Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F.
On May 19, 2026, Canaan Inc. (the “Company”) issued a press
release announcing the Company’s financial results and business updates for the first quarter ended March 31, 2026.
Exhibit 99.1 to this Form 6-K (excluding the statements set forth under
the section headed “Business Outlook” contained in Exhibit 99.1) is hereby incorporated by reference into the Company’s
Registration Statement on Form F-3 (File No. 333-285125).
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Exhibit 99.1
Canaan Inc. Reports Unaudited First Quarter
2026 Financial Results
Revenue of US$62.7 million was in line with
guidance; cryptocurrency treasury1 reached a record 1,807.60 BTC and 3,951.53 ETH
as of March 31,
2026
Installed mining computing power across 10
joint-mining projects reached approximately 11 EH/s, up 10.7% sequentially; Produced 257 bitcoins in Q1
Strategic energy infrastructure footprint expanded
through the acquisition of 49% interest in ABC Projects in West Texas from Cipher Mining and Nordic hash-to-heat deployment
Singapore, May 19, 2026 /PRNewswire/ -- Canaan
Inc. (NASDAQ: CAN) (“Canaan” or the “Company”), an innovator in crypto mining, today announced its unaudited financial
results for the three months ended March 31, 2026.
First Quarter 2026 Operating and Financial
Highlights
| Metrics |
Q1 2026 |
Market-readable takeaways |
| Total revenue |
US$62.7 million |
In line with guidance |
| Product revenue |
US$42.9 million |
Completed final deliveries under a major U.S. order |
| Mining revenue |
US$19.1 million |
Resilient production despite BTC/hashprice volatility |
| BTC produced |
257 BTC |
Continued mining output |
| Crypto treasury |
1,807.60 BTC / 3,951.53 ETH |
Record high treasury |
| Installed mining computing power |
~11 EH/s |
Up 10.7% QoQ |
| All-in power cost |
~US$0.04/kWh |
Competitive mining cost base |
| G&A expense |
US$15.0 million |
Down 11% QoQ |
| Subsequent customer cash collections |
~US$42 million |
Liquidity improved after quarter-end |
| ABC Projects |
49% interest / ~4.4 EH/s operating hashrate |
West Texas energy-compute footprint |
| Nordic hash-to-heat Project |
8MW planned / 2MW in operation |
Sustainable compute infrastructure use case |
Total revenues were US$62.7 million, which
was in line with the Company’s previous guidance range.
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.
Cryptocurrency treasury expanded to 1,807.60
BTC and 3,951.53 ETH by the end of the first quarter of 2026, with 257 bitcoins produced in the quarter.
Nangeng Zhang, chairman, and chief executive officer
of Canaan, commented, “Q1 2026 was a quarter of disciplined execution and strategic positioning for Canaan. Despite bitcoin price
volatility, compressed hashprice conditions, elevated energy costs, and weather-related disruptions in North America, we delivered total
revenue of US$62.7 million, which was in line with our guidance, completed the final deliveries under a major U.S. customer order, and
continued to advance our global mining deployment. Our installed computing power across ten joint-mining projects reached approximately
11 EH/s, up 10.7% sequentially, and we produced 257 bitcoins during the quarter. At the same time, our cryptocurrency treasury reached
a record level of 1,807.60 BTC and 3,951.53 ETH as of March 31, 2026.”
“We also made important progress in expanding
Canaan’s energy-compute infrastructure footprint. During the quarter, we acquired a 49% interest in the ABC Projects in West Texas
from Cipher Mining, further strengthening our access to large-scale operational power infrastructure, with approximately 4.4 EH/s hashrate
in operation at the project level. In parallel, our Nordic hash-to-heat deployment demonstrated another practical use case for our Avalon
water-cooling technology by converting computing power into usable heat for local communities. These initiatives reflect our strategy
to move closer to power resources, improve deployment flexibility, and build more durable operating advantages across market cycles.”
“As energy access and thermal management
become increasingly important constraints for high-density computing, we believe Canaan is well-positioned at the intersection of ASIC
technology, crypto mining operations, and energy-integrated compute infrastructure. We remain focused on disciplined capital allocation,
operational resilience, and long-term value creation for our shareholders.”
Jin “James” Cheng, chief financial
officer of Canaan, stated, “In Q1 2026, we demonstrated resilient operational execution amid a challenging industry environment.
Total revenues reached US$62.7 million, in line with the guidance we provided in February, despite heightened market uncertainty. As we
completed the final phase of deliveries under our large-scale North American customer order, machine sales generated US$42.9 million in
revenue during the quarter. On the mining side, we generated US$19.1 million in mining revenue despite severe bitcoin price volatility
and weather-related curtailments in North America. Although average bitcoin prices and hashprice declined significantly quarter-over-quarter,
our bitcoin production experienced a comparatively smaller decrease, reflecting the resilience of our mining operations and continued
hashrate deployment. We also maintained relatively stable machine production costs and maintained a competitive all-in power cost of approximately
US$0.04/kWh across our mining operations.”
“During the quarter, we further strengthened
operational efficiency and optimized resource allocation across the organization, resulting in an 11% sequential decline in general and
administrative expenses. Exiting the quarter with a relatively lean inventory position following the completion of our landmark order,
we gain greater flexibility to navigate near-term market uncertainty. We also maintained solid liquidity at the end of Q1 and subsequently
received approximately US$42 million in customer cash collections during Q2. Concurrent with ongoing mining operations and our DAT management,
we grew our cryptocurrency treasury to new all-time highs. As we advance our energy-compute integration strategy, our capital allocation
priorities remain anchored in operational agility, infrastructure scalability, and the disciplined pursuit of long-term, competitively
advantaged energy resources.”
First Quarter 2026 Financial Results
Total revenues in the first quarter of
2026 were US$62.7 million, compared to US$196.3 million in the fourth quarter of 2025 and US$82.8 million in the same period of 2025.
Total revenues consisted of US$42.9 million in products revenue, US$19.1 million in mining revenue and US$0.7 million in other revenues.
Products revenue in the first quarter of
2026 was US$42.9 million, compared to US$164.9 million in the fourth quarter of 2025 and US$58.3 million in the same period of 2025. The
sequential decrease was mainly due to the decreased computing power sold and average selling price, resulting from a tightening of overall
market demand led by the decline in bitcoin price. The year-over-year decrease was mainly due to the decreased computing power sold.
Mining revenue in the first quarter of
2026 was US$19.1 million, compared to US$30.4 million in the fourth quarter of 2025 and US$24.3 million in the same period of 2025. The
sequential and year-over-year decreases were mainly due to the decrease in the average bitcoin price, partially offset by the increase
in energized mining computing power.
Cost of revenues in the first quarter of
2026 was US$85.6 million, compared to US$181.7 million in the fourth quarter of 2025 and US$82.1 million in the same period of 2025.
Products costs in the first quarter of
2026 were US$62.4 million, compared to US$143.6 million in the fourth quarter of 2025 and US$59.2 million in the same period of 2025.
The sequential decrease was consistent with the decrease in computing power sold. The year-over-year increase was mainly due to the increase
in inventory and prepayment write-down and provision for reserve for inventory purchase commitments accrued. The inventory write-down,
prepayment write-down and provision for reserve for inventory purchase commitments accrued for this quarter were US$24.5 million, compared
to the inventory write-down, prepayment write-down and provision for reserve for inventory purchase commitments amounting to US$13.9 million
for the fourth quarter of 2025 and the inventory write-down of US$2.5 million for the same period of 2025. Products costs consist of direct
production costs of mining machines, and indirect costs related to production, as well as inventory write-down, prepayment write-down
and provision for reserve for inventory purchase commitments.
Mining costs in the first quarter of 2026
were US$22.7 million, compared to US$37.0 million in the fourth quarter of 2025 and US$22.9 million in the same period of 2025. Mining
costs herein consist of direct production costs of mining operations, including electricity and hosting, as well as depreciation of deployed
mining machines. The sequential decrease was mainly due to the decrease in depreciation as a result of asset impairment recognized in
the prior quarter and the change in estimated useful life of mining equipment beginning in fiscal year 2026. The year-over-year decrease
was mainly due to the increase in deployed computing power for the Company's mining operations. The depreciation in this quarter for deployed
mining machines was US$5.8 million, compared to US$12.1 million in the fourth quarter of 2025 and US$6.2 million in the same period of
2025.
Gross loss in the first quarter of 2026
was US$22.9 million, compared to a gross profit of US$14.6 million in the fourth quarter of 2025 and a gross profit of US$646 thousand
in the same period of 2025.
Total operating expenses in the first quarter
of 2026 were US$31.4 million, compared to US$38.2 million in the fourth quarter of 2025 and US$38.3 million in the same period of 2025.
Research and development expenses in the first
quarter of 2026 were US$15.4 million, compared to US$11.5 million in the fourth quarter of 2025 and US$18.9 million in the same period
of 2025. The sequential increase was mainly due to an increase of US$4.0 million in research and development expenditure. The year-over-year
decrease was mainly due to a decrease of US$3.6 million in staff cost, a decrease of US$1.1 million in share-based compensation
expenses, partially offset by an increase of US$1.6 million in research and development expenditure. Research and development expenses
in the first quarter of 2026 also included share-based compensation expenses of US$0.7 million.
Sales and marketing expenses in the first quarter
of 2026 were US$1.2 million, compared to US$1.1 million in the fourth quarter of 2025 and US$2.9 million in the same period of 2025. Sales
and marketing expenses remained stable sequentially. The year-over-year decrease was mainly attributable to a decrease of US$1.7 million
in staffing cost. Sales and marketing expenses in the first quarter of 2026 also included share-based compensation expenses of US$43 thousand.
General and administrative expenses in the first
quarter of 2026 were US$15.0 million, compared to US$16.9 million in the fourth quarter of 2025 and US$16.9 million in the same period
of 2025. The sequential decrease was mainly due to a decrease of US$2.1 million in staff cost. The year-over-year decrease was mainly
due to a decrease of US$1.5 million in share-based compensation expenses. General and administrative expenses in the first quarter
of 2026 also included share-based compensation expenses of US$3.8 million.
Loss from operations in the first quarter
of 2026 was US$54.3 million, compared to US$23.6 million in the fourth quarter of 2025 and US$37.6 million in the same period of 2025.
Change in fair value of cryptocurrency and
Change in fair value of financial derivatives in the first quarter of 2026 were a loss of US$24.9 million and a loss of US$16.0
million, respectively, compared to a loss of US$21.5 million and a loss of US$22.8 million in the fourth quarter of 2025, and a loss of
US$2.3 million and a loss of US$14.1 million in the first quarter of 2025, respectively. The losses were mainly due to the decreased bitcoin
price on March 31, 2026, compared to the bitcoin price on December 31, 2025.
Foreign exchange losses, net in the first
quarter of 2026 were US$4.0 million, compared to a loss of US$2.9 million in the fourth quarter of 2025 and a gain of US$0.8 million in
the same period of 2025, respectively.
Loss before income tax expense in the
first quarter of 2026 was US$88.8 million, compared to US$84.2 million in the fourth quarter of 2025 and US$85.7 million in
the same period of 2025.
Equity in gains of equity investees in
the first quarter of 2026 was US$0.2 million, compared to nil in the fourth quarter of 2025 and nil in the same period of 2025.
Net loss in the first quarter of 2026 was
US$88.7 million, compared to US$85.0 million in the fourth quarter of 2025 and US$86.4 million in the same period of 2025.
Non-GAAP adjusted EBITDA in the first quarter
of 2026 was a loss of US$76.3 million, as compared to a loss of US$40.5 million in the fourth quarter of 2025 and a loss of US$38.1 million
in the same period of 2025. For further information, please refer to "Use of Non-GAAP Financial Measures" in this press release.
Foreign currency translation adjustment, net
of nil tax, in the first quarter of 2026 was a gain of US$5.2 million, compared to a gain of US$1.1 million in the fourth quarter
of 2025 and a loss of US$1.1 million in the same period of 2025, respectively.
Basic and diluted net loss per American depositary
share (“ADS”) in the first quarter of 2026 were US$0.13. In comparison, basic and diluted net loss per ADS in the fourth
quarter of 2025 were US$0.13, while basic and diluted net loss per ADS in the same period of 2025 were US$0.27. Each ADS represents 15
of the Company's Class A ordinary shares.
As of March 31, 2026, the Company held Cryptocurrency
assets with a fair value of US$66.2 million and Cryptocurrency receivable with an aggregate fair value
of US$67.0 million, respectively. Cryptocurrency assets primarily consist of 802.6 bitcoins owned by the Company and 63.4
bitcoins received as customer deposits. Cryptocurrency receivable consists of 905.0 bitcoins pledged for secured term loans
and 100.0 bitcoins transferred to a fixed-term product. The classification of cryptocurrency receivable as current assets is
consistent with the corresponding secured term loans. As of March 31, 2026, the Company held a total of 1,871.0 bitcoins.
As of March 31, 2026, the Company had cash
of US$43.5 million, compared to US$80.8 million as of December 31, 2025. The Company has subsequently received approximately
US$42 million in customer cash collections in April 2026.
Accounts receivable, net as of March 31,
2026, were US$51.6 million, compared to US$19.3 million as of December 31, 2025. Accounts receivable were mainly due to an installment
policy implemented for some major customers who meet certain conditions. The Company subsequently collected approximately US$42 million
in cash from Accounts receivable in April 2026.
Investment in equity investees as of March 31,
2026, was US$14.1 million. The Company uses the equity method of accounting to account for its 49% equity interest in Alborz LLC, Bear
LLC, and Chief Mountain LLC (collectively, the “ABC Projects”). Please refer to “Recent Developments - Acquired
Cipher Mining's 49% Interest in ABC Projects Totaling ~4.4 EH/s in West Texas”.
ADSs Outstanding
As of March 31, 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
Secured Nordic Hash-to-Heat Project
On May 19, 2026, Canaan Inc. announced that
it had been selected through a competitive bid process to provide hash-to-heat infrastructure for a district heating network in the Nordic
region. The project utilizes the Company’s Avalon A1566HA hydro-cooled mining units with a total planned deployment capacity of
approximately 8 MW. Approximately 2 MW of capacity is currently operating in the region and supplying hot water to local residents, and
based on the successful initial deployment, the customer placed a follow-on order in March 2026 for an additional 6 MW of capacity.
The Company believes the project further validates its capabilities in hydro-cooling, thermal management and energy-integrated compute
infrastructure, while demonstrating the potential for scalable “hash-to-heat” applications in next-generation sustainable
energy systems.
Acquired Cipher Mining's 49% Interest in
ABC Projects Totaling ~4.4 EH/s in West Texas
On February 19, 2026, the Company acquired
Cipher Mining Inc.'s (NASDAQ: CIFR) (“Cipher”) 49% equity interest in ABC Projects in West Texas, totaling approximately 4.4
EH/s of operational hashrate capacity. The transaction was completed through a non-cash equity issuance, making Cipher a significant shareholder
of the Company. The transaction also includes the purchase of 6,840 Avalon® A15Pro mining machines, which further expands the Company's
self-mining scale and U.S. power infrastructure footprint. The ABC Projects bring significant experience in demand response and energy
arbitrage within the Electrical Reliability Council of Texas (“ERCOT”) grid, reinforcing the Company's strategy to enhance
grid stabilization and operational flexibility amid rising data center demand.
The Share Repurchase Program
On December 17, 2025, the Company announced
that its board of directors approved the renewal of a share repurchase program authorizing the buyback of up to US$30 million worth of
its outstanding ADSs, or Class A ordinary shares, over the next 12 months starting December 12, 2025. Repurchases may be conducted
through open-market, privately negotiated transactions, block trades, or any combination thereof, subject to market conditions and regulatory
requirements.
As of May 19, 2026, the Company had repurchased
approximately 2.8 million ADSs in a total consideration of US$2.0 million under the program.
Business Outlook
For the second quarter of 2026, the Company expects
total revenues to be in the range of US$35 million to US$45 million, reflecting the near-term market conditions and evolving customer
dynamics, which are subject to change.
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 May 19, 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. First Quarter 2026 Earnings Conference Call |
| Registration
Link: |
https://register-conf.media-server.com/register/BI1f5e37bc999743bf93cfa539bc6a031c |
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
Public Relations 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 March 31, | |
| | |
2025 | | |
2026 | |
| | |
USD | | |
USD | |
| ASSETS | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash | |
| 80,778 | | |
| 43,451 | |
| Accounts receivable, net | |
| 19,290 | | |
| 51,560 | |
| Inventories | |
| 180,816 | | |
| 139,078 | |
| Prepayments and other current assets | |
| 99,707 | | |
| 94,808 | |
| Cryptocurrency receivable, current | |
| 52,699 | | |
| 27,004 | |
| Total current assets | |
| 433,290 | | |
| 355,901 | |
| Non-current assets: | |
| | | |
| | |
| Cryptocurrency | |
| 83,339 | | |
| 66,236 | |
| Cryptocurrency receivable, non-current | |
| 35,133 | | |
| 40,006 | |
| Investment in equity investees | |
| - | | |
| 14,056 | |
| Property, equipment and software, net | |
| 44,028 | | |
| 51,037 | |
| Intangible asset | |
| 689 | | |
| 636 | |
| Operating lease right-of-use assets | |
| 2,880 | | |
| 2,492 | |
| Deferred tax assets | |
| 191 | | |
| 194 | |
| Other non-current assets | |
| 489 | | |
| 496 | |
| Non-current financial investment | |
| 2,845 | | |
| 1,000 | |
| Total non-current assets | |
| 169,594 | | |
| 176,153 | |
| Total assets | |
| 602,884 | | |
| 532,054 | |
| LIABILITIES, AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Current portion of long-term loans | |
| 28,515 | | |
| 21,140 | |
| Accounts payable | |
| 25,600 | | |
| 20,417 | |
| Contract liabilities | |
| 9,317 | | |
| 7,739 | |
| Income tax payable | |
| 11,403 | | |
| 11,591 | |
| Accrued liabilities and other current liabilities | |
| 54,548 | | |
| 44,131 | |
| Operating lease liabilities, current | |
| 1,706 | | |
| 1,397 | |
| Total current liabilities | |
| 131,089 | | |
| 106,415 | |
| Non-current liabilities: | |
| | | |
| | |
| Long-term loans | |
| 23,731 | | |
| 33,373 | |
| Operating lease liabilities, non-current | |
| 948 | | |
| 642 | |
| Deferred tax liability | |
| 117 | | |
| 108 | |
| Other non-current liabilities | |
| 9,631 | | |
| 9,585 | |
| Total liabilities | |
| 165,516 | | |
| 150,123 | |
| Shareholders’ equity: | |
| | | |
| | |
| Class A Ordinary shares (US$0.00000005 par value; 999,643,050,556 authorized, 10,431,482,973 and 11,237,922,873 shares issued, 9,703,445,043 and 10,522,925,163 shares outstanding as of December 31, 2025 and March 31, 2026, respectively) | |
| 1 | | |
| 1 | |
| Class B Ordinary shares (US$0.00000005 par value; 356,624,444 shares authorized, 311,624,444 shares issued and outstanding as of December 31, 2025 and March 31, 2026) | |
| - | | |
| - | |
| Treasury stocks (US$0.00000005 par value; 366,981,615 and 376,884,825 shares as of December 31, 2025 and March 31, 2026, respectively) | |
| (37,172 | ) | |
| (34,566 | ) |
| Additional paid-in capital | |
| 1,177,057 | | |
| 1,202,580 | |
| Statutory reserves | |
| 14,892 | | |
| 14,892 | |
| Accumulated other comprehensive loss | |
| (56,653 | ) | |
| (51,471 | ) |
| Accumulated deficit | |
| (660,757 | ) | |
| (749,505 | ) |
| Total shareholders’ equity | |
| 437,368 | | |
| 381,931 | |
| Total liabilities and shareholders’ equity | |
| 602,884 | | |
| 532,054 | |
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 |
|
| |
|
March 31,
2025 |
|
|
December 31,
2025 |
|
|
March 31,
2026 |
|
| |
|
USD |
|
|
USD |
|
|
USD |
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| Products revenue |
|
|
58,322 |
|
|
|
164,929 |
|
|
|
42,863 |
|
| Mining revenue |
|
|
24,254 |
|
|
|
30,358 |
|
|
|
19,124 |
|
| Other revenues |
|
|
200 |
|
|
|
987 |
|
|
|
706 |
|
| Total revenues |
|
|
82,776 |
|
|
|
196,274 |
|
|
|
62,693 |
|
| Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| Product cost |
|
|
(59,190 |
) |
|
|
(143,562 |
) |
|
|
(62,365 |
) |
| Mining cost |
|
|
(22,940 |
) |
|
|
(37,020 |
) |
|
|
(22,677 |
) |
| Other cost |
|
|
- |
|
|
|
(1,109 |
) |
|
|
(557 |
) |
| Total cost of revenues |
|
|
(82,130 |
) |
|
|
(181,691 |
) |
|
|
(85,599 |
) |
| Gross profit (loss) |
|
|
646 |
|
|
|
14,583 |
|
|
|
(22,906 |
) |
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development expenses |
|
|
(18,947 |
) |
|
|
(11,456 |
) |
|
|
(15,390 |
) |
| Sales and marketing expenses |
|
|
(2,936 |
) |
|
|
(1,103 |
) |
|
|
(1,195 |
) |
| General and administrative expenses |
|
|
(16,908 |
) |
|
|
(16,868 |
) |
|
|
(15,020 |
) |
| Impairment on property and equipment |
|
|
- |
|
|
|
(8,973 |
) |
|
|
- |
|
| Gain on disposal of property, equipment and software |
|
|
516 |
|
|
|
197 |
|
|
|
197 |
|
| Total operating expenses |
|
|
(38,275 |
) |
|
|
(38,203 |
) |
|
|
(31,408 |
) |
| Loss from operations |
|
|
(37,629 |
) |
|
|
(23,620 |
) |
|
|
(54,314 |
) |
| Interest income |
|
|
57 |
|
|
|
39 |
|
|
|
150 |
|
| Interest expense |
|
|
(351 |
) |
|
|
(827 |
) |
|
|
(929 |
) |
| Change in fair value of cryptocurrency |
|
|
(2,264 |
) |
|
|
(21,457 |
) |
|
|
(24,913 |
) |
| Change in fair value of financial instruments other than derivatives |
|
|
(4,392 |
) |
|
|
(15,249 |
) |
|
|
- |
|
| Change in fair value of financial derivatives |
|
|
(14,055 |
) |
|
|
(22,799 |
) |
|
|
(15,974 |
) |
| Excess of fair value of convertible preferred shares |
|
|
(28,179 |
) |
|
|
- |
|
|
|
- |
|
| Foreign exchange gains (losses), net |
|
|
835 |
|
|
|
(2,890 |
) |
|
|
(3,997 |
) |
| Other income, net |
|
|
252 |
|
|
|
2,573 |
|
|
|
11,198 |
|
| Loss before income tax expenses |
|
|
(85,726 |
) |
|
|
(84,230 |
) |
|
|
(88,779 |
) |
| Income tax expense |
|
|
(705 |
) |
|
|
(805 |
) |
|
|
(190 |
) |
| Equity in gains of equity investees |
|
|
- |
|
|
|
- |
|
|
|
221 |
|
| Net loss |
|
|
(86,431 |
) |
|
|
(85,035 |
) |
|
|
(88,748 |
) |
| Foreign currency translation adjustment, net of nil tax |
|
|
(1,057 |
) |
|
|
1,133 |
|
|
|
5,182 |
|
| Total comprehensive loss |
|
|
(87,488 |
) |
|
|
(83,902 |
) |
|
|
(83,566 |
) |
| Weighted average number of shares used in per share calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
| — Basic |
|
|
4,817,919,054 |
|
|
|
9,517,488,550 |
|
|
|
10,371,318,890 |
|
| — Diluted |
|
|
4,817,919,054 |
|
|
|
9,517,488,550 |
|
|
|
10,371,318,890 |
|
| Net loss per share (cent per share) |
|
|
|
|
|
|
|
|
|
|
|
|
| — Basic |
|
|
(1.79 |
) |
|
|
(0.89 |
) |
|
|
(0.86 |
) |
| — Diluted |
|
|
(1.79 |
) |
|
|
(0.89 |
) |
|
|
(0.86 |
) |
| Share-based compensation expenses were included in: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenues |
|
|
76 |
|
|
|
92 |
|
|
|
89 |
|
| Research and development expenses |
|
|
1,770 |
|
|
|
535 |
|
|
|
668 |
|
| Sales and marketing expenses |
|
|
53 |
|
|
|
67 |
|
|
|
43 |
|
| General and administrative expenses |
|
|
5,316 |
|
|
|
3,586 |
|
|
|
3,815 |
|
The table below sets forth a reconciliation of
net loss to non-GAAP adjusted EBITDA for the period indicated:
| | |
For the Three Months Ended | |
| | |
March 31,
2025 | | |
December 31,
2025 | | |
March 31,
2026 | |
| | |
USD | | |
USD | | |
USD | |
| Net loss | |
| (86,431 | ) | |
| (85,035 | ) | |
| (88,748 | ) |
| Income tax expense | |
| 705 | | |
| 805 | | |
| 190 | |
| Interest income | |
| (57 | ) | |
| (39 | ) | |
| (150 | ) |
| Interest expense | |
| 351 | | |
| 827 | | |
| 929 | |
| EBIT | |
| (85,432 | ) | |
| (83,442 | ) | |
| (87,779 | ) |
| Depreciation and amortization expenses | |
| 7,513 | | |
| 14,424 | | |
| 6,816 | |
| EBITDA | |
| (77,919 | ) | |
| (69,018 | ) | |
| (80,963 | ) |
| Share-based compensation expenses | |
| 7,215 | | |
| 4,280 | | |
| 4,615 | |
| Impairment on property, equipment and software | |
| - | | |
| 8,973 | | |
| - | |
| Change in fair value of financial instruments other than derivatives | |
| 4,392 | | |
| 15,249 | | |
| - | |
| Excess of fair value of convertible preferred shares | |
| 28,179 | | |
| - | | |
| - | |
| Non-GAAP adjusted EBITDA | |
| (38,133 | ) | |
| (40,516 | ) | |
| (76,348 | ) |
