Despite a 121.1% revenue increase in 2025Q4, the company continues to struggle with profitability, reporting a negative operating margin of -7.6% and a net loss of $85.0M.
| Sales/Revenue | 529.74M | 269.32M | 211.48M | 4.46B | 4.91B | 447.52M | 1.42T | 2.58B | 1.32B |
| Revenue Growth % | 96.69% | 27.35% | -95.26% | -9.06% | 996.92% | -99.97% | 55141.16% | 94.44% | - |
| Cost of Goods Sold | 488.58M | 353.64M | 452.26M | 2.89B | 2.1B | 409.77M | 1.94B | 2.2B | 703.7M |
| COGS % of Revenue | 92.23% | 131.31% | 213.86% | 64.65% | 42.83% | 91.56% | 0.14% | 85.32% | 53.13% |
| Gross Profit | 41.16M | -84.32M | -240.78M | 1.58B | 2.81B | 37.75M | -516M | 508.12M | 604.38M |
| Gross Margin % | 7.77% | -31.31% | -113.86% | 35.35% | 57.17% | 8.44% | -0.04% | 19.73% | 45.63% |
| Gross Profit Growth % | 148.81% | 64.98% | -115.26% | -43.77% | 7333.76% | 107.32% | -201.55% | -15.93% | - |
| Operating Expenses | 153.39M | 142.81M | 170.1M | 1.28B | 1.01B | 291.29M | 505.38M | 262.2M | 209.26M |
| OpEx % of Revenue | 28.96% | 53.03% | 80.43% | 28.76% | 20.59% | 65.09% | 0.04% | 10.18% | 15.8% |
| Selling, General & Admin | 81.65M | 77.4M | 79.42M | 669.54M | 677.25M | 151.55M | 369.55M | 185.41M | 147.82M |
| SG&A % of Revenue | 15.41% | 28.74% | 37.56% | 15% | 13.8% | 33.86% | 0.03% | 7.2% | 11.16% |
| Research & Development | 63.15M | 61.32M | 64.84M | 564.3M | 331.42M | 139.99M | 168.98M | 180.57M | 101.02M |
| R&D % of Revenue | 11.92% | 22.77% | 30.66% | 12.64% | 6.75% | 31.28% | 0.01% | 7.01% | 7.63% |
| Other Operating Expenses | 8.59M | 4.09M | 25.83M | 49.87M | 2.12M | -243.58K | -33.16M | -103.78M | -39.58M |
| Operating Income | -112.23M | -227.13M | -410.88M | 294.2M | 1.8B | -240.02M | -1.05B | 252.74M | 60.88M |
| Operating Margin % | -21.19% | -84.33% | -194.29% | 6.59% | 36.62% | -53.63% | -0.07% | 9.81% | 4.6% |
| Operating Income Growth % | 50.59% | 44.72% | -239.66% | -83.63% | 848.93% | 77.21% | -516.74% | 315.18% | - |
| EBITDA | -83.81M | -198.71M | -351.24M | 526.74M | 1.81B | -208.79M | -1.02B | 266.4M | 70.07M |
| EBITDA Margin % | -15.82% | -73.78% | -166.09% | 11.8% | 36.9% | -46.66% | -0.07% | 10.34% | 5.29% |
| EBITDA Growth % | 57.82% | 43.43% | -166.68% | -70.92% | 967.61% | 79.51% | -482.55% | 280.18% | - |
| D&A (Non-Cash Add-back) | 28.42M | 28.42M | 59.64M | 232.53M | 13.91M | 31.23M | 34.16M | 13.66M | 9.2M |
| EBIT | -103.64M | -171.75M | -389.75M | 294.2M | 1.8B | -240.02M | -144.99M | 252.74M | 402.42M |
| Net Interest Income | -1.7M | 15K | 956K | 16.25M | 7.21M | 5.11M | -2.31M | -7.1M | 5.69M |
| Interest Income | 266.7K | 536K | 956K | 16.25M | 7.21M | 8.51M | 550.68K | 615.5K | 5.69M |
| Interest Expense | 1.97M | 521K | 0 | 0 | 0 | 3.39M | 2.86M | 7.71M | 0 |
| Other Income/Expense | -95.26M | 54.86M | -54.61M | 311.06M | 219.33M | 36.67M | 18.72M | 63.99M | 540.69K |
| Pretax Income | -207.49M | -172.27M | -465.49M | 605.26M | 2.02B | -203.35M | -1.03B | 190.62M | 61.42M |
| Pretax Margin % | -39.17% | -63.96% | -220.12% | 13.56% | 41.09% | -45.44% | -0.07% | 7.4% | 4.64% |
| Income Tax | 2.78M | 77.48M | -51.34M | 126.42M | 49.33M | 0 | 0 | 80.85M | 24.52M |
| Effective Tax Rate % | -1.34% | -44.98% | 11.03% | 20.89% | 2.45% | 0% | 0% | 42.41% | 39.92% |
| Net Income | -210.27M | -249.75M | -414.15M | 478.84M | 1.96B | -215.02M | -1.03B | 127.21M | 380.53M |
| Net Margin % | -39.69% | -92.73% | -195.84% | 10.73% | 40% | -48.05% | -0.07% | 4.94% | 28.73% |
| Net Income Growth % | 15.81% | 39.7% | -186.49% | -75.61% | 1013.18% | 79.22% | -913.25% | -66.57% | - |
| Net Income (Continuing) | -210.27M | -249.75M | -414.15M | 478.84M | 1.97B | -203.35M | -1.03B | 127.21M | 380.53M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.45 | -0.92 | -2.40 | 2.85 | 11.40 | -1.30 | -1.04 | 0.13 | 0.44 |
| EPS Growth % | 51.09% | 61.67% | -184.21% | -75% | 976.92% | -25% | -900% | -70.45% | - |
| EPS (Basic) | -0.45 | -0.92 | -2.40 | 2.85 | 11.40 | -1.30 | -1.04 | 0.14 | 0.44 |
| Diluted Shares Outstanding | 468.85M | 271.49M | 171.95M | 171.86M | 171.74M | 156.38M | 143.54M | 131.88M | 131.44M |
| Basic Shares Outstanding | 468.82M | 271.49M | 171.92M | 171.92M | 171.71M | 156.38M | 143.53M | 131.86M | 131.45M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 544.03% | - |
Inventory obsolescence and volatility
According to recent financial disclosures, Canaan achieved a 121.1% year-over-year revenue increase in 2025Q4, yet this rapid top-line expansion appears heavily dependent on cyclical hardware demand rather than sustainable, recurring enterprise software or service-based revenue streams that would provide long-term durability for the firm.
The dramatic revenue growth suggests the company is successfully capturing volume during favorable market windows, but the lack of consistent, multi-year CAGR data implies this trajectory is highly sensitive to Bitcoin price volatility. Investors should monitor whether this growth is driven by sustainable market share gains or merely a temporary surge in demand for legacy ASIC hardware.
As reported in quarterly filings, Canaan's gross margin fluctuated from a low of -110.2% in 2023Q4 to a modest 7.4% by 2025Q4, highlighting the extreme sensitivity of the company's cost structure to semiconductor foundry pricing and the rapid obsolescence of its Avalon mining hardware inventory.
The inability to maintain positive gross margins consistently suggests that Canaan lacks significant pricing power against larger, more efficient competitors. This margin profile indicates that the company is often forced to liquidate inventory at unfavorable prices to maintain liquidity, which may continue to suppress profitability during periods of network difficulty increases.
Based on the provided income statement data, Canaan's operating income remains deeply negative at -$14.8M in 2025Q4, demonstrating that the company has yet to achieve the necessary operating leverage to cover its fixed R&D and administrative overhead despite significant increases in quarterly top-line revenue.
The persistent operating losses suggest that the current business model is not yet scalable, as SG&A and R&D costs continue to consume a disproportionate share of gross profit. Without a fundamental shift toward higher-margin revenue, the company may remain trapped in a cycle of high fixed-cost burn that necessitates frequent external financing.
As indicated by the financial statements, Canaan reported a net loss of $85.0M in 2025Q4, a figure that appears heavily impacted by non-operating items and potential inventory write-downs that frequently obscure the underlying operational performance of the core ASIC manufacturing business for outside observers.
The wide variance in net income, ranging from -$139.0M to -$11.1M over the last ten quarters, suggests that earnings quality is low and highly susceptible to accounting adjustments related to crypto-asset holdings. Investors should be wary of relying on bottom-line figures as a proxy for operational health, given the significant influence of non-cash charges.
Based on an analysis of the competitive landscape, Canaan faces a critical risk where the rapid pace of ASIC innovation renders its current inventory obsolete, potentially creating a liquidity trap that prevents the funding of future R&D cycles required to remain relevant against larger industry rivals.
Short-sellers may focus on the company's inability to generate positive cash flow despite high revenue growth, viewing the AI chip pivot as a defensive hedge rather than a viable growth engine. This suggests that the company's optionality is limited, and the risk of permanent capital impairment remains high if foundry access is constrained.
Quick answers to the most common questions about buying CAN stock.
For fiscal year 2025, Canaan Inc. (CAN) reported total revenue of $529.7M. This represents a 60.0% decline compared to $1.32B in 2017.
Canaan Inc. (CAN) reported a net loss of $210.3M for the fiscal year ending 2025.
Canaan Inc. (CAN) reported an operating income of $-112.2M, resulting in an operating profit margin of -21.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Canaan Inc. (CAN) generated $41.2M in gross profit for the year, representing a gross profit margin of 7.8%. This demonstrates the company's core pricing power and production efficiency.