EHang Holdings Limited (NASDAQ:EH) Reports Mixed Q1 2025 Results Amid Urban Air Mobility Expansion

EHang Holdings Limited (NASDAQ:EH), a leader in the Urban Air Mobility (UAM) sector, reported a Q1 2025 loss per share of -$0.07, outperforming market expectations that anticipated a larger loss. The better-than-expected earnings result demonstrates improved operational efficiency despite broader revenue headwinds.

The company reported revenue of $3.6 million for the quarter ended March 31, 2025 — a significant decline from both the previous quarter and the same period last year. This drop reflects a slowdown in sales of its EH216 series aircraft and seasonal fluctuations in order volume.

Despite ongoing net losses, EHang maintains a gross margin of 62.4%, up from 60.7% in Q4 2024, indicating strong pricing power and operational discipline. The company's adjusted net loss (non-GAAP) came in at $4.3 million, compared to an adjusted net income of $5.1 million in the previous quarter, Q4 2024.

EHang continues to exhibit a healthy balance sheet, with $153.6 million in cash and cash equivalents as of March 31, 2025. Its debt-to-equity ratio remains low, reflecting a conservative approach to financial leverage. The company's current ratio of 2.89 underscores its ability to meet short-term obligations with available assets.

EHang's operating loss widened to $12.4 million, and the net loss reached $10.8 million, up from a net loss of $9.1 million in Q1 2024. Despite these figures, the company reaffirmed its full-year 2025 revenue guidance of RMB 900 million (approximately $124 million), signaling strong expectations for recovery and growth in the latter half of the year.

On May 26, 2025, EHang's management held an earnings conference call to review these results and discuss the company's strategic focus areas, including scaling operations, progressing with type certification for its VT35 aircraft, and expanding commercial operations in China following recent Air Operator Certificates (AOCs) granted to EH216-S operators.

EHang's pioneering work in autonomous aerial vehicles positions it as a front-runner in the UAM market, though it continues to face competition from both domestic and international players in this rapidly evolving sector.