Archer Aviation, a leader in electric air taxi development, reported a fourth-quarter loss of $0.26 per share, surpassing analyst expectations for a $0.24 loss. Despite this setback, the company ended 2025 with a substantial $1.96 billion in cash, and its stock saw a Monday surge driven by an increasing focus on its defense business.
Navigating Losses While Building for the Future
Despite the Q4 loss, Archer's financial position shows underlying strength. The company concluded 2025 with an impressive $1.96 billion in cash and cash equivalents. This represents a significant increase from $1.64 billion in Q3 2025 and an even more substantial jump from $834.5 million in the same quarter the previous year.However, the road ahead remains capital-intensive. Archer anticipates an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of between -$160 million and -$180 million for the first quarter of 2026. This projection is notably wider than Wall Street's consensus expectation of -$104.7 million for Q1, suggesting continued significant investment in development and certification activities.
Archer's focus remains on the development and commercialization of its electric vertical takeoff and landing (eVTOL) aircraft, as highlighted in its 10-K report. The company did not provide specific revenue or earnings per share figures in the available excerpt of its 10-K, instead emphasizing its progress in aircraft design, testing, and certification for urban air mobility.
The Defense Strategy: A New Horizon for Archer?
Archer's leadership, including CEO Adam Goldstein, appears to view the defense business as the company's most promising near-term opportunity. This strategic emphasis seems to resonate with investors, as evidenced by Archer's shares closing up more than 5% on Monday as defense contractor stocks rallied.Goldstein previously told Sherwood News that he sees defense, particularly the autonomous and attritable industry (referring to systems designed to be inexpensive and expendable in combat), as the company’s "front and center" division for the next decade. The company's shareholder letter reinforces this, stating, "Our partnership with Anduril is at the core of our defense strategy, and it continues to accelerate."
Archer is designing a hybrid-electric eVTOL aircraft for dual use. For defense, it's envisioned to fly alongside armed reconnaissance attack helicopters as a "loyal wingman," designed to meet the needs of the U.S. and its allies for decades to come. Beyond defense, Archer announced a partnership with SpaceX's Starlink to integrate satellite internet into its Midnight aircraft, enhancing its commercial appeal.
Rivalry and Milestones: Archer vs. Joby
The eVTOL market is heating up, with several players vying for position. Archer's shareholder letter indicates a target for its first passenger flights this year, a timeline that mirrors its primary rival, Joby Aviation (NYSE: JOBY). On Monday, other electric aircraft developers like Beta Technologies and Joby Aviation also saw their stocks close higher.Archer Aviation vs. Joby Aviation: A Snapshot
| Company | Ticker | Current Price | Daily Change | 52-Week Range | Market Cap | Next Earnings |
|---|---|---|---|---|---|---|
| Archer Aviation Inc. | ACHR | $7.52 | +5.6% | $5.48–$14.62 | $5.5B | Mar 2, 2026 |
| Joby Aviation, Inc. | JOBY | $10.27 | +2.1% | $4.96–$20.95 | $9.9B | Feb 25, 2026 |
Broader Market Snapshot: Other Key Earnings
Beyond Archer, several other companies reported earnings, contributing to a dynamic market day.Core Scientific: Accounting Errors and Missed Sales
Bitcoin miner-turned-data center company Core Scientific saw its shares crater in postmarket trading after reporting significantly lower-than-expected sales in Q4 2025. Revenues came in at $79.8 million against an estimate of $115 million. The company also disclosed an accounting error that overstated the value of property, plant, and equipment in previous results, necessitating restatements. However, management assured investors these changes would not impact revenue, adjusted EBITDA, or net cash flows. Shareholders notably rejected a purchase offer from CoreWeave in Q4.Credo Technology: Solid Q3, Mediocre Q4 Outlook
Credo Technology Group, a connectivity solutions provider, experienced a double-digit percentage decline in postmarket trading. While its Q3 results were strong, with revenues of $407 million exceeding estimates of $406.4 million and adjusted earnings per share of $1.07 against a $0.92 estimate, its Q4 guidance disappointed. Management projected Q4 sales between $425 million and $435 million, with the midpoint falling slightly below Wall Street's $430.5 million forecast.Plug Power: Revenue Beat Amidst "Massive Red Ink"
Hydrogen fuel cell company Plug Power (NASDAQ: PLUG) soared in postmarket trading after reporting robust Q4 sales that overshadowed significant losses on its bottom line. The company posted revenues of $225.22 million, surpassing the $217.26 million estimate. Adjusted earnings per share came in at -$0.06, better than the -$0.10 expected. Despite $763 million in "various net charges" during the quarter, management reaffirmed its goal of achieving positive EBITDAS (earnings before interest, taxes, depreciation, amortization, and stock-based compensation) by 2026.Hims & Hers: Peptide Accessibility Remarks Spark Surge
Telehealth company Hims & Hers (NYSE: HIMS) surged following remarks by Robert F. Kennedy Jr. on the "Joe Rogan Experience" podcast. Kennedy Jr., identified as Health and Human Services Secretary, expressed interest in making about 14 peptides more accessible and allowing for compounding. Peptides, short chains of amino acids, are the active ingredients in GLP-1 medications used for diabetes and weight loss. A more permissive regulatory stance on these treatments could open significant new revenue streams for Hims & Hers.The broader market also saw defense and oil stocks rise after US attacks against Iran, while travel assets fell, indicating a sensitive geopolitical landscape influencing sector-specific performance.
