Canaan Inc. (CAN): Financial results for Q3 2026
Canaan Inc. (CAN) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Canaan Inc. Reports Unaudited Third Quarter 2026 Financial Results Received conditional “Studied Load – Firm” classification under ERCOT’s Batch Zero process for 1 GW Duval County power project Advanced second 1 GW Texas power project, expanding development pipeline
Facts are quoted from the filing text and checked against it. Details that could not be matched to the text are left out.
How this was made
The 30-second read
Why it matters
The earnings release provides fresh guidance on profitability and capital allocation, which may attract short‑term buying interest and support the share price.
Market read
First‑report earnings for a microcap crypto miner; could set tone for similar firms.
What to watch
High exposure to Bitcoin price volatility and large capital commitments to power projects could limit upside.
Canaan Q3 2026 revenue of US$14.5 million; GAAP net income of US$8.0 million came from non-operating fair value gains; Q4 2026 revenue guided to US$18 million to US$22 million
Total revenues were US$14.5 million against US$150.5 million in Q3 2025, the gross result was a loss of US$8.6 million, and the loss from operations was US$42.9 million. The GAAP net income of US$8.0 million rests on a US$20.1 million gain on cryptocurrency and a US$31.9 million gain on financial derivatives, and the CFO states that the non-cash gain is distinct from underlying operating performance. Non-GAAP adjusted EBITDA of US$22.4 million is also positive only because of those fair value gains.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q3 2026GAAP | $14.5M | – | – |
| Products revenue, Q3 2026GAAP | $4.8M | – | – |
| Mining revenue, Q3 2026GAAP | $9.5M | – | – |
| Other revenues, Q3 2026GAAP | $261K | – | – |
| Total cost of revenues, Q3 2026GAAP | $23.2M | – | – |
| Products cost, Q3 2026GAAP | $13.6M | – | – |
| Mining cost, Q3 2026 (includes depreciation of deployed mining machines)GAAP | $9.3M | – | – |
| Inventory write-down, prepayment write-down and provision for reserve for inventory purchase commitments, Q3 2026GAAP | $8.2M | – | – |
| Depreciation of deployed mining machines, Q3 2026GAAP | $2.7M | – | – |
| Gross profit (loss), Q3 2026 (release describes a gross loss)GAAP | −$8.63M | – | – |
| Research and development expenses, Q3 2026GAAP | $13.1M | – | – |
| Sales and marketing expenses, Q3 2026GAAP | $1.9M | – | – |
| General and administrative expenses, Q3 2026GAAP | $14.1M | – | – |
| Total operating expenses, Q3 2026GAAP | $34.2M | – | – |
| Impairment on property, equipment and software, Q3 2026GAAP | $5.7M | – | – |
| Gain on disposal of property, equipment and software, Q3 2026GAAP | $535K | – | – |
| Loss from operations, Q3 2026GAAP | $42.9M | – | – |
| Interest expense, net, Q3 2026GAAP | −$740K | – | – |
| Change in fair value of cryptocurrency, Q3 2026GAAP | $20.08M | – | – |
| Change in fair value of financial derivatives, Q3 2026GAAP | $31.85M | – | – |
| Foreign exchange losses, net, Q3 2026GAAP | −$2.00M | – | – |
| Income (loss) before income tax expense, Q3 2026GAAP | $6.41M | – | – |
| Income tax expense, Q3 2026GAAP | −$92K | – | – |
| Equity in gains (losses) of equity investees, Q3 2026GAAP | $1.64M | – | – |
| Net income (loss), Q3 2026GAAP | $7.96M | – | – |
| Foreign currency translation adjustment, net of nil tax, Q3 2026GAAP | $2.23M | – | – |
| Total comprehensive income (loss), Q3 2026GAAP | $10.19M | – | – |
| Basic and diluted net income (loss) per ADS, Q3 2026 (income; prior periods are net losses)GAAP | US$0.01 | – | – |
| Basic and diluted net income (loss) per share, Q3 2026 (cent per share)GAAP | 0.07 | – | – |
| Non-GAAP adjusted EBITDA, Q3 2026non-GAAP | $22.45M | – | – |
| Bitcoin produced, Q3 2026other | 133 BTC | – | – |
| Mining equipment computing power sold, Q3 2026other | 1.0 million TH/s | – | – |
| Installed mining computing power (Non-JV), as of Q3 2026other | Approximately 10 EH/s | – | – |
| All-in power cost, Q3 2026other | Approximately US$0.043/kWh | – | – |
| Mining gross margin before depreciation, Q3 2026 (as stated by the CFO)other | Approximately 30% | – | – |
| Crypto treasury (bitcoin held), as of September 30, 2026other | Approximately 1,875 BTC | – | – |
| Cash distributions to Canaan from Project ABC (49% interest; 4.87 EH/s installed hashrate), Q3 2026other | Over US$1.2 million | – | – |
| Cash and restricted cash, as of September 30, 2026GAAP | $72.8M | – | – |
| Total assets, as of September 30, 2026GAAP | $468.9M | – | – |
| Total shareholders' equity, as of September 30, 2026GAAP | $301.4M | – | – |
| Total revenues guidance, Q4 2026other | US$18 million to US$22 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Products revenueCompany states the sequential and year-over-year decreases were mainly due to decreased computing power sold and average selling price, resulting from weaker overall market demand. | $4.8M | – | – |
| Mining revenueCompany states the sequential decrease was mainly due to decrease in energized computing power, and the year-over-year decrease was mainly due to decrease in average bitcoin price and energized computing power. | $9.5M | – | – |
| Other revenuesNo driver is given in the release for other revenues. | $300K | – | – |
Q4 2026 outlook
- RevenueUS$18 million to US$22 million
- NoteCompany expects total revenues in the range of US$18 million to US$22 million, reflecting near-term market conditions and evolving customer dynamics, which are subject to change.
- NoteCompany may revise or update its outlook as appropriate, based on future clarity and business visibility.
Capital returns
- On November 6, 2026, the board approved a share repurchase authorization of up to US$100 million over a 12-month period from November 6, 2026.
- Under this authorization the company is launching an initial share repurchase program of up to US$20 million of its outstanding ADSs or Class A ordinary shares.
- The company states that repurchases may be made through open-market transactions, privately negotiated transactions or other legally permissible means, subject to market conditions and capital allocation priorities.
- The company states it intends to pursue share repurchases more actively as additional funds become available, while ensuring sufficient liquidity for ongoing operations and committed projects.
- The company plans a change in ADS ratio from one ADS representing 15 Class A ordinary shares to one ADS representing 375 Class A ordinary shares (1-for-25 reverse ADS split), anticipated to be effective on or about December 4, 2026 (U.S. Eastern Time), intended to support regaining compliance with Nasdaq's minimum bid price requirement.
- No dividend payments are reported in the documents.
What drove it
- Company states that products revenue decreased sequentially and year over year mainly due to decreased computing power sold and average selling price, resulting from weaker overall market demand.
- Company states that the mining revenue decline was mainly due to decreased energized computing power sequentially, and due to lower average bitcoin price and energized computing power year over year.
- Company states that the cost of revenues decline was consistent with the decrease in computing power sold.
- Company states that the sequential R&D decrease was mainly due to a US$1.6 million decrease in staff costs, and the year-over-year R&D decrease was mainly due to a US$5.5 million decrease in staff costs, partially offset by a US$3.5 million increase in research and development expenditure.
- Company states that the sequential G&A decrease was mainly due to a US$2.8 million decrease in credit loss expenses, partially offset by a US$1.2 million increase in professional service fees and a US$0.5 million increase in staff costs.
- Company states that the gains on cryptocurrency and derivatives were mainly due to the increased bitcoin price on September 30, 2026 compared with June 30, 2026.
- Company states that the inventory-related write-downs were limited to approximately US$8.2 million in Q3 2026, down from US$25.3 million in Q2 2026, by aligning production with actual orders and managing existing stock.
- Company states that the US$51.9 million fair value gain on cryptocurrency holdings contributed to GAAP net income of US$8.0 million, and the CFO states that this non-cash gain is distinct from underlying operating performance.
Concerns
- Total revenues were US$14.5 million, down from US$150.5 million in Q3 2025 and US$31.9 million in Q2 2026.
- Gross loss was US$(8,628) thousand in Q3 2026, and the loss from operations was US$42.9 million.
- GAAP net income of US$7,960 thousand depends on non-operating items: change in fair value of cryptocurrency of US$20,084 thousand and change in fair value of financial derivatives of US$31,854 thousand.
- Impairment on property, equipment and software was US$5.7 million in Q3 2026, after US$9.2 million in Q2 2026.
- Current portion of long-term loans rose to US$60,125 thousand from US$28,515 thousand at December 31, 2025.
- Company has sold bitcoin holdings to fund share repurchases, stating a more flexible capital allocation approach, which reduces the crypto treasury.
- The release states the company is pursuing a 1-for-25 reverse ADS split to regain compliance with Nasdaq's minimum bid price requirement.
What to watch
- Delivery against the Q4 2026 total revenues range of US$18 million to US$22 million, against Q3 2026 revenue of US$14.5 million.
- Whether the mining gross margin of approximately 30% before depreciation holds as computing power sold and energized computing power change.
- Whether the inventory write-downs and prepayment write-downs continue at the Q3 2026 level of US$8.2 million.
- Status of the conditional 'Studied Load - Firm' classification under ERCOT's Batch Zero process for the Duval County 1 GW project, which is subject to further studies and approvals.
- Execution of the Zapata County 1 GW project, described as in early-stage development.
- Pace of the US$20 million share repurchase program under the US$100 million authorization, and the timing and effect of the planned 1-for-25 ADS ratio change on or about December 4, 2026.
- Bitcoin price, given that the fair value gains on cryptocurrency and derivatives depend on it and the company attributes the Q3 gains to the bitcoin price at September 30, 2026.
- Repayment or refinancing of the current portion of long-term loans of US$60,125 thousand and the secured term loans collateralized by bitcoin.
Balance sheet and cash flow
- Cash and restricted cash totaled US$72.8 million as of September 30, 2026, compared to US$80.8 million as of December 31, 2025.
- Balance sheet at September 30, 2026: cash US$22,806 thousand and restricted cash US$50,000 thousand, compared with cash US$80,778 thousand and no restricted cash at December 31, 2025.
- During Q3 2026 the company provided US$50 million in restricted cash as collateral for a letter of credit supporting certain long-term infrastructure-related contractual arrangements, as stated by the CFO.
- Project prepayments of approximately US$3.3 million were made during Q3 2026, as stated by the CFO.
- In October 2026 the company completed a power-related land purchase in the United States for approximately US$1.1 million.
- Inventories were US$119,101 thousand at September 30, 2026, compared with US$180,816 thousand at December 31, 2025.
- Current portion of long-term loans was US$60,125 thousand at September 30, 2026, compared with US$28,515 thousand at December 31, 2025. Long-term loans were US$8,266 thousand, compared with US$23,731 thousand at December 31, 2025.
- Cryptocurrency assets had a fair value of US$43.7 million and cryptocurrency receivable had an aggregate fair value of US$114.2 million as of September 30, 2026. Cryptocurrency receivable includes 1,258 bitcoins pledged for secured term loans and 100 bitcoins transferred to a fixed-term product.
- Total liabilities were US$167,462 thousand at September 30, 2026. Investment in equity investees was US$11.9 million.
- Operating cash flow and free cash flow are not reported in the documents. The cash flow statement is not included.
Analysis
Canaan reported Q3 2026 total revenues of US$14.5 million, against US$31.9 million in Q2 2026 and US$150.5 million in Q3 2025. Products revenue was US$4.8 million, mining revenue US$9.5 million and other revenues US$261 thousand. The company attributes the products decline to decreased computing power sold and average selling price from weaker overall market demand, and the mining decline to lower energized computing power and, year over year, a lower average bitcoin price. The release states that revenue was near the upper end of the company's guidance range, but the range itself is not in the documents provided.
The cost structure shows the scale problem. Cost of revenues was US$23.2 million, which produced a gross loss of US$(8,628) thousand. Products cost was US$13.6 million, including inventory and prepayment write-downs and reserve provisions of US$8.2 million, against US$25.3 million in Q2 2026. Mining cost was US$9.3 million, including depreciation of US$2.7 million. The CFO states that mining operations achieved a gross margin of approximately 30% before depreciation. Operating expenses were US$34.2 million, led by G&A of US$14.1 million and R&D of US$13.1 million, and impairments of US$5.7 million. The loss from operations was US$42.9 million, compared with US$23.9 million a year earlier.
Below operations, fair value changes turned the result positive. The change in fair value of cryptocurrency was US$20,084 thousand and the change in fair value of financial derivatives was US$31,854 thousand, both gains that the company attributes to the higher bitcoin price on September 30, 2026 compared with June 30, 2026. Income before income tax was US$6,414 thousand and GAAP net income was US$7,960 thousand, against net losses of US$97,607 thousand in Q2 2026 and US$27,743 thousand in Q3 2025. Non-GAAP adjusted EBITDA was US$22,445 thousand, which is built from the same net income figure and therefore also includes these gains. The CFO explicitly says the non-cash gain is distinct from underlying operating performance, and the operating line above shows the underlying result.
On capital allocation, the company held cash and restricted cash of US$72.8 million at September 30, 2026, down from US$80.8 million at December 31, 2025. It provided US$50 million of restricted cash as collateral for a letter of credit, made project prepayments of about US$3.3 million, and bought land for about US$1.1 million in October. Current portion of long-term loans rose to US$60,125 thousand from US$28,515 thousand. Against this, the board approved up to US$100 million of buybacks over 12 months, and an initial US$20 million program was launched. The company also says it has been monetizing crypto holdings to fund repurchases. Total assets were US$468,895 thousand and shareholders' equity US$301,433 thousand at September 30, 2026. The release does not include a cash flow statement, so operating and free cash flow cannot be read from the documents.
The guide is US$18 million to US$22 million of Q4 2026 revenue, which the company says reflects near-term market conditions and evolving customer dynamics. The company may revise it. The release also reports progress on power infrastructure: a conditional Studied Load - Firm classification for the 1 GW Duval County project under ERCOT Batch Zero, and an early-stage 1 GW Zapata County project. Those items are described as subject to further studies and approvals, and no financial contribution from them is given in the documents.
Management, verbatim
Despite continued weakness in bitcoin mining equipment demand and intense industry pricing competition, we delivered US$14.5 million in Q3 revenue, near the upper end of our guidance range.
Nangeng Zhang, Chairman and Chief Executive Officer
We recognize that this non-cash gain is distinct from underlying operating performance.
Jin 'James' Cheng, Chief Financial Officer
Not in the filing
stated, not guessed- Prior guidance: no previous outlook was provided, so guidance comparison and the statement that revenue was near the upper end of the range cannot be checked against the range.
- Year-over-year and quarter-over-quarter percentage changes are not printed for any metric; all change fields are null.
- Gross margin percentage on a GAAP basis is not printed.
- Prior-year inventory write-down comparable: the release gives US$1.3 million as an inventory write-down for Q3 2025, but not the same combined line (inventory write-down, prepayment write-down and reserve provision), so prior_year is null.
- Prior-year gain on disposal of property, equipment and software is shown as a dash in the table, so prior_year is null.
- Prior-year equity in equity investees is described as nil in the text, so prior_year is null.
- Operating cash flow, investing cash flow, financing cash flow and free cash flow are not reported.
- Total assets and shareholders' equity comparisons at December 31, 2025 are printed on the balance sheet but are not the prior-year same period, so prior fields are null; the figures are cited in balance_sheet_cash_flow.
- Energized computing power in EH/s for Q2 2026 and Q3 2026 is not printed.
- Bitcoin produced in prior periods, average bitcoin price and average selling price are not printed as figures.
- Quarter-end cryptocurrency and receivable fair values for prior periods are not printed in this release.
- Nine-month or year-to-date figures are not printed.
- Share price reaction, analyst consensus and price targets are not in the documents.
- Q4 2026 gross margin, operating expense and tax rate guidance are not provided.
- Pricing of the share repurchase program and amount repurchased to date are not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Canaan Inc. is a NASDAQ-listed provider of Bitcoin mining hardware and energy infrastructure, reporting a sharp revenue decline year‑over‑year but maintaining profitability.
Ticker impact
Canaan Inc. filed its unaudited Q3 2026 earnings, reporting $8.0M GAAP net income, $22.4M adjusted EBITDA, and a new $20M share repurchase program.
likely modest upside as investors price the earnings beat and share repurchase.
The primary disclosure of earnings and buyback provides fresh material; market typically reacts positively to unexpected profitability and capital return signals.
Market effects
Positive for crypto mining and energy infrastructure sectors as Canaan shows profitability despite weak demand.
Limited to U.S. and NASDAQ-listed microcaps; may influence other mining equipment makers.
Modest, primarily affecting niche crypto mining hardware market.
Counterpoint
The earnings beat may be temporary; ongoing demand weakness and inventory write-down risk could pressure the stock.
Key entities
- companyCanaan Inc.
NASDAQ-listed crypto mining hardware manufacturer.
