EHang’s Q1 Revenue Stumbles—But CEO Doubles Down on Full-Year Targets

Another quarter, another ’temporary headwind’—EHang’s autonomous flying taxis hit turbulence as Q1 revenue dips. Yet management insists the skies will clear by year-end.

Bulls cling to the reaffirmed guidance like a parachute, while skeptics eye the widening gap between promises and performance. When your moonshot business burns cash faster than a rocket, optimism is the only fuel left.

Funny how these ’short-term setbacks’ never seem to affect executive bonuses. The eVTOL revolution waits for no one—except maybe EHang’s accountants.

TLDR

• Q1 2025 revenue fell 57% year-over-year to RMB26.1 million.

• Net loss widened to RMB78.4 million from RMB63.4 million last year.

• Gross margin slightly improved to 62.4%.

• EH216-S operators obtained first CAAC Air Operator Certificates.

• EHang maintains RMB900 million revenue guidance for fiscal 2025.

On May 26, 2025, EHang Holdings Limited (NASDAQ: EH), trading at $16.96 at close and $17.25 after hours, released its unaudited Q1 2025 results.

EHang Holdings Limited (EH)

Revenue plunged 57% year-over-year to RMB26.1 million (approximately $3.6 million), down from RMB61.7 million in Q1 2024. Compared to Q4 2024, the decline was even sharper, from RMB164.3 million.

Net losses deepened to RMB78.4 million (around $10.8 million), up from RMB63.4 million a year ago. Operating loss reached RMB89.9 million, reflecting worsening financial strain. Despite these setbacks, gross margin improved slightly to 62.4% from 61.9% last year.

$EH EHang Reports First Quarter 2025 Unaudited Financial Results.
NUMBERS:
(1) Sales and deliveries of EH216 series eVTOL1 were 11 units.
(2) Gross margin was 62.4%, representing a 0.5 percentage points increase from 61.9% in the first quarter of 2024, and a 1.7 percentage…

— FUTURE FOCUS (@BJforEVTOL) May 26, 2025

Sales and Deliveries Reflect Slow Quarter

The company sold 11 units of its EH216 series eVTOL aircraft in Q1. Chief Financial Officer Conor Yang attributed the revenue dip to delayed customer procurement but expressed Optimism for Q2 as sales and deliveries are expected to pick up.

Adjusted operating loss (non-GAAP) came in at RMB42.6 million, down significantly from the adjusted operating income of RMB27.2 million in the previous quarter. Cash and cash equivalents stood at RMB1,114.4 million ($153.6 million) at the end of March.

Milestone Achievements and Expansion Efforts

Despite financial challenges, Q1 marked significant operational milestones. On March 28, the Civil Aviation Administration of China (CAAC) granted the first-ever Air Operator Certificates (AOCs) for human-carrying pilotless aerial vehicles to EHang’s subsidiary, EHang General Aviation, and its partner operator Heyi Aviation. This authorizes commercial human-carrying eVTOL flight services within designated Chinese sites.

EHang is also advancing its next-generation VT35 eVTOL, which is undergoing certification with the CAAC. The first VT35 unit has been manufactured and is in airworthiness validation testing, signaling the company’s push to expand its product lineup.

Production Capacity to Double

The company is expanding production at its Yunfu facility and planning a new factory in Hefei, aiming to double annual production capacity to 1,000 units by year-end. EHang also extended its international reach, conducting EH216-S flights in Spain and Mexico, bringing its global operations to 19 countries.

Stock Performance and Future Outlook

Despite Q1 struggles, EHang’s stock has delivered an 8.34% year-to-date return, outperforming the MSCI WORLD’s 2.85%. Over three years, EH shares have surged 123.16%, compared to MSCI WORLD’s 38.98%.

EHang reaffirmed its full-year 2025 revenue guidance of RMB900 million, signaling confidence in a stronger second half. Investors will watch closely if the company can ramp up sales, improve operational efficiency, and capitalize on its pioneering certifications in China’s urban air mobility sector.