SINGAPORE, Nov. 18, 2025 /PRNewswire/ -- Canaan Inc. (NASDAQ:CAN) ("Canaan" or the "Company"), an innovator in crypto mining, today announced its unaudited financial results for the three months ended September 30, 2025.
Third Quarter 2025 Operating and Financial Highlights
Total revenues surged to US$150.5 million, exceeding the high-end of the Company's previous guidance range, representing 104.4% year-over-year and 50.2% quarter-over-quarter growth, underpinned by strong momentum across global sales and bitcoin mining operations.
Total computing power sold exceeded 10.0 exahashes per second (EH/s), setting a new quarterly record and representing 37.7% year-over-year growth and 55.6% quarter-over-quarter growth, driven by robust customer demand in Asia and a strategic rebound in North America.
Mining revenue hit a record of US$30.6 million, representing 241.0% year-over-year growth, as the Company mined 267 bitcoins at an average revenue of US$114,485 per bitcoin, despite elevated network difficulty.
Gross profit surged to US$16.6 million, compared to a gross loss of US$21.5 million in the same period of last year, reflecting product mix optimization and supply chain resilience.
Cryptocurrency treasury expanded to 1,581.9 BTC and 2,830 ETH by the end of the third quarter in 2025 and further climbed to 1,610 BTC and 3,950 ETH by October-end 2025, reaching new historical highs.
Note 1: Defined as the total number of bitcoins and other cryptocurrencies owned by the Company on its Balance Sheet, including any bitcoins receivable, excluding bitcoins that the Company has received as customer deposits.
Nangeng Zhang, chairman, and chief executive officer of Canaan, commented, "In the third quarter of 2025, we delivered a strong performance amid complex macro conditions and ongoing geopolitical friction. Our total revenue reached US$150.5 million, exceeding the high end of our guidance range, driven by record-breaking momentum in both mining machine sales and self-operated mining. We sold over 10 EH/s of computing power, marking a 55.6% sequential increase and setting a new quarterly high. Our Avalon Home product line also gained significant traction among retail and distributor channels, contributing more than 8% of total revenue for the quarter. Meanwhile, our installed mining fleet expanded to 9.3 EH/s by the end of the third quarter, supported by competitive power costs and rising efficiency, reinforcing our integrated strategy in mining operations."
"With the successful ramp-up of our U.S. assembly partner, we have secured new orders from leading U.S.-based miners and advanced our own mining deployment in North America. This progress reflects the strength of our global supply chain and growing client trust. We also introduced our next-generation air-cooled A16XP model, offering 300 TH/s and energy efficiency of 12.8 J/TH, underscoring our leadership in high-performance ASIC design. Beyond these milestones, we have recently launched pilot initiatives that explore the synergy between bitcoin mining, energy management, and broader computing applications, such as grid balancing, stranded natural gas utilization, and residential heat integration. These projects point to an exciting new direction where mining becomes a catalyst for value creation across the energy and AI infrastructure landscape."
Jin "James" Cheng, chief financial officer of Canaan, commented, "We delivered another solid quarter with revenue, profitability, and cash flow all showing meaningful improvement, a result of focused execution and disciplined financial management. Product sales revenue reached US$118.6 million for the quarter, supported by strong growth in computing power sold and higher average selling prices. Our team also secured a substantial volume of new orders, especially from a top-tier U.S. mining client, laying a strong foundation for the remainder of 2025. In the third quarter, our mining business achieved a quarterly record, with US$30.6 million in revenue and 267 bitcoins mined, despite the ongoing increase in mining difficulty. These operations further strengthened our growing bitcoin holdings. Despite the added cost pressure from evolving tariff policies, we expanded our gross profit to US$16.6 million and lifted our gross margin to 11%, reflecting our commitment to operational efficiency. The third quarter's bottom line included a US$9.5 million non-cash impact from the change in fair value of preferred shares, which we excluded from our Non-GAAP results to provide a clearer view of our underlying operational performance. With all preferred shares now fully converted, we expect to include a final impact from this item in the fourth quarter."
"Driven by our robust sales cash inflow, our cash position surged to US$119.2 million by the end of the third quarter, strengthening our liquidity. Our balance sheet was also further bolstered by record-high crypto treasuries of approximately 1,582 BTC and 2,830 ETH, which also contributed an aggregate US$5.7 million of unrealized fair value gain on our digital asset holdings as these cryptocurrency prices increased by the end of the third quarter. As part of our enhanced treasury management initiative, we capitalized on recent price volatility to strategically acquire 100 additional bitcoins from the open market. In early November, we are also pleased to have received US$72 million in strategic investment from influential institutional investors. Looking ahead, we will continue to uphold prudent financial management while remaining flexible and responsive to market dynamics. Our reinforced liquidity, combined with a growing treasury and operational resilience, positions us well to pursue great opportunities in the evolving digital mining economy."
Third Quarter 2025 Financial Results
Total revenues in the third quarter of 2025 were US$150.5 million, compared to US$100.2 million in the second quarter of 2025 and US$73.6 million in the same period of 2024. Total revenues consisted of US$118.6 million in products revenue, US$30.6 million in mining revenue and US$1.3 million in other revenues.
Products revenue in the third quarter of 2025 was US$118.6 million, compared to US$71.9 million in the second quarter of 2025 and US$64.6 million in the same period of 2024. The sequential and year-over-year increases were mainly driven by the increased computing power sold and increased average selling price.
Mining revenue in the third quarter of 2025 was US$30.6 million, compared to US$28.1 million in the second quarter of 2025 and US$9.0 million in the same period of 2024. The sequential and year-over-year increases were mainly attributable to an increase in energized mining computing power and an increase in the bitcoin price.
Cost of revenues in the third quarter of 2025 was US$133.9 million, compared to US$90.9 million in the second quarter of 2025 and US$95.1 million in the same period of 2024.
Products costs in the third quarter of 2025 were US$98.7 million, compared to US$58.8 million in the second quarter of 2025 and US$81.6 million in the same period of 2024. The sequential increase was mainly due to the increased sales volume. The year-over-year increase was mainly attributable to increased sales volume, partially offset by the decreased inventory write-down. The inventory write-down for this quarter was US$1.3 million, compared to the inventory write-down of US$1.0 million for the second quarter of 2025 and the inventory write-down and prepayment write-down of US$22.9 million for the same period of 2024. Products costs consist of direct production costs of mining machines, and indirect costs related to production, as well as inventory write-down.
Mining costs in the third quarter of 2025 were US$34.1 million, compared to US$32.0 million in the second quarter of 2025 and US$13.5 million in the same period of 2024. Mining costs herein consist of direct production costs of mining operations, including electricity and hosting, as well as depreciation of deployed mining machines. The sequential and year-over-year increases were mainly due to the increase in deployed computing power for the Company's mining operations. The depreciation in this quarter for deployed mining machines was US$11.8 million, compared to US$10.5 million in the second quarter of 2025 and US$6.5 million in the same period of 2024.
Gross profit in the third quarter of 2025 was US$16.6 million, compared to a gross profit of US$9.3 million in the second quarter of 2025 and a gross loss of US$21.5 million in the same period of 2024.
Total operating expenses in the third quarter of 2025 were US$40.5 million, compared to US$36.4 million in the second quarter of 2025 and US$35.3 million in the same period of 2024.
Research and development expenses in the third quarter of 2025 were US$16.3 million, compared to US$16.4 million in the second quarter of 2025 and US$14.8 million in the same period of 2024. Research and development expenses remained relatively stable sequentially. The year-over-year increase was mainly due to an increase of US$1.7 million in staff costs. Research and development expenses in the third quarter of 2025 also included share-based compensation expenses of US$1.0 million.
Sales and marketing expenses in the third quarter of 2025 were US$5.1 million, compared to US$4.5 million in the second quarter of 2025 and US$1.7 million in the same period of 2024. The sequential and year-over-year increase was mainly due to an increase in staff costs. Sales and marketing expenses in the third quarter of 2025 also included share-based compensation expenses of US$67 thousand.
General and administrative expenses in the third quarter of 2025 were US$17.9 million, compared to US$16.4 million in the second quarter of 2025 and US$13.2 million in the same period of 2024. The sequential increase was mainly due to an increase of US$2.3 million in staff costs. The year-over-year increase was mainly due to an increase of US$3.6 million in staff costs and an increase of US$1.3 million in professional service fees. General and administrative expenses in the third quarter of 2025 also included share-based compensation expenses of US$4.0 million.
Impairment on property, equipment and software in the third quarter of 2025 was US$1.2 million, compared to nil in the second quarter of 2025 and US$6.5 million in the same period of 2024.
Loss from operations in the third quarter of 2025 was US$23.9 million, compared to US$27.1 million in the second quarter of 2025 and US$56.8 million in the same period of 2024.
Change in fair value of cryptocurrency and Change in fair value of financial derivative in the third quarter of 2025 were a gain of US$1.7 million and a gain of US$3.9 million, respectively, compared to a gain of US$10.6 million and a gain of US$23.4 million in the second quarter of 2025, respectively. The gains were mainly due to the increased bitcoin price on September 30, 2025, compared to the bitcoin price on June 30, 2025.
Change in fair value of financial instruments other than derivatives in the third quarter of 2025 was a loss of US$9.5 million, compared to a loss of US$17.5 million in the second quarter of 2025 and a gain of US$1.2 million in the same period of 2024, which was mainly due to the changes in fair value of Series A and Series A-1 convertible preferred shares.
Excess of fair value of Convertible Preferred Shares in the third quarter of 2025 was nil, compared to nil in the second quarter of 2025 and US$28.3 million in the same period of 2024.
Foreign exchange losses, net in the third quarter of 2025 were US$1.8 million, compared to a gain of US$0.3 million in the second quarter of 2025 and a loss of US$1.0 million in the same period of 2024, respectively.
Loss before income tax expense in the third quarter of 2025 was US$27.2 million, compared to US$10.3 million in the second quarter of 2025 and US$82.3 million in the same period of 2024.
Net loss in the third quarter of 2025 was US$27.7 million, compared to US$11.1 million in the second quarter of 2025 and US$75.6 million in the same period of 2024.
Non-GAAP adjusted EBITDA in the third quarter of 2025 was a gain of US$2.8 million, as compared to a gain of US$25.3 million in the second quarter of 2025 and a loss of US$34.1 million in the same period of 2024. For further information, please refer to "Use of Non-GAAP Financial Measures" in this press release.
Foreign currency translation adjustment, net of nil tax, in the third quarter of 2025 was a loss of US$0.6 million, compared to a gain of US$1.4 million in the second quarter of 2025 and a gain of US$5.1 million in the same period of 2024, respectively.
Basic and diluted net loss per American depositary share ("ADS") in the third quarter of 2025 were US$0.05. In comparison, basic and diluted net loss per ADS in the second quarter of 2025 were US$0.03, while basic and diluted net loss per ADS in the same period of 2024 were US$0.27. Each ADS represents 15 of the Company's Class A ordinary shares.
As of September 30, 2025, the Company held Cryptocurrency assets with a fair value of US$84.6 million and Cryptocurrency receivable with an aggregate fair value of US$113.1 million, respectively. Cryptocurrency assets primarily consist of 581.9 bitcoins owned by the Company and 63.4 bitcoins received as customer deposits. Cryptocurrency receivable consists of 900 bitcoins pledged for secured term loans and 100 bitcoins transferred to a fixed-term product. The classification of cryptocurrency receivable as current assets is consistent with the corresponding secured term loans. As of September 30, 2025, the Company held a total of 1,645.2 bitcoins.
As of September 30, 2025, the Company had cash of US$119.2 million, compared to US$96.5 million as of December 31, 2024.
Accounts receivable, net as of September 30, 2025 were US$7.0 million, compared to US$1.5 million as of December 31, 2024. Accounts ...
