Intchains Group (ICG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $18.2 million, up 78.5% quarter-over-quarter and 445.5% year-over-year, driven by Aleo series miners which contributed 74.8% of total revenue, marking the highest quarterly revenue since 2023.

• Operating income turned positive at $5.1 million, recovering from a loss in Q4 2024 and prior-year period, supported by reduced R&D expenses.

• Net loss was $4.7 million, mainly due to a $9.8 million non-cash revaluation loss on ETH holdings after a 46% price drop.

• ETH holdings increased by 23.2% quarter-over-quarter to 7,023 units as of March 31, 2025, despite price declines.

• Launched Aleo series and Goldshell Byte mining machines, driving strong market demand and segment growth.

Financial highlights

• Revenue: $18.2 million in Q1 2025 (+78.5% QoQ, +445.5% YoY); gross profit: $10.4 million (+287.9% QoQ); gross margin: 56.9%, up from 26.2% in Q4 2024.

• Cost of revenue rose to $7.9 million, growing slower than revenue due to high-margin Aleo miners.

• Operating income: $5.1 million (positive), compared to a loss in Q4 2024 and prior-year period.

• Cash, cash equivalents, and short-term investments totaled $74.9 million as of March 31, 2025.

• R&D expenses decreased to $3.6 million from $6.3 million sequentially.

Outlook and guidance

• Projected H1 2025 revenue of RMB 180–200 million, considering tariffs and ongoing crypto market volatility.

• Management remains committed to long-term ETH accumulation and sees positive signals from Ethereum upgrades and regulatory support.

• Expects future revenue mix to include Aleo miners, Dogecoin miners, and new innovative miners, with precise percentages dependent on market conditions.

• Ongoing development of Web3 applications, including the Goldshell Wallet launched in February 2025.