Vertical Aerospace Stock Rises 13% After Q1 Report
UK eVTOL developer says current liquidity covers at least 12 months as it moves from prototype testing to certification.
By Nicole Suárez, Carbon Free Aviation Journalist.
Shares in Vertical Aerospace rose more than 13% on Wednesday after the UK-based electric aviation developer released its first-quarter 2026 business and strategy update, which included the securing of a financing package worth up to $850 million as it works toward certification of its electric vertical takeoff and landing (eVTOL) aircraft.
The financing package is designed to support certification, manufacturing preparation, and operational milestones through its targeted 2028 certification timeline. It includes a completed $50 million equity raise, an initial $30 million drawdown, up to $250 million in convertible preferred equity, and an equity line of credit of up to $500 million over 36 months.
Existing convertible notes held by investor Mudrick Capital were also amended to extend maturity from December 2028 to December 2030, aligning debt obligations beyond planned certification and first customer deliveries. The company said the structure gives Vertical flexibility to access capital as milestones are achieved, rather than relying on immediate large-scale dilution or short-term refinancing pressure.
On the financial side, the company ended the quarter with approximately $96 million in cash and cash equivalents, with short-term liquidity rising to roughly $103 million, plus an expected $23 million from R&D tax reliefs and around $7 million from grants and VAT recoveries.
That marks an improvement from Q4 2025, when Vertical’s own disclosures warned that existing resources would only last into Q4 2025. R&D tax receivables climbed from approximately $21 million to $27 million, per its Q4 2025 filing, and operating cash outflows hit roughly $46 million for the quarter (up 74% year-over-year) reflecting the rapid acceleration in R&D spending as the company shifts from prototype testing into certification-focused development.
Vertical expects net cash outflows of approximately $180 million to $200 million over the next 12 months as it continues investing in certification activities, public flight demonstrations, and the development of pre-production aircraft. Executives said current liquidity, combined with financing access, is expected to provide at least 12 months of operational runway as the company transitions from demonstration into certification.
Alongside the financing update, Vertical’s second full-scale prototype completed a two-way piloted transition flight in April 2026, in which the aircraft took off vertically, shifted into wingborne flight, and returned to vertical flight mode in a single continuous flight without the use of a runway, overseen by the UK Civil Aviation Authority and European Union Aviation Safety Agency (EASA).
The company said this concluded Phase 4 of its prototype flight test program, the final phase of the current test sequence. Vertical plans to assemble the first preproduction certification-conforming aircraft by December 2026, with a hybrid variant expected to follow after hybrid flight tests in 2026.
Vertical is targeting type certification in both the UK and EU by the end of 2028. Because the UK left the European Union in 2020, Civil Aviation Authority and EASA certification are now separate processes, meaning Vertical must satisfy two distinct regulatory frameworks to operate commercially across both markets.
The aircraft under development, known as Valo and built on the VX4 prototype program, is designed to carry a pilot and up to six passengers at cruise speeds of 150 mph over ranges of up to 100 miles with zero operating emissions.
Vertical has around 1,500 pre-orders for Valo from customers including American Airlines, Avolon, Bristow, GOL, and Japan Airlines.
In a statement accompanying the update, CEO Stuart Simpson said the quarter “represents a clear inflection point for Vertical.”
