Canaan’s Third-Quarter Revenue Hits $14.5 Million as Hardware Sales Fall
Key Facts
Canaan recorded revenue of $14.5 million in the third quarter ended September 30, 2026, compared with $150.5 million in the same period of 2025, according to a company statement. Revenue came in below analysts’ estimate of $34.9 million, according to an Investing.com report published on November 10. CEO Nangeng Zhang said demand for bitcoin mining equipment remained weak and price competition in the sector was intense. Mining equipment sales were $4.8 million, with 1.0 million TH/s of computing capacity sold. The results show product revenue declining as mining contributed a larger share of total revenue.
Third-quarter revenue comprised $4.8 million from products, $9.5 million from mining and $0.3 million from other sources, according to Canaan’s statement. Product revenue fell from $13.6 million in the second quarter and $118.6 million in the third quarter of 2025. The company attributed the decline to lower computing capacity sold and a lower average selling price amid weak overall market demand. Mining revenue was $9.5 million, compared with $17.7 million in the previous quarter and $30.6 million a year earlier. The company linked the annual decline to lower average bitcoin prices and operating computing capacity.
Adjusted earnings before interest, taxes, depreciation and amortization were $22.4 million in the third quarter, following a loss of $74.9 million in the second quarter, compared with a profit of $2.8 million in the same period of 2025. Mining operations produced 133 bitcoin during the quarter, while the company’s total holdings stood at 1,875.5 bitcoin on September 30. On November 10, the company announced an initial share buyback program of up to $20 million. The program falls under a board authorization of up to $100 million over 12 months, approved on November 6, 2026. Zhang said the 1-gigawatt power project in Duval County, Texas, received a conditional “Study Load – Fixed” classification under ERCOT’s Batch Zero process, while remaining subject to further studies and approvals.
The company is also developing an additional 1-gigawatt power project in Zapata County, Texas, Zhang said. Looking ahead, Canaan expects total revenue of between $18 million and $22 million in the fourth quarter of 2026. It also plans to change the ratio of its American depositary receipts so that each receipt represents 375 ordinary shares instead of 15 shares. That amounts to a 1-for-25 reverse split, and the company expects the change to take effect around December 4, 2026. The company said the move is intended to support efforts to regain compliance with Nasdaq’s minimum share price requirement, while Investing.com reported that the stock fell 6.93% in premarket trading after the results announcement.
Canaan shares, listed under the ticker CAN, closed at $0.2021 on November 9, according to EL7 data. That was the close in the session before Investing.com reported the stock’s premarket decline on November 10. The quarterly results link weak demand for mining equipment with lower product revenue, while mining revenue also declined year over year. At the same time, adjusted earnings before interest, taxes, depreciation and amortization improved compared with the previous quarter, and the company set a higher revenue range for the fourth quarter. The Texas power projects, along with the share buyback and the change to the depositary receipt ratio, are among the moves the company announced alongside its results.