Futuristic air taxi maker Archer Aviation Inc. (NYSE: ACHR), known for its electric vertical takeoff and landing (eVTOL) aircraft, was battered throughout 2025. The company's share price zig-zagged for several months but ended down almost 18% overall for the year as Archer and others in the emerging eVTOL space await FAA approval of this class of aircraft.
2026 may provide the impetus Archer needs to achieve sustainable appreciation once again. The company is exploring new revenue streams, has a balance sheet that should provide it with flexibility while it continues to wait for mass commercialization opportunities, and, perhaps most importantly, is making real strides in executing its vision of a new type of short-distance travel. Analysts are broadly bullish that Archer can continue to make progress this year, as two-thirds of firms rating the stock call it a Buy and Wall Street expects almost 54% in potential upside to ACHR's price. Below, we look more closely at what might prompt Archer to achieve lift-off this year.
A Bullish View of Archer's Revenue Potential, Cash Position, and Technological Developments
A key consideration for Archer is whether it can build toward profitability, particularly as it awaits necessary approvals to move toward commercialization. The company's move toward additional revenue streams bodes well in this way. Its plan to acquire Los Angeles' Hawthorne Airport for about $126 million will be beneficial not only as a strategic hub and site for testing but also for its potential to immediately boost cash flow thanks to continuing operations. Further, the company is continuing to expand its technology licensing efforts, which began with a partnership with defense start-up Anduril Industries to develop military aircraft in late 2024 and should continue to generate much-needed funding.
Despite a net loss of $130 million in the last quarter and an adjusted EBITDA loss of $116 million, there are reasons to expect Archer's financials to improve in the new year. First, the company should post revenue from Middle East launch agreements as early as the first quarter. It ended last year with more than $2 billion in liquidity, which will provide an essential runway for several quarters—and it will likely raise additional capital going forward as well to continue to bolster that position.
Crucially, 2026 could be a year of continued technological advances as Archer moves further toward execution. The company is undergoing test flights in Dubai, and it is ramping up early stage production. It is even moving to launch air taxi trials across the United States as part of the White House’s eVTOL Integration Pilot Program (eIPP). Investors should watch for announcements from the FAA regarding its selections for the eIPP, which are likely to become available in early-to-mid 2026 and may prompt share price movement.
This multi-pronged approach, including both domestic and international efforts, could help to position Archer as the dominant eVTOL company as the industry continues to grow. And indeed, significant growth is likely—the market could reach a whopping $1 trillion by 2040, according to some analyst estimates.
Caution Is Still Warranted
To be sure, Archer remains a fairly speculative play while the eVTOL industry is awaiting regulatory approval. Archer has made notable progress in its efforts with the FAA, already receiving certain approvals, but there are additional certifications still in development as of the start of the year. The company has also made in-roads in other markets, including through partnerships in Saudi Arabia and Japan, for example. However, its operational success very much hinges on being able to launch commercial air taxis in the United States, and there's no guarantee of when (or if) that may be possible. In the meantime, additional stock offerings to raise capital in support of the purchase of Hawthorne and multiple acquisitions have threatened to dilute shareholder investments.
All of this suggests that Archer, while holding tremendous potential to revolutionize the travel industry, is still a risky venture for investors. However, those willing to take the chance may find that the recent pullback in share price makes the start of the year a particularly attractive time to consider an investment in Archer.
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The article "Why 2026 Could Be the Year Archer Aviation Finds Its Lift" first appeared on MarketBeat.
