EHang NASDAQ: EH reported second-quarter revenue of RMB 77.9 million, down from RMB 113.3 million a year earlier but up 203% from RMB 25.7 million in the first quarter, as higher EH216-series sales volume and an additional VT-35 aircraft contribution supported sequential growth.
Management said the company is shifting its emphasis from aircraft certification toward operational readiness, scenario validation, product development and overseas deployment. Founder, Chairman and CEO Hu Huazhi said certification is only the starting point for commercialization, and that scalable urban air mobility will depend on end-to-end operating capabilities, standardized solutions and regulatory support.
The company delivered 35 EH216-S aircraft and one VT-35 during the quarter. It also completed 22 aerial-media shows and delivered 520 GD4 drones, according to management.
Domestic commercialization timing remains uncertain
EHang said a late-June accident involving a piloted light sport aircraft in China prompted regulators to take a more cautious approach to low-altitude aviation oversight. Hu said the incident was unrelated to EHang’s pilotless aircraft and did not reflect an issue with the company’s technology or safety record, but it has delayed the approval process for passenger-carrying commercial operations in Hefei.
“The commercial operation approval process for the Hefei project has been delayed, and the timing of regulatory clearance remains uncertain,” Hu said during the question-and-answer session.
He added that the more stringent regulatory environment is not a rejection of EHang’s pilotless eVTOL approach. The company maintains that its pre-programmed, fixed-route and fleet-coordinated model has inherent safety advantages, and Hu said stricter safety regulation should benefit EHang over the long term.
EHang said its EH216-S aircraft and operating system have received the key certificates under China’s civil aviation framework, including type, production, airworthiness and air operator certificates. Its Guangzhou and Hefei operating systems have been in internal trial operations for about 1.5 years, management said, with a passenger satisfaction score of 4.94 out of 5. The EH216 series has accumulated nearly 100,000 safe flights, according to the company.
Management said it is continuing to prepare for eventual public ticket sales by developing route operations, personnel training, maintenance, insurance, airspace coordination, emergency response and other operating functions. EHang has also begun point-to-point trial operations in Guangzhou.
Thailand and overseas programs advance
Outside China, EHang said its footprint expanded to 23 countries after adding Mexico and Switzerland during the quarter. In Thailand, the company expects to obtain an experimental flight permit in the third quarter and is targeting a formal commercial operations certificate by the end of 2026, subject to the Civil Aviation Authority of Thailand’s review process.
COO Wang Zhao said EHang is working with Thai authorities to plan more than 10 passenger-carrying commercial routes covering Bangkok, Phuket, Koh Samui and Pattaya. He said formal EH216 deliveries for those operations are expected to begin next year, with each location anticipated to require at least five aircraft.
The company has also shipped more than 1,000 GD4 formation drones to Thailand and plans regular drone-light-show operations in Bangkok and Pattaya, according to management.
EHang said it has begun flight validation in Hong Kong through the Low-altitude Economy Regulatory Sandbox X trial project, with Sunny Port selected as its first sandbox site. It also introduced its Global Fast Track Program, a four-stage framework covering regulatory alignment, sandbox construction, validation flights and commercial launch. Sri Lanka is the first country to formally adopt the program, EHang said.
Diversification efforts include aerial media, logistics and firefighting
While passenger mobility remains its strategic focus, EHang is pursuing non-passenger applications including logistics, firefighting and aerial media. Management said non-passenger business represented about 8% of second-quarter revenue, primarily from GD4 formation-drone performances, while air mobility represented about 92%.
The company expects non-passenger revenue and its proportion of total revenue to increase in the second half, driven by formation-drone deliveries and a small number of firefighting product deliveries. Hu also said the company sees opportunities in short-range emergency logistics, longer-range logistics and firefighting applications.
CTO Feng Choi said EHang is developing a cargo version based on the EH216-S platform, an approach intended to shorten development and certification timelines. The company is also testing an air-burst delivery system for early-stage forest-fire response and is advancing VT-30 firefighting-drone prototypes and logistics aircraft with customers.
In aerial media, management said the business is moving from one-time events toward recurring on-site shows, which it believes can improve equipment utilization, customer retention and revenue predictability. EHang said aerial-media revenue increased more than 270% year over year in the second quarter and is expanding into Europe, Japan and Thailand.
Margins stable as company withdraws annual guidance
EHang reported a gross margin of 61.2%, compared with 61.5% a year earlier and 62.5% in the first quarter. CFO Conor Yang said the relatively stable margin reflected product competitiveness, manufacturing efficiency and supply-chain management despite quarterly changes in revenue and product mix.
Adjusted operating expenses, excluding share-based compensation, rose 16.9% year over year and 11.5% sequentially to RMB 112.7 million. Yang attributed the increase to strategic investments and costs associated with organizational optimization. Adjusted operating loss narrowed to RMB 62 million from RMB 77.1 million in the first quarter, while adjusted net loss narrowed to RMB 58.5 million from RMB 75.6 million.
As of June 30, EHang had RMB 929.4 million in combined cash, cash equivalents, short-term investments and treasury investments.
Given uncertainty surrounding domestic passenger-carrying commercial approvals, EHang withdrew its previous 2026 revenue guidance of RMB 600 million and did not issue replacement guidance. Management said it will continue to provide updates on domestic approvals, international progress, non-passenger product deliveries, operating efficiency and cash position as conditions become clearer.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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