Archer Aviation’s shares fell 22.9% over 2025 even as the S&P 500 climbed 16.4% and the Nasdaq Composite rose 20.4%. The company reported mounting quarterly losses, including a Q2 net loss of $206 million compared with $106.9 million a year earlier, and a Q3 shortfall of $129.9 million versus $115.3 million in the prior-year period. Persistent uncertainty over FAA certification timelines, critical funding questions after Stellantis scaled back its hydrogen-fuel-cell program, and bearish short-seller reports from Culper Research and Grizzly Research weighed heavily on investor sentiment.

In November, Archer raised $650 million through a follow-on equity offering and closed on a $126 million all-cash acquisition of Hawthorne Airport, moves that prompted concerns over dilution and heavy cash burn. Trading volumes averaged 51 million shares, and the company’s market capitalization stood near $6.5 billion at year-end despite its pre-revenue status. Competitive pressure intensified as Joby Aviation’s commercialization progress drove its shares up roughly 62% in 2025, widening the performance gap between the two eVTOL specialists.

The stock has climbed 17.8% in early 2026, led by a broader rebound in defense-tech equities. Archer’s partnership with Anduril to develop hybrid-propulsion VTOL aircraft for U.S. military applications has become a pivotal positive catalyst. While the timeline for FAA certification of its Midnight eVTOL remains unclear, growing defense interest and rising military budgets could provide a sustainable growth runway, offsetting previous certification delays and manufacturing ramp-up uncertainties.