Canaan Inc. Reports Unaudited Second Quarter 2026 Financial Results
Canaan’s Q2 2026 revenue and margins deteriorated sharply, but mining output, crypto treasury levels, and share repurchases remained key focal points.
Rhea-AI Summary
Canaan (CAN) reported unaudited second quarter 2026 results with total revenue of US$31.9 million amid a challenging bitcoin mining environment.
Revenue fell from US$62.7 million in Q1 2026 and US$100.2 million a year earlier, with products revenue dropping to US$13.6 million on weaker rig demand and lower selling prices, and mining revenue at US$17.7 million due to a lower average bitcoin price. Cost of revenues was US$61.2 million, leading to a gross loss of US$29.3 million. Net loss widened to US$97.6 million, driven by a US$25.3 million inventory and prepayment write-down and reserve, a US$9.2 million impairment of property and equipment, and an US$18.2 million loss from fair value changes in cryptocurrency and derivatives.
The company produced 243 bitcoins in Q2 and held a record digital asset treasury of about 1,915.5 BTC and 3,951.7 ETH, while maintaining an all-in power cost of around US$0.04–0.043/kWh and non‑JV installed mining power of 10.05 EH/s. As of September 8, 2026, Canaan had repurchased roughly 16.4 million ADSs for US$7.4 million, funded in part by late‑August sales of 3,952 ETH and 54 bitcoins that generated about US$13.9 million in cash.
Positive
- Total revenue US$31.9 million in Q2 2026, with US$17.7 million from mining
- Installed non‑JV mining power 10.05 EH/s, up 23.3% year over year
- Produced 243 BTC in Q2 2026 from mining operations
- Crypto treasury reached about 1,915.5 BTC and 3,951.7 ETH at quarter end
- All‑in power cost around US$0.04–0.043/kWh across mining operations
- Share repurchases of ~16.4 million ADSs for US$7.4 million as of September 8, 2026
- Accounts receivable fell to US$1.7 million from US$19.3 million at December 31, 2025
Negative
- Total revenue declined to US$31.9 million from US$62.7 million in Q1 2026 and US$100.2 million in Q2 2025
- Products revenue dropped to US$13.6 million from US$42.9 million in Q1 2026 and US$71.9 million a year earlier
- Gross loss widened to US$29.3 million versus a US$22.9 million gross loss in Q1 2026 and minimal profit in Q2 2025
- Net loss increased to US$97.6 million from US$88.7 million in Q1 2026 and US$11.1 million in Q2 2025
- Non‑GAAP adjusted EBITDA loss was US$74.9 million versus a US$25.3 million gain in Q2 2025
- Inventory and prepayment write‑downs and related reserves totaled US$25.3 million in Q2 2026
- Impairment on property, equipment and software was US$9.2 million in Q2 2026
- Fair value losses on cryptocurrency and derivatives were US$9.3 million and US$8.9 million in Q2 2026
- Cash balance declined to US$66.0 million at June 30, 2026 from US$80.8 million at December 31, 2025
News Explained
As of September 8, Canaan had spent US$7.4 million on repurchases under a US$30 million authorization, with no recent ATM sales reported.
As of
An ATM program allows an issuer to sell new shares gradually at prevailing market prices; for Canaan, the disclosed status is unused recent issuance capacity rather than reported ATM fundraising.
The repurchase program authorizes up to
Details
Market reaction after 2Q26 earnings report: CAN -10.75%
Following this news, CAN has declined 10.75%, reflecting a significant negative market reaction. Our momentum scanner has triggered 55 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $0.32. Trading volume is exceptionally heavy at 54.7x the average, suggesting significant selling pressure.
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Key Figures
- Total Revenue
- US$31.9 million
- Q2 2026, versus US$62.7 million in Q1 2026 and US$100.2 million in Q2 2025
- Net Loss
- US$97.6 million
- Q2 2026, versus US$88.7 million in Q1 2026
- Gross Loss
- US$29.3 million
- Q2 2026
- Adjusted EBITDA
- Loss of US$74.9 million
- Non-GAAP adjusted EBITDA, Q2 2026
- Net Loss per ADS
- US$0.13
- Basic and diluted, Q2 2026
- Bitcoin Production
- 243 BTC
- Mined during Q2 2026
- Cryptocurrency Treasury
- 1,915.50 BTC / 3,951.70 ETH
- Record-high treasury at quarter-end
- ADS Repurchases
- 16.4 million ADSs / US$7.4 million
- Cumulative repurchases under the current program as of September 8, 2026
Previous Earnings Reports
-
Revenue declined and the company reported gross and net losses despite treasury growth.
-
Quarterly net loss persisted despite higher revenue and record computing power sold.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
non-gaap adjusted ebitda financial
at-the-market offering financial
eh/s technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Reached a record 1,915 BTC and 3,952 ETH cryptocurrency treasury[1]
Mined 243 bitcoins in the Second Quarter 2026
Repurchased approximately 16.4 million ADSs for an Aggregate of
Second Quarter 2026 Operating and Financial Highlights
Metrics | Second Quarter 2026 | Key takeaways |
BTC produced | 243 BTC | Continued mining |
Crypto treasury | 1,915.50 BTC / 3,951.70 | Record-high |
Installed mining computing | 10.05 EH/s | Up |
All-in power cost | Competitive mining | |
ABC Projects |
| Steady fleet |
Share repurchased under | 16.4 million ADSs / | Disciplined capital |
Nangeng Zhang, chairman, and chief executive officer of Canaan, commented, "Q2 2026 presented a difficult period for bitcoin mining, as renewed bitcoin price pressure, weaker mining economics, and seasonal power constraints weighed on equipment demand and profitability. Our team responded by staying close to customers, matching production to demand, and protecting liquidity. We generated
"Despite the quarter's market headwinds, we focused on building the capabilities that we believe are necessary for Canaan's next phase. Together with our partner, we advanced the fleet upgrade at Project ABC, where installed hashrate reached 4.85 EH/s by the end of July. We will continue to explore cost-advantaged sites that can support efficient deployment and cash generation, while advancing collaboration around compute-to-heat reuse applications. On the product side, we kept optimizing the A16 series, focusing on cost-effective air-cooled models and high-temperature water-cooled models, and developed new Avalon Home products for household heating applications, with mass-production preparations underway for the winter heating season. In parallel, we continued advancing our efforts on long-term power resources in
Jin "James" Cheng, chief financial officer of Canaan, stated, "We navigated a demanding Q2 market and generated
"As we enter the second half of 2026, we intend to maintain disciplined inventory levels, preserve financial flexibility, and direct resources toward securing power capacity for our compute-energy infrastructure strategy. We are also applying a more active capital-allocation framework to monetize a portion of our digital asset treasury to fund stock repurchases under the existing program. The Company has deployed an aggregate
Note 1: Defined as the total number of bitcoins and other cryptocurrencies owned by the Company on its Balance Sheet, including any bitcoins receivable, excluding bitcoins that the Company has received as customer deposits. |
Second Quarter 2026 Financial Results
Total revenues in the second quarter of 2026 were
Products revenue in the second quarter of 2026 was
Mining revenue in the second quarter of 2026 was
Cost of revenues in the second quarter of 2026 was
Products costs in the second quarter of 2026 were
Mining costs in the second quarter of 2026 were
Gross loss in the second quarter of 2026 was
Total operating expenses in the second quarter of 2026 were
Research and development expenses in the second quarter of 2026 were
Sales and marketing expenses in the second quarter of 2026 were
General and administrative expenses in the second quarter of 2026 were
Impairment on property, equipment and software in the second quarter of 2026 was
Loss from operations in the second quarter of 2026 was
Change in fair value of cryptocurrency and Change in fair value of financial derivatives in the second quarter of 2026 were a loss of
Foreign exchange gains (losses), net in the second quarter of 2026 were a loss of
Loss before income tax expense in the second quarter of 2026 was US
Equity in gains (losses) of equity investees in the second quarter of 2026 was a loss of
Net loss in the second quarter of 2026 was
Non-GAAP adjusted EBITDA in the second quarter of 2026 was a loss of
Foreign currency translation adjustment, net of nil tax, in the second quarter of 2026 was a gain of
Basic and diluted net loss per American depositary share ("ADS") in the second quarter of 2026 was
As of June 30, 2026, the Company held Cryptocurrency assets with a fair value of US
As of June 30, 2026, the Company had cash of US$66.0 million, compared to
Accounts receivable, net as of June 30, 2026, were
Investment in equity investees as of June 30, 2026, was
ADSs Outstanding
As of June 30, 2026, the Company had a total of 690,594,191 ADSs outstanding, each representing 15 of the Company's Class A ordinary shares.
Recent Developments
Share Repurchase Program Using Portion of Digital Asset Treasury
On December 17, 2025, the Company announced that its board of directors had renewed a share repurchase program authorizing the repurchase of up to
On August 4, 2026, the Company announced that it had been authorized to monetize a portion of its digital asset treasury to fund repurchases under the Share Repurchase Program, reflecting a disciplined capital allocation approach that balances active treasury management with the Company's long-term commitment to maintaining a strategic digital asset treasury.
In late August, the Company sold 3,952 ETH and 54 Bitcoins, generating approximately
As of September 8, 2026, the Company had repurchased approximately 16.4 million ADSs for a total consideration of
The sale of a portion of the Company's digital assets does not represent a change in its long-term digital asset strategy.
At-the-Market Offering ("ATM") Program
On October 24, 2025, the Company established a new ATM equity offering program to replace the prior program, which had expired. The renewal was intended to broaden banking relationships and enhance financial flexibility for future growth initiatives.
The Company has not made any sales under the ATM Program since the beginning of the second quarter of 2026 to date.
Business Outlook
For the third quarter of 2026, the Company expects total revenues to be in the range of
The Company will continue to closely monitor the global policy environment and market developments, and may revise or update its outlook as appropriate, based on future clarity and business visibility.
Conference Call Information
The Company's management team will hold a conference call at 8:00 A.M. U.S. Eastern Time on September 8, 2026 (or 8:00 P.M. Singapore Time on the same day) to discuss the financial results. Details for the conference call are as follows:
Event Title: | Canaan Inc. Second Quarter 2026 Earnings Conference Call |
Registration Link: | https://register-conf.media-server.com/register/BI95b35b81eafb40488eff6d3e49635cc0 |
All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call.
A live and archived webcast of the conference call will be available at the Company's investor relations website at investor.canaan-creative.com.
About Canaan Inc.
Established in 2013, Canaan Inc. (NASDAQ: CAN), is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services. Canaan has extensive experience in chip design and streamlined production in the ASIC field. In 2013, Canaan's founding team shipped to its customers the world's first batch of mining machines incorporating ASIC technology under the brand name Avalon. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market. To learn more about Canaan, please visit https://www.canaan.io/.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Canaan Inc.'s strategic and operational plans, contain forward-looking statements. Canaan Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC") on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Canaan Inc.'s beliefs and expectations, such as expectations with regard to revenue or mining hash rate deployment, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's goals and strategies; the Company's future business development, the ability of the Company to execute against its goals, financial condition and results of operations; the expected growth of the bitcoin industry and the price of bitcoin; the Company's expectations regarding demand for and market acceptance of its products, especially its bitcoin mining machines; the Company's expectations regarding maintaining and strengthening its relationships with production partners and customers; the Company's investment plans and strategies, fluctuations in the Company's quarterly operating results; competition in its industry; changing macroeconomic and geopolitical conditions, including evolving international trade policies and the implementation of increased tariffs, import restrictions, and retaliatory trade actions; and relevant government policies and regulations relating to the Company and cryptocurrency. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Canaan Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Use of Non-GAAP Financial Measures
In evaluating Canaan's business, the Company uses non-GAAP measures, such as adjusted EBITDA, as supplemental measures to review and assess its operating performance. The Company defines adjusted EBITDA as net loss excluding income tax (benefit) expenses, interest income, interest expense, depreciation and amortization expenses, share-based compensation expenses, impairment on property, equipment and software, change in fair value of financial instruments other than derivatives and excess of fair value of convertible preferred shares. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools and investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. One of the key limitations of using adjusted EBITDA is that it does not reflect all of the items of income and expense that affect the Company's operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance.
Investor Relations Contact
Canaan Inc.
Xi Zhang
Email: IR@canaan-creative.com
Christensen Advisory
Christian Arnell
Email: canaan@christensencomms.com
Media Contact
BlocksBridge Consulting
Jesse Colzani
Email: canaan@blocksbridge.com
CANAAN INC. | ||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(all amounts in thousands, except share and per share data, or as otherwise noted) | ||
As of December 31, | As of June 30, | |
2025 | 2026 | |
USD | USD | |
ASSETS | ||
Current assets: | ||
Cash | 80,778 | 66,006 |
Accounts receivable, net | 19,290 | 1,725 |
Inventories | 180,816 | 128,835 |
Prepayments and other current assets | 99,243 | 83,134 |
Cryptocurrency receivable, current | 52,699 | 29,139 |
Held-for-sale assets, current | 464 | 1,713 |
Total current assets | 433,290 | 310,552 |
Non-current assets: | ||
Cryptocurrency | 83,339 | 47,019 |
Cryptocurrency receivable, non-current | 35,133 | 41,786 |
Investment in equity investees | - | 11,790 |
Property, equipment and software, net | 44,028 | 27,388 |
Intangible asset | 689 | 583 |
Operating lease right-of-use assets | 2,880 | 2,090 |
Deferred tax assets | 191 | 197 |
Other non-current assets | 489 | 3,835 |
Non-current financial investment | 2,845 | 1,000 |
Total non-current assets | 169,594 | 135,688 |
Total assets | 602,884 | 446,240 |
LIABILITIES, AND SHAREHOLDERS' | ||
Current liabilities | ||
Current portion of long-term loans | 28,515 | 23,888 |
Accounts payable | 25,600 | 15,455 |
Contract liabilities | 9,317 | 4,107 |
Income tax payable | 11,403 | 11,832 |
Accrued liabilities and other current | 54,548 | 51,986 |
Operating lease liabilities, current | 1,706 | 1,228 |
Total current liabilities | 131,089 | 108,496 |
Non-current liabilities: | ||
Long-term loans | 23,731 | 34,901 |
Operating lease liabilities, non-current | 948 | 481 |
Deferred tax liability | 117 | 99 |
Other non-current liabilities | 9,631 | 9,557 |
Total liabilities | 165,516 | 153,534 |
Shareholders' equity: | ||
Class A Ordinary shares ( | 1 | 1 |
Class B Ordinary shares ( | - | - |
Treasury stocks ( | (37,172) | (20,255) |
Additional paid-in capital | 1,177,057 | 1,192,812 |
Statutory reserves | 14,892 | 14,892 |
Accumulated other comprehensive loss | (56,653) | (47,632) |
Accumulated deficit | (660,757) | (847,112) |
Total shareholders' equity | 437,368 | 292,706 |
Total liabilities and shareholders' equity | 602,884 | 446,240 |
CANAAN INC. | |||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||
(all amounts in thousands of USD, except share and per share data, or as otherwise noted) | |||
For the Three Months Ended | |||
June 30, | March 31, | June 30, | |
USD | USD | USD | |
Revenues | |||
Products revenue | 71,923 | 42,863 | 13,630 |
Mining revenue | 28,072 | 19,124 | 17,657 |
Other revenues | 214 | 706 | 575 |
Total revenues | 100,209 | 62,693 | 31,862 |
Cost of revenues | |||
Product cost | (58,759) | (62,365) | (40,277) |
Mining cost | (31,995) | (22,677) | (20,388) |
Other cost | (149) | (557) | (530) |
Total cost of revenues | (90,903) | (85,599) | (61,195) |
Gross profit (loss) | 9,306 | (22,906) | (29,333) |
Operating expenses: | |||
Research and development expenses | (16,406) | (15,390) | (14,865) |
Sales and marketing expenses | (4,472) | (1,195) | (1,909) |
General and administrative expenses | (16,361) | (15,020) | (15,080) |
Impairment on property and | - | - | (9,220) |
Gain on disposal of property, | 863 | 197 | 950 |
Total operating expenses | (36,376) | (31,408) | (40,124) |
Loss from operations | (27,070) | (54,314) | (69,457) |
Interest expense, net | (309) | (779) | (492) |
Change in fair value of | 10,576 | (24,913) | (9,298) |
Change in fair value of financial | (17,485) | - | - |
Change in fair value of financial | 23,440 | (15,974) | (8,908) |
Foreign exchange gains (losses), net | 338 | (3,997) | (3,040) |
Other income (loss), net | 225 | 11,198 | (1,002) |
Loss before income tax expenses | (10,285) | (88,779) | (92,197) |
Income tax expense | (773) | (190) | (1,263) |
Equity in gains (losses) of equity | - | 221 | (4,147) |
Net loss | (11,058) | (88,748) | (97,607) |
Foreign currency translation | 1,376 | 5,182 | 3,839 |
Total comprehensive loss | (9,682) | (83,566) | (93,768) |
Weighted average number of shares | |||
— Basic | 5,994,860,758 | 10,371,318,890 | 10,847,269,108 |
— Diluted | 5,994,860,758 | 10,371,318,890 | 10,847,269,108 |
Net loss per share (cent per share) | |||
— Basic | (0.18) | (0.86) | (0.90) |
— Diluted | (0.18) | (0.86) | (0.90) |
Share-based compensation expenses were included in: | |||
Cost of revenues | 80 | 89 | 86 |
Research and development expenses | 1,363 | 668 | 620 |
Sales and marketing expenses | 59 | 43 | 29 |
General and administrative expenses | 4,670 | 3,815 | 3,808 |
The table below sets forth a reconciliation of net loss to non-GAAP adjusted EBITDA for the period indicated:
For the Three Months Ended | |||
June 30, | March 31, | June 30, | |
USD | USD | USD | |
Net loss | (11,058) | (88,748) | (97,607) |
Income tax expense | 773 | 190 | 1,263 |
Interest expense, net | 309 | 779 | 492 |
EBIT | (9,976) | (87,779) | (95,852) |
Depreciation and amortization expenses | 11,657 | 6,816 | 7,193 |
EBITDA | 1,681 | (80,963) | (88,659) |
Share-based compensation expenses | 6,172 | 4,615 | 4,543 |
Impairment on property, equipment and | - | - | 9,220 |
Change in fair value of financial | 17,485 | - | - |
Non-GAAP adjusted EBITDA | 25,338 | (76,348) | (74,896) |
View original content:https://www.prnewswire.com/news-releases/canaan-inc-reports-unaudited-second-quarter-2026-financial-results-302872107.html
SOURCE Canaan Inc.
FAQ
How were Canaan’s Q2 2026 revenues split between products, mining, and other segments?
In the second quarter of 2026, Canaan generated US$31.9 million in total revenue, consisting of US$13.6 million in products revenue from mining rigs and related computing power, US$17.7 million in mining revenue from self‑mining operations, and US$0.6 million in other revenues.
What were Canaan’s main cost components and operating expenses in Q2 2026?
Cost of revenues was US$61.2 million, including US$40.3 million in product costs (with US$25.3 million of inventory and prepayment write‑downs and reserves) and US$20.4 million in mining costs, of which US$6.3 million was depreciation. Total operating expenses were US$40.1 million, comprising R&D expenses of US$14.9 million, sales and marketing expenses of US$1.9 million, general and administrative expenses of US$15.1 million, and US$9.2 million of impairment on property, equipment and software.
What is the composition of Canaan’s cryptocurrency holdings and receivables as of June 30, 2026?
As of June 30, 2026, Canaan held cryptocurrency assets with a fair value of US$47.0 million, primarily 698.5 bitcoins owned by the company, and cryptocurrency receivable with an aggregate fair value of US$70.9 million, consisting of 1,117.0 bitcoins pledged for secured term loans and 100.0 bitcoins transferred to a fixed‑term product. In total, the company held 1,915.5 bitcoins at that date.
What were Canaan’s outstanding ADS count and loss per ADS in Q2 2026?
As of June 30, 2026, Canaan had 690,594,191 ADSs outstanding, with each ADS representing 15 Class A ordinary shares. Basic and diluted net loss per ADS for the second quarter of 2026 was US$0.13, unchanged from the first quarter of 2026 and higher than the US$0.03 net loss per ADS in the same period of 2025.