Canaan(CAN -5.91%) reported second quarter 2025 results on Aug. 14, 2025, delivering $100.2 million in revenue (up 40% year over year), $9.3 million in gross profit, and a record $25.3 million in adjusted EBITDA. The company saw rapid growth in its Avalon Home Miner segment, expanded U.S. manufacturing, and issued Q3 2025 revenue guidance of $125 million to $145 million.

Key strategic updates include vertical integration, Bitcoin treasury expansion, and resilience in non-U.S. markets.

Adjusted EBITDA hits record for Canaan

Gross profit rose to $9.3 million from $0.6 million in the prior quarter, while mining revenue surged 202% year over year to $28 million. The company delivered 6.4 million terahash/second of computing power at an average selling price of $11.1 per terahash, the highest in two years.

"Total revenue for Q2 reached $100.2 million, up 40% year over year, breaking the $100 million mark. Gross profit rose to $9.3 million, a significant increase from $0.6 million in Q1. Operating loss narrowed to $27.1 million, EBITDA turned profitable at $1.68 million, and adjusted EBITDA reached $25.3 million, both hitting record highs since we began reporting these metrics in Q1 2024."
-- Nangeng Zhang, CEO

Record profitability demonstrates Canaan’s ability to leverage favorable Bitcoin market conditions and operational improvements, even amid tariff headwinds and supply chain challenges.

Avalon Home Miner segment drives diversification

The Avalon Home Miner line generated $5.7 million in revenue, up 359% quarter over quarter, and achieved a 39% gross margin, outperforming institutional mining machines. The U.S. remains the primary market for home-use miners, and Canaan is investing in consumer-focused product enhancements.

"Our Avalon Home Miner product line delivered strong performance this quarter, generating $5.7 million in revenue, a sharp increase of 359% from $1.3 million in the previous quarter, and maintained a gross margin of 39%, which is higher than that of our institutional mining machines. This segment now accounts for over 5% of our total revenue. What is more remarkable is that this growth was achieved despite the challenges of high summer temperatures and rising electricity costs."
-- Nangeng Zhang, CEO

The rapid expansion and profitability of the home-use segment provide Canaan with a more resilient and diversified revenue base, reducing reliance on institutional customers.

Canaan expands U.S. manufacturing to offset tariffs

Canaan’s U.S. manufacturing facility went live in Q2, enabling partial fulfillment of Cypher’s order and follow-on sales to CleanSpark, despite tariff-induced cost increases of 15% to 25%. In 2024, North America accounted for about 40% of total mining machine sales revenue, while Q2 2025 saw a majority of new business in Asia and other non-U.S. markets.

"On the supply chain side, our manufacturing capability in the U.S. is now up and running, complementing our existing capacity in Malaysia. This allows us to meet bulk delivery needs for U.S. customers with only a modest cost increase. This includes fulfilling part of the order from the listed company Cypher in Q3. Recently, we also secured a follow-on order from CleanSpark for our A15 immersion cooling model, showing strong customer recognition of our products and services."
-- Nangeng Zhang, CEO

Localizing manufacturing and shifting sales to non-U.S. markets highlight Canaan’s vertical integration and adaptability, helping mitigate geopolitical and policy risks.

Looking Ahead

Management projects Q3 2025 revenue of $125 million to $145 million, reflecting cautious optimism amid ongoing policy and market volatility. Canaan plans to further expand its home-use miner segment, continue building out U.S. and Asian manufacturing, and complete its exit from the AI business to reduce operating costs. The A16 series ASICs are expected to launch following full system testing, with multiple cooling options to address diverse customer needs.