Q2 FY2026
Filed Aug 25, 2026EHang Reports Second Quarter 2026 Unaudited Financial Results
Revenue increased 203.5% quarter over quarter and gross margin was 61.2%, but revenue decreased 31.3% year over year, operating and net losses widened from both comparison periods, and the Company withdrew its previously issued 2026 revenue guidance without a replacement.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | RMB77.9 million (US$11.5 million) | increase of 203.5% | decrease of 31.3% |
| Costs of revenuesGAAP | RMB30.2 million (US$4.4 million) | – | – |
| Gross profitGAAP | RMB47.7 million (US$7.0 million) | – | – |
| Gross marginGAAP | 61.2% | – | – |
| Sales and marketing expensesGAAP | RMB34.4 million (US$5.1 million) | – | – |
| General and administrative expensesGAAP | RMB84.1 million (US$12.4 million) | – | – |
| Research and development expensesGAAP | RMB63.8 million (US$9.4 million) | – | – |
| Total operating expensesGAAP | RMB182.3 million (US$26.9 million) | – | – |
| Other operating incomeGAAP | RMB2,894 thousand (US$427 thousand) | – | – |
| Operating lossGAAP | RMB131.7 million (US$19.4 million) | – | – |
| Interest incomeGAAP | RMB8,989 thousand (US$1,325 thousand) | – | – |
| Interest expensesGAAP | RMB2,267 thousand (US$334 thousand) | – | – |
| Foreign exchange lossGAAP | RMB348 thousand (US$51 thousand) | – | – |
| Other non-operating income, netGAAP | RMB287 thousand (US$43 thousand) | – | – |
| Total other incomeGAAP | RMB6,661 thousand (US$983 thousand) | – | – |
| Income tax benefitsGAAP | RMB770 thousand (US$113 thousand) | – | – |
| Loss from equity method investmentsGAAP | RMB3,943 thousand (US$581 thousand) | – | – |
| Net lossGAAP | RMB128.3 million (US$18.9 million) | – | – |
| Net loss attributable to ordinary shareholdersGAAP | RMB127,698 thousand (US$18,819 thousand) | – | – |
| Basic and diluted net loss per ordinary shareGAAP | RMB0.84 (US$0.12) | – | – |
| Basic and diluted net loss per ADSGAAP | RMB1.68 (US$0.24) | – | – |
| Adjusted gross profitnon-GAAP | RMB47,812 thousand (US$7,046 thousand) | – | – |
| Adjusted sales and marketing expensesnon-GAAP | RMB20.0 million (US$2.9 million) | – | – |
| Adjusted general and administrative expensesnon-GAAP | RMB45.4 million (US$6.7 million) | – | – |
| Adjusted research and development expensesnon-GAAP | RMB47.3 million (US$7.0 million) | – | – |
| Adjusted operating expensesnon-GAAP | RMB112.7 million (US$16.6 million) | – | – |
| Adjusted operating lossnon-GAAP | RMB62.0 million (US$9.1 million) | – | – |
| Adjusted net lossnon-GAAP | RMB58.5 million (US$8.6 million) | – | – |
| Adjusted net loss attributable to EHang’s ordinary shareholdersnon-GAAP | RMB57.9 million (US$8.5 million) | – | – |
| Adjusted basic and diluted net loss per ordinary sharenon-GAAP | RMB0.38 (US$0.06) | – | – |
| Adjusted basic and diluted net loss per ADSnon-GAAP | RMB0.76 (US$0.12) | – | – |
What drove it
- Total-revenue growth from the first quarter of 2026 was primarily driven by increased sales volume of eVTOL aircraft, including EH216 series and VT35.
- Sales and deliveries included 36 units of eVTOL aircraft, comprising 35 units of the EH216 series and one unit of VT35, compared with 4 units in the first quarter of 2026.
- GD4.0 formation drone deliveries were 520 units, compared with 1,000 units in the first quarter of 2026.
- The quarter-over-quarter increases in cost of revenues and gross profit were primarily due to increased sales volume of eVTOL aircraft.
- EHang continued to expand GD-series formation drone sales and drone show services, including recurring venue-based performances and one-off large-scale events.
- The Company advanced regulatory sandbox programs in Thailand and Hong Kong and launched its Global Fast Track Program.
Concerns
- Total revenues decreased 31.3% from the second quarter of 2025.
- Operating loss was higher than both the second quarter of 2025 and the first quarter of 2026.
- Net loss was higher than both the second quarter of 2025 and the first quarter of 2026.
- The Company cited recent industry safety incidents and a more cautious regulatory approach that increased uncertainty around timing of passenger commercial service approvals in China.
- The Company withdrew its previously issued full-year revenue guidance for 2026 and is not providing replacement guidance at this time.
- General and administrative expenses increased year over year and quarter over quarter, primarily due to higher share-based compensation expenses and increases in current expected credit loss of accounts receivable.
What to watch
- Timing of passenger commercial service approvals in China as regulatory visibility develops.
- Whether the Civil Aviation Authority of Thailand grants a commercial operation certificate within 2026.
- Progress of flight validation in Hong Kong under the Low-Altitude Economy Regulatory Sandbox X Trial Projects.
- Further sales and deliveries of the EH216 series, VT35 and GD-series formation drones.
- EHang’s decision to provide an updated business outlook when greater regulatory visibility is established.
Balance sheet and cash flow
- Cash and cash equivalents, short-term investments and treasury investment balances were RMB929.4 million (US$137.0 million) as of June 30, 2026.
- Cash and cash equivalents were RMB209,198 thousand (US$30,832 thousand) as of June 30, 2026.
- Short-term investments were RMB692,744 thousand (US$102,098 thousand) as of June 30, 2026.
- Treasury investment was RMB27,466 thousand (US$4,048 thousand) as of June 30, 2026.
- Total assets were RMB1,846,617 thousand (US$272,159 thousand) as of June 30, 2026.
- Short-term bank loans were RMB292,523 thousand (US$43,113 thousand) as of June 30, 2026.
- Current portion of long-term bank loans was RMB18,000 thousand (US$2,653 thousand) as of June 30, 2026.
- Long-term bank loans were RMB121,000 thousand (US$17,833 thousand) as of June 30, 2026.
- Total liabilities were RMB941,727 thousand (US$138,794 thousand) as of June 30, 2026.
- Total shareholders’ equity was RMB904,890 thousand (US$133,365 thousand) as of June 30, 2026.
Analysis
EHang reported Q2 2026 total revenues of RMB77.9 million (US$11.5 million), up 203.5% from RMB25.7 million in the first quarter of 2026 but down 31.3% from RMB113.3 million in the second quarter of 2025. The quarter-over-quarter increase was primarily driven by greater eVTOL aircraft sales volume. The Company delivered 36 eVTOL aircraft, including 35 EH216-series units and one VT35 unit, compared with 4 eVTOL aircraft in the first quarter. GD4.0 formation drone deliveries were 520 units, compared with 1,000 units in the first quarter.
Gross profit was RMB47.7 million (US$7.0 million), while gross margin was 61.2%, compared with 61.5% in the second quarter of 2025 and 62.5% in the first quarter of 2026. This indicates that the sharp sequential revenue increase occurred with a gross-margin level broadly consistent with the reported comparison periods. Costs of revenues increased to RMB30.2 million (US$4.4 million) from RMB9.6 million in the first quarter, in line with higher eVTOL sales volume.
Operating expenses reached RMB182.3 million (US$26.9 million), compared with RMB151.7 million in the first quarter and RMB172.5 million in the second quarter of 2025. General and administrative expense was RMB84.1 million (US$12.4 million), and research and development expense was RMB63.8 million (US$9.4 million). The Company attributed expense increases in part to higher share-based compensation expense following new share-based awards at the end of the first quarter of 2026. Operating loss was RMB131.7 million (US$19.4 million), while adjusted operating loss was RMB62.0 million (US$9.1 million). Net loss was RMB128.3 million (US$18.9 million), and adjusted net loss was RMB58.5 million (US$8.6 million).
The balance sheet reported RMB929.4 million (US$137.0 million) of cash and cash equivalents, short-term investments and treasury investment balances as of June 30, 2026. Short-term bank loans were RMB292,523 thousand (US$43,113 thousand), current portion of long-term bank loans was RMB18,000 thousand (US$2,653 thousand), and long-term bank loans were RMB121,000 thousand (US$17,833 thousand). No capital-return actions or cash-flow measures were reported in the release.
The principal change in the outlook is the withdrawal of the previously issued 2026 revenue guidance of RMB600 million, with no replacement guidance. Management linked the decision to recent industry safety incidents and a more cautious domestic regulatory environment affecting the timing of passenger commercial service approvals in China. Operationally, the Company is emphasizing domestic operating readiness, overseas deployment through regulatory sandbox programs and the Global Fast Track Program, and diversification into logistics, firefighting and aerial media while retaining passenger air mobility as its long-term strategic priority.
Management, verbatim
Since the second quarter, EHang has entered an important strategic transition, moving from obtaining certifications toward operational readiness, scenario validation, capability deployment and global expansion. Certification is only the starting point. Scalable commercialization ultimately depends on safe and reliable products, strong operational capabilities, replicable scenario solutions and the ability to deploy them across global markets.
Huazhi Hu, Founder, Chairman and Chief Executive Officer
In light of this evolving environment, we have decided to withdraw our previously issued 2026 revenue guidance of RMB600 million and are not providing a replacement at this time. We will revisit our outlook and provide updated guidance once regulatory visibility improves.
Conor Yang, Chief Financial Officer
Not in the filing
stated, not guessed- Segment revenue and segment-level revenue growth were not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Capital expenditures were not reported.
- Share repurchases were not reported.
- Dividends were not reported.
- An active revenue, gross-margin, operating-expense, tax-rate or other quantitative guidance range was not provided.
- A tax rate was not reported.
- Adjusted gross margin was not reported.
- Prior guidance comparison is unavailable because a previous outlook section was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.