Archer (OB:ARCH) TTM Net Loss Widens 42.3%, Reinforcing Margin Pressure Concerns

Archer (OB:ARCH) just released its Q3 2025 results, reporting revenue of $339.3 million and basic EPS of $0.038 as net income came in at $3.4 million. The company has seen revenue climb from $283.5 million in Q3 2024 to $339.3 million a year later. EPS remained at $0.038 over the same period. Margins remain under pressure, but the top line trend stands out ahead of the market backdrop.

See our full analysis for Archer.

Next, we put these numbers in context with the prevailing market narratives, testing how the latest figures challenge or confirm what investors expect from Archer.

See what the community is saying about Archer

Rising Losses Outpace Revenue Gains

• Despite Q3 2025 revenue growth to $339.3 million, Archer’s trailing 12-month net loss widened further, reaching $43.7 million, with losses increasing at a yearly rate of 42.3% over the past five years.
• Consensus narrative notes that while recurring brownfield operations and energy transition services have improved revenue stability and market reach for Archer, ongoing losses and underperformance in growth markets challenge the company’s ability to turn these gains into durable profitability.
  • For example, net income remains negative even though revenues are climbing faster than the Norwegian market average, highlighting the tension between top-line growth and persistent margin pressures.
  • Geographic diversification has helped cushion volatility, but expansion has not yet translated into net margin improvements. Analysts see this as a key obstacle ahead.
• The numbers reinforce concerns in the consensus narrative, as losses continue to deepen even with higher sales and new service lines.

What stands out is that Archer’s improving sales are still not enough to reverse its mounting losses. See where analysts think the company goes next in the full consensus narrative. 📊 Read the full Archer Consensus Narrative.

Analysts Project 110.8% Annual Earnings Growth

• Over the next three years, analysts are forecasting Archer’s earnings to rise at an annual rate of 110.8% and for the company to achieve profitability within that period.
• Consensus narrative weighs the positive expectations against recent trends, highlighting that expected margin improvement from -3.8% today to 7.4% in three years will require disciplined execution and performance stronger than the historical average.
  • Achieving forecasts would mean shifting from a net loss of $44.5 million this year to $106.2 million in positive earnings by 2028, a significant turnaround by any measure.
  • The capital and operational intensity required for this transition increases the risks if the company cannot capitalize on new technologies or higher-margin contracts as quickly as projected.

Trading Nearly 80% Below DCF Fair Value

• Archer shares are currently priced nearly 80% below DCF fair value of 106.41, with a Price-To-Sales ratio of just 0.2x, well under both peers at 0.8x and the industry at 1x.
• The consensus narrative highlights that this deep discount reflects both investor optimism about Archer’s potential upside and caution over the sustainability of its 11.41% dividend, which is not covered by current earnings or free cash flow.
  • While the low valuation creates significant upside potential, dividend risks and ongoing negative earnings keep sentiment balanced, making a fully optimistic outlook unlikely until signs of sustained profitability emerge.
  • Analysts see the low Price-To-Sales as a positive factor, but recurring losses and an uncovered dividend remain key obstacles for value realization and for income-focused investors.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Archer on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Looking at the figures from a fresh angle? You can quickly shape and share your perspective by building your own narrative in just a few minutes. Do it your way

A great starting point for your Archer research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

Archer’s persistent net losses, uncovered dividend, and continued margin pressures signal ongoing risks for investors seeking reliable income or financial stability.

If you want dividend yields with fewer red flags, start searching with these 1923 dividend stocks with yields > 3% to focus on companies boasting stronger payout coverage and more stable earnings.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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