EHang Reports Loss, Shares Sell Off
As of June 11, EHang’s 52‑week range is $6.50–$20.45, with the low set on June 9.
On June 8, EHang announced a US$30 million share repurchase program, followed on June 9 by the release of its first-quarter 2026 financial results showing reduced revenues and wider losses compared to the same period last year.
Let’s get into it.
Share Repurchase Program
On June 8, EHang’s board of directors approved a share repurchase program authorizing the company to buy back up to US$30 million of its American depositary shares or ordinary shares over a 12-month period.
According to the announcement, repurchases may occur from time to time through open market transactions, privately negotiated deals, block trades or other legally permissible means, depending on market conditions and in compliance with U.S. securities laws, including Rule 10b5-1 and Rule 10b-18.
EHang’s founder, chairman and chief executive officer, Huazhi Hu, stated that the program reflects confidence in the company’s long-term growth potential and its ability to deliver shareholder value while advancing pilotless eVTOL solutions.
The company expects to fund the repurchases mainly from its existing cash balance.
Unaudited Financial Results
On June 9, EHang released its unaudited financial results for the first quarter ended March 31, 2026.
Total revenues were RMB25.7 million (US$3.7 million), compared with RMB26.1 million in the first quarter of 2025 and RMB177.6 million in the fourth quarter of 2025.
Deliveries of EH216-series eVTOL aircraft totaled four units, down from 11 units a year earlier and 61 units plus five VT35 aircraft in the prior quarter.
Gross margin edged up slightly to 62.5% from 62.4% a year ago.
Operating loss widened to RMB127.9 million (US$18.5 million) from RMB89.9 million in the first quarter of 2025. Net loss was RMB126.4 million (US$18.3 million), compared with RMB78.4 million a year earlier.
On an adjusted non-GAAP basis, which excludes share-based compensation and certain non-operational items, operating loss was RMB77.1 million (US$11.2 million) and net loss was RMB75.6 million (US$11.0 million).
That compares with adjusted operating loss of RMB42.6 million and adjusted net loss of RMB31.1 million in the first quarter of 2025.
As of March 31, EHang held RMB1.03 billion (US$148.9 million) in cash, cash equivalents, restricted short-term deposits, short-term investments and treasury investments.
On the operational side, EHang and its two air operator certificate holders in China have completed more than 3,000 safe flight missions since receiving their certificates in March 2025, with no accidents or violations.
The company continues preparing for public ticketed commercial operations, including a crew training program awaiting regulatory approval after the Civil Aviation Administration of China issued training requirements for remote pilots last month.
EHang introduced upgrades to the EH216-S platform, including a battery cooling vehicle to shorten turnaround time between flights and an independent cabin air-conditioning system for high-temperature environments.
Meanwhile, the VT35 long-range eVTOL aircraft remains in the certification basis definition phase with the CAAC, with ongoing test flights and avionics design work.
Aerial media solutions contributed approximately 40% of total quarterly revenue, with 22 shows and 1,000 GD 4.0 formation drones delivered.
In Thailand, five vertiport locations have been identified and the first operational route surveyed under the AAM Sandbox framework.
Last month, the EH216-S completed the first human-carrying pilotless eVTOL flights in Mexico and Latin America during the FAMEX Tulum Air Show.
The company maintained its annual revenue guidance of approximately RMB600 million for fiscal year 2026.
Market Reaction
Following the release of first-quarter results on June 9, EHang’s stock experienced a sharp sell-off.
The company’s ADRs closed 23% lower at $6.68 and hit a 52‑week low of $6.50 during the trading session (Prior to June 9, the 52‑week low was $9.04, but the stock broke through that level to set a new low of $6.50 intraday).
EHang reported revenue of 25.7 million yuan (US$3.8 million) for the first quarter, far below the 61.2 million yuan expected by analysts. The stock had already been under pressure in the preceding days after UBS downgraded its rating, bringing its year‑to‑date decline to over 49% as of early June.
Shortly after the earnings release, BofA Securities lowered its price target on EHang to $13.00 from $16.00 while maintaining a Buy rating. The firm noted that deliveries of just four EH216 Series eVTOL aircraft were well below its own estimate of 14 units.
Management linked the disappointing deliveries to seasonal factors and longer procurement timelines as local government customers required additional time for internal budgeting and approval processes.
On a non‑GAAP basis, the first‑quarter net loss of RMB 75 million also came in wider than BofA’s estimate.
UBS had downgraded EHang from Buy to Neutral just days before the earnings report, citing delays in commercializing its eVTOL aircraft and the company’s heavy reliance on government approvals in key Chinese cities.
The firm cut its price target to $11.10 from $21.00 and pushed back its breakeven expectations for the company to 2029‑2030 from 2026‑2027.
As of early June, broader analyst data indicated a consensus rating of Hold with an average 12‑month price target of $12.05, implying approximately 76.7% upside from the stock’s closing price of $6.82 on June 10.
Short interest remains elevated at 14.19% of the float, with a days‑to‑cover ratio of 12.2 days, reflecting persistent bearish sentiment.
On June 8, the company announced a $30 million share repurchase program funded from existing cash, though the move has yet to meaningfully reverse the stock’s downward trajectory.
As of June 11, EHang’s 52‑week trading range stands at $6.50 to $20.45, reflecting the new low set during the June 9 selloff.