Joby Aviation Stock Falls 35% After $1.2 Billion Dilutive Raise
BA•Joby Aviation shares have plunged 35% year-to-date after a $1.2 billion capital raise that issued 52.9 million shares at $11.35 and $600 million in convertible notes. Despite a Q4 EPS loss of $0.14 beating expectations and $30.8 million revenue, a $509.9 million 2025 cash burn raises concerns over future funding.
1. Stock Decline and Dilution
Joby Aviation’s stock has dropped roughly 35% since January, driven primarily by its late-January $1.2 billion capital raise. The deal included 52.9 million new shares at $11.35 each and a $600 million convertible note issuance, diluting existing shareholders and triggering a sharp sell-off.
2. Q4 Financial Performance
In the fourth quarter, Joby reported an EPS loss of $0.14 versus analyst estimates of a $0.22 loss, and revenue of $30.84 million, nearly double the $16.50 million forecast. These results underscore operational progress yet highlight the gap between execution metrics and market sentiment.
3. Capital Raise Structure
The $1.2 billion raise split evenly between equity and convertible notes, with the equity portion priced at a 15% discount. While it secures necessary funds for FAA certification and production scaling, the sizeable share count increase has weighed on valuation multiples.
4. Cash Burn Outlook and Runway
Joby burned $509.9 million in 2025 and expects $340–$370 million more in H1 2026. After ending 2025 with $1.4 billion in cash and adding $1.2 billion from the raise, it holds about $2.6 billion, giving it runway but leaving little margin for further certification delays.
