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Should You Buy, Hold or Sell JOBY Stock Post Q3 Earnings?
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Key Takeaways
Joby Aviation's third-quarter loss widened to 26 cents per share, missing estimates and prior-year results.
Quarterly revenues jumped to $22.6M, boosted by the Blade passenger business acquisition.
Joby is expanding production and plans Dubai air taxi operations next year amid commercialization efforts.
Joby Aviation (JOBY - Free Report) , a leading player in the electric vertical takeoff and landing (eVTOL) space, reported third-quarter 2025 results on Nov. 5, which fell short of expectations and also compared unfavorably with the prior-year quarter. The company incurred a loss that was not only wider than expected but also compared unfavorably with the year-ago loss. JOBY reported higher revenues, surpassing the consensus mark.
Taking a Deeper Look Into Joby’s Q3 Results
JOBY reported a third-quarter 2025 loss of 26 cents per share (on an adjusted basis), which was wider than the Zacks Consensus Estimate of 19 cents and the year-ago loss of 21 cents.
Quarterly revenues (including revenues from the acquisition of the Blade passenger business in Aug.) came in at $22.6 million, beating the Zacks Consensus Estimate by a massive 140.2%. In the year-ago quarter as well, the company reported revenues of only $0.03 million. In the September-end quarter, total operating expenses increased 30.3% year over year due to higher research and development (up 18.2%) and selling, general, and administrative (up 47%) costs.
Adjusted EBITDA in the third quarter of 2025 was a loss of $132.8 million, which included employee-related costs associated with the development, certification and manufacturing of aircraft apart from Blade acquisition costs.
JOBY exited the third quarter with cash and cash equivalents of $208.4 million compared with $199.6 million at the end of 2024. For 2025, JOBY anticipates generating cash, cash equivalents, and short-term investments to be at the upper end of the $500-$540 million range.
The wider-than-expected loss in the September quarter meant that Joby’s unimpressive earnings track record continued. The transportation company missed the Zacks Consensus Estimate twice in the last four quarters and matched the same on the other two occasions. The average miss is 17.5%.
Looking Beyond the Loss: Recent Key Developments for JOBY
JOBY is aiming to start commercial operations soon. As part of its efforts related to air taxi commercialization, Joby recently completed the acquisition of Blade Air Mobility’s urban air mobility passenger business. The buyout of Blade's mobility passenger business marks a key step toward commercialization.
The acquisition provides Joby access to Blade’s established network of terminals and loyal flyers in key markets, such as New York and Southern Europe. The buyout may expedite Joby’s entry into commercial service with its eVTOL aircraft once certified. Moreover, the closure of the buyout is likely to provide Joby a head start over competitors like Archer Aviation (ACHR - Free Report) .
Following the acquisition, Joby and Uber Technologies (UBER - Free Report) announced plans to bring Blade’s air mobility services to the Uber app by 2026. Joby and Uber have collaborated on advancing the future of urban air mobility since 2019. In 2021, Joby acquired Uber’s Elevate division, which was instrumental in shaping the urban air mobility industry and creating key tools for market selection, demand forecasting and multi-modal operations.
As part of its commercialization strategy, Joby announced plans earlier this year to expand its operations. The company revealed an expansion of the facility in Marina, CA, which will double its aircraft production capacity at that site. Covering 435,500 square feet, the expanded facility will support Joby’s efforts to scale its commercial operations. Once fully operational, the Marina site is expected to produce up to 24 aircraft annually as Joby moves closer to launching its air taxi service. Joby aims to start commercial air taxi operations in Dubai next year.
Driven by its commercialization-related efforts, JOBY’s shares have performed exceedingly well so far this year, gaining in excess of 80%, outperforming the Zacks Transportation-Airline industry and Archer Aviation year to date.
YTD Price Comparison
Image Source: Zacks Investment Research
Some Headwinds That Can’t Be Ignored
Joby is unlikely to be profitable any time soon, as commercial operations are yet to start. The company’s negative return on equity further highlights its lack of profitability.
While Joby is making notable progress in the fast-evolving eVTOL space, challenges remain in terms of scalability and public acceptance. Only time will tell how the market and customer demand for eVTOLs will turn out. Public acceptance of eVTOLs as an alternative to traditional transport methods could face hurdles related to safety, noise and affordability concerns. Without widespread recognition, JOBY's growth potential may be constrained. Additionally, the risk of battery failure due to high voltage and thermal issues is highly likely for eVTOL aircraft.
Valuation remains a sticking point. In terms of price-to-book value, JOBY is trading at 14.29X, higher than its industry and peer Archer Aviation. Like Joby, Archer Aviation also has a Value Score of F.
JOBY's P/B TTM vs. Industry & ACHR
Image Source: Zacks Investment Research
To Conclude
Based on the write-up, we can safely conclude that the company’s long-term outlook is strong, given the brightness associated with the eVTOL market. Per Markets and Markets, the global market is expected to soar from $0.76 billion in 2024 to $4.67 billion by 2030, indicating an impressive compound annual growth rate of 35.3% during the period.
However, Joby faces certain risks, like the absence of significant revenues and uncertainties related to commercialization. Moreover, the premium valuation keeps us cautious on this Zacks Rank #3 (Hold) company. Holding onto JOBY stock appears to be a prudent choice currently, while prospective investors might consider waiting for a more favorable entry point.
Image: Bigstock
Should You Buy, Hold or Sell JOBY Stock Post Q3 Earnings?
Key Takeaways
Joby Aviation (JOBY - Free Report) , a leading player in the electric vertical takeoff and landing (eVTOL) space, reported third-quarter 2025 results on Nov. 5, which fell short of expectations and also compared unfavorably with the prior-year quarter. The company incurred a loss that was not only wider than expected but also compared unfavorably with the year-ago loss. JOBY reported higher revenues, surpassing the consensus mark.
Taking a Deeper Look Into Joby’s Q3 Results
JOBY reported a third-quarter 2025 loss of 26 cents per share (on an adjusted basis), which was wider than the Zacks Consensus Estimate of 19 cents and the year-ago loss of 21 cents.
Quarterly revenues (including revenues from the acquisition of the Blade passenger business in Aug.) came in at $22.6 million, beating the Zacks Consensus Estimate by a massive 140.2%. In the year-ago quarter as well, the company reported revenues of only $0.03 million. In the September-end quarter, total operating expenses increased 30.3% year over year due to higher research and development (up 18.2%) and selling, general, and administrative (up 47%) costs.
Adjusted EBITDA in the third quarter of 2025 was a loss of $132.8 million, which included employee-related costs associated with the development, certification and manufacturing of aircraft apart from Blade acquisition costs.
JOBY exited the third quarter with cash and cash equivalents of $208.4 million compared with $199.6 million at the end of 2024. For 2025, JOBY anticipates generating cash, cash equivalents, and short-term investments to be at the upper end of the $500-$540 million range.
The wider-than-expected loss in the September quarter meant that Joby’s unimpressive earnings track record continued. The transportation company missed the Zacks Consensus Estimate twice in the last four quarters and matched the same on the other two occasions. The average miss is 17.5%.
Joby Aviation Price and EPS Surprise
Joby Aviation price-eps-surprise | Joby Aviation Quote
Looking Beyond the Loss: Recent Key Developments for JOBY
JOBY is aiming to start commercial operations soon. As part of its efforts related to air taxi commercialization, Joby recently completed the acquisition of Blade Air Mobility’s urban air mobility passenger business. The buyout of Blade's mobility passenger business marks a key step toward commercialization.
The acquisition provides Joby access to Blade’s established network of terminals and loyal flyers in key markets, such as New York and Southern Europe. The buyout may expedite Joby’s entry into commercial service with its eVTOL aircraft once certified. Moreover, the closure of the buyout is likely to provide Joby a head start over competitors like Archer Aviation (ACHR - Free Report) .
Following the acquisition, Joby and Uber Technologies (UBER - Free Report) announced plans to bring Blade’s air mobility services to the Uber app by 2026. Joby and Uber have collaborated on advancing the future of urban air mobility since 2019. In 2021, Joby acquired Uber’s Elevate division, which was instrumental in shaping the urban air mobility industry and creating key tools for market selection, demand forecasting and multi-modal operations.
As part of its commercialization strategy, Joby announced plans earlier this year to expand its operations. The company revealed an expansion of the facility in Marina, CA, which will double its aircraft production capacity at that site. Covering 435,500 square feet, the expanded facility will support Joby’s efforts to scale its commercial operations. Once fully operational, the Marina site is expected to produce up to 24 aircraft annually as Joby moves closer to launching its air taxi service. Joby aims to start commercial air taxi operations in Dubai next year.
Driven by its commercialization-related efforts, JOBY’s shares have performed exceedingly well so far this year, gaining in excess of 80%, outperforming the Zacks Transportation-Airline industry and Archer Aviation year to date.
YTD Price Comparison
Some Headwinds That Can’t Be Ignored
Joby is unlikely to be profitable any time soon, as commercial operations are yet to start. The company’s negative return on equity further highlights its lack of profitability.
While Joby is making notable progress in the fast-evolving eVTOL space, challenges remain in terms of scalability and public acceptance. Only time will tell how the market and customer demand for eVTOLs will turn out. Public acceptance of eVTOLs as an alternative to traditional transport methods could face hurdles related to safety, noise and affordability concerns. Without widespread recognition, JOBY's growth potential may be constrained. Additionally, the risk of battery failure due to high voltage and thermal issues is highly likely for eVTOL aircraft.
Valuation remains a sticking point. In terms of price-to-book value, JOBY is trading at 14.29X, higher than its industry and peer Archer Aviation. Like Joby, Archer Aviation also has a Value Score of F.
JOBY's P/B TTM vs. Industry & ACHR
To Conclude
Based on the write-up, we can safely conclude that the company’s long-term outlook is strong, given the brightness associated with the eVTOL market. Per Markets and Markets, the global market is expected to soar from $0.76 billion in 2024 to $4.67 billion by 2030, indicating an impressive compound annual growth rate of 35.3% during the period.
However, Joby faces certain risks, like the absence of significant revenues and uncertainties related to commercialization. Moreover, the premium valuation keeps us cautious on this Zacks Rank #3 (Hold) company. Holding onto JOBY stock appears to be a prudent choice currently, while prospective investors might consider waiting for a more favorable entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.