EHang NASDAQ: EH said it remains focused on moving from aircraft certification to commercial operations after reporting first-quarter 2026 revenue that was roughly flat year over year but sharply lower than the prior quarter due to delivery timing and seasonal factors.
Founder, Chairman and Chief Executive Officer Huazhi Hu told investors that the company is in a “critical transition from certification to commercial operation” as it works to launch what management described as the world’s first pilotless human-carrying eVTOL commercial service. Hu said EHang is working closely with regulators to move from internal trial operations to public ticketed service.
Management also said China’s regulatory framework for the low-altitude economy is becoming more formalized. Hu cited the newly revised Civil Aviation Law, which is set to take effect July 1, as well as the establishment of a low-altitude safety bureau by the Civil Aviation Administration of China. He said clearer regulation should help the industry develop “faster and more properly.”
Revenue Falls Sequentially as EHang Maintains 2026 Target
Chief Financial Officer Conor Yang said first-quarter revenue was RMB 25.7 million, compared with RMB 26.1 million in the same period last year and RMB 177.6 million in the fourth quarter of 2025. He attributed the sequential decline mainly to lower eVTOL deliveries, partly offset by growth in non-human-carrying businesses.
Chief Operating Officer Zhao Wang said EHang delivered four EH216-S units and 1,000 GD 4.0 formation drones in the quarter, while Yang later stated that the company delivered 40 EH216 series units, compared with 11 units in the first quarter of 2025 and 61 EH216 series units plus five VT-35 units in the fourth quarter of 2025. Management said the decline reflected the Chinese New Year holiday and customer delivery schedules.
Gross margin was 62.5%, nearly unchanged from 62.4% a year earlier and slightly above 61.6% in the prior quarter. Yang said the margin reflected manufacturing efficiency and supply chain management improvements.
Adjusted operating expenses rose to RMB 101.1 million from RMB 63.6 million a year earlier, driven by commercialization efforts, R&D team expansion and technology investment. Adjusted operating loss widened to RMB 77.1 million from RMB 42.6 million, while adjusted net loss was RMB 75.6 million, compared with RMB 31.1 million a year earlier.
As of March 31, EHang had RMB 1.03 billion in combined cash and cash equivalents, restricted short-term deposits, and short-term and treasury investments. The company maintained its full-year 2026 revenue guidance of RMB 600 million. Yang also said EHang’s board approved a share repurchase program of up to $30 million of ADSs over the next 12 months, funded by existing cash reserves.
Aerial Media Business Becomes Larger Revenue Contributor
Management highlighted the growing contribution from non-human-carrying businesses. Zhao said aerial media revenue accounted for about 40% of total first-quarter revenue, helped by GD 4.0 formation drone sales and performances. EHang completed 22 drone formation performances during the quarter.
Li Xiaona, EHang’s newly promoted China general manager, said the company showcased 16 EH216-S aircraft and 22,580 GD 4.0 formation drones during the CMG 2026 Spring Festival Gala Hefei segment in February, setting a Guinness World Record. She said the performance improved brand awareness and demonstrated the company’s capabilities in fleet flights, remote dispatch and communications integration.
During the Q&A session, management said the gross margin for GD 4.0 sales and flight performances was around 50%. Zhao said major costs include drone components, batteries, assembly costs, depreciation for company-owned drones, and personnel costs for performances. He added that firefighting models carry higher gross margins, with costs divided among carbon fiber materials, powertrain and battery systems, and other components.
Commercial Operations Remain in Final Preparation
EHang executives repeatedly emphasized that commercial passenger operations remain the company’s top priority. Hu said the company has obtained type certificate, production certificate and airworthiness certificate approvals, while two operators hold operator certificates.
Li said EHang’s two OC-certified operators in Hefei and Guangzhou are refining operations systems, ground support, crew training and emergency procedures while continuing internal trial operations. Since obtaining OCs in March 2025, she said the operators have maintained “0 accidents and 0 violations” and completed more than 3,000 EH216-S flights.
Management said EHang has developed an end-to-end passenger service system covering ticket pricing, online and offline ticketing, customer service and complaint handling. In the Q&A, Zhao said the early-bird price for the Hefei site is RMB 299, with four EH216 aircraft scheduled for 14 flights per day. He said ticket-booking mini apps are operating and that the company is ready to launch commercial operations once it receives CAAC approval.
Li also said crew training is progressing. EHang has completed internal instructor training preparations for the EH216-S model and submitted required materials. Management said official ground crew training is expected to begin in subsequent quarters after instructor training and approvals are completed.
VT-35, Overseas Expansion and New Applications
Chief Technology Officer Shuai Feng said the VT-35, EHang’s longer-range pilotless human-carrying eVTOL, has entered the certification basis definition stage, with the company working with the CAAC on safety evaluation, special conditions, safety objectives and performance requirements. He said ground and flight tests are continuing, and the VT-35 AVDOC system has entered detailed design.
Feng also said EHang upgraded EH216-S systems for hot-weather operations, including a battery cooling vehicle that shortened cool-down times and doubled utilization in field tests. The company also upgraded the cabin air conditioning system with an independent cooling system that does not interfere with flight control or avionics circuits.
On international expansion, Hu said EHang’s Thailand advanced air mobility sandbox program continues with routine validation flights. Li said Thailand is the company’s first flagship overseas market, with five vertiport locations identified and an initial airspace survey completed. Management said EHang is prioritizing validation of type certificates overseas and plans to use China’s bilateral airworthiness agreements with 32 countries for certification applications.
In response to analyst questions, management said overseas revenue contribution is expected to increase, potentially reaching 10% of total revenue, depending partly on commercial progress in Thailand. Zhao said EHang is targeting official commercial operations in Thailand by the end of the year, ahead of an AAM conference in Bangkok.
EHang also said it is developing non-human-carrying products for firefighting and inland waterway logistics. Li said new firefighting aircraft development is on schedule, while test routes have been selected at Guangzhou Port and the Pearl River main channel for logistics trials.
Order Outlook
In the Q&A, management said it expects most 2026 orders to arrive in the second half of the year, noting that many customers are government-related entities whose budget approvals are typically completed later in the year. Zhao said the company expects more than 50% of 2026 revenue to come from new customers.
For the full year, management said it expects human-carrying products, including EH216 and VT-35 sales and deliveries, to contribute about 60% of revenue, while non-human-carrying businesses are expected to contribute roughly 40%.
About EHang NASDAQ: EH
EHang Holdings Limited is a China-based technology company specializing in the development and manufacturing of autonomous aerial vehicles (AAVs) for passenger transportation, logistics, and other commercial applications. Established in 2014 and listed on NASDAQ under the ticker EH in 2019, EHang focuses on delivering turnkey solutions that integrate hardware, flight control systems and a cloud-based operating platform. Its flagship products include the EH216 series passenger AAV and the Falcon series unmanned aerial vehicles, designed to support urban air mobility, aerial filming, emergency response and short-range cargo delivery.
The company's business model encompasses research and development, manufacturing, certification support, and operations services.
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