Canaan Inc Announces Unaudited Financial Results for the Third Quarter of 2026
Obtained the conditional “Studied Load – Firm” classification for the 1 gigawatt Duval County power project under the ERCOT Batch Zero process.
Advancing the second 1-gigawatt power project in Texas, expanding development pipelines
At the end of the quarter, held a crypto asset collection of 1,875 BTC.
Reported a net profit of GAAP million US dollars, and after adjustment, non-GAAP reached EBITDA million US dollars.
Announces the launch of a new $20 million stock repurchase plan within the $100 million authorization granted by the board of directors
Singapore, November 10th / PRNewswire / -- Canaan Inc. (Nasdaq ticker: CAN) ("Canaan" or "the Company") today announced its unaudited financial results for the three months ending September 30, 2026. The Company is an innovative enterprise focused on computing and energy infrastructure.
Key operational and financial highlights for the third quarter of 2026 and recent period
Canaan Chairman and CEO Nangeng Zhang stated: "Despite the ongoing weak demand for Bitcoin mining equipment and fierce pricing competition in the industry, we still achieved revenue of $14.5 million in the third quarter, which is close to the upper end of our guidance range. Mining machine sales contributed $4.8 million, with 1 million TH of computing power sold; our mining business contributed $9.5 million and produced 133 Bitcoins. As of September 30, 2026, our portfolio of crypto assets amounted to approximately 1,875 BTC. We maintain a long-term strategy of holding digital assets and adopt a more flexible capital allocation approach, selectively liquidating our crypto holdings to fund stock repurchases and enhance shareholder value."
More importantly, we have made substantial progress in transitioning to energy and computing infrastructure. Our 1-gigawatt large-scale load project located in Duval County, Texas, has been classified as 'Studied Load – Firm' under the Batch Zero process on ERCOT, which marks an important milestone in the grid connection process, but further research and approval are still required. We are also advancing another 1-gigawatt power resource project located in Zapata County, Texas, which is currently in the early stages of development and preparation for grid connection research. These two projects together reflect our expanding power resource pipeline and our ability to seize large-scale energy infrastructure opportunities in North America.
Looking to the future, we will continue to focus on two complementary priorities: firstly, expanding access to cost-effective power resources to support mining and computing infrastructure; secondly, maintaining our core advantages in mining hardware technology and Bitcoin mining capacity through prudent, business-oriented investments. We will align future research and development, production, and mining investments with market demand and project economics, while seeking partnerships with higher capital efficiency in infrastructure development. Leveraging our experience in mining operations and flexible power management, we are also exploring energy reuse applications that have potential for efficiency and environmental benefits. We believe that these efforts will enable Canaan to seize emerging opportunities at the intersection of computing and energy, and to guide our decisions with capital discipline and long-term value creation.
Canaan Chief Financial Officer Jin “James” Cheng states: “Our performance in the third quarter reflects our ability to maintain financial discipline and operational flexibility in a challenging market. Despite ongoing price pressures due to industry supply-demand imbalances, we still achieved our revenue expectations while keeping inventory streamlined and carefully controlling expenses. By aligning production with actual orders and managing existing inventory, we limited inventory-related non-cash write-downs to approximately $8.2 million this quarter, compared to $25.3 million in the second quarter. Our mining business had a gross margin of about 30% before depreciation, thanks to competitive electricity prices and operational efficiency. At the same time, the rebound in Bitcoin prices at the end of the quarter generated a fair value gain of $51.9 million from our holdings of cryptocurrencies, which contributed to GAAP net profit reaching $8 million. We recognize that this non-cash gain is distinct from our underlying operating performance.”
We have also taken specific financial measures to support substantial progress in the development of power infrastructure. In the third quarter, we provided $50 million in restricted cash as collateral for letters of credit to support certain long-term infrastructure-related contract arrangements, in addition to approximately $3.3 million in project advance payments. In October, we completed the purchase of a piece of land related to power generation in the United States for about $1.1 million. These investments reflect our shift from early-stage resource assessment to actual project development, while we continue to carefully manage capital commitments and project risks.
Looking to the future, we will continue to maintain a cautious approach towards operating expenses, R&D expenditures, and capital allocation. Our focus is on supporting the strategic transformation of Canaan through more capital-efficient development models and partnerships, while balancing liquidity needs, attractive long-term economic investments, and shareholder returns. Our new $20 million stock repurchase program was initiated under the authorization of $100 million approved by the board of directors on November 6, 2026. This reflects our confidence in the strategic transformation and long-term prospects of Canaan, as well as our commitment to enhancing shareholder value while maintaining financial flexibility.
Financial Performance for the Third Quarter of 2026
In the third quarter of 2026, total revenue amounted to 14.5 million US dollars, which is lower than 31.9 million US dollars in the second quarter of 2026 and also lower than 150.5 million US dollars during the same period in 2025. Total revenue includes 4.8 million US dollars from product sales, 9.5 million US dollars from mining income, and 300,000 US dollars from other revenues.
In the third quarter of 2026, product revenue amounted to $4.8 million, which is lower than $13.6 million in the second quarter of 2026 and also lower than $118.6 million during the same period in 2025. The decline both quarter-on-quarter and year-on-year was mainly due to weak overall market demand, resulting in a decrease in the amount of computing power sold and the average selling price.
In the third quarter of 2026, mining revenue amounted to 9.5 million US dollars, which is lower than 17.7 million US dollars in the second quarter of 2026 and also lower than 30.6 million US dollars during the same period in 2025. The decline quarter-on-quarter was mainly due to a reduction in operational computing power; the year-on-year decline was primarily caused by a decrease in the average price of Bitcoin and the amount of operational computing power.
Revenue costs in the third quarter of 2026 were $23.2 million, which is lower than $61.2 million in the second quarter of 2026 and also lower than $133.9 million during the same period in 2025.
In the third quarter of 2026, product costs amounted to 13.6 million US dollars, which is lower than the 40.3 million US dollars in the second quarter of 2026 and also lower than the 98.7 million US dollars during the same period in 2025. The sequential and year-over-year decreases are consistent with the reduction in sold computing power. The provision for inventory write-downs, prepaid expenses write-downs, and inventory procurement commitment reserves for this quarter was 8.2 million US dollars; in the second quarter, it was 25.3 million US dollars, and during the same period in 2025, it was 1.3 million US dollars. Product costs include the direct production costs of mining machines, indirect costs related to production, as well as provisions for inventory write-downs, prepaid expenses write-downs, and inventory procurement commitment reserves.
In the third quarter of 2026, mining costs amounted to 9.3 million US dollars, which is lower than the 20.4 million US dollars in the second quarter of 2026 and also lower than the 34.1 million US dollars during the same period in 2025. Mining costs include the direct production costs of mining operations (including electricity and hosting), as well as the depreciation of deployed mining machines. The decrease quarter-over-quarter and year-over-year is mainly due to a reduction in the amount of computing power that is actually in use. The depreciation of deployed mining machines this quarter was 2.7 million US dollars, compared to 6.3 million US dollars in the second quarter and 11.8 million US dollars during the same period in 2025.
In the third quarter of 2026, the gross loss was $8.6 million, while in the second quarter it was $29.3 million. In the same period of 2025, there was a gross profit of $16.6 million.
The total operating expenses for the third quarter of 2026 were 34.2 million US dollars, which is lower than 40.1 million US dollars in the second quarter of 2026 and also lower than 40.5 million US dollars during the same period in 2025.
R&D expenses in the third quarter of 2026 were $13.1 million, which is lower than $14.9 million in the second quarter of 2026 and also lower than $16.3 million in the same period of 2025. The quarter-over-quarter decrease was mainly due to a reduction in employee costs by $1.6 million; the year-over-year decrease was mainly due to a reduction in employee costs by $5.5 million, which was partially offset by an increase in R&D expenditures of $3.5 million. R&D expenses for the third quarter also included $500,000 in share-based payment expenses.
Sales and marketing expenses in the third quarter of 2026 amounted to $1.9 million, which was consistent with the second quarter of 2026 and also lower than the $5.1 million in the same period of 2025. Sales and marketing expenses remained stable from quarter to quarter; the year-over-year decrease was mainly attributed to a reduction in employee costs by $2.9 million. The sales and marketing expenses for the third quarter also included $47,000 in share-based payment expenses.
General and administrative expenses in the third quarter of 2026 amounted to $14.1 million, which is lower than $15.1 million in the second quarter of 2026 and also lower than $17.9 million in the same period of 2025. The decrease quarter-over-quarter was mainly due to a reduction in credit loss expenses by $2.8 million, which was partially offset by an increase in professional service fees of $1.2 million and an increase in employee costs of $0.5 million; the year-over-year decrease was mainly due to a reduction in employee costs by $2.4 million and a reduction in professional service fees by $1.2 million. General and administrative expenses for the third quarter also included $3.8 million in share-based payment expenses.
In the third quarter of 2026, the impairment of property, equipment, and software amounted to $5.7 million, which is lower than $9.2 million in the second quarter of 2026 and also lower than $1.2 million during the same period in 2025.
In the third quarter of 2026, the operating loss was $42.9 million, compared to $69.5 million in the second quarter, and $23.9 million during the same period in 2025.
In the third quarter of 2026, changes in the fair value of cryptocurrencies resulted in a gain of $20.1 million, while changes in the fair value of financial derivatives led to a gain of $31.9 million; in the second quarter, there were losses of $9.3 million and $8.9 million respectively; in the third quarter of 2025, the gains were $1.7 million and $3.9 million respectively. The gains were mainly due to the higher price of Bitcoin on September 30, 2026, compared to June 30, 2026.
In the third quarter of 2026, the net exchange loss was $2 million, compared to $3 million in the second quarter and $1.8 million during the same period in 2025.
Pre-tax earnings for the third quarter of 2026 were $6.4 million, while there was a loss of $92.2 million in the second quarter. In the same period of 2025, there was a loss of $27.2 million.
In the third quarter of 2026, the income from the investee under the equity method was $1.6 million, while in the second quarter there was a loss of $4.1 million; for the same period in 2025, the income was zero.
In the third quarter of 2026, the net profit was 8 million US dollars, while in the second quarter there was a loss of 97.6 million US dollars. In the same period of 2025, there was a loss of 27.7 million US dollars.
In the third quarter of 2026, EBITDA adjusted to $22.4 million, while in the second quarter there was a loss of $74.9 million. In the same period of 2025, there was a profit of $2.8 million. For more information, please refer to "Use of non-GAAP Financial Indicators" in this press release.
The net amount of foreign currency conversion adjustments for the third quarter of 2026 (excluding taxes) was a profit of $2.2 million, while in the second quarter it was a profit of $3.8 million. For the same period in 2025, there was a loss of $600,000.
In the third quarter of 2026, the basic and diluted net profit per American Depository Share (“ADS”) was $0.01. In contrast, in the second quarter of 2026, the basic and diluted net loss per ADS was $0.13, and during the same period in 2025 it was $0.05. Each ADS represents 15 Class A common shares of the company.
As of September 30, 2026, the fair value of the company's cryptocurrency assets was $43.7 million, and the total fair value of cryptocurrency receivables was $114.2 million. The cryptocurrency assets mainly consisted of 517.5 bitcoins held by the company. The cryptocurrency receivables included 1,258 bitcoins pledged for secured term loans, as well as 100 bitcoins transferred to fixed-term products. Classifying cryptocurrency receivables as current assets is consistent with the corresponding secured term loans. As of September 30, 2026, the company held a total of 1,875.5 bitcoins.
As of September 30, 2026, the company's cash and restricted cash totaled $72.8 million, which is lower than the $80.8 million as of December 31, 2025.
As of September 30, 2026, the company's investment in the entities accounted for using the equity method amounted to 11.9 million US dollars.
ADS Circulation Status
As of September 30, 2026, the company has a total of 690,594,191 ADS in circulation, with each representing 15 shares of Class A common stock of the company.
Recent Progress
Acquiring land to support the development of power infrastructure
In October 2026, the company completed the acquisition of a piece of land in the United States for approximately $1.1 million. This acquisition is an important step in advancing the long-term power and computing infrastructure strategy of Canaan, laying the foundation for potential future developments. The company will continue to evaluate development opportunities based on power availability, project economics, and applicable regulatory requirements.
Launched a new $20 million share repurchase plan with authorization from the board of directors amounting to $100 million
On November 6, 2026, the company's board of directors approved a new stock repurchase authorization that allows for up to $100 million in repurchases over a period of 12 months starting from November 6, 2026. Under this authorization, the company will initiate an initial repurchase plan to repurchase up to $20 million of its outstanding ADS or Class A common shares, while retaining the flexibility to conduct additional repurchases within the overall authorized amount.
Management believes that the company's current market valuation does not fully reflect its long-term potential, and therefore regards stock repurchases as an important priority in capital allocation. As available funds increase, the company plans to proceed with repurchases more actively, while ensuring sufficient liquidity for ongoing operations and committed projects. Repurchases may be carried out through public market transactions, private negotiated deals, or other methods permitted by law, depending on market conditions, applicable regulatory requirements, and the company's capital allocation priorities. This plan reflects management's confidence in the strategic transformation and long-term prospects of Canaan, as well as their commitment to maintaining prudent capital allocation and enhancing shareholder value.
Plan to adjust the proportion of ADS
The company plans to adjust the ratio of its ADS to Class A common shares from 1 ADS representing 15 shares of Class A common stock to 1 ADS representing 375 shares of Class A common stock, which is equivalent to a 1:25 reverse split, meaning that every 25 existing ADS will be combined into 1 new ADS. The company expects this ratio adjustment to take effect around December 4, 2026 (Eastern Time).
The proposed adjustment is aimed at supporting the company's efforts to meet Nasdaq's minimum purchase price requirements again and potentially expanding the base of institutional investors by removing certain investment restrictions related to the stock price. This adjustment will not affect the number of outstanding common shares of the company or the proportionate ownership of shareholders, except for those adjustments related to the trivial ADS. Further implementation details will be announced in due course.
Business Outlook
For the fourth quarter of 2026, the company expects total revenue to be between $18 million and $22 million, reflecting the recent market conditions and the changing dynamics of customers, but these factors may change.
The company will continue to closely monitor the global policy environment and market developments, and may revise or update its outlook accordingly when the situation becomes clearer and business visibility improves in the future.
Telephone Conference Arrangement
The company's management team will hold a teleconference on November 10, 2026, at 8:00 a.m. Eastern Time (or 9:00 p.m. Singapore Time on the same day) to discuss financial performance. The details of the teleconference are as follows:
All participants must complete the online registration process in advance using the link provided above. After registration, each participant will receive a set of dial-in numbers and a unique access code PIN which can be used to join the teleconference.
The live broadcast and archived webcast of the teleconference can be viewed on the company's investor relations website at investor.canaan-creative.com.
Regarding Canaan Inc.
Canaan Inc was established in 2013 and is a technology company focused on the design of high-performance computing chips for ASIC, chip development, production of computing devices, and software services. Canaan has extensive experience in chip design and streamlined production in the ASIC field. In 2013, the founding team of Canaan delivered to customers the world's first batch of mining machines using ASIC technology under the Avalon brand. In 2019, Canaan completed its initial public offering on the NASDAQ global market. For more information, 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. Such forward-looking statements can be identified by words such as “will”, “expect”, “anticipate”, “future”, “intend”, “plan”, “believe”, “estimate”, and similar expressions. Among other things, the business outlooks in this announcement, as well as those quoted by management, and the strategies and operational plans of Canaan Inc, all contain forward-looking statements. Canaan Inc may also make written or oral forward-looking statements in its periodic reports filed with the U.S. Securities and Exchange Commission (“SEC”) such as 20-F and 6-K forms, annual shareholder reports, press releases, and other written materials, as well as in oral statements made by its executives, directors, or employees to third parties. Statements that are not historical facts, including those regarding the beliefs and expectations of Canaan Inc, such as expectations regarding revenue or mining capacity deployment, are considered forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Various factors could cause actual results to differ significantly from those contained in any forward-looking statements, including but not limited to: the company’s objectives and strategies; the company’s future business development, ability to achieve its objectives, financial condition, and operating results; the expected growth of the Bitcoin industry and Bitcoin prices; the company’s expectations regarding demand for its products, particularly Bitcoin miners, and market acceptance; the company’s expectations for maintaining and strengthening relationships with production partners and customers; the company’s investment plans and strategies, and fluctuations in quarterly operating results; industry competition; the constantly changing macroeconomic and geopolitical environment, including changes in international trade policies and the implementation of increased tariffs, import restrictions, and retaliatory trade actions; and government policies and regulations related to the company and cryptocurrencies. For more information regarding these and other risks, please refer to the documents submitted by the company to SEC.All information provided in this press release and its attachments is as of the date of issuance of this press release. Except as required by applicable laws, Canaan Inc assumes no obligation to update any forward-looking statements.
non-GAAP Use of Financial Indicators
When evaluating the Canaan business, the company uses non-GAAP indicators, such as the adjusted EBITDA, as supplementary indicators to assess and review operational performance. The company defines the adjusted EBITDA as net loss, which does not include income tax (benefit) expenses, interest income, interest expenses, depreciation and amortization expenses, share-based payment expenses, impairment of property, equipment, and software, changes in fair value of financial instruments other than derivatives, and the excess portion of the fair value of convertible preferred stock. The company believes that these non-GAAP financial indicators provide useful information regarding the company's operating results, enhance the overall understanding of the company's past performance and future prospects, and make the key indicators used by management in financial and operational decisions more visible.
non-GAAP Financial indicators are not defined in accordance with U.S. GAAP nor are they presented in line with U.S. GAAP. non-GAAP Financial indicators have their limitations as analytical tools; investors should not consider these indicators in isolation, nor should they replace them with net losses prepared in accordance with U.S. GAAP, cash flows from operating activities, or other data from the consolidated income statement and cash flow statements. A key limitation of using adjusted EBITDA is that it does not reflect all revenue and expense items that affect the company's operations. Furthermore, the non-GAAP financial indicators of different companies may vary, including those of peer companies, hence comparability may be limited. The company mitigates these limitations by adjusting its non-GAAP financial indicators to the most comparable U.S. GAAP performance indicators, and all of these indicators should be taken into consideration when evaluating the company's performance.
Investor Relations Contact Person
Canaan Inc.
Xi ZhangEmail: [ email protected ]Christensen Advisory
Christian ArnellEmail: [ email protected ]Media Contact
BlocksBridge Consulting
Jesse ColzaniEmail: [ email protected ]The following table shows the adjustment between net loss for the specified period and non-GAAP adjusted EBITDA:
