Cango Inc. Reports Second Quarter 2026 Unaudited Financial Results
Rhea-AI Summary
Cango (NYSE: CANG) reported unaudited second quarter 2026 results with total revenue of US$50.8 million, including US$47.4 million from Bitcoin mining and US$3.4 million from other revenues. Revenue fell about 50% quarter over quarter as Cango proactively reduced hashrate and shifted some capacity to leasing.
The company recorded a net loss of US$81.6 million, mainly due to US$42.9 million impairment and US$8.5 million disposal losses on mining machines. Operating loss narrowed to US$80.6 million from US$254.4 million in Q1 2026, and adjusted EBITDA loss improved to US$10.7 million from US$154.1 million. Cango’s operating hashrate reached 27.58 EH/s, it mined 656 Bitcoins, and reduced average cash cost per Bitcoin by about 5% to US$73,313.
According to Cango, it held 1,056 BTC, cash of US$10.1 million, mining machines with net value of US$58.7 million, and long‑term related‑party debt of US$31.2 million at June 30, 2026. The company advanced its AI infrastructure, completing conversion of its Georgia site to support up to 3 MW, and began a Bitcoin hedging program to manage price volatility.
Positive
- Operating loss narrowed to US$80.6 million from US$254.4 million QoQ
- Net loss reduced to US$81.6 million from US$261.1 million QoQ
- Adjusted EBITDA loss improved to US$10.7 million from US$154.1 million QoQ
- Cost of revenue fell to US$50.7 million from US$99.6 million QoQ
- Loss on crypto fair value changes dropped to US$4.1 million from US$151.8 million
- Cash balance increased to US$10.1 million from US$7.2 million QoQ
- Cango held 1,056 BTC as digital asset reserves at quarter‑end
- Georgia AI site converted with infrastructure supporting up to 3 MW
- Average cash cost per Bitcoin declined about 5% to US$73,313
- Bitcoin hedging program launched to manage price volatility exposure
Negative
- Total revenue declined about 50% QoQ to US$50.8 million
- Net loss from continuing operations was US$81.6 million in Q2 2026
- Impairment loss on mining machines totaled US$42.9 million in the quarter
- Loss on disposal of mining machines reached US$8.5 million
- Total operating costs and expenses were US$131.4 million, exceeding revenue
- Accumulated deficit increased to US$978.2 million from US$635.5 million
- Total assets dropped to US$294.4 million from US$1.13 billion at 2025 year‑end
- Long‑term related‑party debt stood at US$31.2 million at June 30, 2026
News Explained
At June 30, 2026, shareholders’ equity was lower than at December 31, 2025, alongside separately reported short-term debt and a convertible note.
The next specified checkpoint is third-quarter revenue recognition: management says the Georgia site is onboarding customers and expects revenue from that activity in the third quarter.
Market reaction after 2Q26 earnings report: CANG -7.36%
Following this news, CANG has declined 7.36%, reflecting a notable negative market reaction. Our momentum scanner has triggered 29 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $2.21. Trading volume is very high at 4.3x the average, suggesting heavy selling pressure.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 31 | Q1 earnings report | Negative | -4.7% | Large net loss and impairment charges accompanied first-quarter mining results. |
| Mar 16 | FY2025 earnings report | Negative | -16.7% | Annual results included continuing-operations losses and significant impairment and fair-value charges. |
| Dec 02 | Q3 earnings report | Positive | -9.7% | Revenue and profitability improved, but the stock recorded a negative 24-hour reaction. |
| Dec 01 | Q3 earnings report | Positive | -9.7% | Quarterly revenue, operating income, net income and adjusted EBITDA were positive. |
| Sep 04 | Q2 earnings report | Positive | +6.5% | Bitcoin mining expansion and positive adjusted EBITDA followed the business transformation. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Cango's earnings-tagged announcements produced negative 24-hour reactions in four of five historical events, with an average move of -6.82%.
Key Terms
adjusted ebitda financial
hashrate technical
fair value of crypto assets financial
non-gaap financial measure financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter of 2026 Financial and Operational Highlights
- Financial Performance: Even as the broader mining industry weighed on revenue, the Company continued to advance its diversification strategy through EcoHash's commercial progress and disciplined cost management. In the second quarter of 2026, the Company generated total revenue of
US , primarily driven by$50.8 million US from its Bitcoin mining business. The Company reported a net loss of$47.4 million US , primarily driven by non-cash impairment and disposal losses on the mining machines. As of the end of the period, the Company held 1,056 Bitcoins as digital asset reserves, with long-term debt of$81.6 million US , reflecting an improved balance sheet structure.$31.2 million - Mining Operations and Costs: To reinforce its disciplined cost management, the Company continued to actively right-size its mining operations, disposing of machines with lower marginal efficiency and partially executing a leasing model. Total operating hashrate reached 27.58 EH/s, comprising 19.84 EH/s of self-mining capacity and 7.74 EH/s of leased hashrate capacity as of June 30, 2026. During the quarter, the Company mined 656 Bitcoins. The improved fleet mix and disciplined execution drove an approximately
5% sequential reduction in average cash cost per Bitcoin, which declined toUS . The Company also started to selectively execute a hedging strategy to mitigate the impact of price volatility on operations.$73,313
Mr. Paul Yu, Chief Executive Officer of Cango, said, "In our Bitcoin mining business, we continue to focus on unit economics rather than scale. At the same time, we continued to deliver on our AI modular build at our LN mining site. The
Mr. Simon Tang, Chief Financial Officer of Cango, stated, "During the quarter, we recorded a net loss of
Second 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$50.7 million US in the first quarter of 2026. This was driven by lower electricity and hosting expenses following the hashrate reduction.$99.6 million - Depreciation was
US , down from$16.9 million US in the first quarter of 2026.$29.4 million - General and administrative expenses, including related-party fees, totaled
US .$8.4 million - Impairment loss from mining machines was
US .$42.9 million - Loss on disposal of mining machines was
US .$8.5 million - Loss from changes in fair value of crypto assets was
US , compared to a$4.1 million US loss from changes in fair value of crypto assets in the first quarter of 2026. This change is primarily driven by the stabilization and modest recovery in Bitcoin market prices during the quarter and the initial impact of our newly launched Bitcoin hedging program.$151.8 million
LOSS FROM OPERATIONS
Loss from operations in the second quarter of 2026 was
NET LOSS FROM CONTINUING OPERATIONS
Net loss from continuing operations in the second quarter of 2026 was
ADJUSTED EBITDA
Adjusted EBITDA in the second quarter of 2026 was a loss of
BALANCE SHEET
As of June 30, 2026, the Company held:
- Cash and cash equivalents of
US , compared with$10.1 million US as of March 31, 2026.$7.2 million - 1,056 BTC in treasury holdings.
- Mining machines with a net value of
US .$58.7 million - Long-term debts (related party) of
US , compared with$31.2 million US as of March 31, 2026.$30.6 million
Conference Call Information
The Company's management will hold a conference call on Monday, August 31, 2026, at 9:00 P.M. Eastern 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 |
800-905-945 | |
Conference ID: | Cango Inc. |
The replay will be accessible through September 6, 2026, by dialing the following numbers:
International: | +1-412-317-0088 | ||||
United States Toll Free: | +1-855-669-9658 | ||||
Access Code: | 8654407 |
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 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 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 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 our core operating results. The presentation of these 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 SEC, 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 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: Cango's goal and strategies; Cango's expansion plans; the development and commercialization of its AI infrastructure business; the performance and economics of its Bitcoin mining operations; Bitcoin price volatility; Cango's future business development, financial condition and results of operations; Cango's expectations regarding demand for, and market acceptance of, its solutions and services; 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.
CANGO INC. | ||||||
As of December 31, 2025 | As of June 30, 2026 | |||||
US$ | US$ | |||||
ASSETS: | ||||||
Current assets: | ||||||
Cash and cash equivalents | 41,243,627 | 10,121,719 | ||||
Crypto currencies | 42,545 | 12,892,900 | ||||
Accounts receivable, net | 1,661,702 | 1,818,814 | ||||
Accounts receivable, net - related parties | 1,064,440 | - | ||||
Prepayments and other current assets, net | 6,835,599 | 54,208,544 | ||||
Other current assets, net - related party | 74,270,770 | 42,108,750 | ||||
Total current assets | 125,118,683 | 121,150,727 | ||||
Non-current assets: | ||||||
Mining machines, net | 248,745,505 | 58,699,566 | ||||
Property, plant and equipment, net | 18,797,925 | 22,290,496 | ||||
Intangible assets, net | 292,836 | 277,744 | ||||
Operating lease right-of-use assets, net | 2,079,937 | 1,764,239 | ||||
Receivable for bitcoin collateral, net - non-current - related party | 662,968,814 | 61,485,537 | ||||
Other non-current assets, net | 68,025,983 | 21,761,273 | ||||
Other non-current assets, net - related party | 6,955,650 | 6,955,650 | ||||
Total non-current assets | 1,007,866,650 | 173,234,505 | ||||
TOTAL ASSETS | 1,132,985,333 | 294,385,232 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Short-term debts | - | 8,032,711 | ||||
Accrued expenses and other current liabilities | 82,329,075 | 22,954,250 | ||||
Accrued expenses and other current liabilities - related parties | 5,025,566 | 1,184,368 | ||||
Income tax payable | 88,792,503 | 88,361,704 | ||||
Short-term lease liabilities | 573,959 | 559,170 | ||||
Total current liabilities | 176,721,103 | 121,092,203 | ||||
Non-current liabilities: | ||||||
Long-term debts - related party | 557,567,671 | 31,227,904 | ||||
Deferred tax liability | 1 | 1 | ||||
Long-term operating lease liabilities | 1,655,272 | 1,336,517 | ||||
Convertible Note | - | 9,984,086 | ||||
Total non-current liabilities | 559,222,944 | 42,548,508 | ||||
Total liabilities | 735,944,047 | 163,640,711 | ||||
Shareholders' equity | ||||||
Ordinary shares | 44,171 | 49,796 | ||||
Treasury shares | (103,424,568) | (104,429,322) | ||||
Additional paid-in capital | 1,135,958,943 | 1,213,346,273 | ||||
Accumulated deficit | (635,537,260) | (978,222,226) | ||||
Total Cango Inc.'s equity | 397,041,286 | 130,744,521 | ||||
Total shareholders' equity | 397,041,286 | 130,744,521 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,132,985,333 | 294,385,232 | ||||
CANGO INC. | ||||||||||
For three months ended June 30 | For six months ended June 30 | |||||||||
2025 | 2026 | 2025 | 2026 | |||||||
US$ | US$ | US$ | US$ | |||||||
Revenues | 139,836,585 | 50,780,771 | 283,990,631 | 152,781,755 | ||||||
Bitcoin mining income | 138,125,669 | 47,427,558 | 282,269,981 | 145,871,438 | ||||||
Other revenues | 1,710,916 | 3,353,213 | 1,720,650 | 6,380,443 | ||||||
Other revenues from related parties | - | - | - | 529,874 | ||||||
Operating cost and expenses: | ||||||||||
Cost of revenue (exclusive of depreciation shown below) | 112,786,283 | 50,694,280 | 225,447,985 | 150,273,065 | ||||||
Cost of revenue (depreciation) | 21,849,482 | 16,930,355 | 43,194,326 | 46,302,554 | ||||||
General and administrative | 2,986,487 | 7,788,237 | 13,014,756 | 14,337,583 | ||||||
General and administrative - related parties | - | 647,653 | - | 1,295,306 | ||||||
Provision (Net recovery) for credit losses | 920,228 | (221,528) | 1,209,459 | (1,201,281) | ||||||
Impairment loss from mining machines | 256,856,570 | 42,861,871 | 256,856,570 | 91,900,419 | ||||||
(Gain) Loss on changes in fair value of crypto assets | (78,450,881) | 4,148,957 | (51,715,376) | 155,987,387 | ||||||
Loss on disposal of mining machines | - | 8,546,085 | - | 28,853,297 | ||||||
Total operation cost and expense | 316,948,169 | 131,395,910 | 488,007,720 | 487,748,330 | ||||||
Loss from operations | (177,111,584) | (80,615,139) | (204,017,089) | (334,966,575) | ||||||
Interest income | 696,981 | 11 | 991,173 | 2,145 | ||||||
Interest expense | (2,053,009) | - | (3,363,606) | - | ||||||
Interest expense - related party | - | (597,032) | - | (7,299,899) | ||||||
Foreign exchange (loss) gain, net | 19,702 | 120 | (7,988) | (512) | ||||||
Other income | 114,123 | - | 226,993 | - | ||||||
Other expense | (78,095) | - | (78,095) | - | ||||||
Net loss before income taxes | (178,411,882) | (81,212,040) | (206,248,612) | (342,264,841) | ||||||
Income tax benefit (expenses) | 1,581,658 | (420,125) | 1,150,475 | (420,125) | ||||||
Net loss from continuing operations | (176,830,224) | (81,632,165) | (205,098,137) | (342,684,966) | ||||||
Discontinued operations: | ||||||||||
Loss from discontinued operations | (125,915,027) | - | (129,822,040) | - | ||||||
Income tax expense | (32,646,978) | - | (32,646,978) | - | ||||||
Net loss from discontinued operations | (158,562,005) | - | (162,469,018) | - | ||||||
Net loss attributable to Cango Inc.'s shareholders | (335,392,229) | (81,632,165) | (367,567,155) | (342,684,966) | ||||||
Losses per ordinary share: | ||||||||||
Basic | ||||||||||
Discontinued operations | (7.41) | - | (7.70) | - | ||||||
Continuing operations | (8.26) | (1.99) | (9.73) | (8.91) | ||||||
Basic | (15.67) | (1.99) | (17.43) | (8.91) | ||||||
Diluted | ||||||||||
Discontinued operations | (7.41) | - | (7.70) | - | ||||||
Continuing operations | (8.26) | (1.99) | (9.73) | (8.91) | ||||||
Diluted | (15.67) | (1.99) | (17.43) | (8.91) | ||||||
Weighted average shares used to compute losses per ordinary share: | ||||||||||
Basic | 21,408,969 | 41,021,969 | 21,084,595 | 38,455,840 | ||||||
Diluted | 21,408,969 | 41,021,969 | 21,084,595 | 38,455,840 | ||||||
Other comprehensive income, net of tax | ||||||||||
Release accumulated other comprehensive loss | 44,270,340 | - | 44,270,340 | - | ||||||
Foreign currency translation adjustment | 10,583,883 | - | 5,304,633 | - | ||||||
Total comprehensive loss | (280,538,006) | (81,632,165) | (317,992,182) | (342,684,966) | ||||||
Total comprehensive loss attributable to Cango Inc.'s shareholders | (280,538,006) | (81,632,165) | (317,992,182) | (342,684,966) | ||||||
CANGO INC. | ||||||||
For three months ended June 30 | For six months ended June 30 | |||||||
2025 | 2026 | 2025 | 2026 | |||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
US$ | US$ | US$ | US$ | |||||
Net loss | (335,392,229) | (81,632,165) | (367,567,155) | (342,684,966) | ||||
Less: Discontinued operations: | ||||||||
Loss from discontinued operations | (125,915,027) | - | (129,822,040) | - | ||||
Income tax expense | (32,646,978) | - | (32,646,978) | - | ||||
Loss on discontinued operations | (158,562,005) | - | (162,469,018) | - | ||||
Net loss from continuing operations | (176,830,224) | (81,632,165) | (205,098,137) | (342,684,966) | ||||
Add: Interest expense | 2,053,009 | 597,032 | 3,363,606 | 7,299,899 | ||||
Add: Income tax expenses (benefit) | (1,581,658) | 420,125 | (1,150,475) | 420,125 | ||||
Add: Depreciation | 21,851,200 | 16,930,355 | 43,201,199 | 46,319,358 | ||||
Cost of revenue | 21,849,482 | 16,930,355 | 43,194,326 | 46,302,554 | ||||
General and administrative | 1,718 | - | 6,873 | 16,804 | ||||
Add: Impairment loss from mining machines | 256,856,570 | 42,861,871 | 256,856,570 | 91,900,419 | ||||
Add: Loss on disposal of mining machines | - | 8,546,085 | - | 28,853,297 | ||||
Add: Other expenses | 78,095 | - | 78,095 | |||||
Less: Other income | 114,123 | - | 226,993 | - | ||||
Add: Share-based compensation expenses | 152,674 | 1,553,214 | 3,697,862 | 3,089,509 | ||||
General and administrative | 152,674 | 1,553,214 | 3,697,862 | 3,089,509 | ||||
Non-GAAP adjusted EBITDA | 102,465,543 | (10,723,483) | 100,721,727 | (164,802,359) | ||||
Non-GAAP adjusted EBITDA attributable to Cango Inc.'s shareholders | 102,465,543 | (10,723,483) | 100,721,727 | (164,802,359) | ||||
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SOURCE Cango Inc.