Canaan Inc. reported third-quarter 2026 net income of US$8.0 million, a swing from a prior-quarter loss. The result came as revenue fell to US$14.5 million. A year earlier, revenue was US$150.5 million. Second-quarter sales were US$31.9 million. The November 10 release also showed non-GAAP adjusted EBITDA of US$22.4 million. Canaan said the figures reversed second-quarter losses of US$97.6 million and US$74.9 million.
Equipment sales and mining revenue declined
The top line stayed under pressure. Mining equipment sales brought in US$4.8 million, down from US$13.6 million sequentially and US$118.6 million a year earlier. Canaan cited weaker demand, lower computing power sales and lower average selling prices. Equipment sold represented 1.0 million TH/s. Bitcoin mining revenue was US$9.5 million, compared with US$17.7 million in the second quarter and US$30.6 million a year earlier. The company produced 133 BTC.
Operating losses narrowed, but the business remained in the red
The operating business was still loss-making. Gross loss narrowed to US$8.6 million from US$29.3 million sequentially. Operating loss fell to US$42.9 million from US$69.5 million. Inventory-related write-downs and provisions dropped to US$8.2 million from US$25.3 million. The statements also recorded US$20.1 million in cryptocurrency fair-value gains and US$31.9 million in derivatives fair-value gains. CFO Jin Cheng, who also goes by James, separated those non-cash valuation gains from operating performance. That distinction matters, I think, because the profit did not come from hardware sales or mining alone.
Texas projects, treasury and buyback plans
Canaan’s 1 GW Duval County project in Texas received conditional Studied Load Firm classification through ERCOT’s Batch Zero process. The company called it a grid-connection milestone. A separate 1 GW project in Zapata County remained in early development. Canaan pledged US$50 million in restricted cash as collateral for a letter of credit tied to long-term infrastructure arrangements. It made about US$3.3 million in project prepayments and completed a U.S. power-related land purchase for about US$1.1 million in October 2026.
Canaan reported roughly 10 EH/s of installed non-JV mining capacity and an all-in power cost near US$0.043/kWh. Cheng put mining gross margin before depreciation at about 30%. The crypto treasury held about 1,875 BTC on September 30, 2026. Canaan’s 49% stake in Project ABC, with 4.87 EH/s installed, generated more than US$1.2 million in cash distributions.
The board approved a US$100 million repurchase authorization on November 6, 2026, and Canaan launched an initial US$20 million program under it. CEO Nangeng Zhang said the company was selectively monetizing crypto holdings to fund repurchases while keeping its long-term digital-asset strategy. Cash and restricted cash totaled US$72.8 million at quarter’s end. Canaan forecast fourth-quarter revenue of US$18 million to US$22 million. It plans a 1-for-25 reverse ADS split around December 4, 2026. Each ADS would move from representing 15 Class A ordinary shares to 375. The stated aims are Nasdaq minimum-bid-price compliance and potentially broader institutional participation. Proportional ownership stays unchanged apart from fractional-ADS adjustments.
