Archer Aviation Inc. (ACHR) Cash Flow Statement

The OCF/NI ratio has hovered between 0.50 and 1.01 over the past ten quarters, indicating that non-cash charges like SBC and D&A are significant but not fully offsetting the cash burn. In 2026Q2, SBC of $85.6M and D&A of $13.1M reduced the cash loss to $156.4M from a net loss of $263.2M, yet the cash outflow remains substantial. This suggests that while earnings quality is poor due to heavy non-cash items, the underlying cash consumption is still severe and warrants close monitoring.

The FCF trajectory shows a clear acceleration in cash burn, with quarterly FCF losses nearly doubling over the period. The 2026Q2 FCF of -$193.5M reflects both higher operating losses and increased capex, while revenue remains immaterial at $5.0M. This implies that the company is consuming cash at an unsustainable rate relative to its $1.02B liquidity, suggesting a runway of roughly four to five quarters before additional financing is needed.

The increase in capex, though modest in absolute terms, signals investment in manufacturing capabilities and test infrastructure ahead of commercialization. The capex-to-revenue ratio is distorted by the pre-revenue stage, but the absolute growth suggests a deliberate build-out of production capacity, likely aligned with the Stellantis partnership. This capital intensity is expected to rise further as the company scales toward certification and initial production, which will intensify cash burn.

The working capital fluctuations are likely tied to timing of vendor payments and potential pre-delivery payments from customers, though the amounts are small relative to the overall cash burn. The negative changes in several quarters suggest cash outflows for inventory or receivables, while positive changes indicate inflows from payables or deferred revenue. Given the pre-revenue stage, these swings are not yet indicative of operational efficiency but may become more meaningful as commercial activity ramps.

The absence of shareholder returns is expected for a development-stage company, but the acquisition activity, such as the $25.0M outflow in 2026Q2, indicates strategic deployment of capital into new platforms. This diversification, while potentially value-creating, adds execution risk and further strains liquidity. Investors should monitor whether these investments generate future cash flows or simply extend the burn period.

The cumulative divergence between net income and operating cash flow highlights the substantial non-cash expenses, primarily SBC, which have reduced the reported loss but not the cash position. This gap suggests that while the company is burning cash heavily, the actual cash consumption is lower than the accounting losses imply. However, the trend is concerning because the gap is narrowing as SBC as a percentage of net loss declines, indicating that cash burn is becoming more aligned with economic losses.