Canaan Inc. (NASDAQ: CAN) reported third‑quarter 2025 revenue of $150.5 million, a 104.4% year‑over‑year increase that set a new company record. The jump was driven by a 241.0% rise in mining revenue to $30.6 million, powered by the mining of 267 bitcoins during the quarter, and a 55.6% sequential rise in product sales to $118.6 million, reflecting strong demand for its Avalon mining hardware and the expanding Avalon Home series.
Despite the revenue surge, the company posted a non‑GAAP loss of $0.05 per share, slightly better than the consensus estimate of a $0.06 loss. The loss was driven by higher operating expenses and a one‑time restructuring charge, offsetting the revenue growth. EPS estimates varied across analysts, but the consensus was a loss of $0.06; Canaan’s $0.05 loss represented a beat of $0.01 or 16.7% relative to expectations. The company’s gross profit margin improved to 11% from a gross loss in Q3 2024, driven by a shift toward higher‑margin product mix and improved supply‑chain resilience.
Canaan guided Q4 2025 revenue to $175 million–$205 million, up from the prior guidance of $125 million–$145 million, signaling confidence in continued demand for its mining and consumer products. Management highlighted that Bitcoin mining remains the most profitable short‑term strategy, citing the CEO’s statement that “deploying more Bitcoin miners is still the best way to allocate energy today and generate revenues.” The CFO noted a strong recovery in the North American market and substantial new orders from U.S. customers, underscoring the company’s ability to capture market share in a competitive sector.
The market reacted strongly to the revenue beat, with analysts praising the company’s ability to exceed expectations amid a challenging macro environment. The revenue outperformance was attributed to robust demand in Asia and a strategic rebound in North America for computing power sales. Analysts maintained a “Buy” stance, citing the company’s improved gross margin and guidance for higher Q4 revenue as positive indicators for near‑term growth.
Overall, Canaan’s Q3 results illustrate a company that is successfully scaling its core mining operations while navigating the transition to consumer‑grade products. The revenue growth and margin improvement suggest operational efficiency gains, but the continued net loss and EPS miss highlight the need for sustained profitability improvements and cost discipline as the company expands its self‑mining footprint and explores AI‑ready facilities.
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