Why Joby Aviation Stock Popped After Earnings

Joby Aviation (NYSE: JOBY) stock jumped 6.8% through 10:10 a.m. ET this morning after "beating" earnings last night. Analysts forecast Joby would lose $0.19 per share in its first quarter of 2025, but the electric air taxi company reported a loss of only $0.11 per share.

Joby has no revenue, so analysts didn't bother making a revenue forecast -- and Joby reported no revenue.

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Joby Aviation Q1 earnings

Being a pre-revenue company, Joby's "earnings" press release focused on business developments instead. The company noted it has picked a new CFO, Rodrigo Brumana, a veteran of HP, Amazon, eBay "and, most recently, Poshmark."

The company said it has made "progress on the certification of our aircraft," and said it has begun "routine transition flights with a pilot onboard the aircraft, marking a critical step toward starting FAA flight testing."

Perhaps most importantly, Joby said it ended Q1 2025 with $813 million in the bank, and another $500 million investment from Toyota Motor on the way.

Is Joby stock a buy?

That's important because, with no revenue and no cashflow coming in from its business, Joby currently has to draw on its cash reserves to keep itself in business as it moves toward having a product to sell. Last year, Joby burned through $487 million in negative free cash flow, a number that's starting to inch higher in 2025.

The good news is that, with Toyota's backing, the company still has enough money to keep it afloat for nearly three more years before it runs out of cash. The bad news is that analysts forecast Joby won't turn profitable before 2030 -- five years away.

Joby stock remains speculative. If you decide to buy into it, make sure to buy small.

Should you invest $1,000 in Joby Aviation right now?

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, HP, and eBay. The Motley Fool has a disclosure policy.