Canaan Inc. (CAN) Q2 2026 Financial Results
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Canaan Inc. (CAN) Q2 2026: Revenue Decline Amid Market Pressures — Disappointing
Canaan Inc. reported total revenues of US$31.9 million for the second quarter of 2026, a significant decline of 68% compared to US$100.2 million in the same period of 2025. This disappointing performance reflects the ongoing challenges in the cryptocurrency mining sector, driven by reduced demand and lower bitcoin prices.
The quarter was marked by several adverse conditions, including renewed pressure on bitcoin prices and weaker mining economics, which negatively impacted both product and mining revenues. The company’s focus on maintaining liquidity and managing costs was evident, but the overall results fell short of expectations for shareholders. The primary reason for this disappointment is the drastic year-over-year revenue drop, which signals ongoing struggles in the market.
Key Financial Metrics:
- Total Revenue: US$31.9 million (down 68% YoY from US$100.2 million)
- Product Revenue: US$13.6 million (down 81% YoY from US$71.9 million)
- Mining Revenue: US$17.7 million (down 37% YoY from US$28.1 million)
- Gross Loss: US$29.3 million (compared to a gross profit of US$9.3 thousand in Q2 2025)
- Operating Loss: US$69.5 million (compared to a loss of US$27.1 million in Q2 2025)
- Net Loss: US$97.6 million (compared to a net loss of US$11.1 million in Q2 2025)
- Basic and Diluted EPS: US$0.13 loss per ADS (compared to a loss of US$0.03 in Q2 2025)
- Cash Position: US$66.0 million (down from US$80.8 million as of December 31, 2025)
- Cryptocurrency Treasury: 1,915.5 BTC and 3,951.7 ETH (record-high)
Canaan's product revenue of US$13.6 million was significantly impacted by a decrease in the average selling price for computing power and a tightening market demand. Mining revenue also fell to US$17.7 million, reflecting the adverse effects of lower bitcoin prices and seasonal curtailments.
The company reported a gross loss of US$29.3 million, which is a stark contrast to the previous year's performance. This loss was exacerbated by several non-cash accounting charges, including a US$25.3 million inventory write-down and a US$9.2 million impairment of property and equipment. These factors contributed to a total operating loss of US$69.5 million, highlighting the operational challenges faced during the quarter.
Despite these setbacks, Canaan has been proactive in managing its capital. The company repurchased approximately 16.4 million ADSs for a total of US$7.4 million under its share repurchase program, reflecting a disciplined approach to capital allocation. This program aims to leverage the company's digital asset treasury while maintaining financial flexibility.
Looking ahead, Canaan has provided guidance for the third quarter of 2026, expecting total revenues to be in the range of US$11 million to US$15 million. This forecast indicates continued caution in light of the current market conditions and evolving customer dynamics.
Forward Catalyst
The most significant forward catalyst to watch in the upcoming quarter will be Canaan's ability to stabilize its revenue streams and manage costs effectively amid ongoing market pressures. The company's focus on optimizing its product offerings and exploring cost-advantaged power sites will be critical in determining its performance in the second half of 2026.
In summary, while Canaan is taking steps to navigate a challenging environment, the substantial revenue decline and increased losses signal a tough road ahead for shareholders. The company's strategic initiatives will be crucial in restoring investor confidence and achieving long-term growth.
Income Statement / P&L
Currency: USD (Thousands)
| 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 | June 30, 2025 | USD |
| Revenues | Products revenue | 71,923 |
| Mining revenue | 28,072 | |
| Other revenues | 214 | |
| Total revenues | 100,209 | |
| Cost of revenues | Product cost | (58,759) |
| Mining cost | (31,995) | |
| Other cost | (149) | |
| Total cost of revenues | (90,903) | |
| Gross profit (loss) | 9,306 | |
| Operating expenses: | Research and development expenses | (16,406) |
| Sales and marketing expenses | (4,472) | |
| General and administrative expenses | (16,361) | |
| Impairment on property and equipment | - | |
| Gain on disposal of property, equipment and software | 863 | |
| Total operating expenses | (36,376) | |
| Loss from operations | (27,070) | |
| Interest expense, net | (309) | |
| Change in fair value of cryptocurrency | 10,576 | |
| Change in fair value of financial instruments other than derivatives | (17,485) | |
| Change in fair value of financial derivatives | 23,440 | |
| Foreign exchange gains (losses), net | 338 | |
| Other income (loss), net | 225 | |
| Loss before income tax expenses | (10,285) | |
| Income tax expense | (773) | |
| Equity in gains (losses) of equity investees | - | |
| Net loss | (11,058) | |
| Foreign currency translation adjustment, net of nil tax | 1,376 | |
| Total comprehensive loss | (9,682) | |
| Weighted average number of shares used in per share calculation: | — Basic | 5,994,860,758 |
| — Diluted | 5,994,860,758 | |
| Net loss per share (cent per share) | — Basic | (0.18) |
| — Diluted | (0.18) |
Balance Sheet
Currency: USD (Thousands)