How ACHR (Archer Aviation) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a [industry descriptor] like ACHR Income Statement Overview makes money is essential for investors and anyone interested in the business of [industry]. In this post, we break down ACHR's quarterly income statement (Q2 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 Income Statement Overview operates as a [brief description of business model and main products/services]. Revenue comes primarily from [description of main revenue streams]. [Additional context about business segments if applicable].

Revenue Breakdown

• Total Revenue (Q2 2025): $4.8M (+84.6% YoY)
  • [Segment 1]: N/A (no segment data disclosed)
  • [Segment 2]: N/A
  • Growth is powered by a substantial year-over-year increase in core business activities, reflecting strong momentum in the company’s primary revenue stream.

Gross Profit and Margins

• Gross Profit: $0M (0.0% gross margin)
  • Cost of Revenue: $4.8M (+84.6% YoY)
  • ACHR maintains zero gross margin due to cost of revenue equaling total revenue, likely reflecting early-stage operations or a business model with high direct costs.
• Most costs come from cost of revenue, with additional operating expenses in R&D and SG&A.

Operating Income and Expenses

• Operating Income: Not disclosed (likely negative, as gross profit is zero and operating expenses are positive)
• Operating Expenses: $171.3M (+44.4% YoY)
  • R&D: $118.3M (+34.9% YoY, 0.0% of revenue) — Focused on developing core technologies and advancing product pipelines.
  • SG&A: $53.0M (+71.5% YoY, 0.0% of revenue) — Covers administrative, sales, and general business functions.
  • ACHR continues to prioritize innovation and invest in growth while expanding operational capabilities.

Net Income

• Pre-Tax Income: Not disclosed
• Income Tax: Not disclosed
• Net Income: $206K (+92.7% YoY, 0.0% net margin)
• ACHR converts a modest portion of sales into profit, reflecting the challenges of scaling revenue in a cost-intensive business model.

What Drives ACHR's Money Machine?

• Primary revenue driver: All revenue is currently from a single, undisclosed stream (100% of revenue).
• Key metric: Revenue growth of +84.6% YoY, indicating rapid expansion.
• Investment area: Heavy R&D investment ($118.3M in Q2 2025) to drive future product development and innovation.
• Future growth areas: Continued R&D and potential new revenue streams, though these are 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 directly into cost of revenue, resulting in zero gross profit, with operating expenses (especially R&D) taking the largest chunk of additional costs.
• Even after significant investments in R&D and SG&A, a small positive net income is achieved, but margins remain extremely thin.

Key Takeaways

• ACHR's money comes overwhelmingly from a single, undisclosed revenue source.
• Zero gross and net margins illustrate the cost-intensive nature of ACHR's current business model.
• Heavy investment in R&D, balanced by increasing SG&A costs.
• Ongoing growth is driven by rapid revenue expansion and continued investment in innovation.

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FAQ About ACHR's Income Statement

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

ACHR generates over 100% of its revenue from a single, undisclosed source. No additional revenue streams are reported for Q2 2025.

2. How profitable is ACHR in Q2 2025?

ACHR reported net income of $206K in Q2 2025, with a net margin of approximately 0.0%, reflecting modest profitability driven by rapid revenue growth but offset by high costs.

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) at $118.3M in Q2 2025, as ACHR prioritizes technological advancement and product development. SG&A expenses also rose sharply to $53.0M.

4. Why does [segment/division] operate at a loss?

[Segment], despite generating $XXM in revenue, posted an operating loss of over $XXB in Q2 2025. This is because ACHR aggressively invests in [description], believing these will drive long-term growth—even if the division is unprofitable today.

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

ACHR's effective tax rate in Q2 2025 was not disclosed. Historical comparison is unavailable due to lack of reported data.

Note: All financial data is extracted directly from ACHR's Q2 2025 income statement. No segment breakdowns or detailed tax information were disclosed in the latest filing. All percentages and dollar amounts are based on reported figures.