Archer Aviation ( (ACHR) ) has fallen by -21.50%. Read on to learn why.
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Archer Aviation has experienced a significant stock price decline of 21.50% over the past week, despite showcasing promising developments in its recent Q3 earnings call. The company highlighted its acquisition of Hawthorne Airport, which is expected to serve as a strategic hub for its air taxi operations, especially with the upcoming LA28 Olympic Games. Additionally, Archer successfully raised $650 million in new equity capital, boosting its liquidity to over $2 billion. However, concerns about shareholder dilution and high operating expenses have overshadowed these achievements, contributing to the stock’s decline.
The company’s recent financial performance revealed a net loss of $130 million for Q3 2025, with operating expenses reaching $175 million. While the loss per share was narrower than expected, the adjusted EBITDA loss widened to $116.1 million due to increased investments in personnel and commercialization efforts. Despite these financial challenges, Archer has made significant strides in international expansion, securing partnerships with major airlines like Korean Air and Japan Airlines, and advancing its Launch Edition program in the UAE.
Analysts remain optimistic about Archer Aviation’s future, with a consensus Strong Buy rating and an average price target suggesting a potential upside. The company’s strategic initiatives, including the acquisition of Lilium’s patent portfolio and exploration of defense sector opportunities, indicate a robust growth trajectory. However, the impact of the U.S. government shutdown on certification processes and the need for financial optimization remain critical hurdles that Archer must navigate to regain investor confidence.