Canaan Inc. reported second-quarter 2026 revenue of about $32 million, below its guidance of $35 million to $45 million and an analyst estimate of $55.41 million. The company’s shares fell 6.94% in premarket trade to $0.335 from a previous close of $0.36, after a 52-week range of $0.152 to $2.22. The forecasted earnings-per-share estimate was negative $0.0583.
Product revenue was about $14 million, or 44% of total revenue, while mining revenue was $18 million, or 55%. Canaan sold 2.5 exahash per second of computing power at an average hardware selling price of $5.50 per terahash per second and mined 243 bitcoin during the quarter. Avalon Home generated about $1 million in revenue. The company’s non-joint-venture installed hash rate was approximately 10.05 exahash per second at the end of June.
Operating expenses totaled $40 million, including $9.2 million of property, plant and equipment impairment charges and $2.7 million of credit losses. Excluding those items, operating expenses were $28.2 million. Adjusted EBITDA was a loss of $74.9 million. Cash at the end of the second quarter was $66 million, up about $23 million from $43 million at the end of the first quarter. As of June 30, Canaan held 1,915 bitcoin and 3,952 ether with a carrying value of $112 million.
Under its $30 million share repurchase authorization, Canaan bought back 2.8 million ADSs for about $2 million in the first quarter and 13.6 million ADSs for $5.4 million in late August, for a year-to-date total of 16.4 million ADSs and $7.4 million of consideration. In late August, the company sold all of its ether holdings and 54 bitcoin, generating roughly $13.9 million in cash. Project ABC’s installed hashrate reached 4.85 exahash per second at the end of July, up 10% from the end of March, and cumulative cash received reached $8.4 million by August 31, including $5.2 million received during the second quarter. Canaan recognized about $4 million of equity investment losses for Project ABC in the quarter due to older machine retirements.
Canaan guided third-quarter 2026 revenue to $11 million to $15 million and said it was preparing for mass production in the third quarter. Management said the quarter remained difficult for the bitcoin mining industry, with bitcoin prices recovering from about $62,000 to $82,000 in the first half of the quarter before falling to a period low of about $58,000 by the end. Hash prices fluctuated between $0.028 and $0.039 per terahash per second per day. The company’s average all-in power cost in June was about $0.043 per kilowatt-hour, with OEM power cost around $0.03 per kilowatt-hour, and mining gross margin was 20% excluding depreciation. Avalon A15 machines operated at 15.8 to 17.8 joules per terahash, while Avalon A16 machines operated at 12.8 to 16.8 joules per terahash. Chief Financial Officer James Jin Cheng said the company was focused on improving asset quality and generating better economics from existing energy resources rather than preserving the book value of older equipment. Canaan targeted securing a gigawatt-scale load by year-end 2026 and has until January 11, 2027, to regain compliance with Nasdaq’s minimum bid price requirement.
