Archer Aviation Stock Slides After Airport Purchase
Archer Aviation stock fell after announcing a Hawthorne Airport acquisition and $650 million equity raise, sparking concern about dilution and volatility.
KEY TAKEAWAYS
- Signed definitive agreement to acquire Hawthorne Airport for $126 million.
- Raised $650 million in new equity, lifting liquidity above $2.0 billion.
- Reported Q3 net loss per share of $0.20 and wider adjusted EBITDA loss of $116 million.
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Archer Aviation stock fell after the company on Nov. 6, 2025 announced plans to acquire Hawthorne Airport and a concurrent equity raise, raising investor concerns about dilution, ongoing operating losses, and high short interest as it prepares for commercial operations.
Hawthorne Airport Acquisition and Capital Raise
Archer Aviation Inc. (NYSE: ACHR) signed definitive agreements to acquire control of Hawthorne Airport for $126 million in cash. The 80-acre site, with about 190,000 square feet of facilities less than three miles from Los Angeles International Airport, will serve as Archer’s operational hub for a Los Angeles air-taxi network and as a testbed for AI-powered aviation technologies. Archer is the exclusive air-taxi provider for the 2028 Los Angeles Olympic and Paralympic Games. Filings did not disclose regulatory or antitrust issues.
Simultaneously, Archer raised $650 million in new equity capital, boosting total liquidity to more than $2.0 billion as of Q3 2025. The company ended that quarter with $1.6 billion in cash, cash equivalents, and short-term investments. Terms of the capital raise were not disclosed. Archer described the funding as a near-term step to support commercialization activities.
Q3 Results and Market Reaction
Archer reported a Q3 2025 net loss per share of $0.20, narrower than the Street consensus of $0.30 and the prior-year $0.29. However, adjusted EBITDA loss widened to $116 million from $94 million, driven by higher operating expenses tied to commercialization. The company expects adjusted EBITDA losses of $110 million to $140 million for Q4 2025. Archer remains pre-revenue, targeting initial revenue recognition in Q1 2026, and estimates free-cash-flow breakeven by 2028, contingent on successful commercialization and FAA certification.
Following the announcements, Archer’s stock declined amid investor concerns over dilution and execution risk, compounded by heavy short interest. The company is pursuing commercial partnerships, including with United Airlines, and plans expansion in the UAE, Korea, and Japan as part of a broader rollout aimed to begin in 2026.
The airport purchase and capital infusion extend Archer’s cash runway, but the market reaction reflects skepticism about whether the company can convert these assets and funding into certified, revenue-generating operations.
