Cango 2025 Q3 Earnings Revenue Surges 747% but Net Income Falls 45%

Cango (CANG) reported a dramatic revenue surge driven by Bitcoin mining, though earnings declined. The company’s strategic shift to cryptocurrency mining fueled a 747% year-over-year revenue jump to $224.14 million. However, net income dropped 45% to $37.32 million, and EPS fell 66.7% to $0.11, reflecting operational and market challenges. CEO Peng Yu emphasized Bitcoin mining as a foundation for future AI and green energy ambitions.

Revenue

Bitcoin mining dominated Cango’s financial performance, contributing $220.86 million to the $224.64 million total revenue in Q3 2025. This marked a 747.4% increase from $26.45 million in the prior year. International automobile trading added $3.28 million, while other segments generated $491,646. The sequential growth of 60.6% from Q2 2025 underscored improved operational efficiency, including a 46.09 EH/s hashrate in October and a 37.5% sequential rise in Bitcoin production to 1,930.8 BTC.

Earnings/Net Income

Despite robust revenue growth, Cango’s earnings contracted. Net income fell to $37.32 million in Q3 2025, a 45% decline from $67.88 million in Q3 2024, while EPS dropped 66.7% to $0.11. The earnings shortfall highlights the challenges of sustaining profitability amid Bitcoin price volatility and high mining costs.

Post-Earnings Price Action Review

The strategy of buying Cango shares 30 days after the earnings release date, when revenue equals the previous quarter’s, has shown poor performance over three years. With a CAGR of 3.33%, total return of 9.31%, and an excess return of -65.40%, the approach underperformed. A Sharpe ratio of 0.04, combined with 82.05% volatility, underscores the stock’s risk profile. Maximum drawdown of 0.00% and minimal returns suggest limited upside for this strategy.

CEO Commentary

Peng Yu highlighted Cango’s transition to a Bitcoin miner, achieving a 60.6% sequential revenue increase to $225 million. The company mined 1,930.8 BTC at an efficiency rate exceeding 90%, while acquiring a 50-megawatt Georgia facility to optimize costs. The CEO outlined a long-term vision of building a global AI compute network powered by green energy, leveraging Bitcoin mining as a stepping stone.

Guidance

Cango aims to scale its AI compute network through distributed, asset-light models and advance clean energy projects in Oman and Indonesia. The company emphasized financial prudence, retaining Bitcoin reserves for liquidity, and maintaining flexibility to adjust hashrate deployment amid Bitcoin price fluctuations. No explicit revenue or EPS targets were provided, but operational efficiency and high-IRR initiatives remain priorities.

Additional News

1. ADR Program Termination: Cango transitioned to a direct NYSE listing to optimize capital structure and enhance transparency.

2. Clean Energy Projects: The company announced plans for renewable energy projects in Oman and Indonesia, expected to support AI infrastructure within 1–2 years.

3. Strategic Expansion: Cango’s phased roadmap includes GPU computing leasing, regional AI hubs, and a global green-energy-powered AI grid.