Shares of Archer Aviation surged 10.2% to $6.93 on August 13 as investors continued digesting what may be the most consequential deal in the air-taxi sector's short history. Archer and Boeing signed definitive agreements for Archer to acquire Boeing's Wisk Aero, SkyGrid, and Insitu subsidiaries , an all-stock transaction that will see Boeing take a roughly 16.5% equity stake in Archer . The deal landed alongside Q2 earnings that beat on revenue but underscored the company's deep cash burn.
A Defense Business That Actually Makes Money
Insitu adds a profitable defense business generating over $200 million in annual revenue, with operations across 35 countries . For a company that just posted $5 million in quarterly revenue, that revenue injection is transformational. Archer expects the business to generate positive free cash flow and potentially help offset spending elsewhere in the company — critical given a $177 million adjusted EBITDA loss last quarter.
Boeing Becomes a Locked-In Partner, Not Just a Supplier
Boeing will receive shares representing approximately 19.75% of Archer's outstanding stock plus two warrants — one at $13.00 per share and another at $17.88 — meaning Boeing is financially incentivized to see this stock roughly double or triple from here. Boeing has also agreed to invest up to $55 million in an upcoming Archer funding round . That structure aligns the two companies far more tightly than a typical vendor relationship.
Autonomous Flight Tech Comes With Nearly 2 Million Hours of Data
The acquired companies bring nearly two million combined flight hours , feeding Archer's aviation-focused AI platform. Wisk is the only company that has designed, built, and flown six generations of electric vertical-takeoff aircraft . This data advantage matters because regulators and military customers demand demonstrated safety records that startups cannot fabricate.
The Cash Burn Reality Check
Archer posted a Q2 adjusted EBITDA loss of $177 million and expects similar losses in Q3 . The company maintained $1.6 billion in liquidity , but at the current burn rate, that runway covers roughly two years before Insitu's cash flow contribution even closes. Management expects to close the Boeing transaction by year-end, with a focus on integrating teams without structurally increasing overall cash burn — a promise investors should monitor closely.
The stock's 32.5% rally from its August 6 low of $5.23 prices in substantial optimism. Whether Archer can absorb three organizations, sustain certification timelines, and convert defense revenue into a path toward profitability will determine if this deal is visionary or overextension.