Q2 FY2026
Filed Sep 8, 2026Canaan Inc. Reports Unaudited Second Quarter 2026 Financial Results
Total revenues declined to US$31.9 million, gross loss widened to US$29.3 million, and net loss increased to US$97.6 million amid softer mining-rig demand, lower bitcoin prices, seasonal curtailments, inventory-related charges, impairment, and fair-value losses.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | US$31.9 million | – | – |
| Product revenueGAAP | US$13.6 million | – | – |
| Mining revenueGAAP | US$17.7 million | – | – |
| Other revenuesGAAP | US$0.6 million | – | – |
| Total cost of revenuesGAAP | US$61.2 million | – | – |
| Product costGAAP | US$40.3 million | – | – |
| Mining costGAAP | US$20.4 million | – | – |
| Other costGAAP | US$0.5 million | – | – |
| Inventory write-down, prepayment write-down, and provision for reserve for inventory purchase commitmentsGAAP | US$25.3 million | – | – |
| Depreciation for deployed mining machinesGAAP | US$6.3 million | – | – |
| Gross lossGAAP | US$29.3 million | – | – |
| Research and development expensesGAAP | US$14.9 million | – | – |
| Sales and marketing expensesGAAP | US$1.9 million | – | – |
| General and administrative expensesGAAP | US$15.1 million | – | – |
| Impairment on property, equipment and softwareGAAP | US$9.2 million | – | – |
| Gain on disposal of property, equipment and softwareGAAP | US$0.9 million | – | – |
| Total operating expensesGAAP | US$40.1 million | – | – |
| Loss from operationsGAAP | US$69.5 million | – | – |
| Interest expense, netGAAP | US$0.5 million | – | – |
| Change in fair value of cryptocurrencyGAAP | US$9.3 million loss | – | – |
| Change in fair value of financial derivativesGAAP | US$8.9 million loss | – | – |
| Foreign exchange gains (losses), netGAAP | US$3.0 million loss | – | – |
| Other income (loss), netGAAP | US$1.0 million loss | – | – |
| Loss before income tax expensesGAAP | US$92.2 million | – | – |
| Income tax expenseGAAP | US$1.3 million | – | – |
| Equity in gains (losses) of equity investeesGAAP | US$4.1 million loss | – | – |
| Net lossGAAP | US$97.6 million | – | – |
| Foreign currency translation adjustment, net of nil taxGAAP | US$3.8 million gain | – | – |
| Total comprehensive lossGAAP | US$93.8 million | – | – |
| Basic net loss per ADSGAAP | US$0.13 | – | – |
| Diluted net loss per ADSGAAP | US$0.13 | – | – |
| Basic net loss per shareGAAP | (0.90 ) cent per share | – | – |
| Diluted net loss per shareGAAP | (0.90 ) cent per share | – | – |
| Depreciation and amortization expensesGAAP | US$7.2 million | – | – |
| Share-based compensation expensesGAAP | US$4.5 million | – | – |
| Non-GAAP adjusted EBITDAnon-GAAP | US$74.9 million loss | – | – |
| BTC producedother | 243 BTC | – | – |
| Crypto treasuryother | 1,915.50 BTC / 3,951.70 ETH | – | – |
| Installed mining computing power (Non-JV)other | 10.05 EH/s | – | Up 23.3% YoY |
| All-in power costother | ~US$0.043 /kWh | – | – |
| ABC Projects interest / installed hashrate by the end of July 2026other | 49% interest / 4.85 EH/s installed hashrate | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ProductsThe sequential and year-over-year decreases were 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 the bitcoin price. | US$13.6 million | – | – |
| MiningThe sequential and year-over-year decreases were mainly due to the decrease in the average bitcoin price. | US$17.7 million | – | – |
| OtherNo driver was provided. | US$0.6 million | – | – |
third quarter of 2026 outlook
- RevenueUS$11 million to US$15 million
Capital returns
- The Share Repurchase Program authorizes the repurchase of up to US$30 million of outstanding ADSs or Class A ordinary shares over a 12-month period beginning December 12, 2025.
- In late August, the Company sold 3,952 ETH and 54 Bitcoins, generating approximately US$13.9 million in cash, a portion of which was used for share repurchases.
- The Company repurchased approximately 2.8 million ADSs for about US$2.0 million in the first half of 2026 and an additional 13.6 million ADSs for approximately US$5.4 million in late August.
- As of September 8, 2026, the Company had repurchased approximately 16.4 million ADSs for a total consideration of US$7.4 million under the Share Repurchase Program.
- The Company has not made any sales under the ATM Program since the beginning of the second quarter of 2026 to date.
What drove it
- Softer demand for mining rigs and a lower average selling price for computing power affected product revenue.
- Lower average bitcoin prices affected mining revenue and resulted in cryptocurrency and derivative fair-value losses.
- Seasonal power constraints and curtailments weighed on mining economics and equipment demand.
- The Company cited competitive power economics, with all-in power cost of ~US$0.043 /kWh.
- Project ABC installed hashrate reached 4.85 EH/s by the end of July 2026.
- The Company continued optimizing the A16 series and stated that mass-production preparations for Avalon Home products were underway for the winter heating season.
Concerns
- Total revenue was US$31.9 million, compared to US$62.7 million in the first quarter of 2026 and US$100.2 million in the same period of 2025.
- Gross loss was US$29.3 million, compared to a gross loss of US$22.9 million in the first quarter of 2026.
- The Company recorded US$25.3 million of inventory write-down, prepayment write-down, and provision for reserve for inventory purchase commitments.
- Impairment on property, equipment and software was US$9.2 million.
- Change in fair value of cryptocurrency was a US$9.3 million loss and change in fair value of financial derivatives was a US$8.9 million loss.
- Net loss was US$97.6 million, compared to US$88.7 million in the first quarter of 2026.
- Third-quarter revenue outlook is US$11 million to US$15 million.
What to watch
- Delivery against third-quarter 2026 total-revenue outlook of US$11 million to US$15 million.
- Mining-rig demand, computing power sold, and average selling price for computing power.
- Bitcoin-price effects on mining revenue and fair values of cryptocurrency and financial derivatives.
- Further inventory-related charges and property, equipment and software impairment.
- Progress in securing power capacity for the compute-energy infrastructure strategy.
- Fleet upgrade progress at Project ABC and installed hashrate deployment.
- Further use of the digital asset treasury to fund repurchases under the Share Repurchase Program.
Balance sheet and cash flow
- Cash: US$66.0 million as of June 30, 2026, compared to US$80.8 million as of December 31, 2025.
- Accounts receivable, net: US$1.7 million as of June 30, 2026, compared to US$19.3 million as of December 31, 2025.
- Inventories: US$128.8 million as of June 30, 2026, compared to US$180.8 million as of December 31, 2025.
- Cryptocurrency assets had a fair value of US$47.0 million and cryptocurrency receivable had an aggregate fair value of US$70.9 million as of June 30, 2026.
- Cryptocurrency assets primarily consisted of 698.5 bitcoins; cryptocurrency receivable consisted of 1,117.0 bitcoins pledged for secured term loans and 100.0 bitcoins transferred to a fixed-term product.
- The Company held a total of 1,915.5 bitcoins as of June 30, 2026.
- Current portion of long-term loans: US$23.9 million as of June 30, 2026, compared to US$28.5 million as of December 31, 2025.
- Long-term loans: US$34.9 million as of June 30, 2026, compared to US$23.7 million as of December 31, 2025.
- Total assets: US$446.2 million as of June 30, 2026, compared to US$602.9 million as of December 31, 2025.
- Total liabilities: US$153.5 million as of June 30, 2026, compared to US$165.5 million as of December 31, 2025.
- Total shareholders’ equity: US$292.7 million as of June 30, 2026, compared to US$437.4 million as of December 31, 2025.
- 690,594,191 ADSs were outstanding as of June 30, 2026.
Analysis
Canaan reported a weak second quarter. Total revenues were US$31.9 million, compared with US$62.7 million in the first quarter of 2026 and US$100.2 million in the same period of 2025. Products revenue was US$13.6 million, while mining revenue was US$17.7 million. Management attributed the product-revenue deterioration to reduced computing power sold and lower average selling prices amid demand tightening led by bitcoin-price declines. Mining revenue also declined because of a lower average bitcoin price.
Profitability remained under acute pressure. Cost of revenues was US$61.2 million, producing a US$29.3 million gross loss, compared with a US$22.9 million gross loss in the first quarter. Product cost included US$25.3 million of inventory write-down, prepayment write-down, and provision for reserve for inventory purchase commitments. The Company also recorded US$9.2 million of impairment on property, equipment and software. Operating expenses were US$40.1 million and loss from operations was US$69.5 million.
Below operating income, cryptocurrency and derivatives valuation movements remained significant. The Company recorded a US$9.3 million loss from the change in fair value of cryptocurrency, an US$8.9 million loss from the change in fair value of financial derivatives, a US$3.0 million foreign-exchange loss, and a US$4.1 million equity-investee loss. Net loss was US$97.6 million, versus US$88.7 million in the first quarter. Non-GAAP adjusted EBITDA was a US$74.9 million loss, compared with a US$76.3 million loss in the first quarter.
The balance sheet held US$66.0 million of cash at June 30, 2026, down from US$80.8 million at December 31, 2025. The Company reported a total of 1,915.5 bitcoins, cryptocurrency assets with a fair value of US$47.0 million, and cryptocurrency receivable with an aggregate fair value of US$70.9 million. It sold 3,952 ETH and 54 Bitcoins in late August for approximately US$13.9 million in cash, then used a portion for repurchases. As of September 8, 2026, the Company had repurchased approximately 16.4 million ADSs for US$7.4 million.
Management guided third-quarter 2026 total revenues to US$11 million to US$15 million, below the US$31.9 million reported for the second quarter. Operationally, the Company highlighted 243 BTC produced, installed non-JV mining computing power of 10.05 EH/s, all-in power cost of ~US$0.043 /kWh, and Project ABC installed hashrate of 4.85 EH/s by the end of July. The key reported tension is between ongoing fleet, product, and power-capacity development and near-term revenue, demand, valuation, and inventory pressures.
Management, verbatim
Q2 2026 presented a difficult period for bitcoin mining, as renewed bitcoin price pressure, weaker mining economics, and seasonal power constraints weighed on equipment demand and profitability.
Nangeng Zhang, chairman, and chief executive officer of Canaan
We generated US$31.9 million in total revenue with 2.5 EH/s of computing power sold during the second quarter.
Nangeng Zhang, chairman, and chief executive officer of Canaan
These accounting charges weighed on our bottom line but did not alter our focus on cost control, liquidity, and operational efficiency.
Jin “James” Cheng, chief financial officer of Canaan
Not in the filing
stated, not guessed- Prior-quarter and prior-year percentage changes for revenue, segment revenue, expenses, earnings, and other metrics were not printed.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Capital expenditures were not reported.
- Dividend information was not reported.
- Tax-rate guidance was not reported.
- Gross-margin guidance was not reported.
- Operating-expense guidance was not reported.
- Prior-period outlook was not provided, so a comparison with prior guidance cannot be made.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.