Archer Aviation reported $5.1 million in revenue for the third quarter of 2026, supported by its first deliveries of engines and batteries to defense technology company Anduril. The results also coincided with a regulatory milestone for its Midnight electric vertical takeoff and landing (eVTOL) aircraft, which has received approval to begin piloted operations in Los Angeles.
The initial deliveries were associated with Anduril’s Omen autonomous air vehicle, marking an early contribution from Archer’s defense business. The development demonstrates the company’s efforts to generate revenue from its in-house propulsion technology beyond its planned commercial air taxi operations.
CEO Adam Goldstein said defense-related activities are expected to contribute to the company’s early revenue growth.
“We still look at this as an interesting application to sell aircraft, and I think we have to earn our way into the operating side,” Goldstein told analysts. “But I also think that on the defense side, that’s going to drive a lot of the early revenues as well.”
The company also reported an adjusted EBITDA loss of $178.5 million, within its previously issued guidance of $170 million to $200 million and below analyst expectations. Archer ended the quarter with $1.4 billion in cash, cash equivalents and short-term investments.
For the fourth quarter, Archer expects revenue of $5 million to $6 million and an adjusted EBITDA loss of $185 million to $205 million.
Chief Financial Officer Priya Gopalakrishnan said the company continued to manage spending while investing in its aviation and technology businesses.
“We told you we would stay disciplined while investing across our air taxi, UAVs, and software platforms, and we continue to do exactly that,” she said.
FAA Approval Advances Midnight Toward Commercial Operations
Archer said the Federal Aviation Administration granted its Midnight aircraft a Market Survey Special Airworthiness Certificate, enabling the company to begin piloted operations in Los Angeles.
The approval is an important step in the aircraft’s development toward passenger services, which Archer is targeting for 2027. The company plans to use the operations to advance its participation in the U.S. Department of Transportation’s eVTOL Integration Pilot Program.
“This is undoubtedly our most important commercialization milestone to date,” Goldstein said. “This now allows us to begin Midnight’s operations in L.A. and mature into carrying passengers as part of the DOT’s eVTOL Integration Pilot Program and the LA28 Games.”
Archer reported more than 118 flight tests during the quarter, reaching a pace of up to 16 flights per week. It also completed its No Roads tour in Northern California, conducting 28 flights over 13 days across eight airports.
The certificate also reflects progress in the company’s regulatory process for conventional takeoff and landing aircraft. Archer said it intends to apply the experience gained from that process to its vertical takeoff and landing platform.
Goldstein said the first Midnight aircraft is already at Hawthorne Airport in Los Angeles, with flights expected to begin in the coming weeks. He also said he intends to be the aircraft’s first passenger in 2027.
The company is developing Hawthorne into a central operating hub ahead of the 2028 Los Angeles Olympic Games, for which Archer is the official air taxi provider.
Boeing Asset Acquisition Approaches Completion
Archer’s proposed acquisition of Wisk, SkyGrid and Insitu from Boeing is also nearing completion. Gopalakrishnan said the Hart-Scott-Rodino waiting period has expired and all but one of the remaining regulatory closing conditions have been met.
The acquisition is expected to expand Archer’s position in defense and autonomous aviation, particularly through Insitu’s established intelligence, surveillance and reconnaissance drone business.
“Insitu will immediately change that with its established ISR drone business, historically achieving more than $200 million of annual revenue and positive operating cash flows,” Gopalakrishnan said. “Going forward, the U.S. side of the business will anchor Archer in a programmatic revenue base in the hundreds of millions per year.”
Goldstein said Insitu serves customers in 35 countries and has produced more than 4,000 Group 2 and Group 3 unmanned aircraft systems, accumulating nearly 2 million flight hours.
Archer plans to expand the acquired business from 2027, with the intention of using its revenue to offset some of the investment required to bring Midnight to market. Boeing will receive stock as consideration and become Archer’s largest shareholder once the transaction closes.
Anduril Partnership Supports Hybrid-Electric Aircraft Development
Archer is continuing development of its Halo hybrid-electric autonomous aircraft in partnership with Anduril. The programme combines propulsion technologies intended to support applications beyond conventional passenger air taxis.
The company has begun operating the turboshaft engine, which forms the central component of the hybrid powertrain, and has started testing its first electric motors. Full-scale flight testing remains scheduled for 2027.
Archer did not disclose the number of engines delivered to Anduril for Omen or their average selling prices, citing the terms of the agreement.
The initial deliveries nevertheless provide an early commercial application for Archer’s propulsion systems and strengthen the company’s defense-related activities alongside its eVTOL development programme.