Canaan Inc. reported Q3 2025 results with total revenue of $150.5 million, up 104.4% year‑over‑year, beating consensus estimates of $126.17 million. The company posted a gross profit of $16.6 million, a turnaround from a $21.5 million loss in Q3 2024, and adjusted EBITDA of $2.8 million, the first positive figure in the year. However, earnings per share fell to $-0.36, missing the consensus estimate of $-0.06 and underscoring ongoing profitability challenges.
Revenue growth was driven by a 121% increase in product sales to $118.6 million, fueled by strong demand for mining equipment in North America and Asia. Mining revenue rose 241% to $30.6 million, reflecting a 267‑bitcoin haul and a Bitcoin treasury that reached 1,610 BTC. The company’s installed mining capacity expanded to 9.3 EH/s, up from 8.15 EH/s at the end of June, supporting the higher mining revenue.
Gross profit expansion and positive adjusted EBITDA were largely the result of disciplined cost management and a favorable Bitcoin price environment. Operating costs were contained despite higher raw‑material and labor expenses, and the company leveraged its scale to secure better pricing on components. The shift toward higher‑margin Avalon Home Series units also contributed to the improved gross margin of 11%.
The EPS miss can be attributed to a combination of higher operating expenses, including increased R&D spend and supply‑chain costs, and a one‑time charge related to restructuring of the AI semiconductor unit. These expenses offset the revenue gains and prevented the company from achieving a positive EPS, a trend that analysts noted as a key concern.
Management guided for Q4 revenue of $175–$205 million, a range that remains above the high end of the company’s prior guidance of $125–$145 million. CEO Nangeng Zhang said the company remains confident in its ability to capture market share in both product sales and self‑mining operations, while CFO James Jin Cheng highlighted North American customers’ contribution of 31% to total revenue, underscoring geographic diversification.
Investors responded cautiously to the results, weighing the strong revenue beat and operational improvements against the EPS miss and ongoing cost pressures. The market reaction reflected a focus on the company’s ability to translate top‑line growth into sustainable profitability in a volatile Bitcoin market.
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