How ACHR (Archer Aviation) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a eVTOL and advanced air mobility company like ACHR makes money is essential for investors and anyone interested in the business of aerospace innovation. In this post, we break down ACHR's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick ACHR Overview

ACHR operates as a leader in electric vertical takeoff and landing (eVTOL) aircraft development and advanced air mobility solutions. Revenue comes from early-stage contracts, government grants, and certification-related milestones in the pre-commercial phase. As a development-stage company, ACHR focuses on R&D for its piloted and autonomous aircraft platforms, with commercialization expected in future years.

Revenue Breakdown

• Total Revenue (Q3 2025): Data not specified in filings (+N/A% YoY)
  • No segment breakdown available
  • Growth is powered by potential milestone achievements and partnerships in eVTOL certification.

Gross Profit and Margins

• Gross Profit: Data not specified (N/A% gross margin)
  • Cost of Revenue: Data not specified (+N/A% YoY)
  • ACHR maintains development-focused economics due to its pre-revenue R&D-heavy model, with limited cost of revenue as operations scale toward production.
• Most costs come from R&D and other operating expenses.

Operating Income and Expenses

• Operating Income: Data not specified (+N/A% YoY, N/A% margin)
• Operating Expenses: $174.8M (+43.2% YoY)
  • R&D: $120.7M (+34.4% YoY, 0.0% of revenue) — focused on eVTOL aircraft certification, autonomous flight systems, and testing programs.
  • SG&A: $54.1M (+67.5% YoY, 0.0% of revenue) — covers administrative scaling, regulatory compliance, and business development.
  • ACHR continues to prioritize innovation while expanding operations in the high-growth air mobility sector.

Net Income

• Pre-Tax Income: Data not specified (+N/A% YoY, N/A% margin)
• Income Tax: Data not specified (N/A% effective tax rate)
• Net Income: $129.9M (+12.7% YoY, 0.0% net margin)
• ACHR converts development progress into reported net income due to non-operating items like investment gains or funding, despite heavy R&D spend.

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What Drives ACHR's Money Machine?

• R&D Investments: Dominant focus with $120.7M spend, representing the core of operations as ACHR advances toward FAA certification.
• Strategic Partnerships: Key metric includes collaborations for manufacturing and air traffic integration, supporting long-term revenue potential.
• Certification Milestones: Investments in piloted and autonomous eVTOL testing, positioning for urban air mobility markets.
• Future growth areas: Commercial passenger services and defense applications, though not yet profitable.

Visualizing ACHR's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially R&D) taking the largest chunk.
• Even after significant investments, 0.0% of revenue drops to the bottom line amid development focus.

Key Takeaways

• ACHR's money comes overwhelmingly from early-stage funding and non-operating gains.
• High investment levels illustrate the power of ACHR's innovation-driven business model.
• Heavy investment in R&D, balanced by efficiency in scaling operations.
• Ongoing growth is driven by eVTOL certification progress and partnerships.

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FAQ About ACHR's Income Statement

1. What is the main source of ACHR's revenue in 2025?

ACHR generates revenue from development contracts and grants. No specific breakdown exceeds 0% disclosed, as the company remains pre-commercial.

2. How profitable is ACHR in Q3 2025?

ACHR reported net income of $129.9M in Q3 2025, with a net margin of approximately 0.0%, reflecting development-stage dynamics driven by non-operating items amid R&D investments.

3. What are the largest expense categories for ACHR?

The biggest expenses on ACHR's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached $120.7M in Q3 2025, as ACHR prioritizes eVTOL certification and testing.

4. Why does R&D operate at high levels?

R&D, despite limited revenue offset, posted significant spend of $120.7M in Q3 2025. This is because ACHR aggressively invests in aircraft development and regulatory approvals, believing these will drive long-term growth—even if unprofitable today.

5. How does ACHR's effective tax rate compare to previous years?

ACHR's effective tax rate in Q3 2025 was N/A%, consistent with previous years. This moderate rate is primarily due to development-stage losses and tax credits for R&D activities.