Archer — Q3 2026 Earnings Summary

Financial Performance:

• Adjusted EBITDA was in line with guidance for the quarter.
• The company reported $1.4 billion in liquidity.
• Insitu, a target of pending acquisition, is described as a profitable business with over $200 million in annual revenue across 35 countries.

Guidance and Future Outlook:

• The acquisition of Wisk, Insitu, and SkyGrid from Boeing is expected to close much sooner than previously indicated, with only one of nearly 20 governmental and third-party approvals outstanding.
• Full-scale flight testing for the Halo/Thunder hybrid autonomous VTOL platform with Anduril is on track to begin next year.
• The company plans to fly the Midnight air taxi in American cities throughout 2027 and serve the LA28 Olympic Games in 2028.
• Piloted transition milestones for the Midnight aircraft are expected to be completed by the end of the year.
• First full-scale flight for the Anduril Group 5 hybrid-electric autonomous aircraft is planned for late 2027.

Business Segments and Product Lines:

• Midnight (Commercial eVTOL): Completed the first phase of the "No Roads" tour across seven Northern California cities, including flights over San Francisco Bay and near Apple headquarters. The aircraft received a Market Survey Special Airworthiness Certificate from the FAA, enabling passenger trials under the eIPP and operations for the LA28 Games. The first Midnight aircraft has been delivered to Los Angeles for the next phase of the tour.
• Hawthorne Airport Operations: Archer has operated the master lease and fixed-base operator at Hawthorne Airport for almost a year, upgrading the terminal, installing electric aircraft charging, and constructing eleven new hangars.
• Defense and Unmanned Systems: Began testing the turboshaft engine for the Halo/Thunder hybrid platform. Delivered initial battery packs and electric engines to Anduril for the Omen autonomous air vehicle. Insitu is positioned to provide near-term revenue and profitability through its Group 2 and Group 3 UAS fleet, which has amassed nearly two million flight hours.
• Strategic Partnerships: Partnered with Formula 1 to explore eVTOL air taxi services at Grand Prix events, with displays in Austin and an upcoming appearance at the Las Vegas Grand Prix. ITA Airways became the first European airline to join the network, with plans to bring Midnight to Italy's major cities.

Market and Competitive Landscape:

• Archer was selected as the Official Air Taxi Provider of the 2028 Olympic Games (LA28) by the LA28 organizing committee.
• The White House established the eVTOL Integration Pilot Program (eIPP) to accelerate launch pathways in American cities.
• The company is planning route networks in Texas (Dallas, Houston, Austin), Florida, and New York in partnership with respective state departments of transportation and the Port Authority of New York and New Jersey.
• Insitu holds a strong position in the Middle East, where Archer has built relationships for nearly a decade and where Insitu has deep customer engagements and local offices.

Risks and Challenges:

• The closing of the Boeing acquisition remains subject to receipt of certain regulatory approvals and other closing conditions.
• Midnight is in the fourth and final phase of the FAA's type certification process (implementation phase), which involves rigorous compliance findings against test plans.
• The business is in an early stage with past and projected future losses.
• Risks include the ability to design, manufacture, and commercialize aircraft; securing indicative orders; winning defense bids; infrastructure development; vertiport availability; and airspace integration.
• Potential risks include aircraft accidents, supply chain dependence, capital market volatility, and cybersecurity risks.

Management Commentary and Tone:

• CEO Adam Goldstein expressed high confidence, stating, "I have never been more confident in the work we are doing at Archer."
• Management views the strategy of building an end-to-end aerospace and defense platform, with Boeing becoming the largest shareholder upon closing, as unique and significant for decades.
• The tone emphasizes that progress is the result of deliberate work, including over two years of preparation for Los Angeles operations and 18 months of planning since the LA28 selection.

Other Key Points:

• Archer announced a strategic alliance with Formula 1 to integrate eVTOL services at Grand Prix events.
• The company is assembling a Los Angeles network with planned vertiports connecting SoFi Stadium, USC, and a downtown vertiport at L.A. LIVE with AEG.
• The acquisition of Wisk and SkyGrid is intended to accelerate the development and commercialization of the air taxi business, while the Insitu acquisition targets near-term revenue and profitability.
• The company is modernizing Hawthorne Airport, which serves as a hub for the LA28 Games and the "No Roads" tour.