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EHang (EH) Reports Q1 2025 Results, Maintains Full-Year Guidance

On May 26, Chinese UAV company EHang Holdings Limited (NASDAQ:EH) released its unaudited results for Q1 2025. The company reported quarterly revenue of RMB26.1 million, reflecting a 57% decrease year-over-year.

The quarterly net loss also widened from RMB63.4 million in Q1 2024 to RMB78.4 million in Q1 2025. Despite the decline in revenue, the gross margins improved 0.5% from 61.9% a year ago to 62.4% in the latest quarter.

A drone taking off from a commercial warehouse, representing the company’s custom manufacturing capabilities.

Conor Yang, Chief Financial Officer of EHang Holdings Limited (NASDAQ:EH) attributed revenue decline to the timing of customer procurement plans and expressed his confidence in a better second quarter driven by a ramp-up in sales and deliveries.

The fiscal first quarter of 2025 was a defining one for the company as in March 2025, its EH216-S operators received the first Air Operator Certificates (AOCs) from the Civil Aviation Administration of China (CAAC). This essentially authorizes the company to operate commercial human-carrying pilotless eVTOL flight services in China. Moreover, its next-gen VT35 is also progressing through the certification process by CAAC and will expand its portfolio beyond the EH216 series in urban air mobility.

EHang Holdings Limited (NASDAQ:EH) also maintained its revenue guidance of achieving RMB900 million for fiscal 2025.

While we acknowledge the potential of EH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EH and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 11 Most Promising New Technology Stocks According to Analysts and 12 Best Growth Stocks to Buy and Hold for the Long Term.

Disclosure: None

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