EHang Holdings reported a second-quarter revenue miss of 41% as the Chinese electric vertical takeoff and landing (eVTOL) aircraft developer pushed forward with global expansion despite regulatory headwinds.
The company posted revenue of RMB 77.9 million for Q2 2026, up 203.5% sequentially from RMB 25.7 million in the prior quarter but falling short of analyst expectations of RMB 132.96 million. Year-over-year revenue declined 31.3%. Gross margin edged down to 61.2% from 62.5% in Q1 2026, while adjusted net loss narrowed to RMB 58.5 million from RMB 75.6 million.
EHang delivered 36 eVTOL aircraft in the quarter, including 35 EH216-S units and one VT-35 model, alongside 520 GD4.0 formation drones. The company’s GAAP net loss widened to RMB 128.3 million. Operating expenses rose to RMB 182.3 million, widening the operating loss to RMB 131.7 million.
Management withdrew full-year 2026 revenue guidance of RMB 600 million, citing uncertainty over domestic commercial approvals following intensified regulatory scrutiny after a June 2026 accident involving a piloted aircraft from another manufacturer. Cash and short-term investments totaled RMB 929.4 million as of June 30, down from RMB 1.1 billion at year-end 2025.
The company highlighted operational improvements, including a battery cooling vehicle that increased daily aircraft utilization to 12–15 flights per aircraft and independent air-conditioning systems that reduced cabin temperature by 10–15°C. EHang has conducted flight demonstrations in 23 countries and accumulated nearly 100,000 safe flights.
International expansion efforts include Sri Lanka’s participation in the Global Fast Track Program, targeting sandbox commercialization within four months. Thailand aims for a commercial operations certificate by year-end 2026, with an experimental flight permit expected in Q3 2026. Hong Kong has also initiated test flights in its low-altitude economy regulatory sandbox.
EHang’s shares fell 4.81% to $4.95, near a 52-week low of $4.87, and have declined more than 70% over the past year. The company remains focused on scaling pilotless flight operations globally, though management acknowledged that regulatory and ecosystem maturation will take time.
Founder and CEO Hu Huazhi emphasized the need for end-to-end operational capabilities and standardized solutions to sustain commercial scaling, while CTO Feng Chuai noted that stricter safety regulations ultimately benefit the company’s long-term positioning.
