Why Is Archer Aviation Stock Falling After Hours?

Archer Aviation reported a rise in expenses in Q4 2025 compared to Q3 2025, primarily driven by $36.1 million increase in non-cash stock-based compensation expenses, and other spends related to growing headcount and supply chain efforts.

• The company said its fourth quarter total operating expenses were $234.7 million, compared to $124.2 million from the year-ago quarter and $174.8 million on sequential basis. 
• Its net loss came at $188.9 million in the fourth quarter of 2025, slightly below the $198.1 million it reported in the fourth quarter of 2024. 
• Archer said that it became the first company to achieve 100% FAA acceptance of its eVTOL aircraft’s Means of Compliance.

Archer Aviation stock fell 4.5% in Monday’s extended trading hours after it reported a rise in its expenses during the fourth quarter. 

Archer Aviation (ACHR) said its fourth-quarter (Q4) total operating expenses were $234.7 million, compared to $124.2 million from the year-ago quarter and $174.8 million on sequential basis. 

The rise in expenses in Q4 compared to Q3 were primarily driven by a $36.1 million increase in non-cash stock-based compensation expenses, and other expenses related to growing headcount and supply chain efforts, the company said. 

Archer said that for Q1 2026, it expects negative adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) or a loss of $160 million to $180 million. 

Fourth Quarter Snapshot

The company’s net loss came at $188.9 million in the fourth-quarter (Q4) of 2025, slightly below the $198.1 million it reported in the fourth quarter of 2024. 

The company said that it ended FY25 with about $2.0 billion in liquidity. 

FAA Acceptance

Archer said that it became the first company to achieve 100% Federal Aviation Agency (FAA) acceptance of its eVTOL aircraft’s Means of Compliance. 

Means of Compliance is the FAA-agreed-upon criteria by which Archer will demonstrate its Midnight (a fully electric vertical takeoff and lift aircraft) program meets the agency’s airworthiness requirements.

The company said that completing the Means of Compliance unlocks its ability to finalize the acceptance of its remaining certification plans with the FAA. Archer expects those to be resolved in the coming quarters, clearing the path for Type Inspection Authorization (TIA) activities to begin on its Midnight program as soon as this year.

The company said that it will continue to expand its piloted Midnight fleet throughout 2026, with several aircraft in various stages of completion, and is targeting first passenger-carrying flights in 2026. 

How Did Stocktwits Users React?

Retail sentiment around ACHR stock trended in ‘extremely bullish’ territory amid ‘high’ message volume. 

Shares in the company have fallen nearly 22% over the past year.