CFO James Jin Cheng said fourth-quarter revenue was heavily concentrated in North America, with revenue from North American customers totaling $125 million , representing over 75% of total product sales. He said the results reflected continued recognition from “top-tier institutional miners” in the region.Zhang attributed the quarter’s performance to a “major breakthrough” in mining machine sales, including a large-scale order of more than 50,000 A15 Pro models from a leading mining company. The company rep ...

Canaan (NasdaqGM:CAN) Q4 2025 Earnings call February 10, 2026 08:00 AM ET Company ParticipantsBen Summers - Equity Research AssociateGwyn Lauber - Director of Investor RelationsJames Jin Cheng - CFONangeng Zhang - Chairman and CEOConference Call ParticipantsKevin Cassidy - Managing Director and Senior Research AnalystKevin Dede - Managing Director and Senior Technology AnalystMark Palmer - Managing Director and Senior Equity Research AnalystWilliam Chan - AnalystOperatorLadies and gentlemen, thank you for s ...

Canaan (NasdaqGM:CAN) Q4 2025 Earnings call February 10, 2026 08:00 AM ET Company ParticipantsBen Summers - Equity Research AssociateGwyn Lauber - Director of Investor RelationsJames Jin Cheng - CFONangeng Zhang - Chairman and CEOConference Call ParticipantsKevin Cassidy - Managing Director and Senior Research AnalystKevin Dede - Managing Director and Senior Technology AnalystMark Palmer - Managing Director and Senior Equity Research AnalystWilliam Chan - AnalystOperatorLadies and gentlemen, thank you for s ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 reached $196 million, up 30.4% quarter-over-quarter and 121.1% year-over-year, marking the highest quarterly revenue in the past three years [6][29] - Full-year revenue for 2025 was $530 million, surging 96.7% year-over-year, nearly doubling 2024 results [13][29] - Gross margin in Q4 was $14.6 million, down from $16.6 million in Q3, primarily due to large-scale orders and declining Bitcoin prices [34] Business Line Data and Key Metrics Changes - Product revenue from mining machines was $165 million in Q4, up 39.1% quarter-over-quarter and 124.5% year-over-year, driven by strong sales volume [9][29] - The total computing power sold reached 14.6 exahash per second, up 45.7% quarter-over-quarter and 60.9% year-over-year [8][29] - The Avalon Home series contributed approximately $25 million in revenue for 2025, indicating strong growth in this segment [30] Market Data and Key Metrics Changes - Revenue from North American customers in Q4 was $125 million, accounting for over 75% of total product sales, highlighting the importance of this market [30] - The total installed hash rate increased 8.6% quarter-over-quarter to 9.91 exahash per second by the end of Q4 [10] Company Strategy and Development Direction - The company aims to integrate computing and energy infrastructure, focusing on the co-location of Bitcoin mining and AI high-performance computing (HPC) [17][19] - In 2026, the strategy will prioritize securing reliable power resources and developing a systematic approach to power capacity [18][20] - The company plans to enhance its consumer and small to medium-sized business segments by improving product quality and building distribution channels [21][22] Management's Comments on Operating Environment and Future Outlook - The management expressed a cautious outlook for the first quarter of 2026, anticipating revenue between $60 million and $70 million due to market volatility [26][27] - The company remains focused on maintaining cash flow discipline and preparing for potential demand recovery later in the year [25][36] Other Important Information - The company holds 1,750 Bitcoins and 3,951 Ethereums, valued at approximately $166 million at year-end prices, providing liquidity and potential upside [10][30] - The company recorded a $44 million non-cash fair value loss due to the decline in Bitcoin prices, impacting adjusted EBITDA [35] Q&A Session Summary Question: Update on A16 mass production timeline - The A16 mass production is expected to start after the Lunar New Year holiday, with volume ramp-up anticipated by the end of Q1 [41][42] Question: Margin profile differences between Home series and A15 - The Home series maintains good profitability, while industrial machines face pressure due to market conditions; the company will continue to prioritize the Home series for profit generation [43][44] Question: Size of the total addressable market for energy efficiency initiatives - The size of individual projects typically ranges from a few megawatts to several tens of megawatts, with a cautious approach to market size estimates [50][51] Question: Long-term manufacturing footprint and U.S. manufacturing adjustments - The company has built a resilient manufacturing footprint across multiple regions, including the U.S., to adapt to changing compliance and market conditions [56][57] Question: Breakeven price for Bitcoin mining - The all-in payback level for Bitcoin mining is estimated to be around $100,000-$110,000, while the shutdown price for the A15 Pro version is approximately $37,000 [60][61] Question: Foundry availability for A16 and cost differences - The foundry capacity is tight, but the company has secured critical resources; the unit cost for A16 is expected to face upward pressure compared to A15 [66][67] Question: Self-mining targets for 2026 - The company does not have a fixed self-mining target for 2026 but aims to prioritize energy infrastructure to scale operations when market conditions allow [87][88]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached $150.5 million, up 50.2% quarter-over-quarter and 104% year-over-year, exceeding guidance [6][18] - Gross profit increased to $16.6 million, a 78.6% rise from Q2, marking a significant turnaround from a gross loss of $21.5 million in the same period last year [21][22] - Cash balance at the end of the quarter rose to $119 million, representing an 80.9% increase [6] Business Line Data and Key Metrics Changes - Mining machine sales delivered a record high of 10 exahash per second, up 55.6% sequentially and 37.7% year-over-year [7] - Average selling price for mining machines increased by 33.8% year-over-year to $11.8 per terahash [18] - Avalon Home series generated $12.2 million in revenue, a 115% quarter-over-quarter increase, contributing 10.3% of total product revenue [20][22] Market Data and Key Metrics Changes - North American customers contributed 31% of total revenue in Q3, indicating strong demand recovery in the region [19] - The global hash rate increased from 846 exahash per second at the end of Q2 to 1,041 exahash per second at the end of Q3 [5] Company Strategy and Development Direction - The company is focusing on expanding its consumer product line and energy operations while streamlining existing R&D and administrative costs [29] - New projects include partnerships for deploying mining machines at renewable energy facilities, indicating a shift towards sustainable energy solutions [10][11] - The company aims to integrate high-density Bitcoin mining with energy-intensive AI and HPC workloads [11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q4, expecting total revenue to be in the range of $175 million to $205 million, influenced by macroeconomic conditions and U.S. tariff policies [15][29] - The management noted that while the macro environment remains complex, the demand for mining equipment in North America has shown resilience [56] Other Important Information - The company has secured a strategic investment of $72 million from top-tier institutional investors to fund data center acquisitions and expand Bitcoin mining machine production capacity [27] - The total cryptocurrency treasury reached approximately 1,582 Bitcoin and 2,803 Ethereum, with an estimated market value of around $189 million at the end of Q3 [22] Q&A Session Summary Question: Delivery timing and gross margin on the 50,000 A15 Pro units order - Management expects to complete all deliveries by the end of 2025, with positive gross margins anticipated [32][34] Question: Margins on home mining sales versus industrial mining equipment - Home mining series achieved a gross margin of 33%, significantly higher than industrial miners [35] Question: Shipping timeline and expectations for the new A16 models - A16 series launched at the end of October, with sample shipments expected by the end of November and volume shipments in Q1 2026 [41] Question: Market impact of public Bitcoin miners winding down operations - Management believes the global hash rate will not slow down in the near term, despite some miners facing balance sheet pressures [44] Question: Inventory levels for the A15 series and guidance for Q2 2025 - Inventory at the end of Q3 is approximately $200 million, with expectations for lower levels in Q1 2025 due to market uncertainties [62] Question: Self-mining objectives and power tariff rates in Ethiopia - The company plans to slow the pace of adding self-mining hash rate while focusing on delivering large orders and developing power resources [70][73] Question: Details on the $56 million wafer purchase and $90 million in processing - The $56 million reflects prepayments for wafers, while the $90 million includes various supply chain expenses [80][86]