EHang Holdings Limited (EH) Cash Flow Statement

The reported OCF/NI ratio of 4.94 in 2025Q4 is positive only because both figures are negative, so it does not indicate cash generation; the ratio is analytically meaningless here. The more informative read is that operating cash outflow exceeded accounting losses by roughly five times, which may suggest working capital absorption or cash-settled costs not captured in net income. This warrants further investigation into the components of the operating cash outflow.

Much of the cash flow series for 2023Q4 through 2025Q3 and 2026Q2 is reported as zero or unavailable, so no reliable FCF trajectory can be established across the ten-quarter window. Based on reported figures, the only populated quarter shows free cash outflow more than double the reported revenue-based margin would suggest, which may point to a capital-intensive buildout phase. Data gaps prevent any conclusion about whether this burn is improving or deteriorating.

Capital intensity at this magnitude is unusual for a company whose gross margin has been relatively stable, implying the spending may be directed at capacity expansion rather than maintenance. Stock-based compensation of $185.1M in the same quarter also appears material and may be affecting reported earnings quality. Investors should monitor whether capex intensity moderates as revenue scales.

The absence of positive operating cash flow in any populated quarter suggests the cumulative gap between accounting losses and cash reality is unfavorable in the same direction, though missing data limits precision. Based on reported figures, stock-based compensation has been a large non-cash add-back, which may cause net income to understate operating cash burn in some periods and overstate it in others. Further data would be needed to quantify the cumulative divergence reliably.