Archer Aviation Inc.

from the highest levels of the US government and how the Olympics mandate has become a global stage for us to showcase air taxis as we work to commercialize and drive global scale. This quarter, we made meaningful progress on every front worldwide, from LA to Abu Dhabi to Seoul. With multiple White House executive orders now establishing a presidential imperative to begin air taxi deployments in America as early as next year, The eVTOL integration pilot program has enabled Archer to shift decisively from vision to execution, scaling commercial air taxi operations across the UAE, America, and in select other cities globally. We're especially focused on winning Los Angeles because if we can prove electric air taxis work in one of the world's most congested, complex, and highly regulated cities, I believe we can subsequently scale the product across the U.S. and the world. Today I'll start by sharing a strategic development that gives us a unique ability to launch and scale in LA. A one of a kind opportunity to acquire control of Hawthorne Airport, one of LA's most strategically located airfields and use it as our anchor hub for air taxis ahead of the LA 28 Olympic Games and beyond, as well as a test bed for our AI technologies under development. After that, I'll discuss key recent highlights from across the company, including breakthroughs in technology and certification, momentum and global partnerships, and the maturation of Archer Defense. We announced earlier today that we've signed definitive agreements to acquire control of Hawthorne Airport, a rare asset located less than three miles from LAX and the closest airport to downtown LA, the Forum, Intuit Dome, and SoFi Stadium. site of the 2028 Olympic opening ceremony. The team and I are actually holding today's call from Hawthorne this afternoon. Hawthorne is an 80-acre airport with an approximate 5,000-foot runway capable of supporting some of the largest aircraft used in private aviation, such as a Gulfstream G650, and benefits from 24-7 operating authority and has the capacity to handle significantly more movements than it does today. The site features hangar space, office and terminal space, and significant expansion opportunities with the ability to more than double the existing hangar footprint. It is a profitable enterprise with a long-term master lease in place through 2055. Establishing Hawthorne as a key pillar of the Archer network in LA gives us a structural advantage, a generational opportunity to control a key airport and build the first purpose-built eVTOL hub at the center of a world-class aviation corridor. But Hawthorne is more than an airport. It's a landmark of American aerospace history. The city built this airfield in the 1920s to attract Jack Northrop to Hawthorne. Northrop went on to create some of the most innovative aircraft of the 20th century here, including the Flying Wing and the T-38 Talon, pushing the boundaries of flight. During World War II, this airfield became a symbol of American innovation and resilience. Thousands of workers, including the women who inspired Rosie the Riveter, powered the nation's aerospace transformation. Hawthorne's motto at the time said it all, more jobs than people. The same tarmac that once launched Northrop's breakthroughs later became home to SpaceX's LA operations and served as a proving ground for the Boring Company's first test tunnel. Archer plans to now carry that legacy forward, ushering in the next chapter of advanced aviation right here in the heart of Los Angeles. Today, Hawthorne Airport is already a profitable enterprise. For Archer, it will become even more, the blueprint for a new class of urban aviation hubs around the world. We envision Hawthorne as LA's grand central station for air taxis, the centerpiece of our Southern California network, where passengers will one day seamlessly fly above LA congestion on predictable five to 15 minute routes between key destinations, including Hollywood, downtown, and Orange County. It will also serve as Archer's innovation test bed for next generation aviation technologies, including AI driven air traffic control and operations management, seamless passenger identification and security and more. Alongside this acquisition, we're announcing that we've raised $650 million of new equity capital, reinforcing Archer's sector leading balance sheet with over $2 billion in liquidity. To make this vision real, We continue to focus on scaling manufacturing to support both certification and early commercial deployments our near term goals remain to ramp production up to 50 aircraft per year across our roughly 700,000 square feet of manufacturing and test facilities across California and Georgia. As I discussed last quarter we're assembling our initial fleet of midnight aircraft these aircraft will move directly into testing or early commercial use. We're now nearing completion of the piloted CTAL flight regime, validating operational performance across distance, speed, time, and altitude. Our test pilots have expanded both speed and duration profiles to reflect real-world commercial missions. Recent exciting milestones include 55 miles of range, over 30 minutes of flight time, and flying at altitudes up to 10,000 feet at speeds exceeding 150 miles per hour. The consistency between simulator and the real-world performance continues to validate our engineering approach and reinforces our readiness. Tom will share more shortly, but I'm proud to say that this quarter, Midnight took center stage at urban flight demonstrations around the world. At the California International Air Show, tens of thousands watched and barely heard Midnight fly. In the UAE, we initiated commercial deployment with our launch addition partner, Abu Dhabi Aviation, one of the region's leading operators. This quarter we expanded our flight test program with our first international flight in the heart of Abu Dhabi against the backdrop of the Sheikh Zayed Grand Mosque, one of the nation's most iconic landmarks. We've since continued to progress our flight testing as we look to validate the aircraft's performance in the region's extreme heat and humidity and advance regulatory approvals with the GCAA towards passenger carrying operations. Excitingly, We've now begun receiving initial payments for these commercial operations under our launch addition program. Momentum has been particularly strong in Asia Pacific, where we recently solidified relationships with the national airline carriers of Japan and Korea. A few weeks ago in Seoul, we announced a partnership with Korean Air, which selected Archer as its exclusive air taxi partner in the country following a rigorous evaluation process with plans to purchase up to 100 midnight aircraft. As Korean Air moves towards completing its acquisition of Asiana, it will become the nation's largest airline, and we're proud to partner in shaping Korea's adoption of next-generation VTOL technology. In Japan, our consortium with Japan Airlines, Sumitomo, and Soracle continues to make meaningful progress. Earlier this quarter, Osaka officially selected Japan Airlines and Sumitomo's joint venture, Soracle, using Archer's Midnight aircraft as its air mobility partner. That makes Archer the first US eVTOL manufacturer positioned to play a central role in establishing commercial air taxis in Osaka. And just yesterday, Tokyo followed suit, selecting our consortium led by Japan Airlines as one of two groups that will lead eVTOL commercialization. I recently hosted Japan's Minister of Land, Infrastructure, Transport, and Tourism at our headquarters, a milestone that reflects Japan's commitment to leading in advanced air mobility and its confidence in Archer as a key partner in that effort. These advancements across the Middle East and Asia position Archer at the center of the two most advanced aviation regions outside the U.S. You can expect to see us continue to mature our operational plans with the world's top governments and airlines. Our international growth continues to attract increasing interest from defense opportunities worldwide, including our ongoing collaboration with Anduril. Last quarter, I shared details of two strategic acquisitions that advanced our defense platform. Key technology from Overear, a Karim aircraft spinoff, and composite manufacturing capabilities at a facility in Southern California. These advancements position Archer at the intersection of America's commercial, defense, and regulatory momentum, building the foundation for the next era of flight. Sitting here today, watching aircraft take off and land as I deliver this update couldn't be more energizing. The era of advanced aviation has arrived, not as a distant vision, but as a tangible reality. At Archer, we are not waiting for the future. We are building it. The time to seize this transformative opportunity is now. Over to Tom.

Thanks, Adam. From day one, our focus has been consistent, finding the most efficient path to making urban air mobility a reality. We have been disciplined in our engineering approach and deliberate in the decisions around aircraft design, manufacturing readiness, certification strategy, and flight test operations. That approach continues to cement us as one of the leaders in this sector. Let's start with flight testing. Over the past few months, our midnight program has consistently delivered strong results. We are now routinely flying longer, faster, and higher as we expand the aircraft's operational envelope. Recent flights have exceeded 55 miles, more than 30 minutes of flight time, altitudes up to our 10,000 foot service ceiling, and speeds in excess of 150 miles per hour. These missions are providing valuable certification data, and importantly, they closely mirror the majority of mission profiles we expect in early urban deployment environments. This quarter, we were thrilled to fly as part of the California International Air Show at our home airport in Salinas, where tens of thousands of spectators saw the midnight fly. The consistent feedback we got at the event was how remarkably quiet our aircraft is. It really is a special experience to see the aircraft fly by at well over 100 miles per hour and barely be audible above the ambient noise. It was also a special moment for our team, many of which got to bring their families to see the aircraft fly. The exciting news is that we are nearing completion of Midnight's piloted CTAL test campaign, and the consistency we are seeing across repeated mission profiles continues to solidify our confidence in our path to certifying Midnight, both in the UAE and the US. Our next flight test phase with Midnight will be piloted VTOL, including full transition flights, with our type certification intent four-blade aft propellers. Unlike the VTOL envelope that we are now close to completing testing on, the VTOL and transition flight regimes are not new for midnight, as we have previously completed an extensive flight test campaign with midnight without a pilot on board. As always, our focus remains the same, disciplined execution, safety, and readiness for commercial operations. The momentum continues to build, and the team continues to deliver. As Adam mentioned, we are continuing to build our initial fleet of piloted midnight aircraft across our facilities in Silicon Valley and Georgia. The next piloted midnight aircraft is just wrapping up manufacturing and will move into ground testing shortly and flight testing as soon as it's ready. This aircraft is equipped with the four-blade aft propellers that are part of our type CERT design and will be used for piloted VTOL and transition flight testing. We continue to build out the capabilities needed to support a rate of 50 aircraft per year across nearly three quarters of a million square feet of our manufacturing and test facilities. Our golden manufacturing line in Silicon Valley remains the foundation of our manufacturing ramp. As a reminder, this is where our engineering and manufacturing teams refine build processes, tooling, and quality controls to ensure repeatability and efficiency. The lessons and tools established on that line are feeding into our high volume production ramp. Across all our locations, we remain focused on building a production system that is reliable, scalable, and ready for certification. The progress we are making in parallel on manufacturing and flight testing gives us high confidence in our ability to transition midnight from development into commercial service smoothly and with the discipline this industry requires. On the certification front, we have obviously all been impacted by the government shutdown and are hopeful that this will be resolved soon. On the positive side, part of the FAA has continued working our program despite the shutdown, and we have continued with certification efforts in several areas, including continued SOI audits, as well as continued work with FAA policy team to close the remaining industry-wide policy topics related to flight test. Finally, I want to touch on our progress on the defense side. Over the past quarter, We've focused heavily on integrating the technologies, capabilities, and teams we acquired from Overear and Mission Critical Composites. Bringing that talent and technology into our program is key to accelerating our development cycle. We now have in-house composite structures manufacturing capability, giving us expanded rapid prototyping capacity, which is key for the new aircraft we are developing. We also continued maturing our hybrid electric VTOL aircraft program, While the specifics remain confidential, our work here is centered on delivering a clean sheet next-generation aircraft designed to incorporate the best of Archer and OverEars technology, meeting the needs of operators who face demanding and complex missions. Momentum across the defense platform remains strong, and we are encouraged by the deep engagement from allied countries worldwide. We look forward to sharing additional updates as and when we can. Also, this quarter we completed our acquisition of Lilium's patent portfolio. This was one of the most significant technology portfolios in electric aviation, particularly in ducted fan propulsion, high voltage systems, and advanced flight controls. Integrating this IP strengthens our long-term leadership position and expands our design space for future hybrid and electric platforms. It also positions us well against emerging opportunities unlocked by the Mosaic Rule, which enables a more flexible path to field innovative aircraft across both light sport and regional mobility categories. We view this as a strategic advantage for both our defense roadmap and potential future commercial variants. And now I'll turn it over to Priya to talk about the financials for the quarter.

Thanks, Tom. With our team continuing to deliver significant advancements across the key priorities you and Adam have discussed, our core focus from a financial perspective is ensuring we are operating from a position of strength. The key to that is maintaining a strong balance sheet. We closed Q3 25 with $1.64 billion in cash, cash equivalents, and short-term investments, and today announced an additional equity raise of $650 million. As Adam and I have discussed previously, our goal is always to be opportunistic with our fundraising activity. And that's exactly what occurred here. As we considered options to finance the Hawthorne transaction, we received substantial inbound interest that led us to do the offering announced today, which had a very strong outcome with the round being well oversubscribed. We view our ability to raise capital as a core strategic advantage that helps power our ability to seize on key opportunities. We often hear from government, commercial, and other strategic partners that liquidity is a key driver to their decisions of who to partner with. They understand the capital-intensive nature of our industry and want to work with partners who will be around for decades to come. Some examples of this include LA28's decision to select Archer and us winning the Lilium IP bid process over our competitors. With our total liquidity now over $2 billion, We intend to continue to use this as a tool to win future strategic opportunities across the business. But it's not good enough just to have a strong balance sheet. We must remain focused on ensuring every capital allocation decision directly supports long-term value creation for our shareholders. As we've consistently emphasized, we take a very disciplined approach to how we invest that capital. Our Q3 spending reflects our continued investment in our key priority areas, aircraft and AI technology development, certification, manufacturing ramp, and commercial operations infrastructure to support all our planned line of business in civil and defense, both domestically and abroad. Our continued emphasis on execution is what has led us to land our financial results within our guided range. and this quarter was no different. Our net loss for Q3 25 was $130 million. This was a $76 million reduction from Q2 25, primarily due to the non cash impact of warranty valuation. Our gap operating expenses for Q3 25 were $175 million and stayed essentially flat quarter over quarter as increased people related costs were more than offset by the timing of material and supply-related spend. Our gap operating expenses for the quarter included approximately $53 million of non-cash stock-based compensation-related expenses, which reflects the cost associated with stock issued to our employees, non-employees, and vendors. Our adjusted EBITDA for Q3 was a loss of $116 million, landing within our guidance range of $110 to $130 million. Our Q3 adjusted EBITDA loss represents an approximately $3 million decrease from the previous quarter due to the reasons we have discussed earlier. With regards to cash burn, our cash used in operations and in purchase of property, equipment, and intangibles for Q3 25 was $126 million, which was essentially flat quarter over quarter. For Q3, Our cash used in purchase of property and equipment was $20 million, generally in line with the guidance I provided during our last call, and represents a slight decrease of $4 million over the previous quarter, which included our strategic acquisitions of composite manufacturing assets and over our patent portfolio. Looking ahead for the upcoming quarter, we estimate our adjusted EBITDA loss to be between 110 to $140 million. We expect our core capital investments to increase in Q4 as we continue to build aircraft and expand investments in our manufacturing capabilities. These estimates do not include the costs associated with the Lilium and Hawthorne acquisitions. As we announced today, we closed the Lilium acquisition for approximately $21 million earlier in Q4. And we expect the initial closing of the Hawthorne acquisition to occur by year end, which will entail us funding the $126 million purchase price in cash. What's clear is that now is the time to ensure we solidify our position as a market leader across electric air taxis, the future of vertical lift for defense and cargo, and the AI-based technologies that will be used for decades to come. This is how we can deliver enduring outsized value to shareholders. With that, I'll turn it back over to Adam for Q&A.