Cango Inc. Reports First Quarter 2026 Unaudited Financial Results
Rhea-AI Summary
Cango (NYSE:CANG) reported Q1 2026 revenue of US$102.0 million, including US$98.4 million from Bitcoin mining, and a net loss of US$261.1 million driven by non-cash impairments and Bitcoin fair value changes.
Total hashrate reached 37.01 EH/s; 1,266 Bitcoin were mined and 1,026 held in reserves. Long-term debt fell sharply to US$30.6 million from US$557.6 million, while cash declined to US$7.2 million. Average cash cost per Bitcoin decreased 9% sequentially to US$76,928. Cango also launched its EcoHash AI compute platform and began pilot deployments of modular GPU-based units.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue of US$102.0 million, including US$98.4 million from Bitcoin mining
- Long-term debt reduced to US$30.6 million from US$557.6 million at year-end 2025
- Average cash cost per Bitcoin down 9% QoQ to US$76,928
- Total hashrate of 37.01 EH/s and 1,266 Bitcoin mined in the quarter
- Launch of EcoHash AI compute platform with pilot modular GPU deployments
Negative
- Q1 2026 net loss of US$261.1 million from continuing operations
- Total operating costs and expenses of US$356.4 million
- Impairment loss on mining machines of US$49.0 million and disposal loss of US$20.3 million
- Non-cash loss of US$151.8 million from changes in fair value of receivable for Bitcoin collateral
- Adjusted EBITDA loss of US$154.1 million in Q1 2026
- Cash and cash equivalents declined to US$7.2 million from US$41.2 million
News Market Reaction – CANG
On the day this news was published, CANG declined 4.65%, reflecting a moderate negative market reaction. Argus tracked a peak move of +5.4% during that session. Argus tracked a trough of -15.3% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $9M from the company's valuation, bringing the market cap to $180.91M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Among key peers, moves were mixed but mostly positive: SWIN +3.8%, AMRK +2.17%, FUFU +10.71%, HIVE +2.73%, while CNCK -4.62%. With only one peer in the momentum scanner and mixed directions, CANG’s reaction appeared more stock-specific than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 16 | FY25 earnings | Negative | -16.7% | Large 2025 net loss and heavy Q4 impairment and fair-value charges. |
| Dec 02 | Q3 2025 earnings | Positive | -9.7% | Strong Q3 revenue and profits with high adjusted EBITDA and BTC production. |
| Dec 01 | Q3 2025 earnings | Positive | -9.7% | Repeat Q3 2025 release highlighting revenue growth and solid margins. |
| Sep 04 | Q2 2025 earnings | Positive | +6.5% | First full mining quarter with strong adjusted EBITDA and capacity expansion. |
| May 14 | Q1 2025 earnings | Negative | -7.0% | Revenue surge but swing to net loss after entering Bitcoin mining. |
Earnings releases have often been volatile, with mostly negative average moves and one clear divergence where strong quarterly results were sold off.
Over the past year, Cango’s earnings reports have chronicled its pivot into Bitcoin mining and AI infrastructure. Earlier quarters like Q2–Q3 2025 showed strong revenue, positive operating income and adjusted EBITDA, yet shares often fell after results. By full-year 2025, large impairment and fair-value losses drove a substantial net loss. This Q1 2026 release extends that narrative with lower revenues, significant non-cash losses, but continued focus on EcoHash and infrastructure-led strategy.
Historical Comparison
In the past year, CANG has issued 5 earnings-related releases with an average move of -7.3%. Historically, even strong quarters often saw selling, framing Q1 2026 within a volatile earnings pattern.
Earnings have tracked Cango’s shift from early 2025 mining ramp, through profitable Q2–Q3 2025, into heavy FY25 losses from impairments and fair-value changes, and now Q1 2026’s lower revenue and sizeable non-cash losses during its AI and infrastructure pivot.
Regulatory & Risk Context
An effective F-3 shelf filed on Dec 17, 2025 allows Cango to register up to US$500,000,000 of securities for potential future offerings, giving flexibility to raise capital via equity, debt, warrants or units as detailed in prospectus supplements.
Market Pulse Summary
This announcement details Cango’s Q1 2026 transition phase: revenue of US$102.0 million, a sizable net loss of US$261.1 million, but long-term debt cut to US$30.6 million and 1,266 BTC mined with 1,026 BTC held. Investors may track how EcoHash and AI compute plans offset Bitcoin price volatility, while monitoring cash of US$7.2 million, potential use of the US$500,000,000 F-3 shelf, and NYSE listing-compliance developments.
Key Terms
hashrate technical
impairment loss financial
adjusted EBITDA financial
AI-generated analysis. Not financial advice.
First Quarter of 2026 Financial and Operational Highlights
- Financial Performance: In the first quarter of 2026, the Company generated total revenue of
US , primarily driven by$102.0 million US from its Bitcoin mining business. The Company reported a net loss of$98.4 million US , primarily due to non-cash impairment charges on Bitcoin mining machines and changes in the fair value of Bitcoins, both resulting from the decline in bitcoin market prices. Long-term debt was reduced to$261.1 million US , down from$30.6 million US as of December 31, 2025. As of quarter-end, the Company held 1,026 Bitcoin in digital asset reserves.$557.6 million - Mining Operations and Costs: The Company continued to enhance operating efficiency while maintaining a disciplined operational footprint. Total hashrate was 37.01 EH/s, comprising 27.98 EH/s of self-mining capacity and 9.02 EH/s of leased hashrate capacity. During the quarter, the Company mined 1,266 Bitcoin. Ongoing fleet optimization and disciplined cost management drove a
9.0% sequential reduction in average cash cost per Bitcoin toUS compared to the fourth quarter of 2025, reinforcing the Company's focus on operational efficiency.$76,928 - AI Development: Building on its core infrastructure capabilities, the Company made meaningful progress in its strategic expansion into AI compute. During the quarter, the Company launched EcoHash, a new commercial platform leveraging Cango's existing expertise in energy management and high-density computing. The Company is working on pilot deployment of modular, containerized compute units which supports a phased roadmap that begins with GPU compute leasing and scales toward a global AI compute network over time.
Mr. Paul Yu, Chief Executive Officer of Cango, said, "We are executing a disciplined strategy to strengthen our mining foundation while advancing into AI infrastructure through EcoHash. In recent months, we have seen positive developments, including continued cost reductions driven by our fleet upgrade strategy, as well as steady operational performance across our global mining footprint. At the same time, our EcoHash initiative continues to progress, with pilot deployments advancing on schedule. By leveraging our global energy network and operational expertise, we are well-positioned to enhance efficiency, capture emerging AI compute opportunities, and drive sustainable long-term value."
Mr. Simon Tang, Chief Financial Officer of Cango, stated, "Despite a challenging quarter affected by industry adjustments and non-cash impacts, we made meaningful progress in improving our cost structure and strengthening our balance sheet. We reduced long-term debt, and achieved continued declines in mining cash costs through disciplined execution. Going forward, we remain focused on enhancing cash flow resilience, maintaining financial flexibility, and supporting the Company's strategic transition into more efficient and diversified infrastructure."
First Quarter 2026 Financial Results from Continuing Operations
REVENUES
During the quarter, total revenues were
OPERATING COSTS AND EXPENSES
During the quarter, total operating costs and expenses were
- Cost of revenue (exclusive of depreciation shown below) was
US , down from$99.6 million US in the fourth quarter of 2025. This was driven by lower electricity and hosting expenses following the hashrate reduction.$155.3 million - Depreciation was
US .$29.4 million - General and administrative expenses, including related-party fees, totaled
US .$7.2 million - Impairment loss from mining machines was
US .$49.0 million - Loss on disposal of mining machines was
US .$20.3 million - Loss from changes in fair value of receivable for Bitcoin collateral was
US , compared to$151.8 million US in the fourth quarter of 2025. This non-cash loss was primarily driven by lower Bitcoin prices during the quarter.$171.4 million
LOSS FROM OPERATIONS
Loss from operations in the first quarter of 2026 was
NET LOSS FROM CONTINUING OPERATIONS
Net loss from continuing operations in the first quarter of 2026 was
ADJUSTED EBITDA
Adjusted EBITDA loss in the first quarter of 2026 was
BALANCE SHEET
As of March 31, 2026, the Company held:
- Cash and cash equivalents of
US , down from$7.2 million US at year-end 2025, mainly due to debt repayments and operational activities.$41.2 million - Receivable for Bitcoin collateral (non-current, related party) with a net value of
US .$68.2 million - Mining machines with a net value of
US .$130.8 million - Long-term debts (related party) of
US , compared with$30.6 million US as of December 31, 2025.$557.6 million
The substantial reduction in both the receivable for Bitcoin collateral and the associated long-term debt reflects the Company's proactive deleveraging efforts during the quarter.
Conference Call Information
The Company's management will hold a conference call on Sunday, May 31, 2026, at 9:00 P.M. Eastern Time or Monday, June 1, 2026, at 9:00 A.M Hong Kong Time to discuss the financial results. Listeners may access the call by dialing the following numbers:
International: +1-412-902-4272
United States Toll Free: +1-888-346-8982
Mainland China Toll Free: 4001-201-203
Conference ID: Cango Inc.
The replay will be accessible through June 7, 2026, by dialing the following numbers:
International: +1-412-317-0088
United States Toll Free: +1-855-669-9658
Access Code: 3013185
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.cangoonline.com.
About Cango Inc.
Cango Inc. (NYSE: CANG) is a Bitcoin mining company with a vision to establish an integrated, global infrastructure platform capable of powering the future digital economy. The Company's mining operations span over 40 sites across North America, the Middle East, South America, and East Africa.
Since entering the digital asset space in November 2024, Cango has activated pilot projects in both integrated energy solutions and distributed AI computing. In parallel, Cango continues to operate an online international used car export business through AutoCango.com.
For more information, please visit: www.cangoonline.com and follow us on: X and LinkedIn.
Use of Non-GAAP Financial Measure
As part of our review of business performance, we present adjusted EBITDA as a non-GAAP financial measure to help assess our core operating results. Adjusted EBITDA is defined as net income or loss before interest, taxes, depreciation, and amortization, impairment, results from discontinued operations and further excludes share-based compensation expenses, loss on disposal of mining machines and other non-operating income and expenses. We believe adjusted EBITDA can be an important financial measure because it allows management, investors, and our board of directors to evaluate and compare our operating results, including our return on capital and operating efficiency from period-to-period by making such adjustments.
While adjusted EBITDA is not a measure defined under U.S. GAAP, management uses it to evaluate performance, make strategic decisions, and set operating plans. Management believes it also helps investors gain a clearer understanding of our underlying performance by excluding certain costs and expenses that management believes are not indicative of the Company's core operating results. The presentation of this non-GAAP financial measures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance with U.S. GAAP.
The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.
Reconciliations of Cango's non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States 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 quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC") , in its annual report on Form 20-F, its current reports on Form 6-K, 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 Cango's beliefs and expectations, 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: volatility in Bitcoin price and the resulting impact on the Company's Bitcoin holdings, mining equipment and related receivables; Bitcoin network difficulty, halving events and the cost and availability of electricity; the Company's ability to execute its AI compute strategy, including the commercialization and scaling of the EcoHash platform; the Company's liquidity, indebtedness and ability to access additional financing; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango'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 Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Investor Relations Contact
Juliet Ye, Head of Communications
Cango Inc.
Email: ir@cangoonline.com
Christensen Advisory
Tel: +852 2117 0861
Email: cango@christensencomms.com
CANGO INC. | ||||||
As of December 31, 2025 | As of March 31, 2026 | |||||
US$ | US$ | |||||
ASSETS: | ||||||
Current assets: | ||||||
Cash and cash equivalents | 41,243,627 | 7,171,427 | ||||
Crypto currencies | 42,545 | 7,887,617 | ||||
Accounts receivable, net | 1,661,702 | 2,486,551 | ||||
Accounts receivable, net - related parties | 1,064,440 | 56,852 | ||||
Prepayments and other current assets, net | 6,835,599 | 64,131,941 | ||||
Other current assets, net - related party | 74,270,770 | 55,203,008 | ||||
Total current assets | 125,118,683 | 136,937,396 | ||||
Non-current assets: | ||||||
Mining machines, net | 248,745,505 | 130,802,268 | ||||
Property, plant and equipment, net | 18,797,925 | 18,664,448 | ||||
Intangible assets, net | 292,836 | 285,290 | ||||
Operating lease right-of-use assets, net | 2,079,937 | 1,923,121 | ||||
Receivable for bitcoin collateral - non-current - related party | 662,968,814 | 68,181,445 | ||||
Other non-current assets, net | 68,025,983 | 16,948,984 | ||||
Other non-current assets, net - related party | 6,955,650 | 6,955,650 | ||||
Total non-current assets | 1,007,866,650 | 243,761,206 | ||||
TOTAL ASSETS | 1,132,985,333 | 380,698,602 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accrued expenses and other current liabilities | 82,329,075 | 46,712,830 | ||||
Accrued expenses and other current liabilities - related parties | 5,025,566 | 2,103,992 | ||||
Income tax payable | 88,792,503 | 88,362,240 | ||||
Short-term lease liabilities | 573,959 | 412,944 | ||||
Total current liabilities | 176,721,103 | 137,592,006 | ||||
Non-current liabilities: | ||||||
Long-term debts - related party | 557,567,671 | 30,611,355 | ||||
Deferred tax liability | 1 | 1 | ||||
Long-term operating lease liabilities | 1,655,272 | 1,687,682 | ||||
Total non-current liabilities | 559,222,944 | 32,299,038 | ||||
Total liabilities | 735,944,047 | 169,891,044 | ||||
Shareholders' equity | ||||||
Ordinary shares | 44,171 | 49,796 | ||||
Treasury shares | (103,424,568) | (104,429,322) | ||||
Additional paid-in capital | 1,135,958,943 | 1,211,777,145 | ||||
Accumulated deficit | (635,537,260) | (896,590,061) | ||||
Total Cango Inc.'s equity | 397,041,286 | 210,807,558 | ||||
Total shareholders' equity | 397,041,286 | 210,807,558 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,132,985,333 | 380,698,602 | ||||
CANGO INC. | ||||||
For three months ended March 31 | ||||||
2025 | 2026 | |||||
US$ | US$ | |||||
Revenues | 144,154,046 | 102,000,984 | ||||
Bitcoin mining income | 144,144,312 | 98,443,880 | ||||
Other revenues | 9,734 | 3,027,230 | ||||
Other revenues from related parties | - | 529,874 | ||||
Operating cost and expenses: | ||||||
Cost of revenue (exclusive of depreciation shown below) | 112,661,702 | 99,578,785 | ||||
Cost of revenue (depreciation) | 21,344,844 | 29,372,199 | ||||
General and administrative | 10,028,269 | 6,549,346 | ||||
General and administrative - related parties | - | 647,653 | ||||
Provision (Net recovery) for credit losses | 289,231 | (979,753) | ||||
Impairment loss from mining machines | - | 49,038,548 | ||||
Loss from changes in fair value of receivable for bitcoin collateral | 26,735,505 | 151,838,430 | ||||
Loss on disposal of mining machines | - | 20,307,212 | ||||
Total operation cost and expense | 171,059,551 | 356,352,420 | ||||
Loss from operations | (26,905,505) | (254,351,436) | ||||
Interest income | 294,192 | 2,134 | ||||
Interest expense | (1,310,597) | - | ||||
Interest expense - related party | - | (6,702,867) | ||||
Foreign exchange loss, net | (27,690) | (632) | ||||
Other income | 112,870 | - | ||||
Net loss before income taxes | (27,836,730) | (261,052,801) | ||||
Income tax expenses | (431,183) | - | ||||
Net loss from continuing operations | (28,267,913) | (261,052,801) | ||||
Discontinued operations: | ||||||
Loss from discontinued operations | (3,907,013) | - | ||||
Net loss from discontinued operations | (3,907,013) | - | ||||
Net loss attributable to Cango Inc.'s shareholders | (32,174,926) | (261,052,801) | ||||
Losses per ordinary share: | ||||||
Basic | - | - | ||||
Discontinued operations | (0.02) | - | ||||
Continuing operations | (0.14) | (0.73) | ||||
Basic | (0.16) | (0.73) | ||||
Diluted | - | - | ||||
Discontinued operations | (0.02) | - | ||||
Continuing operations | (0.14) | (0.73) | ||||
Diluted | (0.16) | (0.73) | ||||
Weighted average shares used to compute losses per ordinary share: | ||||||
Basic | 207,566,173 | 358,611,981 | ||||
Diluted | 207,566,173 | 358,611,981 | ||||
Other comprehensive income, net of tax | ||||||
Foreign currency translation adjustment | (5,279,250) | - | ||||
Total comprehensive loss | (37,454,176) | (261,052,801) | ||||
Total comprehensive loss attributable to Cango Inc.'s shareholders | (37,454,176) | (261,052,801) | ||||
CANGO INC. | ||||
For three months ended March 31 | ||||
2025 | 2026 | |||
(Unaudited) | (Unaudited) | |||
US$ | US$ | |||
Net loss | (32,174,926) | (261,052,801) | ||
Less: Discontinued operations: | ||||
Loss from discontinued operations | (3,907,013) | - | ||
Loss on discontinued operations | (3,907,013) | - | ||
Net loss from continuing operations | (28,267,913) | (261,052,801) | ||
Add: Interest expense | 1,310,597 | 6,702,867 | ||
Add: Income tax expenses | 431,183 | - | ||
Add: Depreciation and amortization | 21,349,999 | 29,389,003 | ||
Cost of revenue | 21,344,844 | 29,372,199 | ||
General and administrative | 5,155 | 16,804 | ||
Add: Impairment loss from mining machines | - | 49,038,548 | ||
Add: Loss on disposal of mining machines | - | 20,307,212 | ||
Less: Other income | 112,870 | - | ||
Add: Share-based compensation expenses | 3,545,188 | 1,536,295 | ||
General and administrative | 3,545,188 | 1,536,295 | ||
Non-GAAP adjusted EBITDA | (1,743,816) | (154,078,876) | ||
Non-GAAP adjusted EBITDA attributable to Cango Inc.'s shareholders | (1,743,816) | (154,078,876) | ||
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SOURCE Cango Inc.