Canaan (CAN) Q1 2026 earnings summary

Executive summary

• Q1 2026 was challenging due to a sharp drop in Bitcoin prices, low hash prices, and global uncertainties, but revenue reached $62.7 million, aligning with guidance.

• Installed mining computing power rose to 11 EH/s, up 66% year-over-year and 10.7% sequentially, with 257 BTC produced.

• Cryptocurrency treasury hit record levels: 1,808 BTC and 3,952 ETH as of March 31, 2026.

• Strategic expansion included acquiring a 49% interest in three Texas mining sites (ABC Projects), adding ~4.4 EH/s and 120 MW capacity, and advancing Nordic hash-to-heat deployment.

• Shifted strategic focus from pure mining machines to energy plus computing infrastructure, advancing R&D for next-gen products and AI/HPC opportunities.

Financial highlights

• Q1 2026 revenue was $62.7 million, with product revenue at $42.9 million and mining revenue at $19.1 million.

• Gross loss was $23 million due to a $25 million non-cash inventory write-down; adjusted gross profit was $1 million (break-even margin).

• Net loss was $88.7 million, and adjusted EBITDA loss was $76.3 million.

• Cash balance at quarter-end was $43 million, with $42 million in receivables collected in April, raising total cash to $85.5 million.

• North America contributed over 80% of product sales, up from 75% in Q4 2025.

Outlook and guidance

• Q2 2026 revenue expected between $35 million and $45 million, reflecting continued market caution and volatility.

• Management will monitor policy and market developments and may update guidance as needed.