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1 month ago
Canaan Inc. Reports Unaudited First Quarter 2026 Financial ResultsMay 19, 2026 6:30 AM
PR Newswire (US) Revenue of US$62.7 million was in line with guidance; cryptocurrency treasury[1] reached a record 1,807.60 BTC and 3,951.53 ETH as of March 31, 2026Installed mining computing power across 10 joint-mining projects reached approximately 11 EH/s, up 10.7% sequentially; Produced 257 bitcoins in Q1Strategic energy infrastructure footprint expanded through the acquisition of 49% interest in ABC Projects in West Texas from Cipher Mining and Nordic hash-to-heat deploymentSINGAPORE, 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 HighlightsMetricsQ1 2026Market-readable takeawaysTotal revenueUS$62.7 millionIn line with guidanceProduct revenueUS$42.9 millionCompleted final deliveries
under a major U.S. orderMining revenueUS$19.1 millionResilient production despite
BTC/hashprice volatilityBTC produced257 BTCContinued mining outputCrypto treasury1,807.60 BTC / 3,951.53
ETHRecord high treasuryInstalled mining
computing power~11 EH/sUp 10.7% QoQAll-in power cost~US$0.04/kWhCompetitive mining cost baseG&A expenseUS$15.0 millionDown 11% QoQSubsequent customer
cash collections~US$42 millionLiquidity improved after
quarter-endABC Projects49% interest / ~4.4 EH/s
operating hashrateWest Texas energy-compute
footprintNordic hash-to-heat
Project8MW planned / 2MW in
operationSustainable compute
infrastructure use case Total revenues were US$62.7 million, which was in line with the Company's previous guidance range.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." [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.
First Quarter 2026 Financial ResultsTotal 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 OutstandingAs 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 DevelopmentsSecured Nordic Hash-to-Heat ProjectOn 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 TexasOn 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 OutlookFor 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 InformationThe 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 CallRegistration
Link:https://register-conf.media-server.com/register/BI1f5e37bc999743bf93cfa539bc6a031cAll 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 StatementThis 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 MeasuresIn 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 ContactCanaan Inc.
Xi Zhang
Email: IR@canaan-creative.com Christensen Advisory
Christian Arnell
Email: canaan@christensencomms.comPublic Relations ContactBlocksBridge 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,
20252026
USDUSDASSETS
Current assets:
Cash80,77843,451Accounts receivable, net19,29051,560Inventories180,816139,078Prepayments and other current assets99,70794,808Cryptocurrency receivable, current52,69927,004Total current assets433,290355,901Non-current assets:
Cryptocurrency83,33966,236Cryptocurrency receivable, non-current35,13340,006Investment in equity investees-14,056Property, equipment and software, net44,02851,037Intangible asset689636Operating lease right-of-use assets2,8802,492Deferred tax assets191194Other non-current assets489496Non-current financial investment2,8451,000Total non-current assets169,594176,153Total assets602,884532,054LIABILITIES, AND SHAREHOLDERS'
EQUITY
Current liabilities
Current portion of long-term loans28,51521,140Accounts payable25,60020,417Contract liabilities9,3177,739Income tax payable11,40311,591Accrued liabilities and other current
liabilities54,54844,131Operating lease liabilities, current1,7061,397Total current liabilities131,089106,415Non-current liabilities:
Long-term loans23,73133,373Operating lease liabilities, non-current 948642Deferred tax liability117108Other non-current liabilities9,6319,585Total liabilities165,516150,123Shareholders' 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)11Class 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 capital1,177,0571,202,580Statutory reserves14,89214,892Accumulated other comprehensive loss(56,653)(51,471)Accumulated deficit(660,757)(749,505)Total shareholders' equity437,368381,931Total liabilities and shareholders' equity602,884532,054 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,
2025December 31,
2025March 31,
2026
USDUSDUSDRevenues
Products revenue58,322164,92942,863Mining revenue24,25430,35819,124Other revenues200987706Total revenues82,776196,27462,693Cost 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)64614,583(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 software516197197Total operating expenses(38,275)(38,203)(31,408)Loss from operations(37,629)(23,620)(54,314)Interest income5739150Interest 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), net835(2,890)(3,997)Other income, net2522,57311,198Loss before income tax expenses(85,726)(84,230)(88,779)Income tax expense(705)(805)(190)Equity in gains of equity investees--221Net loss(86,431)(85,035)(88,748)Foreign currency translation adjustment,
net of nil tax(1,057)1,1335,182Total comprehensive loss(87,488)(83,902)(83,566)Weighted average number of shares
used in per share calculation:
— Basic4,817,919,0549,517,488,55010,371,318,890— Diluted4,817,919,0549,517,488,55010,371,318,890Net 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 revenues769289Research and development expenses1,770535668Sales and marketing expenses536743General and administrative expenses5,3163,5863,815 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,
2025December 31,
2025March 31,
2026
USDUSDUSDNet loss(86,431)(85,035)(88,748)Income tax expense705805190Interest income(57)(39)(150)Interest expense351827929EBIT(85,432)(83,442)(87,779)Depreciation and amortization expenses7,51314,4246,816EBITDA(77,919)(69,018)(80,963)Share-based compensation expenses7,2154,2804,615Impairment on property, equipment and
software-8,973-Change in fair value of financial
instruments other than derivatives4,39215,249-Excess of fair value of convertible
preferred shares28,179--Non-GAAP adjusted EBITDA(38,133)(40,516)(76,348) View original content:https://www.prnewswire.com/news-releases/canaan-inc-reports-unaudited-first-quarter-2026-financial-results-302776028.htmlSOURCE Canaan Inc. Original: Canaan Inc. Reports Unaudited First Quarter 2026 Financial Results
US Market News
4 months ago
Canaan Inc. Reports Unaudited Fourth Quarter and Full Year 2025 Financial ResultsFebruary 10, 2026 6:30 AM
PR Newswire (US)
Total revenues achieved US$196.3 million, up 121.1% YoYBitcoin mining revenues reached US$30.4 million, up 98.5% YoYCryptocurrency treasury[1] climbed to a record 1,750 BTC and 3,951 ETH as of December 31, 2025Generated quarterly gross profit of US$14.6 million and annual gross profit of US$41.2 millionAchieved record 14.6 EH/s quarterly computing power sold, reaching 36.5 EH/s in 2025SINGAPORE, Feb. 10, 2026 /PRNewswire/ -- Canaan Inc. (NASDAQ: CAN) ("Canaan" or the "Company"), an innovator in crypto mining, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025.Fourth Quarter 2025 Operating and Financial HighlightsTotal revenues surged to US$196.3 million, exceeding the median of the Company's previous guidance range, representing 121.1% year-over-year and 30.4% quarter-over-quarter growth.Total computing power sold reached 14.6 exahashes per second (EH/s), setting a new quarterly record and representing 60.9% year-over-year growth and 45.7% quarter-over-quarter growth, boosted by large-scale North American orders.Mining revenue was US$30.4 million, with 300 bitcoins mined at an average revenue of US$101,304 per bitcoin, despite the pullback in network hashprice.Gross profit was US$14.6 million, compared to the gross loss of US$6.4 million in the same period of last year, reflecting product mix optimization and supply chain resilience.Cryptocurrency treasury expanded to 1,749.9 BTC and 3,950.54 ETH by the end of the fourth quarter 2025, reaching new historical highs.Full Year 2025 Operating and Financial HighlightsTotal revenues were US$529.7 million, growing 96.7% from US$269.3 million in 2024, reflecting solid execution across hardware sales and mining operations.Total computing power sold exceeded 36.5 EH/s, up 40.7% year over year, supported by deepening global client partnerships.Mining revenue jumped to US$113.2 million, representing a year-over-year increase of 157.2% from US$44.0 million in 2024.Gross profit was US$41.2 million, compared to a gross loss of US$84.3 million in 2024.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.Nangeng Zhang, chairman, and chief executive officer of Canaan, commented, "We closed 2025 with strong performance, achieving our highest quarterly revenue in three years despite continued global macroeconomic and geopolitical uncertainty. Fourth quarter total revenue reached US$196.3 million, exceeding the midpoint of our guidance. Performance was driven by a record 14.6 EH/s of computing power sold, supported by a milestone order from a U.S.-based institutional miner and our team's dedicated execution in meeting stringent delivery timelines for customers. On the mining front, we expanded our installed hashrate to 9.91 EH/s, with 7.65 EH/s in operation during the quarter, while further enhancing fleet efficiency and maintaining competitive all-in power costs. Our team also entered into several pilot initiatives that integrate bitcoin mining with stranded and renewable energy sources to enhance efficiency and sustainability. We mined 300 bitcoins during the quarter, which complemented our disciplined DAT initiatives, strengthening our cryptocurrency treasury to a record of approximately 1,750 BTC and 3,951 ETH by the end of 2025.""2025 has been a transformative year for Canaan. We further expanded our market presence, particularly in North America, and strengthened our product offerings, while steadily building out our mining operations worldwide. Looking ahead to 2026, we are taking decisive steps to evolve beyond a traditional hardware provider. We view the convergence of computing and energy infrastructure as a compelling long-term opportunity and are aligning our strategy to capture that growth. In the United States, we have built a robust pipeline to secure direct power capacity and are confident in our ability to lock in substantial load by year-end 2026, with the potential to scale toward gigawatt-level capacity. Compute-intensive workloads like HPC and bitcoin mining can share infrastructure and grid resources, unlocking higher capital efficiency and operational flexibility. At the same time, we are intensifying our focus on our product portfolio targeted toward households and small-to-medium-sized businesses. Following strong initial traction in 2025, we are expanding our Avalon Home product line with a focus on reliability and ease of use, while working to develop our channel. As the macro environment remains volatile, we believe our strengths in product innovation, deep operational experience in bitcoin mining, and flexible global execution will enable us to capture the emerging energy-compute paradigm, creating differentiated and sustainable long-term value."Jin "James" Cheng, chief financial officer of Canaan, stated, "In the fourth quarter, we achieved strong revenue growth despite a challenging operating environment characterized by intensified crypto market volatility. Product sales reached US$164.9 million, an increase of 124.5% year-over-year and 39.1% quarter-over-quarter, primarily due to the timely execution of a landmark order for over 50,000 A15 Pro mining machines, which was fully delivered by early January 2026. Our mining revenue remained resilient at US$30.4 million, aided by our growing operational hashrate. We realized a gross profit of US$14.6 million, with a gross margin of 7.4%, despite negative pressure from volume-based pricing, increased mining costs, and a non-cash inventory write-down and provision for inventory purchase commitments due to declining crypto prices. While we maintained disciplined expense management, our net result reflected several non-cash items, including US$44.3 million in fair value losses related to cryptocurrency price movements and a final impact of US$15.2 million from the change in fair value of preferred shares.""Our balance sheet remained healthy and aligned with our operational priorities. We ended the year with US$81 million in cash, offering solid liquidity for future operations. While inventory and prepayment levels were higher due to ongoing production schedules, they represent our preparation for continued deliveries to fulfill customer orders. During the quarter, we also unlocked additional liquidity through our DAT operations, while continuing to grow our cryptocurrency treasury balance to a new high. In addition, our capital structure was further strengthened by the full conversion of our preferred shares during the fourth quarter, removing this item from our liabilities and simplifying our capital base. As we enter 2026, we are committed to managing resources prudently and maintaining operational resilience. Drawing on deep industry experience and strategic flexibility, we are well-positioned to navigate near-term market volatility while preparing to capture future growth opportunities."Fourth Quarter 2025 Financial ResultsTotal revenues in the fourth quarter of 2025 were US$196.3 million, compared to US$150.5 million in the third quarter of 2025 and US$88.8 million in the same period of 2024. Total revenues consisted of US$164.9 million in products revenue, US$30.4 million in mining revenue and US$1.0 million in other revenues.Products revenue in the fourth quarter of 2025 was US$164.9 million, compared to US$118.6 million in the third quarter of 2025 and US$73.5 million in the same period of 2024. The sequential increase was mainly driven by the increased computing power sold. The year-over-year increase was mainly driven by the increased computing power sold and average selling price.Mining revenue in the fourth quarter of 2025 was US$30.4 million, compared to US$30.6 million in the third quarter of 2025 and US$15.3 million in the same period of 2024. The sequential decrease was mainly due to the decrease in the bitcoin price. The year-over-year increase was mainly attributable to an increase in energized mining computing power and an increase in the bitcoin price.Cost of revenues in the fourth quarter of 2025 was US$181.7 million, compared to US$133.9 million in the third quarter of 2025 and US$95.1 million in the same period of 2024.Products costs in the fourth quarter of 2025 were US$143.6 million, compared to US$98.7 million in the third quarter of 2025 and US$80.2 million in the same period of 2024. The sequential and year-over-year increases were consistent with the increase in computing power sold. The inventory write-down, prepayment write-down and provision for reserve for inventory purchase commitments accrued for this quarter were US$13.9 million, compared to the inventory write-down of US$1.3 million for the third quarter of 2025 and the inventory write-down and prepayment write-down of US$13.6 million for the same period of 2024. 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 fourth quarter of 2025 were US$37.0 million, compared to US$34.1 million in the third quarter of 2025 and US$14.9 million in the same period of 2024. 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 and year-over-year increases were 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$12.1 million, compared to US$11.8 million in the third quarter of 2025 and US$6.0 million in the same period of 2024.Gross profit in the fourth quarter of 2025 was US$14.6 million, compared to a gross profit of US$16.6 million in the third quarter of 2025 and a gross loss of US$6.4 million in the same period of 2024.Total operating expenses in the fourth quarter of 2025 were US$38.2 million, compared to US$40.5 million in the third quarter of 2025 and US$49.3 million in the same period of 2024.Research and development expenses in the fourth quarter of 2025 were US$11.5 million, compared to US$16.3 million in the third quarter of 2025 and US$16.6 million in the same period of 2024. The sequential decrease was mainly due to a decrease of US$3.1 million in staff cost, a decrease of US$0.6 million in research and development expenditure, and a decrease of US$0.4 million in share-based compensation expenses. The year-over-year decrease was mainly due to a decrease of US$2.2 million in staff cost, a decrease of US$1.3 million in share-based compensation expenses, and a decrease of US$1.0 million in research and development expenditure. Research and development expenses in the fourth quarter of 2025 also included share-based compensation expenses of US$0.5 million.Sales and marketing expenses in the fourth quarter of 2025 were US$1.1 million, compared to US$5.1 million in the third quarter of 2025 and US$1.3 million in the same period of 2024. The sequential decrease was mainly attributable to a decrease of US$4.2 million in staffing cost. Sales and marketing expenses remained relatively stable year over year. Sales and marketing expenses in the fourth quarter of 2025 also included share-based compensation expenses of US$67 thousand.General and administrative expenses in the fourth quarter of 2025 were US$16.9 million, compared to US$17.9 million in the third quarter of 2025 and US$27.8 million in the same period of 2024. The sequential decrease was mainly due to a decrease of US$1.2 million in professional service fees. The year-over-year decrease was mainly due to a decrease of US$4.6 million in professional service fees, a decrease of US$4.2 million in share-based compensation expenses and a decrease of US$2.9 million in allowance for doubtful receivables, which was partially offset by an increase of US$1.1 million in staff cost. General and administrative expenses in the fourth quarter of 2025 also included share-based compensation expenses of US$3.6 million.Impairment on property, equipment and software in the fourth quarter of 2025 was US$9.0 million, compared to US$1.2 million in the third quarter of 2025 and US$4.0 million in the same period of 2024.Loss from operations in the fourth quarter of 2025 was US$23.6 million, compared to US$23.9 million in the third quarter of 2025 and US$55.6 million in the same period of 2024.Change in fair value of cryptocurrency and Change in fair value of financial derivative in the fourth quarter of 2025 were a loss of US$21.5 million and a loss of US$22.8 million, respectively, compared to a gain of US$1.7 million and a gain of US$3.9 million in the third quarter of 2025, respectively. The losses were mainly due to the decreased bitcoin price on December 31, 2025, compared to the bitcoin price on September 30, 2025.Change in fair value of financial instruments other than derivatives in the fourth quarter of 2025 was a loss of US$15.2 million, compared to a loss of US$9.5 million in the third quarter of 2025 and a gain of US$17.2 million in the same period of 2024, which was mainly due to the changes in fair value of Series A convertible preferred shares. By the end of the fourth quarter of 2025, all of the convertible preferred shares had been converted to ordinary shares.Excess of fair value of Convertible Preferred Shares in the fourth quarter of 2025 was nil, compared to nil in the third quarter of 2025 and US$22.1 million in the same period of 2024.Foreign exchange losses, net in the fourth quarter of 2025 were US$2.9 million, compared to a loss of US$1.8 million in the third quarter of 2025 and a gain of US$5.7 million in the same period of 2024, respectively.Loss before income tax expense in the fourth quarter of 2025 was US$84.2 million, compared to US$27.2 million in the third quarter of 2025 and US$7.6 million in the same period of 2024.Net loss in the fourth quarter of 2025 was US$85.0 million, compared to US$27.7 million in the third quarter of 2025 and US$92.9 million in the same period of 2024.Non-GAAP adjusted EBITDA in the fourth quarter of 2025 was a loss of US$40.5 million, as compared to a gain of US$2.8 million in the third quarter of 2025 and a gain of US$19.3 million in the same period of 2024. 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 fourth quarter of 2025 was a gain of US$1.1 million, compared to a loss of US$0.6 million in the third quarter of 2025 and a loss of US$9.7 million in the same period of 2024, respectively.Basic and diluted net loss per American depositary share ("ADS") in the fourth quarter of 2025 were US$0.13. In comparison, basic and diluted net loss per ADS in the third quarter of 2025 were US$0.05, while basic and diluted net loss per ADS in the same period of 2024 were US$0.33. Each ADS represents 15 of the Company's Class A ordinary shares.Full Year 2025 Financial ResultsTotal revenues in the full year of 2025 were US$529.7 million, as compared to US$269.3 million in the full year of 2024.Products revenue in the full year of 2025 was US$413.8 million, compared to US$223.2 million in the full year of 2024. The increase was mainly driven by the increased computing power sold and the increased average selling price. The computing power sold was 36.5 EH/s, up 40.7% year over year.Mining revenue in the full year of 2025 was US$113.2 million, compared to US$44.0 million in the full year of 2024. The increase was mainly due to the increased computing power energized for mining and the increase in the price of bitcoin.Cost of revenues in the full year of 2025 was US$488.6 million, compared to US$353.6 million in the full year of 2024.Products costs in the full year of 2025 were US$360.3 million, compared to US$301.3 million in the full year of 2024. The increase was consistent with the increase in computing power sold.Mining costs in the full year of 2025 were US$126.0 million, compared to US$51.6 million in the full year of 2024. Mining costs consist of direct production costs of mining operations, including electricity and hosting, as well as depreciation. The depreciation in the full year of 2025 for deployed mining machines was US$40.6 million, compared to US$22.5 million in the full year of 2024.Gross profit in the full year of 2025 was US$41.2 million, compared to a gross loss of US$84.3 million in the full year of 2024. The gross profit was mainly driven by the increased average selling price.Total operating expenses in the full year of 2025 were US$153.4 million, compared to US$142.8 million in the full year of 2024.Research and development expenses in the full year of 2025 were US$63.1 million, compared to US$61.3 million in the full year of 2024.Sales and marketing expenses in the full year of 2025 were US$13.6 million, compared to US$5.7 million in the full year of 2024.General and administrative expenses in the full year of 2025 were US$68.1 million, compared to US$71.7 million in the full year of 2024.Impairment on property, equipment and software in the full year of 2025 was US$10.2 million, compared to US$11.3 million in the full year of 2024.Loss from operations in the full year of 2025 was US$112.2 million, compared to US$227.1 million in the full year of 2024.Change in fair value of cryptocurrency and Change in fair value of financial derivative in the full year of 2025 were a loss of US$11.4 million and a loss of US$9.5 million, respectively, compared to a gain of US$42.4 million and a gain of US$17.6 million in the full year of 2024, respectively.Change in fair value of financial instruments other than derivatives in the full year of 2025 was a loss of US$46.6 million, compared to a gain of US$20.6 million in the full year of 2024.Excess of fair value of Convertible Preferred Shares in the full year of 2025 was US$28.2 million, compared to US$50.7 million in the full year of 2024.Foreign exchange losses, net in the full year of 2025 were US$3.5 million, compared to a gain of US$14.1 million in the full year of 2024.Net loss in the full year of 2025 was US$210.3 million, compared to US$249.8 million in the full year of 2024.Non-GAAP adjusted EBITDA in the full year of 2025 was a loss of US$50.5 million, as compared to a loss of US$71.5 million in the full year of 2024.Foreign currency translation adjustment, net of nil tax, in the full year of 2025 was a gain of US$0.8 million, compared to a loss of US$13.6 million in the full year of 2024.Basic and diluted net loss per American depositary share ("ADS") in the full year of 2025 were US$0.45, compared to basic and diluted net loss per ADS of US$0.92 in the full year of 2024.As of December 31, 2025, the Company held Cryptocurrency assets with a fair value of US$83.3 million and Cryptocurrency receivable with an aggregate fair value of US$87.8 million, respectively. Cryptocurrency assets primarily consist of 749.9 bitcoins owned by the Company and 63.4 bitcoins received as customer deposits. Cryptocurrency receivable consists of 900 bitcoins pledged for secured term loans and 100 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 December 31, 2025, the Company held a total of 1,813.3 bitcoins.As of December 31, 2025, the Company had cash of US$80.8 million, compared to US$96.5 million as of December 31, 2024.Accounts receivable, net as of December 31, 2025 were US$19.3 million, compared to US$1.5 million as of December 31, 2024. Accounts receivable were mainly due to an installment policy implemented for some major customers who meet certain conditions.ADSs OutstandingAs of December 31, 2025, the Company had a total of 687,594,191 ADSs outstanding, each representing 15 of the Company's Class A ordinary shares.Recent DevelopmentsThe 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 of its outstanding American depositary shares or Class A ordinary shares over a 12-month period beginning December 12, 2025. Repurchases may be conducted through open-market or privately negotiated transactions, subject to market conditions and regulatory requirements.As of February 10, 2026, the Company had repurchased approximately 2.8 million ADSs for a total of about US$2.0 million under the program.Expanded Energy Efficiency Initiatives with 3 MW Compute Heat Recovery Proof-of-ConceptOn January 6, 2026, the Company announced a 3.0 MW proof-of-concept project in Manitoba, Canada, to recover heat from an Avalon computing system and utilize it as a supplemental source for greenhouse operations. The project aims for 95% uptime and an estimated approximately 90% capture and transfer of the electricity consumed by the computing servers for supplemental heating, demonstrating the Company's role at the forefront of monetizing thermal output from specialized computing infrastructure.Business OutlookFor the first quarter of 2026, the Company expects total revenues to be in the range of US$60 million to US$70 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 InformationThe Company's management team will hold a conference call at 8:00 A.M. U.S. Eastern Time on February 10, 2026 (or 9:00 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. Fourth Quarter and Full Year 2025 Earnings Conference CallRegistration Link:https://register-conf.media-server.com/register/BIced319ec0cb74f199f256c63833a212d 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 StatementThis 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 MeasuresIn 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 ContactCanaan Inc.
Xi Zhang
Email: IR@canaan-creative.com Christensen Advisory
Christian Arnell
Email: canaan@christensencomms.comPublic Relations ContactBlocksBridge 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 December 31,
20242025
USDUSDASSETS
Current assets:
Cash96,48880,778Accounts receivable, net1,51419,290Inventories94,620180,816Prepayments and other current assets90,87499,707Cryptocurrency receivable, current50,52552,699Total current assets334,021433,290Non-current assets:
Cryptocurrency61,82183,339Cryptocurrency receivable, non-current19,05735,133Property, equipment and software, net40,16344,028Intangible asset901689Operating lease right-of-use assets3,4952,880Deferred tax assets295191Other non-current assets476489Non-current financial investment2,7822,845Total non-current assets128,990169,594Total assets463,011602,884LIABILITIES, AND SHAREHOLDERS'
EQUITY
Current liabilities
Current portion of long-term loans16,65828,515Accounts payable13,97525,600Contract liabilities24,2489,317Income tax payable10,93211,403Accrued liabilities and other current
liabilities43,40654,548Operating lease liabilities, current1,2371,706Convertible Preferred Shares68,113-Total current liabilities178,569131,089Non-current liabilities:
Long-term loans7,27923,731Operating lease liabilities, non-current 1,701948Deferred tax liability153117Other non-current liabilities9,0559,631Total liabilities196,757165,516Shareholders' equity:
Class A Ordinary shares (US$0.00000005
par value; 999,643,050,556 authorized,
5,281,820,043 and 10,431,482,973 shares
issued, 4,302,538,578 and 9,627,568,893
shares outstanding as of December 31, 2024
and December 31, 2025, respectively)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, 2024 and 2025)-1Treasury stocks (US$0.00000005 par value;
229,281,465 and 442,857,765 shares as of
December 31, 2024 and December 31, 2025,
respectively)(57,055)(37,172)Additional paid-in capital816,3631,177,057Statutory reserves14,89214,892Accumulated other comprehensive loss(57,456)(56,653)Accumulated deficit(450,490)(660,757)Total shareholders' equity266,254437,368Total liabilities and shareholders' equity463,011602,884 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
December 31,
2024September 30,
2025December 31,
2025
USDUSDUSDRevenues
Products revenue73,452118,609164,929Mining revenue15,29530,55230,358Other revenues201,315987Total revenues88,767150,476196,274Cost of revenues
Product cost(80,215)(98,740)(143,562)Mining cost(14,904)(34,064)(37,020)Other cost-(1,049)(1,109)Total cost of revenues(95,119)(133,853)(181,691)Gross (loss) profit(6,352)16,62314,583Operating expenses:
Research and development expenses(16,572)(16,336)(11,456)Sales and marketing expenses(1,338)(5,074)(1,103)General and administrative expenses(27,784)(17,929)(16,868)Impairment on property and equipment(4,043)(1,194)(8,973)Gain on disposal of property, equipment
and software448-197Total operating expenses(49,289)(40,533)(38,203)Loss from operations(55,641)(23,910)(23,620)Interest income1079439Interest expense(260)(403)(827)Change in fair value of cryptocurrency15,6411,717(21,457)Change in fair value of financial
instruments other than derivatives17,213(9,458)(15,249)Change in fair value of financial
derivatives23,4113,941(22,799)Excess of fair value of convertible
preferred shares(22,052)--Foreign exchange gains (losses), net5,650(1,808)(2,890)Other income, net8,3302,5792,573Loss before income tax expenses(7,601)(27,248)(84,230)Income tax expense(85,301)(495)(805)Net loss(92,902)(27,743)(85,035)Foreign currency translation adjustment,
net of nil tax(9,720)(649)1,133Total comprehensive loss(102,622)(28,392)(83,902)Weighted average number of shares
used in per share calculation:
— Basic4,285,731,4657,787,752,6999,517,488,550— Diluted4,285,731,4657,787,752,6999,517,488,550Net loss per share (cent per share)
— Basic (2.17)(0.36)(0.89)— Diluted(2.17)(0.36)(0.89)Share-based compensation expenses were included in:
Cost of revenues1439192Research and development expenses1,840975535Sales and marketing expenses456767General and administrative expenses7,7693,9993,586 The table below sets forth a reconciliation of net loss to non-GAAP adjusted EBITDA for the
period indicated:
For the Three Months Ended
December 31,
2024September 30,
2025December 31,
2025
USDUSDUSDNet loss(92,902)(27,743)(85,035)Income tax expense85,301495805Interest income(107)(94)(39)Interest expense260403827EBIT(7,448)(26,939)(83,442)Depreciation and amortization expenses8,03813,96514,424EBITDA590(12,974)(69,018)Share-based compensation expenses9,7975,1324,280Impairment on property, equipment and
software4,0431,1948,973Change in fair value of financial
instruments other than derivatives(17,213)9,45815,249Excess of fair value of convertible
preferred shares22,052--Non-GAAP adjusted EBITDA19,2692,810(40,516) 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 Years Ended
December 31,
2024December 31,
2025
USDUSDRevenues
Products revenue223,233413,783Mining revenue44,022113,236Other revenues2,0692,716Total revenues269,324529,735Cost of revenues
Product cost(301,258)(360,251)Mining cost(51,569)(126,019)Other cost(817)(2,307)Total cost of revenues(353,644)(488,577)Gross (loss) profit(84,320)41,158Operating expenses:
Research and development expenses(61,323)(63,145)Sales and marketing expenses(5,708)(13,585)General and administrative expenses(71,691)(68,066)Impairment on property and equipment(11,303)(10,167)Gain on disposal of property, equipment and
software7,2151,576Total operating expenses(142,810)(153,387)Loss from operations(227,130)(112,229)Interest income536266Interest expense(521)(1,966)Change in fair value of cryptocurrency42,427(11,428)Change in fair value of financial derivatives17,606(9,473)Change in fair value of financial instruments
other than derivatives20,571(46,584)Excess of fair value of Convertible Preferred
Shares(50,725)(28,179)Foreign exchange gains (losses), net14,135(3,525)Other income, net10,8325,629Loss before income tax expenses(172,269)(207,489)Income tax expense(77,483)(2,778)Net loss(249,752)(210,267)Foreign currency translation adjustment, net of
nil tax(13,577)803Total comprehensive loss(263,329)(209,464)Weighted average number of shares used in
per share calculation:
— Basic4,072,386,8267,032,716,458— Diluted4,072,386,8267,032,716,458Net loss per share (cent per share)
— Basic (6.13)(2.99)— Diluted(6.13)(2.99)Share-based compensation expenses were included in:
Cost of revenues312339Research and development expenses7,2894,643Sales and marketing expenses156246General and administrative expenses23,15917,571 The table below sets forth a reconciliation of net income to non-GAAP adjusted net income
for the years indicated:
For the Years Ended
December 31,
2024December 31,
2025
USDUSDNet loss(249,752)(210,267)Income tax expense77,4832,778Interest income(536)(266)Interest expense5211,966EBIT(172,284)(205,789)Depreciation and amortization expenses28,41647,559EBITDA(143,868)(158,230)Share-based compensation expenses30,91622,799Impairment on property, equipment and software11,30310,167Change in fair value of financial instruments other
than derivatives(20,571)46,584Excess of fair value of Convertible Preferred
Shares50,72528,179Non-GAAP adjusted EBITDA(71,495)(50,501)
View original content:https://www.prnewswire.com/news-releases/canaan-inc-reports-unaudited-fourth-quarter-and-full-year-2025-financial-results-302683644.htmlSOURCE Canaan Inc.
Original: Canaan Inc. Reports Unaudited Fourth Quarter and Full Year 2025 Financial Results
tw0122
7 months ago
$1.15. Canaan Inc. Reports Unaudited Third Quarter 2025 Financial ResultsTotal revenues of US$150.5 million exceeded guidance, up 104.4% YoYBitcoin mining revenues reached US$30.6 million, up 241.0 % YoYCryptocurrency treasury climbed to a milestone of 1,610 BTC and 3,950 ETH as of October-end 2025 Singapore, November 18, 2025 /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 September 30, 2025. Third Quarter 2025 Operating and Financial Highlights Total revenues surged to US$150.5 million, exceeding the high-end of the Company’s previous guidance range, representing 104.4% year-over-year and 50.2% quarter-over-quarter growth, underpinned by strong momentum across global sales and bitcoin mining operations. Total computing power sold exceeded 10.0 exahashes per second (EH/s), setting a new quarterly record and representing 37.7% year-over-year growth and 55.6% quarter-over-quarter growth, driven by robust customer demand in Asia and a strategic rebound in North America. Mining revenue hit a record of US$30.6 million, representing 241.0% year-over-year growth, as the Company mined 267 bitcoins at an average revenue of US$114,485 per bitcoin, despite elevated network difficulty. Gross profit surged to US$16.6 million, compared to a gross loss of US$21.5 million in the same period of last year, reflecting product mix optimization and supply chain resilience. Cryptocurrency treasury expanded to 1,581.9 BTC and 2,830 ETH by the end of the third quarter in 2025 and further climbed to 1,610 BTC and 3,950 ETH by October-end 2025, reaching new historical highs. Nangeng Zhang, chairman, and chief executive officer of Canaan, commented, “In the third quarter of 2025, we delivered a strong performance amid complex macro conditions and ongoing geopolitical friction. Our total revenue reached US$150.5 million, exceeding the high end of our guidance range, driven by record-breaking momentum in both mining machine sales and self-operated mining. We sold over 10 EH/s of computing power, marking a 55.6% sequential increase and setting a new quarterly high. Our Avalon Home product line also gained significant traction among retail and distributor channels, contributing more than 8% of total revenue for the quarter. Meanwhile, our installed mining fleet expanded to 9.3 EH/s by the end of the third quarter, supported by competitive power costs and rising efficiency, reinforcing our integrated strategy in mining operations.” “With the successful ramp-up of our U.S. assembly partner, we have secured new orders from leading U.S.-based miners and advanced our own mining deployment in North America. This progress reflects the strength of our global supply chain and growing client trust. We also introduced our next-generation air-cooled A16XP model, offering 300 TH/s and energy efficiency of 12.8 J/TH, underscoring our leadership in high-performance ASIC design. Beyond these milestones, we have recently launched pilot initiatives that explore the synergy between bitcoin mining, energy management, and broader computing applications, such as grid balancing, stranded natural gas utilization, and residential heat integration. These projects point to an exciting new direction where mining becomes a catalyst for value creation across the energy and AI infrastructure landscape.” 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. Jin “James” Cheng, chief financial officer of Canaan, commented, “We delivered another solid quarter with revenue, profitability, and cash flow all showing meaningful improvement, a result of focused execution and disciplined financial management. Product sales revenue reached US$118.6 million for the quarter, supported by strong growth in computing power sold and higher average selling prices. Our team also secured a substantial volume of new orders, especially from a top-tier U.S. mining client, laying a strong foundation for the remainder of 2025. In the third quarter, our mining business achieved a quarterly record, with US$30.6 million in revenue and 267 bitcoins mined, despite the ongoing increase in mining difficulty. These operations further strengthened our growing bitcoin holdings. Despite the added cost pressure from evolving tariff policies, we expanded our gross profit to US$16.6 million and lifted our gross margin to 11%, reflecting our commitment to operational efficiency. The third quarter’s bottom line included a US$9.5 million non-cash impact from the change in fair value of preferred shares, which we excluded from our Non-GAAP results to provide a clearer view of our underlying operational performance. With all preferred shares now fully converted, we expect to include a final impact from this item in the fourth quarter.” “Driven by our robust sales cash inflow, our cash position surged to US$119.2 million by the end of the third quarter, strengthening our liquidity. Our balance sheet was also further bolstered by record-high crypto treasuries of approximately 1,582 BTC and 2,830 ETH, which also contributed an aggregate US$5.7 million of unrealized fair value gain on our digital asset holdings as these cryptocurrency prices increased by the end of the third quarter. As part of our enhanced treasury management initiative, we capitalized on recent price volatility to strategically acquire 100 additional bitcoins from the open market. In early November, we are also pleased to have received US$72 million in strategic investment from influential institutional investors. Looking ahead, we will continue to uphold prudent financial management while remaining flexible and responsive to market dynamics. Our reinforced liquidity, combined with a growing treasury and operational resilience, positions us well to pursue great opportunities in the evolving digital mining economy.” Third Quarter 2025 Financial Results Total revenues in the third quarter of 2025 were US$150.5 million, compared to US$100.2 million in the second quarter of 2025 and US$73.6 million in the same period of 2024. Total revenues consisted of US$118.6 million in products revenue, US$30.6 million in mining revenue and US$1.3 million in other revenues. Products revenue in the third quarter of 2025 was US$118.6 million, compared to US$71.9 million in the second quarter of 2025 and US$64.6 million in the same period of 2024. The sequential and year-over-year increases were mainly driven by the increased computing power sold and increased average selling price. Mining revenue in the third quarter of 2025 was US$30.6 million, compared to US$28.1 million in the second quarter of 2025 and US$9.0 million in the same period of 2024. The sequential and year-over-year increases were mainly attributable to an increase in energized mining computing power and an increase in the bitcoin price. Cost of revenues in the third quarter of 2025 was US$133.9 million, compared to US$90.9 million in the second quarter of 2025 and US$95.1 million in the same period of 2024. Products costs in the third quarter of 2025 were US$98.7 million, compared to US$58.8 million in the second quarter of 2025 and US$81.6 million in the same period of 2024. The sequential increase was mainly due to the increased sales volume. The year-over-year increase was mainly attributable to increased sales volume, partially offset by the decreased inventory write-down. The inventory write-down for this quarter was US$1.3 million, compared to the inventory write-down of US$1.0 million for the second quarter of 2025 and the inventory write-down and prepayment write-down of US$22.9 million for the same period of 2024. Products costs consist of direct production costs of mining machines, and indirect costs related to production, as well as inventory write-down. Mining costs in the third quarter of 2025 were US$34.1 million, compared to US$32.0 million in the second quarter of 2025 and US$13.5 million in the same period of 2024. 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 and year-over-year increases were 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$11.8 million, compared to US$10.5 million in the second quarter of 2025 and US$6.5 million in the same period of 2024. Gross profit in the third quarter of 2025 was US$16.6 million, compared to a gross profit of US$9.3 million in the second quarter of 2025 and a gross loss of US$21.5 million in the same period of 2024. Total operating expenses in the third quarter of 2025 were US$40.5 million, compared to US$36.4 million in the second quarter of 2025 and US$35.3 million in the same period of 2024. Research and development expenses in the third quarter of 2025 were US$16.3 million, compared to US$16.4 million in the second quarter of 2025 and US$14.8 million in the same period of 2024. Research and development expenses remained relatively stable sequentially. The year-over-year increase was mainly due to an increase of US$1.7 million in staff costs. Research and development expenses in the third quarter of 2025 also included share-based compensation expenses of US$1.0 million. Sales and marketing expenses in the third quarter of 2025 were US$5.1 million, compared to US$4.5 million in the second quarter of 2025 and US$1.7 million in the same period of 2024. The sequential and year-over-year increase was mainly due to an increase in staff costs. Sales and marketing expenses in the third quarter of 2025 also included share-based compensation expenses of US$67 thousand. General and administrative expenses in the third quarter of 2025 were US$17.9 million, compared to US$16.4 million in the second quarter of 2025 and US$13.2 million in the same period of 2024. The sequential increase was mainly due to an increase of US$2.3 million in staff costs. The year-over-year increase was mainly due to an increase of US$3.6 million in staff costs and an increase of US$1.3 million in professional service fees. General and administrative expenses in the third quarter of 2025 also included share-based compensation expenses of US$4.0 million. Impairment on property, equipment and software in the third quarter of 2025 was US$1.2 million, compared to nil in the second quarter of 2025 and US$6.5 million in the same period of 2024. Loss from operations in the third quarter of 2025 was US$23.9 million, compared to US$27.1 million in the second quarter of 2025 and US$56.8 million in the same period of 2024. Change in fair value of cryptocurrency and Change in fair value of financial derivative in the third quarter of 2025 were a gain of US$1.7 million and a gain of US$3.9 million, respectively, compared to a gain of US$10.6 million and a gain of US$23.4 million in the second quarter of 2025, respectively. The gains were mainly due to the increased bitcoin price on September 30, 2025, compared to the bitcoin price on June 30, 2025. Change in fair value of financial instruments other than derivatives in the third quarter of 2025 was a loss of US$9.5 million, compared to a loss of US$17.5 million in the second quarter of 2025 and a gain of US$1.2 million in the same period of 2024, which was mainly due to the changes in fair value of Series A and Series A-1 convertible preferred shares. Excess of fair value of Convertible Preferred Shares in the third quarter of 2025 was nil, compared to nil in the second quarter of 2025 and US$28.3 million in the same period of 2024. Foreign exchange losses, net in the third quarter of 2025 were US$1.8 million, compared to a gain of US$0.3 million in the second quarter of 2025 and a loss of US$1.0 million in the same period of 2024, respectively. Loss before income tax expense in the third quarter of 2025 was US$27.2 million, compared to US$10.3 million in the second quarter of 2025 and US$82.3 million in the same period of 2024. Net loss in the third quarter of 2025 was US$27.7 million, compared to US$11.1 million in the second quarter of 2025 and US$75.6 million in the same period of 2024. Non-GAAP adjusted EBITDA in the third quarter of 2025 was a gain of US$2.8 million, as compared to a gain of US$25.3 million in the second quarter of 2025 and a loss of US$34.1 million in the same period of 2024. 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 third quarter of 2025 was a loss of US$0.6 million, compared to a gain of US$1.4 million in the second quarter of 2025 and a gain of US$5.1 million in the same period of 2024, respectively. Basic and diluted net loss per American depositary share (“ADS”) in the third quarter of 2025 were US$0.05. In comparison, basic and diluted net loss per ADS in the second quarter of 2025 were US$0.03, while basic and diluted net loss per ADS in the same period of 2024 were US$0.27. Each ADS represents 15 of the Company's Class A ordinary shares. As of September 30, 2025, the Company held Cryptocurrency assets with a fair value of US$84.6 million and Cryptocurrency receivable with an aggregate fair value of US$113.1 million, respectively. Cryptocurrency assets primarily consist of 581.9 bitcoins owned by the Company and 63.4 bitcoins received as customer deposits. Cryptocurrency receivable consists of 900 bitcoins pledged for secured term loans and 100 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 September 30, 2025, the Company held a total of 1,645.2 bitcoins. As of September 30, 2025, the Company had cash of US$119.2 million, compared to US$96.5 million as of December 31, 2024. Accounts receivable, net as of September 30, 2025 were US$7.0 million, compared to US$1.5 million as of December 31, 2024. Accounts receivable were mainly due to an installment policy implemented for some major customers who meet certain conditions. ADSs Outstanding As of September 30, 2025, the Company had a total of 563,836,579 ADSs outstanding, each representing 15 of the Company’s Class A ordinary shares. Recent Developments Secured Landmark U.S. Order On October 2, 2025, the Company announced that it secured a purchase order from a U.S.-based bitcoin miner for more than 50,000 units of Avalon® A15 Pro mining machines, which was the largest single order in the past three years. Scheduled for delivery in the fourth quarter of 2025, the order reinforces the Company’s technology leadership and highlights the continued recovery of the U.S. bitcoin-mining market. Launched Gas-to-Computing Pilot in Canada On October 13, 2025, the Company announced the launch of a pilot gas-to-computing mining project in Calgary, Alberta, Canada, in partnership with Aurora AZ Energy Ltd. The initiative converts wellhead natural gas into low-cost power for high-density computing and bitcoin mining and will deploy over US$2 million worth of Avalon A15 Pro miners and modular data units at the source. The project is expected to reduce annual CO2-equivalent emissions by approximately 12,000 to 14,000 metric tons. Unveiled Next-Generation Avalon® A16 Series Bitcoin Mining Machines On October 28, 2025, the Company announced the official launch of its next-generation Avalon A16 series, including the most competitive air-cooled A16XP model, featuring 300 TH/s of computing power with an energy efficiency of 12.8 J/TH. The A16 series mining machines are now available for pre-order and will ship from the Company’s production centers in North America, East Asia, and Southeast Asia. Regained Compliance with Nasdaq Minimum Bid Price On October 15, 2025, the Company received written compliance notification from the staff of the Nasdaq Stock Market LLC that for 10 consecutive business days from October 1 to 15, 2025, the closing bid price of its American Depositary Shares (“ADSs”) had been equal to or above US$1.00 per ADS. Accordingly, the Company has regained compliance with Nasdaq’s minimum bid-price requirement. The Share Repurchase Program On May 27, 2025, the Company announced a share repurchase program of up to US$30 million of its ADSs and/or Class A ordinary shares over a six-month period. Repurchases may be conducted through open-market or privately negotiated transactions, subject to market conditions and regulatory requirements. As of November 18, 2025, the Company had repurchased approximately 5.08 million ADSs for a total of about US$3.4 million under the program. Refreshed At-the-Market Offering (“ATM”) Program On October 24, 2025, the Company established a new ATM equity offering program to replace the prior program, which had expired. The renewal was intended to broaden banking relationships and enhance financial flexibility for future growth initiatives. Following the renewal, the Company sold approximately 4.84 million of ADSs through the ATM program at a combined average price of approximately US$1.61 per ADS, raising in total gross proceeds of about US$7.8 million. The Company has elected to pause further sales under the ATM for the remainder of 2025. Whether and when to resume active sales in 2026 will depend on the Company’s cash requirements, market conditions, and other relevant factors. Completed US$72 Million Strategic Investment and Registered Direct Offering On November 4, 2025, the Company announced a strategic equity investment from institutional investors, including Brevan Howard Asset Management LLP, Galaxy Digital Holdings Ltd., and Weiss Asset Management LLC. The investment was executed through a registered direct offering that closed on November 7, 2025, raising aggregate gross proceeds of US$72 million. Each ADS, representing 15 Class A ordinary shares, was priced at US$1.131 per ADS. Net proceeds are intended to fund the acquisition and development of North American datacenter sites, expansion of the Company’s bitcoin-mining machine production capacity, R&D activities, and general corporate purposes. The transaction marks a milestone institutional endorsement of the Company’s growth strategy and long-term market positioning. Completion of Conversion of the Previously Announced Series A and Series A-1 Preferred Shares As of October 2025, all the Company’s Series A and Series A-1 Preferred Shares issued in previous preferred share financings had been converted into Class A ordinary shares by the Buyer. Business Outlook For the fourth quarter of 2025, the Company expects total revenues to be in the range of US$175 million to US$205 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 November 18, 2025 (or 9:00 P.M. Singapore Time on the same day) to discuss the financial results. Details for the conference call are as follows: 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 ava
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