Joby and Archer Each Burn Roughly $200 Million a Quarter. Here's Which One Runs Out of Cash First

Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR) are looking to upend the aviation industry. That's a tall task, given the sector's highly regulated and capital-intensive nature. But they are making material strides toward that goal, as they each advance their electric vertical takeoff and landing (eVTOL) technology.

From a business perspective, things are going well. But what about from a finance perspective? Neither one generates material revenue, so both are burning through cash at a rapid rate as they build their aerospace businesses. It looks like Joby may have more room to run, at least for now.

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Joby and Archer: Lots of money out, little money in

In the second quarter of 2026, Joby Aviation reported $38.6 million in revenues. Archare Aviation reported just $5 million. That's not a lot of revenue when you consider the spending these two companies are doing as they build their businesses.

Joby's cost of revenue was $28.3 million, resulting in a small gross profit. However, selling, general, and administrative (SG&A) costs were $76.5 million. And then research and development expenses were nearly $195 million. When all was said and done, the company's loss from operations was roughly $260 million.

Archer's story is no better. The $5 million in revenue it produced cost $4.3 million to generate, leaving a small gross profit. However, SG&A costs came in at nearly $94 milloin in the second quarter. Research and development costs totalled $186 million. All in, Archer's loss from operations was $279 million.

As start-ups, it isn't surprising that Archer and Joby are bleeding cash. But investors have to understand that the cash supporting these businesses is limited. At the end of the second quarter, Joby had roughly $2.2 billion in cash and investments. Archer Aviation had about $1.5 billion.

Joby has an edge, but don't get too excited

From a pure numbers perspective, Joby has more room to run. If it continues to loss $260 million each quarter, the $2.2 billion in cash could last another two years or so. Joby's $1.5 billion in cash at a roughly $280 million quarterly loss would last only a little over a year.

That's if nothing changes, which is highly unlikely. After all, Joby just successfully showcased its autonomous flight technology with a cross-country flight. And Archer just showed off its tech with manned flights between local California airports, basically proving it can operate an air taxi service. At this point, there's a strong reason to believe both will be able to bring their eVTOLs to market.

This helps explain why aviation giant Boeing (NYSE: BA), among other companies, is partnering with Archer. And why Joby is working with Virgin Atlantic and Delta (NYSE: DAL). Basically, neither Joby nor Archer is flying solo here, which suggests that more capital will be relatively easy to raise when it is needed.

Almost there, but not quite

Archer Aviation and Joby Aviation are high-risk stocks that only the most aggressive of growth investors should consider. But they are both making material progress as businesses, even as they continue to burn through cash at a rapid clip. That's pretty normal for a start-up.

The big difference here is that each of these eVTOL companies is working with major partners that could be important sources of capital. In other words, investors should monitor cash burn as it occurs, but it is highly likely to be replenished before there's any risk to either company's business. That said, if either company fails to replace its cash balances in a timely fashion, it might be time to ditch the aircraft maker.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.