Cango (NYSE:CANG) Losses Deepen 66.5% Annually, Reinforcing Bearish Profitability Concerns

Cango (CANG) has just posted its Q3 2025 results, reporting total revenue of $224.6 million and net income of $37.3 million. Looking back, the company saw total revenue grow from 8.9 million CNY in Q1 2024 to 145.2 million CNY in Q1 2025, with net income shifting from 12.5 million CNY in Q1 2024 to a net loss of 28.6 million CNY in Q1 2025. With margins under pressure and profitability still a challenge, investors will be closely watching for signs of sustained top-line expansion in the face of persistent losses.

See our full analysis for Cango.

Next, we will dig into how these results compare with the prevailing narratives, highlighting where the consensus holds up and where new trends are emerging.

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Five-Year Losses Accelerate to 66.5% Annually

• Cango's net losses have grown at an average rate of 66.5% per year over the past five years, with the trailing twelve-month loss at $127.99 million.
• Bears frequently highlight these accelerating multi-year losses, arguing that consistent unprofitability, shown by a negative net profit margin and growing annual deficits, sharply undercuts the company's path to earnings recovery.
  • The forecast for at least another three years of unprofitability points directly to this persistent risk and distinguishes Cango from its profitable peers.
  • Ongoing net losses despite revenue gains reinforce the bearish claim that top-line growth has yet to create tangible value for shareholders.

Valuation Premium Despite Elevated Risks

• The latest data shows Cango trades at a price-to-sales ratio of 0.7x, which is higher than peer group and industry averages (0.6x and 0.5x, respectively).
• What stands out from the consensus narrative is that this valuation premium sits awkwardly beside liability risks; debt is not well covered by operating cash flow and shares have been highly illiquid, making the 0.7x ratio appear hard to justify.
  • Industry watchers note that investors are paying more for each dollar of revenue compared to major competitors, even though Cango faces ongoing losses and structural financial pressures.
  • A risk premium for growth would make sense if margins were improving. However, the combination of high valuation, low liquidity, and negative earnings challenges the rationale for such a market position.

Revenue Growth Outpaces the Market

• Revenue is forecast to expand at 17.3% per year, considerably above the wider US market growth rate of 10.5%.
• However, analysts’ consensus view points to a tension here: while faster revenue expansion usually supports a bullish case, genuine optimism is held back since these gains have not offset deepening losses and the forecasted timeline for profitability remains distant.
  • Market observers note that above-industry sales growth would typically be celebrated, but the financial impact is muted as net losses persist and profit margins show no improvement.
  • This mismatch between top-line progress and bottom-line results keeps enthusiasm in check and sustains uncertainty about long-term shareholder rewards.

Bulls and bears both have reason to watch closely as the gap between revenue growth and profitability continues to widen. 📊 Read the full Cango Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Cango's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Cango’s persistent losses, high valuation, and weak balance sheet distinguish it from peers with stronger financial health and more sustainable paths to profitability.

If you’re looking for companies that aren’t weighed down by debt and have far stronger fundamentals, discover solid balance sheet and fundamentals stocks screener (1941 results) that are better positioned for resilience and consistent performance.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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