JOBY's Q3 Earnings Coming Up: Time to Buy, Sell or Hold the Stock?

Joby Aviation is projected to report a Q3 2025 loss of 18 cents per share on $2.42 million in revenue, a significant increase year-over-year, but high operating and R&D costs for eVTOL development are expected to weigh on profitability, leading to a Zacks Rank #4 (Sell) and no predicted earnings beat. Despite strategic advancements like the acquisition of Blade Air Mobility's urban air mobility passenger business and a partnership with Uber for 2026 service integration, JOBY's stock has underperformed peers, and its high valuation, coupled with ongoing challenges in scalability and public acceptance, suggests investors should await the upcoming results for clearer near-term prospects.

Analysis

Joby Aviation (JOBY) is projected to report a Q3 2025 loss of 18 cents per share on $2.42 million in revenue, a substantial increase from $0.03 million year-over-year. The full-year 2025 revenue estimate stands at $9.64 million, up from $0.14 million, though the loss per share is expected to widen to 88 cents from 79 cents a year ago. This indicates significant top-line growth but continued unprofitability. High operating expenses, particularly elevated research and development costs inherent in eVTOL development, are anticipated to weigh heavily on Q3 profitability. JOBY has a history of missing earnings estimates in two of the past four quarters, and its current Zacks Rank #4 (Sell) with a 0.00% Earnings ESP suggests a low probability of an earnings beat this quarter.

Despite strategic advancements, including the acquisition of Blade Air Mobility's urban air mobility passenger business and a 2026 partnership with Uber for service integration, JOBY's stock has underperformed its industry and peer Archer Aviation (ACHR) over the last three months. Its price-to-book valuation of 15.55x is higher than both its industry and ACHR, suggesting limited near-term upside potential.

The company faces significant challenges in scalability, public acceptance, and regulatory hurdles for eVTOLs, compounded by the absence of significant current revenues. The moderately negative sentiment and cautious tone surrounding the stock, coupled with its premium valuation, highlight considerable investment risks.

Key Decisions for Investors

• Investors should exercise caution given the high valuation and projected losses, awaiting Q3 results for clarity on operational efficiency and commercialization progress.
• Closely monitor the company's R&D expenditure and progress on regulatory approvals for eVTOLs, as these are critical for long-term viability.
• Evaluate the long-term impact of strategic partnerships with Uber and Blade against ongoing challenges in scalability and public acceptance.