10-K: Joby Aviation's 2025 Annual Report: Losses Mount Amid Strategic Growth

Joby Aviation reports a significant increase in net losses for 2025, driven by substantial investments in R&D and expansion, while making key progress in certification, partnerships, and market entry.

Summary

• Joby Aviation incurred a net loss of $929.8 million for the year ended December 31, 2025, a 53% increase from $608.0 million in 2024.
• Revenue significantly increased to $53.4 million in 2025 from $0.1 million in 2024, primarily due to the acquisition of Blade Urban Air Mobility, Inc. and higher government flight services.
• Research and development expenses rose by 22% to $581.1 million in 2025, reflecting increased staffing for aircraft engineering, software development, prototype manufacturing, and certification efforts.
• Selling, general and administrative expenses increased by 36% to $162.6 million, mainly due to Blade acquisition costs and increased legal and marketing spend.
• The company completed the acquisition of Blade Urban Air Mobility, Inc. in August 2025 for approximately $92.4 million, gaining immediate market access and infrastructure in key urban corridors.
• Joby Aviation aims to launch its piloted, all-electric eVTOL air taxi service, targeting carrying its first passengers in 2026.
• The company continues to progress through FAA type certification, having completed or substantially completed three of five stages and being more than halfway through the fourth stage.
• As of December 31, 2025, Joby Aviation had cash, cash equivalents, and restricted cash of $241.7 million and short-term investments of $1,167.1 million.
• The company raised significant capital in 2025, including $575.9 million from an underwritten public offering and $249.9 million from Toyota Motor Corporation's private placement.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a cautious outlook. While Joby Aviation demonstrates strong operational and strategic progress in certification, partnerships, and market entry, the significant increase in net losses and ongoing substantial capital requirements reflect the inherent challenges and early-stage nature of the UAM industry.

Positives

• Revenue increased significantly to $53.4 million in 2025, primarily driven by the Blade acquisition and government contracts.
• Acquisition of Blade Urban Air Mobility, Inc. provides immediate market access, an established customer base, operational expertise, and infrastructure in key urban corridors (New York City, Southern Europe).
• Achieved significant progress in FAA type certification, completing or substantially completing three of five stages and being more than halfway through the fourth stage.
• Received Part 135 Air Carrier Certificate in 2022, Part 145 Repair Station Certificate in February 2024, and Part 141 Flight School Certificate in December 2024, demonstrating operational readiness.
• Strong strategic partnerships with Toyota (largest outside investor, manufacturing collaboration), Uber (app integration), and Delta Air Lines (airport transportation service, capital investment).
• Continued strong relationship with the U.S. Air Force (USAF), including first eVTOL delivery to Edwards Air Force base in 2023 and a second aircraft in January 2025, providing pre-certification operating experience and revenue.
• Successfully demonstrated Superpilot™ autonomous flight technology in the USAF's REFORPAC exercise in summer 2025, logging over 7,000 miles of autonomous operations.
• Signed a definitive agreement with Dubai's Road and Transport Authority (RTA) for exclusive air taxi services for six years, with a roadmap for local approval that could precede FAA certification.
• Expanded manufacturing footprint with the completion of a new 226,000 sq ft building in Marina, California, in 2025, and the purchase of a 728,000 sq ft facility in Dayton, Ohio, in January 2026 for high-rate production.
• Open-sourced its proprietary Global Electric Aviation Charging System (GEACS) specifications in 2023 to support industry-wide adoption.
• Achieved IS-BAO Stage 2 safety audit certification for commercial air operations, demonstrating adherence to international safety best practices.

Negatives

• Net loss increased significantly by 53% to $929.8 million in 2025 from $608.0 million in 2024.
• Incurred significant losses and negative operating cash flows since inception, with expectations for continued losses in the foreseeable future.
• Total operating expenses increased by 30% to $773.0 million in 2025, outpacing revenue growth.
• Loss from changes in fair value of warrants, earnout shares, and contingent consideration increased by 293% to $211.8 million in 2025.
• The company will need additional capital in the future to fund high-volume manufacturing and vertiport network development.
• The second tranche of the Toyota Investment ($250.0 million) is subject to closing conditions, including the execution of a strategic alliance agreement, which may not occur on the anticipated timeline or at all.
• The market for Urban Air Mobility (UAM) is not yet established, and consumer adoption or willingness to pay projected prices remains uncertain.
• The company relies on a single type of aircraft for its commercial UAM business, making it vulnerable to design defects or mechanical problems.
• The company's intended initial operations are concentrated in a small number of metropolitan areas, making the business susceptible to local disruptions.

Risks

• May be unable to obtain relevant regulatory approvals for the commercialization of aircraft or operation of mobility service, either in the United States or in foreign markets.
• Regulatory authorities may disagree with the view that integrating service into the National Airspace System is possible without changes to existing regulations and procedures.
• If current airspace regulations are not modified to increase air traffic capacity, business could be subject to considerable capacity limitations.
• Changes in government regulation could increase operating costs or extend certification timeline.
• May be subject to security regulation that will increase operating costs.
• Subject to stringent U.S. export and import control laws and regulations, which may change, and may be unable to comply or secure required authorizations in a timely manner.
• Global trade policies, including tariffs, could adversely affect operations.
• Subject to rapidly changing and increasingly restrictive laws, regulations and other obligations relating to privacy, data protection, and data security, which may be costly and difficult to comply with.
• The market for UAM has not been established with precision; customers may be reluctant to adopt this new form of mobility, or to pay projected prices.
• May face delays in launching commercial service.
• Errors or vulnerabilities in software code could harm business.
• May be unable to reduce end-user pricing at rates sufficient to drive growth for service.
• Competitors may commercialize their technology before us, or we may not be able to fully capture the first mover advantage that we anticipate.
• If unable to integrate service with ground transportation services, it may limit customer adoption and harm business.
• Customers may not differentiate services from competitors.
• Prospects may be adversely affected by changes in consumer preferences, discretionary spending and other economic conditions that affect demand for services.
• If unable to obtain and maintain adequate facilities and infrastructure, including access to key infrastructure such as airports, may be unable to offer service in a way that is useful to passengers.
• Aircraft utilization may be lower than expected due to weather and other factors.
• Aircraft may fail to achieve performance expectations.
• May not be able to produce aircraft in the volumes and on the timelines projected.
• Crashes, accidents or incidents of eVTOL and other aircraft could have a material adverse effect on business, financial condition, and results of operations.
• Will initially rely on a single type of aircraft to support commercial UAM business, which makes us vulnerable to design defects or mechanical problems.
• Depend on suppliers and service partners for raw materials, parts and components.
• Aircraft may require maintenance at frequencies or at costs which are unexpected.
• The U.S. government may modify or terminate one or more of existing contracts.
• May be unable to grow relationship with the U.S. government and the Department of Defense.
• Conduct a portion of business pursuant to U.S. government contracts, which are subject to unique risks.
• May not realize the anticipated benefits of acquisition of Blade, and the acquisition may expose us to integration challenges, additional liabilities and costs, and potential dilution.
• Could suffer losses and adverse publicity stemming from accidents involving small aircraft, helicopters, or charter flights generally and, in particular, from any accident or incident involving Blade charter flights.
• The markets for Blade offerings are still in relatively early stages of growth, and such markets may not continue to grow, or may grow more slowly than we expect.
• May be unable to offer existing Blade flight schedule and to expand route network in the future.
• Rely on third-party operators to provide and operate aircraft; if such third-party operators do not perform adequately or terminate their relationships, costs may increase.
• Illegal, improper, or otherwise inappropriate operation of branded aircraft by third-party aircraft operators, regardless of whether they are operating aircraft on our behalf, could harm reputation, business, brand, financial condition, and results of operations.
• Have incurred significant losses since inception, expect to incur losses in the future, and may not be able to achieve or maintain profitability.
• Will need additional capital in the future, including to build high-volume manufacturing, and to develop a vertiport network to support a high-volume service.
• The Toyota Investment is subject to closing conditions, including conditions beyond our control, and no assurance can be given that the second tranche closing will take place on the timeline currently anticipated or at all.
• Have broad discretion in how assets are used, and may not use them effectively.
• Ability to use net operating loss carryforwards and certain other tax attributes may be limited.
• Required to maintain disclosure controls and internal control over financial reporting; if fail to maintain an effective system, investors may lose confidence.
• May be unable to protect intellectual property rights from unauthorized use by third parties.
• If conflicts arise between us and strategic partners, business could be adversely affected, or these parties may act in a manner adverse to us.
• May invest significant resources in developing new offerings and exploring the application of proprietary technologies for other uses and those opportunities may never materialize.
• Any material disruption in information systems could adversely affect business.
• If we or third-party service providers experience a security breach, or if unauthorized parties otherwise obtain access to customers data, reputation may be harmed, demand for services may be reduced, and we may incur significant liabilities.
• Intended initial operations are concentrated in a small number of metropolitan areas and airports which makes business particularly susceptible to natural disasters, outbreaks and pandemics, growth constraints, economic, social, weather, and regulatory conditions or other circumstances affecting these metropolitan areas.
• Currently have subsidiaries located outside of the United States and plans for international operations in the future, which could subject us to political, operational and regulatory challenges.
• Subject to risks arising from natural disasters and severe weather conditions and risks associated with climate change, including the potential increased impacts of severe weather events on operations and infrastructure.
• Subject to many hazards and operational risks that can disrupt business, including interruptions or disruptions in service at facilities, for which may not be able to secure adequate insurance policies, or secure insurance policies at reasonable prices.
• Dependent on senior management team and other highly skilled personnel, including pilots and mechanics, and may not be successful in attracting or retaining these personnel.
• Business may be adversely affected by union activities.
• The price of common stock has been and may continue to be volatile.
• Do not intend to pay cash dividends for the foreseeable future.
• If analysts do not publish research about business or if they publish inaccurate or unfavorable research, stock price and trading volume could decline.
• May be subject to securities litigation, activist investors and short-selling campaigns, which are expensive and could divert management attention.
• Future resales of common stock may cause the market price of securities to drop significantly.
• Charter documents include provisions designed to ensure compliance with applicable aviation regulations.
• Could be deemed to be an investment company under the Investment Company Act of 1940.

Future Outlook

Joby Aviation targets carrying its first passengers in 2026 and expects continued increases in operating expenses as it moves towards commercial launch, expands manufacturing, increases flight cadence, and invests in R&D for new products and technologies. The company anticipates efficient international expansion through bilateral agreements and local approvals, potentially preceding FAA certification in some markets like the UAE. Future plans include developing advanced flight controls, battery technologies, and alternative energy storage (e.g., hydrogen fuel cells) to enhance aircraft performance and expand use-cases, with strategic investments and potential acquisitions in these areas.

Management Comments

• "Our mission is to help the world connect faster and more easily with the people and places that matter most by delivering a new form of clean, fast, quiet and convenient aerial transportation service."
• "We believe this vertically-integrated business model will generate the greatest economic returns over time, while providing us with end-to-end control over the customer experience to optimize for customer safety, comfort and value."
• "We believe that our collaboration with Toyota has provided and continues to provide us with a significant competitive advantage as we design and build out our high-volume manufacturing capability."
• "We believe that our relationship with Delta, in addition to providing additional capital, will be another important method of customer acquisition when we launch our commercial passenger service."
• "We believe that our investments in hydrogen-electric and autonomous technology will position us well to capitalize on these opportunities [with the U.S. government and DOD]."

Industry Context

StockSavvy.ai notes that Joby Aviation operates within the nascent but rapidly growing Urban Air Mobility (UAM) sector, projected by Morgan Stanley to reach $1 trillion globally by 2040. The company's vertically integrated approach aims to address the strain on ground-based transportation networks and capitalize on the demand for sustainable, faster mobility solutions. Its strategic partnerships with established players like Uber and Delta Air Lines, alongside government contracts, position it to potentially gain a first-mover advantage in a competitive landscape that includes peers like Archer Aviation, Eve Holding, Lilium N.V., and Vertical Aerospace Ltd. The industry is characterized by high capital requirements, extensive regulatory hurdles, and the need for significant technological advancements in areas like battery density and autonomous flight.

Comparison to Industry Standards

• Joby's eVTOL aircraft is designed for speeds up to 200 mph and a target range of up to 100 miles, optimized for urban routes where modeling suggests over 99% of routes are significantly shorter, enabling higher utilization.
• The aircraft's noise profile of approximately 65 dBA during takeoff and landing is significantly quieter than similarly sized conventional aircraft or helicopters, aiming for greater community acceptance.
• Energy efficiency is comparable to best-in-class electric ground vehicles, highlighting a focus on sustainability.
• The company's redemption feature for warrants, allowing redemption when common stock trades at or above $10.00 (below the $11.50 exercise price), differs from typical blank check offerings that usually require an $18.00 threshold, providing greater capital structure certainty.
• The company's stock performance is compared against the Russell 2000 Index and a peer group including Archer Aviation Inc., Eve Holding, Inc., Lilium N.V., and Vertical Aerospace Ltd., reflecting its position among emerging eVTOL companies.

Management Changes

Corporate Governance

Legal Proceedings

• On November 18, 2025, filed a complaint in California Superior Court against Archer Aviation, Inc. and George Kivork, alleging breach of contract, misappropriation of trade secrets, and interference with contract and prospective economic advantage. The lawsuit seeks damages, injunctive relief, and attorneys' fees.
• Archer and Mr. Kivork filed motions to dismiss the complaint on January 23, 2026, with Joby Aviation filing its opposition on February 13, 2026.

Related Party Transactions

• Purchased services (rent, utilities, maintenance, aircraft charter) totaling $0.7 million in 2025 from vendors with ownership interests held by the CEO and founder, JoeBen Bevirt.
• Made payments to Toyota Motor Corporation (a beneficial owner of over 10% of voting interests and a director designator) for parts and materials totaling $1.1 million in 2025.
• Recognized revenue of $6.3 million from Toyota related to demonstration flights and support services in 2025.
• Identified an embedded finance lease within a purchase and sale agreement with Toyota for subassembly components, amounting to $7.2 million as of December 31, 2025.
• Issued 49,701,790 shares to Toyota in a private placement for $249.9 million in May 2025, resulting in a noncash loss of $40.3 million due to the difference between purchase price and fair value of unregistered shares.

Stakeholder Impact

• **Shareholders:** Dilution from multiple equity offerings and warrant exercises, potential volatility in stock price due to significant losses and early-stage market, but also potential for long-term value creation if commercialization is successful.
• **Employees:** Increased hiring for engineering, software, manufacturing, and operations, but also competition for skilled labor. Stock-based compensation plans are a key part of compensation strategy.
• **Customers:** Anticipated launch of fast, quiet, and convenient aerial ridesharing service in 2026, with a goal to reduce end-user pricing over time. Blade acquisition provides immediate access to existing air charter services.
• **Suppliers:** Reliance on global suppliers for raw materials and custom components, with potential for supply chain disruptions and increased costs due to tariffs.
• **Creditors:** Convertible Senior Notes issued in February 2026 represent new debt obligations, impacting the company's capital structure.
• **Regulatory Authorities:** Ongoing engagement with FAA and international regulators for certification and operational approvals, with potential for delays due to evolving regulations or staffing issues.
• **Local Communities:** Focus on minimizing noise footprint (65 dBA at takeoff/landing) to gain community acceptance for vertiport operations in urban areas. Investment in local communities through apprentice programs.

Next Steps

• Targeting carrying first passengers in 2026.
• Continue to progress through FAA type certification, including completing Stage 4 testing and analysis and Stage 5 show and verify.
• Obtain FAA production certification shortly after aircraft type certification.
• Expand manufacturing in Dayton, Ohio, with a new 728,000 sq ft facility to support high-rate production.
• Integrate Blade's air mobility services into the Uber app and ground transportation into planned service in the UAE.
• Pursue commercialization opportunities in international markets, including the United Kingdom, Japan, South Korea, Australia, Saudi Arabia, and the UAE.
• Continue to work on autonomy programs with the USAF and explore defense applications with L3Harris.
• Invest strategically in advanced flight controls, battery technologies, and alternative methods of energy storage (e.g., hydrogen fuel cells).
• Potentially acquire or invest in complementary businesses, products, and technologies.
• Negotiate and execute a strategic alliance agreement with Toyota for manufacturing arrangements to unlock the second tranche of the Toyota Investment.

Key Dates

Recommendation

Joby Aviation is in a critical, pre-revenue phase, characterized by substantial R&D investments and significant net losses. While the company has made impressive strides in FAA certification, secured major strategic partnerships (Toyota, Uber, Delta), and expanded its manufacturing footprint, the commercial viability of the UAM market is still unproven. The recent capital raises provide liquidity, but the path to profitability remains long and uncertain, with inherent risks in regulatory approvals, production scaling, and market adoption. A 'hold' recommendation acknowledges the strong long-term potential and strategic execution but advises caution due to the high-risk, high-reward nature of the business and its current financial performance.

Keywords

eVTOL, Urban Air Mobility, Air Taxi, Joby Aviation, SEC Filing, 10-K, Electric Aircraft, FAA Certification, Aerospace, Blade Urban Air Mobility, Toyota, Uber, Delta Air Lines, DOD Contracts, Autonomous Flight, Capital Raise, Financial Performance, Risk Factors, Corporate Governance