like its competitors, is making significant strides toward obtaining Federal Aviation Administration certification, a necessary approval for commercial flight operations.

In September, Archer said its Midnight aircraft reached a record altitude of 7,000 feet. This milestone was achieved approximately one month after the company's longest piloted flight.

Archer has placed a significant bet on manufacturing and deploying air taxis in the United Arab Emirates, while competitor Joby Aviation

is teaming up with Saudi Arabia.

For the current quarter, Archer said it expects a loss between $110 million and $140 million for adjusted earnings before interest, taxes, depreciation, and amortization, representing a loss of $125 million at the midpoint. Analysts had expected a loss of $119.9 million, according to FactSet. Earlier this week, Joby Aviation reported a larger-than-expected third-quarter loss. Its shares fell 20% last week, while Archer lost nearly a third of its value. Both companies' valuations have more than doubled over the past year.