EHang (EH) Q3 2025 earnings summary

Executive summary

• Delivered 42 eVTOL units in Q3 2025, including 41 EH216 series and the first VT35, generating RMB 92.5 million in revenue, with a strategic focus on supporting existing customers and building sustainable commercial operations, resulting in a temporary slowdown in deliveries but a growing order backlog.

• Expanded product portfolio with the launch of the VT35 for intercity mobility, mass production of GD4.0 formation drones, and ongoing development of firefighting and logistics variants.

• Advanced international expansion with demonstration flights and regulatory progress in Asia, the Middle East, and Africa, including the world's first regulatory sandbox for eVTOLs in Thailand and new initiatives in Qatar, Japan, Kazakhstan, and Rwanda.

• Benefited from supportive policy developments in China and strengthened partnerships with local governments, research institutions, and industry partners.

• Appointed Ms. Haiyan Li to the board, enhancing international perspective and governance.

Financial highlights

• Q3 2025 revenue was RMB 92.5 million, down 27.8% year-over-year and 37.2% sequentially, mainly due to delayed customer payments and strategic delivery pacing.

• Gross profit was RMB 56.2 million, with a gross margin of 60.8%, slightly lower than previous quarters due to discounts and high unit cost of VT35 trial production.

• Adjusted operating expenses were RMB 89.1 million, up 2.6% year-over-year but down 8% sequentially, reflecting improved operational efficiency.

• Adjusted net loss was RMB 20.3 million, compared to adjusted net income in prior quarters, mainly due to lower revenue.

• Cash and equivalents totaled RMB 1.13 billion as of September 30, 2025.

Outlook and guidance

• Maintains full-year 2025 revenue guidance of approximately RMB 500 million, supported by order backlog and expected Q4 deliveries.

• Expects commercial operations to scale in China and internationally, with sandbox initiatives in Thailand projected to expand to 20 sites and 100 EH216 deliveries by end of 2026.

• Confident in long-term, high-quality growth due to product portfolio and commercial readiness.

• Long-term gross margin expected to remain stable around 60% as product mix diversifies.