EHang Holdings Ltd. (NASDAQ: EH) reported a mixed bag for its second quarter on Tuesday. The company posted an adjusted loss of 12 cents per share, which was actually better than the 15-cent loss analysts had expected. But the revenue side of the ledger told a different story.
Revenue dropped 31.3% year over year to $11.48 million, coming in well below the $16.62 million consensus estimate. During the quarter, EHang sold and delivered 36 electric vertical takeoff and landing aircraft, including 35 EH216 series aircraft and one VT35.
Gross margin narrowed slightly to 61.2% from 61.5% a year earlier. The company reported an adjusted operating loss of $9.1 million and an adjusted net loss of $8.6 million. As of June 30, EHang held $137 million in cash, cash equivalents, short-term investments, and treasury investments.
Now, the bigger story here isn't just the quarterly numbers. It's what's happening with the company's outlook. EHang is shifting its focus from certification to operational readiness, scenario validation, and global expansion. But a late-June aircraft accident in China has thrown a wrench into those plans. The incident prompted greater regulatory caution and delayed some passenger-service approvals. EHang says it expects the disruption to be temporary, but it's clearly having an impact.
The company is working on developing repeatable flight operations in China while expanding overseas. It also plans to diversify revenue through logistics, firefighting, and aerial media, though passenger transportation remains its primary focus. On the operational side, EHang is prioritizing research and development, airworthiness, and revenue-generating operations. It also plans to control capital spending, improve efficiency, and increase its use of artificial intelligence.
EHang highlighted progress under its Global Fast Track Program and regulatory sandbox initiatives in Thailand and Hong Kong. But the regulatory uncertainty in China has forced the company to withdraw its 2026 revenue forecast of 600 million yuan. It plans to issue updated guidance when visibility improves.
Investors didn't seem thrilled. EHang shares were down 2.41% at $5.07 during premarket trading on Tuesday.
