Archer Aviation Inc. (ACHR): Business Model Canvas [Dec-2025 Updated]

You're looking at Archer Aviation (ACHR) not just as an eVTOL maker, but as a high-stakes, dual-play strategic bet-Urban Air Mobility (UAM) plus defense technology. This isn't a small startup; they're sitting on over $2 billion in liquidity, funding a massive scale-up that saw a Q3 2025 operating expense of $174.8 million as they push for FAA certification and scale their Georgia facility. The real pivot is using their proprietary electric powertrain to secure defense contracts while forecasting an initial $2.81 million in 2025 revenue from their UAE Launch Edition program, signaling a shift from pure R&D to early commercialization. It's a high-burn model, but the strategic partnerships with Stellantis and United Airlines defintely make this a bet worth understanding.

Archer Aviation Inc. (ACHR) - Canvas Business Model: Key Partnerships

You're looking at Archer Aviation's strategy, and honestly, their Key Partnerships are the backbone of their entire model. They're not just signing Letters of Intent; they're securing manufacturing muscle, massive customer pre-orders, and a critical defense revenue stream. These deals drastically de-risk their path to commercialization and give them a huge leg up on the competition.

Stellantis for high-volume, automotive-style manufacturing

Archer's partnership with Stellantis is a masterstroke in scaling production. It's what transitions them from an aerospace startup to a mass-manufacturer. Stellantis provides the deep expertise in high-volume, automotive-style manufacturing that is essential for hitting the low-cost targets needed for air taxi viability.

The manufacturing facility, called ARC, in Covington, Georgia, is complete. Production is planned to start in early 2025, with the goal of ramping up to a rate of two aircraft per month by the end of the year. Stellantis has committed substantial funding and resources to this effort.

• Stellantis will fund up to approximately $400 million to help scale Midnight production.
• This funding includes up to $372 million for manufacturing labor costs through 2030.
• The ultimate goal is to scale the facility to produce 650 aircraft annually by 2030.
• Stellantis has already invested nearly $300 million in Archer to date, including a $55 million equity investment in July 2024.

United Airlines with a conditional order for over 100 Midnight aircraft

The conditional purchase agreement with United Airlines is the foundational commercial validation for Archer's Midnight aircraft. It's a massive signal to the market, and it provides a clear launch customer for their initial operations in the US. They'll be operating these aircraft on behalf of United, which will serve the flights to its passengers.

The order is substantial, giving Archer an indicative order book that topped $6 billion in late 2025.

• Conditional purchase agreement for up to $1 billion worth of aircraft.
• This initial order covers 100 Midnight aircraft.
• The agreement includes an option for United to purchase an additional $500 million worth of aircraft.
• United Airlines made a $10 million pre-delivery payment in August 2022, a significant cash transaction in the eVTOL sector.

Anduril and Edge Group for defense-focused powertrain sales and joint development

This is a new, high-upside revenue stream for Archer, leveraging their core electric powertrain technology for defense applications. By supplying their proprietary dual-use technology to a major defense contractor and a UAE-based technology group, Archer is diversifying its business beyond the air taxi market.

The deal centers on the Omen Autonomous Air Vehicle system, a hybrid VTOL drone. This move is defintely a prototype for scaling defense applications globally.

Partner	Focus	Key Metric / Value
Anduril Industries & Edge Group	Supply of Archer's proprietary electric powertrain technology.	UAE commitment for an initial acquisition of 50 Omen systems.
EDGE Group (UAE)	Joint venture (EDGE-Anduril Production Alliance) for co-development and manufacturing.	EDGE is investing $200 million in the partnership.

Korean Air as the exclusive air taxi partner in Korea for up to 100 aircraft

The partnership with Korean Air, announced in October 2025, secures Archer an exclusive foothold in the rapidly growing South Korean urban air mobility (UAM) market. Korea is one of Asia's most advanced aviation markets, and this deal provides a strong local ally for regulatory and operational development.

The collaboration focuses on deploying the Midnight eVTOL for short urban trips and airport transfers, starting with government applications.

• Archer is the exclusive eVTOL air taxi partner for Korean Air in Korea.
• Korean Air has the option to purchase up to 100 Midnight eVTOL aircraft.
• The partnership aims to integrate the aircraft into Korean Air's broader mobility network.

Abu Dhabi Investment Office (ADIO) to facilitate UAE commercial launch

The ADIO partnership is critical because it positions Abu Dhabi as Archer's first international commercial launch market, targeting operations as early as 2026. ADIO's support accelerates the entire ecosystem development-from manufacturing to pilot training-in a less regulated, highly supportive environment.

ADIO activated an investment framework in late 2025, which is a definitive agreement to accelerate commercialization efforts in the UAE.

• ADIO is providing an investment framework that will pour hundreds of millions of dollars into the regional ecosystem.
• This funding supports a regional headquarters, manufacturing facilities, pilot training, and the construction of over 10 vertiport sites in the emirate.
• Archer will begin deploying at least two piloted Midnight vehicles in Abu Dhabi, in partnership with Abu Dhabi Aviation and Etihad Aviation Training.
• Archer has already begun receiving payments under its definitive agreement with Abu Dhabi Aviation (ADA) related to its Launch Edition program.

Archer Aviation Inc. (ACHR) - Canvas Business Model: Key Activities

You're looking at Archer Aviation Inc. (ACHR) right now, and what matters most isn't the aircraft itself, but the critical activities that prove they can move from a prototype to a real, scalable business. Their key activities in late 2025 center on three things: regulatory finalization, manufacturing scale, and the strategic diversification into defense and infrastructure control.

Achieving FAA Type Certification (moving into Phase 4/Implementation)

The single most important activity is getting the Federal Aviation Administration (FAA) Type Certificate (TC) for their Midnight electric vertical takeoff and landing (eVTOL) aircraft. They are substantially complete through Phase 3 (Compliance Planning) and are now moving into Phase 4 (Implementation), which is the final regulatory stage before the TC is granted in 2026. This isn't a paperwork exercise anymore; it's about proving the aircraft works exactly as designed.

The core of this activity in late 2025 is the start of Type Inspection Authorization (TIA) testing, which is expected to begin around the end of the year. TIA is where the FAA observes rigorous flight and systems testing. They've already secured critical operational prerequisites, which is smart planning. For example, they hold both the Part 135 Air Carrier Certification, which lets them operate commercial flights, and Part 141 pilot training approval, so they can train their own crews before launch.

Scaling manufacturing at the Covington, Georgia facility

You can't sell an air taxi you can't build. Archer's manufacturing activity is focused on ramping up production at their approximately 400,000 square foot high-volume facility, known as ARC, in Covington, Georgia. Production of the Midnight aircraft started in early 2025, and the near-term goal is to hit a rate of two aircraft per month by year-end 2025.

This scale-up is a huge lift, but their partnership with Stellantis is a key resource here, providing automotive manufacturing expertise to streamline the process. They are building the foundation now for their long-term target of producing up to 650 aircraft annually by 2030. That's a massive jump, so the efficiency they bake into the line today really matters.

Developing and iterating on proprietary electric powertrain technology

Archer's technology development activity has shifted from just building a plane to turning their core technology into a product line itself. The proprietary electric powertrain, which is the heart of the Midnight aircraft, is now being licensed to third parties. This is a crucial pivot.

The first major third-party deal, announced in November 2025, is to supply their powertrain to Anduril Industries and EDGE Group for the Omen Autonomous Air Vehicle. This immediately creates a new, high-upside revenue stream outside of their air taxi service. Plus, their San Jose, California, battery production hub is designed to supply 15,000 battery packs per year, which is enough to support production of 2,500 Midnight aircraft-a clear sign of their confidence in long-term scale.

Building and operating flagship UAM vertiport infrastructure

The key activity here is controlling the operational choke points, not just building new infrastructure from scratch. In November 2025, Archer acquired control of Hawthorne Municipal Airport (KHHR) in Los Angeles for approximately $126 million. This 80-acre site is now their flagship operational hub and Artificial Intelligence (AI) testbed for the Los Angeles air taxi network, especially for the 2028 Olympics.

They are also focused on leveraging existing infrastructure globally. In the UAE, for instance, they secured design approval to convert the Abu Dhabi Cruise Terminal helipad into a hybrid heliport, which is much faster than waiting for new construction. This dual approach-owning a key US hub and adapting international sites-mitigates the risk of infrastructure delays. The table below shows the clear financial commitment to this strategy.

Infrastructure Activity	Location	2025 Financial/Operational Data	Strategic Purpose
Acquisition of Airport Control	Hawthorne, Los Angeles, US	Acquisition cost of approximately $126 million (November 2025)	Flagship operational hub, AI testbed, and control of a critical LA airspace asset for 2028 Olympics.
Vertiport Development Partnership	Abu Dhabi, UAE	Framework agreement with ADIO, covering multi-hundred-million dollar investments	Accelerate commercial launch as soon as late 2025; establish international HQ.
Manufacturing Facility	Covington, Georgia, US	Target production of two aircraft per month by year-end 2025	Mass-production scale-up in partnership with Stellantis.

Securing defense contracts and advancing the hybrid VTOL platform

The defense sector is a massive opportunity that provides a financial bridge to commercialization. Archer Defense, launched in late 2024, is actively developing a hybrid-propulsion VTOL aircraft with Anduril Industries, specifically targeting U.S. Department of Defense (DOD) programs. This hybrid aircraft is designed for greater range and payload than the all-electric Midnight.

The financial commitment to this is clear: Archer raised $301.75 million in early 2025 to accelerate this hybrid aircraft development. This builds on a prior $142 million contract from the U.S. Air Force's Agility Prime program, which was for the evaluation of the all-electric Midnight. It's a smart way to diversify revenue and de-risk the core business while leveraging their core eVTOL technology.

Here's the quick math: with a Q2 FY2025 net loss of $206.0 million, the defense and powertrain licensing deals are defintely critical to maintaining their over $2 billion in total liquidity.

Archer Aviation Inc. (ACHR) - Canvas Business Model: Key Resources

You're looking at Archer Aviation's core assets, and the picture is clear: they are aggressively building a moat with capital, intellectual property, and regulatory groundwork. The Key Resources-the essential assets that create and deliver value-are a blend of cutting-edge technology, significant financial backing, and crucial regulatory approvals, all secured in late 2024 and 2025.

Strong Liquidity of over $2 Billion to Fund Operations

The most immediate and powerful resource Archer has is its financial war chest. Following a substantial $650 million equity raise announced in early November 2025, the company's total liquidity stands at over $2 billion. This capital base is a critical advantage in the highly cash-intensive eVTOL (electric vertical takeoff and landing) development race, providing a long runway beyond their commercial launch timeframe.

Here's the quick math: Archer reported a net loss of $130 million for the third quarter of 2025, with cash used in operations and capital expenditures at $126 million for the quarter. This liquidity gives them the ability to fund certification milestones, scale up manufacturing, and build out infrastructure without immediate, incremental dilution risk. That's defintely a huge strategic lever.

Financial Metric (Q3 2025)	Amount	Significance as a Key Resource
Total Liquidity (Post-Raise Nov 2025)	Over $2 billion	Secures funding for certification and initial manufacturing scale-up.
Cash, Cash Equivalents, & Short-Term Investments (End of Q3 2025)	$1.64 billion	The starting point before the strategic capital injection.
Cash Used in Operations & CapEx (Q3 2025)	$126 million	Indicates the quarterly burn rate that the $2B+ liquidity covers.

Over 1,000 Intellectual Property (IP) Assets, Including Acquired Lilium Patents

Archer has built a formidable intellectual property moat, a resource that protects its core technology and future innovations. In October 2025, the company strategically acquired Lilium's portfolio of almost 300 advanced air mobility patent assets for a purchase price of €18 million (approximately $21 million). This one move instantly expanded Archer's global IP portfolio to over 1,000 patent assets worldwide.

The acquired patents cover essential, high-value eVTOL components, including:

• High-voltage systems and battery management.
• Advanced aircraft design and flight controls.
• Electric engines and propeller systems.
• Leading ducted fan technology, which is key for quieter, more efficient performance.

Midnight Electric Vertical Takeoff and Landing (eVTOL) Aircraft Design

The physical product itself, the Midnight aircraft, is a core resource, representing years of engineering and testing. It is a piloted, four-passenger aircraft designed for the high-frequency, short-haul urban air mobility (UAM) mission. The design is optimized for rapid turnaround, which is essential for profitability.

The key performance specifications are not abstract; they are tied to a clear business model:

• Capacity: One pilot and four passengers.
• Cruise Speed: Up to 150 mph.
• Target Mission: Back-to-back 20 to 50-mile flights.
• Turnaround: Optimized for a 12-minute charge between flights.
• Payload: Over 1,000 pounds.

Hawthorne Airport (LA) as a Key Operational Hub and AI Testbed

Archer is not just building aircraft; they are securing the infrastructure to operate them. In November 2025, the company signed definitive agreements to acquire control of Hawthorne Municipal Airport (KHHR) in Los Angeles for approximately $126 million in cash. This 80-acre site, strategically located near LAX and major venues, is a physical, long-term resource.

It will serve two critical functions:

• Operational Hub: The central base for the planned Los Angeles air taxi network, a key market for the 2028 Olympics.
• AI Testbed: An innovation center for developing and deploying AI-powered aviation technologies, including air traffic and ground operations management.

FAA Part 135 (Operations) and Part 145 (Maintenance) Certifications

In the highly regulated aviation sector, certifications are non-physical, yet absolutely crucial, resources. Archer has secured the foundational operational and maintenance certificates from the Federal Aviation Administration (FAA) well ahead of its Type Certification for the Midnight aircraft.

• FAA Part 135 Air Carrier & Operator Certificate: Received in June 2024, this allows Archer to operate commercial air taxi services, currently using conventional aircraft to refine procedures.
• FAA Part 145 Repair Station Certificate: Received in February 2024, this authorizes Archer to perform maintenance, repair, and overhaul services on its own eVTOL fleet.

These certificates, plus the Part 141 certificate (for its pilot training academy) secured in February 2025, mean the company has the legal and procedural framework in place to start commercial operations the moment the Midnight aircraft receives its Type Certification.

Archer Aviation Inc. (ACHR) - Canvas Business Model: Value Propositions

Archer Aviation's core value proposition has shifted from a pure air taxi operator to a multi-faceted aerospace technology provider, monetizing both its aircraft and its proprietary electric powertrain. This dual commercial and defense strategy, validated by contracts and infrastructure control, is the key to their near-term financial model.

Here's the quick math: the company is leveraging its R&D investment-now with 40% of R&D spend dedicated to defense-to create multiple, high-upside revenue streams, which is defintely a smart hedge against the uncertain timeline for full FAA commercial certification.

Quiet, sustainable, and fast urban air mobility service for passengers.

The primary value proposition is solving the soul-crushing problem of urban traffic congestion by offering a superior, time-saving alternative to ground transport. The flagship aircraft, Midnight, is a piloted, four-passenger electric vertical takeoff and landing (eVTOL) vehicle designed specifically for high-frequency, short-haul routes.

The aircraft is optimized for the most common city-to-airport or city-to-suburb trips, which typically range from 20 to 50 miles. This focus allows for rapid turnarounds, which is critical for profitability.

• Speed: Cruises at 150 mph (241 km/h), cutting 60-90-minute car rides to 10-20-minute flights.
• Sustainability: Fully electric, providing a zero-emissions, sustainable transport option.
• Quiet Operation: Noise level is just 45 decibels in forward flight, making it significantly quieter than a traditional helicopter and suitable for dense urban environments.
• Rapid Turnaround: Optimized for back-to-back 20-mile missions with a minimal 12-minute charge time between flights.

Runway-independent aircraft, enabling city-center to city-center routes.

The vertical takeoff and landing (VTOL) capability eliminates the need for long runways, allowing Archer to establish operational hubs-or vertiports-directly in congested urban cores or at existing, strategically located airports. This is a massive competitive advantage, as proximity is everything in urban mobility.

The company is not just building aircraft; it is building the infrastructure to use them. For example, the acquisition of Hawthorne Airport in Los Angeles for $126 million gives Archer a critical operational command center and flagship hub for the LA air taxi network, which is less than three miles from LAX. This kind of real estate control is hard for competitors to replicate.

Near-term commercial deployment is focused on high-demand markets globally, as shown in the table below:

Market	Partner / Agreement	Aircraft Commitment (Up To)
United States (Los Angeles)	Hawthorne Airport Acquisition	Operational hub for LA28 Olympic Games
South Korea	Korean Air (Exclusive Partner)	100 Midnight aircraft
Japan (Tokyo-Osaka)	Soracle Joint Venture (Japan Airlines and Sumitomo)	Midnight selected for UAM initiatives
UAE (Abu Dhabi)	Abu Dhabi Aviation and ADIO	Initial Launch Edition agreements and regulatory path advancement

Proprietary electric powertrain technology for third-party licensing and sale.

A major strategic pivot in late 2025 is the introduction of a new revenue stream: Powertrain-as-a-Service (PaaS). Archer is licensing its proprietary, dual-use electric propulsion system-the core technology from the Midnight aircraft-to other aerospace and defense companies. This move capitalizes on years of R&D investment and vertical integration.

The first major third-party deal, announced in November 2025, is with Anduril Industries and EDGE Group to supply the powertrain for the Omen Autonomous Air Vehicle. This immediately establishes a demand signal, as the UAE has already committed to an initial acquisition of 50 Omen systems. This is a high-margin, scalable business line that diversifies risk away from the commercial air taxi regulatory timeline.

Dual-use defense aircraft platforms for logistics and surveillance.

Archer Defense is a significant, high-value proposition, leveraging the eVTOL technology for military applications like personnel transport, logistics, and rescue operations. The Midnight aircraft's low noise profile and 1,000+ lb payload are highly valued by the Department of Defense (DoD).

The company has a partnership with the U.S. Air Force, which has signed contracts with a total value of up to $142 million. This includes the delivery of up to six Midnight aircraft to the Air Force, along with pilot training and maintenance support. Archer is also co-developing a hybrid VTOL aircraft for defense applications with Anduril Industries. This is a clear, funded path to revenue that is less dependent on FAA certification for passenger service.

Integrated UAM network infrastructure and operational expertise for partners.

The value proposition extends beyond the aircraft itself to the entire operational ecosystem, which is a key selling point for airline partners like United Airlines and Korean Air. Archer offers partners a full solution, not just a product.

This includes:

• Infrastructure Development: Establishing vertiport hubs, demonstrated by the $126 million Hawthorne Airport acquisition.
• AI Testbed: Using these hubs as testbeds for the AI-powered aviation technologies that will manage the network.
• Regulatory Expertise: Guiding partners through the complex regulatory path, such as advancing the process with the UAE General Civil Aviation Authority (GCAA).
• Operational Framework: Providing the blueprints for a safe, efficient, and scalable electric airline service, from maintenance to ground operations.

Controlling the infrastructure and the operational playbooks ensures a seamless, reliable experience for the end-customer, which is the true differentiator in a nascent market.

Archer Aviation Inc. (ACHR) - Canvas Business Model: Customer Relationships

High-touch, strategic B2B engagement with major airlines and defense contractors.

Archer Aviation's customer relationships are defintely not transactional; they are high-touch, strategic partnerships built on co-development and long-term commercialization. You're not selling a widget; you're building a new transportation network, so you need deep integration with major players. This model requires extensive, executive-level engagement to align on regulatory, operational, and technical roadmaps.

For example, the October 2025 agreement with Korean Air is a prime example of this B2B strategy. Korean Air plans to acquire up to 100 Midnight aircraft, positioning them as Archer's exclusive partner in South Korea for eVTOL (electric vertical takeoff and landing) introduction. Similarly, the defense sector provides a new, high-value customer relationship: in November 2025, Archer announced a deal to supply its proprietary electric powertrain technology to Anduril Industries and EDGE Group, with the UAE committing to an initial acquisition of 50 Omen Autonomous Air Vehicle systems. This opens up a new revenue stream beyond air taxi operations.

Direct regulatory collaboration with the FAA and UAE GCAA for certification.

In this industry, the regulator is essentially your first and most critical customer. You have to work hand-in-glove with the Federal Aviation Administration (FAA) and the UAE General Civil Aviation Authority (GCAA) to establish the rulebook. Archer has already secured several key FAA operational certifications, including the Part 135 Air Carrier & Operator Certificate, the Part 145 Repair Station Certificate, and the Part 141 Flight School Certificate, all completed by early 2025.

The focus now is Type Certification (TC), which confirms the aircraft design meets all safety standards. While the US TC is ongoing, Archer is working with the GCAA for an expedited launch. They held week-long working sessions in October 2025 to accelerate the UAE regulatory pathway, aiming to be the first in the world to launch commercially, though passenger flights are now anticipated in 2026 instead of late 2025. This close collaboration is a necessary, non-negotiable part of the customer relationship in Advanced Air Mobility (AAM).

Early adopter program (Launch Edition) with initial payments received from Abu Dhabi Aviation.

The Launch Edition program is your framework for early revenue and operational proof-of-concept (PoC) outside the US. It's a multi-year commercial partnership with strategic customers like Abu Dhabi Aviation (ADA) and the Abu Dhabi Investment Office (ADIO). The relationship moves past mere intent: following the successful in-country flight test campaign in November 2025, Archer has begun receiving initial payments from Abu Dhabi Aviation under their definitive agreement.

Here's the quick math: this multi-year partnership is expected to generate tens of millions of dollars for Archer, providing a crucial early cash inflow while the US certification process runs its course. This program covers everything from aircraft delivery and pilot training with Etihad Aviation Training to setting up maintenance and repair operations (MRO).

Customer Relationship Element (2025 Data)	Strategic Partner	Key Metric / Value	Status (Late 2025)
Long-Term Commercial Order	Korean Air	Up to 100 Midnight aircraft	Agreement signed October 2025
Launch Edition Program Value	Abu Dhabi Aviation (ADA)	Expected to generate tens of millions of dollars	Initial payments commenced November 2025
Defense Powertrain Sales	Anduril Industries / EDGE Group	UAE initial acquisition of 50 Omen systems	Agreement announced November 2025
US Regulatory Milestone	FAA	Part 135, 145, and 141 Certificates	All secured by early 2025

Long-term commercialization agreements with international partners like Korean Air.

These agreements are the blueprint for global scaling. They establish a local partner who handles the market entry, operations, and maintenance, which is smart because it capitalizes on their existing infrastructure. The Korean Air deal, signed in October 2025 for up to 100 Midnight aircraft, is a perfect example. It designates Korean Air as Archer's exclusive partner in South Korea, combining Archer's technology with Korean Air's five decades of aerospace MRO (maintenance, repair, and overhaul) expertise.

This approach minimizes Archer's capital expenditure on building out a global operational footprint from scratch. The relationship is a joint effort to accelerate the deployment of the Midnight aircraft, starting with government applications and then expanding to broader commercial use cases.

Investor relations focused on clear milestone execution and capital strength.

For a pre-revenue company, investor relations is a critical customer relationship, centered on transparency and financial runway. Your investors are buying into execution, not just a vision. Archer has focused its messaging on a sector-leading balance sheet and clear milestones.

As of the second quarter of fiscal year 2025 (June 30, 2025), Archer reported total liquidity of approximately $1.73 billion, including cash, cash equivalents, and restricted cash. This strong position followed a June 2025 registered direct offering that brought in approximately $816.8 million in net proceeds. This capital strength is the core message to the market.

The execution focus is on:

• Ramping up manufacturing: Six Midnight aircraft were in production as of Q2 2025.
• Advancing defense programs via strategic acquisitions.
• Executing the UAE Launch Edition program to generate initial cash inflows.

What this estimate hides is the continued high cash burn; the net loss for Q2 2025 was $206.0 million as operating expenses increased to support the manufacturing ramp and development. Still, the current liquidity is expected to fund operations for at least the next 12 months.

Archer Aviation Inc. (ACHR) - Canvas Business Model: Channels

You're looking at Archer Aviation Inc.'s (ACHR) channel strategy, and what you see is a smart, multi-pronged approach that moves beyond just selling an aircraft. They are using direct sales, defense contracts, and technology licensing to build revenue streams before the core air taxi service is fully operational.

This strategy is defintely necessary because the Federal Aviation Administration (FAA) Type Certification timeline is still a moving target, pushing commercial passenger flights in the US toward 2026. So, Archer is monetizing its core assets-the aircraft platform, the powertrain, and the infrastructure-right now.

Direct aircraft sales to launch customers (e.g., United Airlines, Korean Air)

The primary channel is the direct sale of the Midnight electric vertical takeoff and landing (eVTOL) aircraft to major airline launch customers. This strategy locks in demand and provides critical validation for the platform's commercial viability.

The total committed order book, as of late 2024, stood at approximately $6 billion, demonstrating strong market demand for the product. The sales are structured as binding purchase agreements, often with pre-delivery payments, which helps fund the substantial capital expenditures needed for manufacturing ramp-up at their Covington, Georgia facility.

Here's the quick math on two key launch customers:

Customer	Aircraft Type	Commitment (Up To)	Estimated Value
Korean Air	Midnight eVTOL	100 aircraft	$500 million
United Airlines	Midnight eVTOL	100 aircraft (Initial Order)	Not Publicly Disclosed (Part of $6B backlog)

What this estimate hides is that the Korean Air commitment of up to 100 aircraft, valued at around $500 million, is a major international channel that bypasses the immediate US regulatory hurdle.

Proprietary urban vertiport network (e.g., Hawthorne Airport, Abu Dhabi sites)

Archer is creating a closed-loop channel by acquiring and developing its own critical infrastructure, which is a significant competitive moat. This is a capital-intensive move, but it secures prime real estate for future operations.

In Los Angeles, they acquired Hawthorne Airport (Jack Northrop Field) for a cash outlay of $126 million, securing the master lease through 2055. This facility will serve as the operational hub for the Los Angeles air taxi network, including exclusive services for the LA 2028 Olympics.

The international infrastructure channel is equally aggressive:

• Abu Dhabi Launch: Archer is collaborating to transform the Abu Dhabi Cruise Terminal helipad into a hybrid heliport, targeting completion in the second half of 2025 for early commercial service.
• UAE Network: The broader plan, supported by the Abu Dhabi Investment Office, involves developing an emirate-wide air taxi network with more than 10 vertiport sites.

Controlling the landing pad is as important as controlling the aircraft.

Direct contracting with government and defense entities (e.g., US DoD, Edge Group)

The defense sector is a crucial near-term revenue channel, providing non-dilutive capital and validating the technology's performance under rigorous conditions.

The U.S. Air Force has signed contracts with Archer with a total value of up to $142 million. This channel focuses on the delivery of up to six Midnight aircraft for evaluation, pilot training, and the development of maintenance operations.

Internationally, the partnership with UAE-based defense conglomerate Edge Group and Anduril Industries creates a new defense sales channel. The UAE has already committed to an initial acquisition of 50 Omen Autonomous Air Vehicle systems, which directly uses Archer's core technology.

Technology licensing and component sales (e.g., powertrain to Anduril)

A new, high-upside channel is the licensing of Archer's proprietary electric powertrain technology-a strategic pivot to a Powertrain-as-a-Service (PaaS) model.

The first agreement under this new channel is with Anduril Industries and Edge Group, where Archer will supply its dual-use powertrain to power Anduril's Omen Autonomous Air Vehicle concept. This is a significant move because it introduces a new revenue stream by monetizing the core intellectual property (IP) outside of the eVTOL aircraft itself. This is pure tech licensing, and it leverages the company's vertically integrated design of its battery pack and electric engines.

Co-developed air taxi services through regional joint ventures

Archer uses regional joint ventures (JVs) to manage the operational and regulatory complexity of launching air taxi services globally, effectively turning partners into channel operators.

The JV channel is structured to leverage the operational expertise of established aviation partners, minimizing Archer's initial operational risk and capital outlay:

• US Operations: The initial launch will be in partnership with United Airlines, focusing on high-density routes like Manhattan to Newark Liberty International Airport (EWR).
• UAE Operations: Archer is partnered with Abu Dhabi Aviation (ADA) and Falcon Aviation for early commercial service in Abu Dhabi, leveraging their local operational knowledge and existing infrastructure.
• Asia Expansion: The agreement with Korean Air is an exclusive partnership to commercialize Advanced Air Mobility (AAM) technology across multiple use cases in South Korea.

This approach allows Archer to focus its internal resources on certification and manufacturing, while partners handle the last-mile customer experience and local regulatory navigation.

Archer Aviation Inc. (ACHR) - Canvas Business Model: Customer Segments

You're looking at Archer Aviation Inc.'s customer profile, and the key takeaway is this: their customer base is not a single market, but a strategic, three-pronged attack across commercial airlines, defense, and sovereign wealth-backed international deployment. This diversification is how they support a massive indicative order book of $6 billion as of late 2025, even while operating at a Q3 2025 net loss of $130 million.

Commercial Airlines seeking fleet modernization and new revenue streams

This segment represents the core of the urban air mobility (UAM) vision: moving high-value passengers quickly over congested routes. Archer Aviation is essentially selling a new, high-margin short-haul route option to major carriers. The company has key partnerships with United Airlines and Southwest Airlines in the U.S., focusing on home-to-airport services.

Internationally, the market is opening up fast. They've partnered with Japan Airlines and Ethiopian Airlines, plus they recently announced a strategic partnership with Korean Air for South Korea, which includes a potential order of up to 100 aircraft. The value proposition is clear: turn a 45-minute car ride, like Manhattan to Newark Liberty Airport, into a 10-to-15-minute flight. That saves time, and time is money for business travelers.

Government and Defense agencies requiring hybrid, autonomous VTOL aircraft

The defense sector is a critical, near-term revenue stream that helps fund commercial certification. Archer Aviation holds a definitive agreement with the U.S. Air Force, valued at up to $142 million, to supply six eVTOLs, provide critical flight data, and establish pilot training and maintenance operations. This is a huge de-risker for investors.

The company also has a strategic partnership with defense technology firm Anduril Industries to co-develop a hybrid-powered vertical takeoff and landing (VTOL) aircraft. This move aligns with the Pentagon's announced budget request allocation of $13.4 billion for autonomous military systems, showing a clear, funded demand signal for their technology. They are viewing their Midnight aircraft as a platform, not just a product.

International Governments/Sovereign Funds (e.g., UAE) focused on advanced mobility infrastructure

International governments, often backed by sovereign funds, are acting as launch customers, providing the capital and regulatory environment needed for early commercial scale. The United Arab Emirates (UAE) is a prime example, with the Abu Dhabi Investment Office (ADIO) activating a multi-hundred million dollar framework agreement to accelerate air taxi deployment.

This 'Launch Edition' program, in partnership with Abu Dhabi Aviation and Etihad Aviation Training, aims to introduce at least two piloted Midnight aircraft for in-region testing, with commercial service planned for 2026. Abu Dhabi is also building the necessary infrastructure, planning an emirate-wide air taxi network of over 10 vertiport sites. Other key international markets include a $250 million agreement with Indonesia and a commercialization partnership with InterGlobe in India.

High-value, time-sensitive urban travelers and LA28 Olympics attendees

This segment is the direct consumer of the air taxi service, focusing on premium, on-demand travel in dense urban areas. The target demographic is willing to pay a premium to bypass ground traffic. Archer Aviation secured a major strategic advantage by being selected as the Official Air Taxi Provider of the LA28 Olympic Games, providing a global showcase for their service.

To control the ground-side operations, the company acquired the fixed-base operator at Hawthorne Airport in Los Angeles for $126 million, securing a critical hub near LAX and major venues like SoFi Stadium. The total value of the lease control through 2055 is up to $171 million, proving they are serious about controlling the end-to-end customer experience. That's a defintely smart move to lock down scarce urban infrastructure early.

Original Equipment Manufacturers (OEMs) for powertrain component sales

This is a new, high-upside revenue stream based on selling the proprietary technology that powers the Midnight aircraft: the electric powertrain. It's a classic platform strategy-monetizing the core tech beyond the finished product.

The first major third-party deal is supplying this dual-use powertrain to Anduril Industries and EDGE Group for their Omen Autonomous Air Vehicle system. This deal has an immediate demand signal, as the UAE has committed to an initial acquisition of 50 Omen systems. Archer Aviation's San Jose, California, facility is already geared up to supply 15,000 battery packs per year, enough to support production of 2,500 Midnight aircraft, showing the potential scale for this component sales business.

Customer Segment	Key Customer/Partner (2025 Focus)	Financial/Volume Data Point	Primary Value Proposition
Commercial Airlines	United Airlines, Korean Air	Potential order of up to 100 aircraft (Korean Air)	Fleet modernization; new, high-speed, short-haul routes (15-50 miles)
Government and Defense	U.S. Air Force, Anduril Industries	U.S. Air Force agreement up to $142 million	Hybrid VTOL for defense applications; data and MRO services
International Governments/Sovereign Funds	Abu Dhabi Investment Office (ADIO)	Multi-hundred million dollar framework; 10+ vertiport sites planned in Abu Dhabi	First-mover advantage in Advanced Air Mobility (AAM) infrastructure and operations
High-Value Urban Travelers	LA28 Olympic Games attendees	Acquisition of Hawthorne Airport for $126 million (operational hub)	Time-sensitive, premium air taxi services in congested metropolitan areas
Original Equipment Manufacturers (OEMs)	Anduril Industries / EDGE Group	UAE initial acquisition of 50 Omen systems (using Archer powertrain)	Proprietary electric powertrain sales; new, high-margin revenue stream

Here's the quick math on the OEM sales: if the powertrain is a significant component of the overall aircraft cost, selling 50 Omen systems creates an immediate, tangible revenue stream separate from the Midnight aircraft sales. This is a smart way to generate revenue before full FAA Type Certification.

Archer Aviation Inc. (ACHR) - Canvas Business Model: Cost Structure

You're looking at Archer Aviation Inc.'s cost structure right now, and the takeaway is simple: this is a pre-revenue, capital-intensive business where almost every dollar is a strategic investment to get the aircraft certified and the infrastructure built. The cost base is dominated by research and development (R&D) and the major capital expenditure (CapEx) needed to move from a concept to a certified, scaled manufacturer and operator.

The company's total GAAP operating expenses for the third quarter of 2025 (Q3 2025) hit a significant $174.8 million. This isn't a surprise; it's the cost of trying to fundamentally change urban mobility. Here's the quick math on where that cash is going.

Heavy Research and Development (R&D) Expenses

The biggest single cost center is R&D, which is where the core value proposition-the Midnight electric vertical takeoff and landing (eVTOL) aircraft-is being developed and refined. For Q3 2025, R&D expenses were the largest component of the company's spending, totaling over $120 million. To be fair, this is where the company is buying its future.

This massive spend covers everything from materials for prototypes to the highly specialized engineering talent needed to meet stringent Federal Aviation Administration (FAA) standards. This expense category is non-negotiable right now, and it's why the company is still posting a net loss, which was $129.9 million for the same quarter.

Here is a breakdown of the Q3 2025 operating expenses, showing the R&D dominance:

Expense Category	Q3 2025 Amount (GAAP)	Notes
Total Operating Expenses	$174.8 million	The full cost of running the business in the quarter.
Research and Development (R&D)	Over $120 million	Primary driver, funding aircraft design, testing, and certification.
Stock-Based Compensation	$52.8 million	A significant non-cash component of personnel costs.
Net Loss	$129.9 million	The bottom-line result of these heavy investments.

Significant Capital Expenditure (CapEx) for Manufacturing Facility Scale-Up in Georgia

The transition from a design firm to a manufacturer requires huge CapEx. Archer Aviation has poured capital into its high-volume manufacturing facility, known as 'ARC,' in Covington, Georgia. The first phase of this 400,000-square-foot facility was financed with at least $65 million and completed in late 2024, with production starting in early 2025.

The goal is to ramp up production to 650 aircraft per year by 2030, and that requires constant investment in tooling, machinery, and facility expansion. The cash used for operation and capital expenditures in Q3 2025 was flat quarter-over-quarter at $126 million, demonstrating the consistent, high burn rate needed for this scale-up.

High Costs for Aircraft Certification and Flight Testing Programs Globally

The path to commercial service is paved with expensive regulatory milestones. The company's cost structure is heavily weighted toward achieving FAA Type Certification for the Midnight aircraft, which is targeted for 2026. This isn't just a one-time fee; it's an ongoing, multi-year program.

These costs are embedded within the high R&D and include:

• Extensive flight testing programs to validate performance and safety.
• Developing and testing AI-driven systems for air traffic and ground operations.
• Acquiring the Lilium patent portfolio for $21 million in Q3 2025 to expand intellectual property in key areas like high-voltage systems.

The certification process is defintely a primary risk factor, as any delay can push out the timeline for revenue generation.

Infrastructure Acquisition Costs, such as the $126 million for Hawthorne Airport

Beyond the aircraft itself, a major cost is acquiring the infrastructure for future operations. In November 2025, Archer Aviation announced an agreement to acquire control of the master lease for Hawthorne Municipal Airport in Los Angeles for approximately $126 million in cash. This is a massive one-time infrastructure cost.

This purchase is a strategic move to secure an operational hub for the planned Los Angeles air taxi network, especially ahead of the 2028 Summer Olympic and Paralympic Games. The airport, which includes 190,000 square feet of facilities, will also serve as an AI testbed for managing fleet coordination and charging logistics. This cost is a foundational investment in the company's future revenue streams, not just an operational expense.

Personnel and Engineering Services, Driving a Q3 2025 Operating Expense of $174.8 million

The high GAAP operating expense of $174.8 million in Q3 2025 is largely driven by the cost of personnel and engineering services. You need top-tier talent to design and certify a new class of aircraft, and that talent is expensive.

The high operating cost reflects the company's shift from pure R&D to preparing for scaled production and commercial service, which requires hiring staff for manufacturing, operations, and regulatory compliance. The non-cash component of stock-based compensation, at $52.8 million in Q3 2025, also contributes significantly to the GAAP operating expense.

Archer Aviation Inc. (ACHR) - Canvas Business Model: Revenue Streams

You're looking at Archer Aviation Inc. (ACHR) right now, and the critical question isn't just about the technology, but how they actually start making money. The pivot from a pre-revenue, development-stage company to a commercial one is happening right now, in late 2025, so the revenue streams are shifting from purely contracts to initial commercial payments. That's the big change.

The revenue model is deliberately diversified across three main pillars: early-stage commercial programs, high-value defense contracts, and long-term, high-volume aircraft sales and passenger services. This reduces the risk of relying solely on a single, uncertain regulatory timeline, like the Federal Aviation Administration (FAA) certification in the U.S.

Initial revenue generation from the Launch Edition program in the UAE, forecasted at $2.81 million in 2025.

The first tangible revenue is coming from the 'Launch Edition' program in the United Arab Emirates (UAE). This isn't just a test; it's a paid commercial program with partners like Abu Dhabi Aviation (ADA) and Ethiopian Airlines, designed to build operational experience and a revenue track record outside the U.S. regulatory environment.

The company has confirmed it expects to generate its first commercial revenue in late 2025 from this initiative, with a reported revenue forecast of $2.81 million for the 2025 fiscal year. This money comes from initial payments and fees tied to delivering the first piloted Midnight electric vertical takeoff and landing (eVTOL) aircraft and activating the commercial partnership.

Future revenue from the sale of Midnight eVTOL aircraft to commercial partners.

The core long-term revenue stream is the direct sale of the Midnight eVTOL aircraft to commercial operators, which Archer calls 'Archer Direct.' These aren't just letters of intent; these are pre-orders and definitive agreements with major global airlines and air mobility operators.

To give you a concrete example, Korean Air has signed an agreement to purchase up to 100 Midnight aircraft. Given the Midnight aircraft is reportedly priced at about $5 million per unit, that single deal represents a potential future revenue stream of up to $500 million from just one partner. The sales model is structured to scale quickly once full certification is achieved.

Revenue from defense contracts for aircraft development and logistics testing.

The defense sector provides a crucial, high-certainty revenue stream that helps fund research and development (R&D) while the commercial market matures. Archer has a significant relationship with the U.S. Air Force, which has a contract worth up to $142 million to evaluate the eVTOL technology for military and logistics applications.

This revenue is tied to specific milestones for aircraft development, testing, and logistics, essentially turning the military into a paying R&D partner. Plus, the recent expansion into defense technology licensing (discussed next) is another layer of defense-related income.

Licensing fees and direct sales of proprietary technology, like the electric powertrain.

A brand-new, high-upside revenue stream is the licensing and sale of Archer's proprietary technology, which is a smart way to monetize their R&D investment immediately. The company's vertically integrated electric powertrain, which is the heart of the Midnight aircraft, is now being sold to third parties.

In November 2025, Archer announced a deal to supply this dual-use electric powertrain to Anduril Industries and EDGE Group for their Omen Autonomous Air Vehicle system. The UAE has already committed to an initial acquisition of 50 Omen systems, creating an immediate, established demand signal for Archer's licensed technology. This is a defintely a prototype for future technology-as-a-service revenue.

Revenue Stream Category	2025 Near-Term Value / Key Metric	Long-Term Revenue Mechanism
Launch Edition Program (UAE)	Initial revenue forecast of $2.81 million for FY 2025.	Milestone payments, early operational fees, and initial aircraft delivery payments.
Commercial Aircraft Sales (Archer Direct)	Pre-orders for up to 100 Midnight aircraft from Korean Air.	Sale of Midnight eVTOLs (approx. $5 million per unit) and associated maintenance/training.
Defense Contracts	U.S. Air Force contract value up to $142 million.	Milestone payments for R&D, development, and eventual sale of aircraft and technology for military use.
Technology Licensing/Sales	UAE commitment to acquire 50 Omen systems using Archer's powertrain.	Licensing fees and direct component sales of proprietary electric powertrain technology to third parties.
Urban Air Mobility (UAM) Services	Passenger fares expected to be around $6 per passenger per mile.	High-volume passenger fares from operating air taxi services in major urban markets (e.g., LA, NYC, Abu Dhabi).

Long-term revenue from Urban Air Mobility (UAM) services (passenger fares).

The ultimate vision is the Urban Air Mobility (UAM) service, where Archer acts as an electric airline, collecting passenger fares. This is the massive market opportunity, projected to grow from $4.6 billion in 2024 to $23.5 billion by 2030, representing a compound annual growth rate (CAGR) of 31.2%.

The pricing model is designed to be competitive, not a luxury item. Archer estimates its eVTOL rides will cost approximately $6 per passenger per mile, which is significantly lower than the estimated $11 per passenger per mile for traditional helicopter services. This is a high-volume, recurring revenue stream that will only kick in after full FAA certification and scaled production, likely in 2026 and beyond.

Here's the quick math on the potential: if they hit their 2030 target of producing 650 aircraft annually, and a portion of those are used in their own UAM network charging that $6 per mile, the revenue potential is enormous, but it hinges on regulatory approval and manufacturing ramp-up.

• Focus: High-volume, recurring service revenue.
• Target Price: $6 per passenger per mile for air taxi fares.
• Market Growth: UAM market to hit $23.5 billion by 2030.

Finance: Track the Q4 2025 earnings release for an update on the $2.81 million revenue recognition and any new defense contract payments.