Canaan Inc.

Canaan reported first-quarter 2026 revenue of $62.7 million, in line with guidance. Product revenue was about $43 million, including $2.7 million from Avalon home series, and mining revenue was $19 million. The company sold 4.1 EH/s at an average selling price of about $10.50 per terahash. Gross loss was $23 million, entirely driven by a $25 million noncash inventory write-down; excluding that item, adjusted gross profit was about $1 million, or breakeven adjusted gross margin. Operating expenses were $31 million, down 11% sequentially and 18% year over year. End-of-quarter liquidity was $43 million in cash, and the company ended with 1,808 Bitcoin and 3,952 Ethereum on the balance sheet. For Q2 2026, management guided revenue to $35 million-$45 million.

Nangeng Zhang framed Q1 as a difficult but disciplined quarter, emphasizing execution over the market downturn. He said the company completed a large North American order, expanded mining operations, added to its digital asset treasury, and advanced its shift from a pure mining-machine business toward energy and computing infrastructure. He was especially focused on long-term positioning around low-cost power, customized systems, and eventual AI/HPC opportunities, while repeatedly cautioning that the company would not make aggressive promises before projects mature.

James Cheng emphasized that the quarter was shaped by bitcoin volatility, tighter liquidity, and broader industry caution, but said Canaan stayed within guidance and kept operations lean. He cited $63 million of revenue, $23 million of gross loss caused by a $25 million noncash inventory write-down, $31 million of operating expenses, and a $76 million adjusted EBITDA loss. He also noted $43 million of cash at quarter-end, $57 million of manufacturing/operations outflows, $6 million of wafer procurement payments, and $2 million of share repurchases, adding that the company collected $42 million of cash receivables in April.

Analysts focused on Canaan’s power pipeline, the economics and expansion potential of the ABC transaction, and the outlook for Avalon Home Series demand. Management said it is building around energy, computing infrastructure, and ASIC design, but declined to disclose site counts or stage details for power projects, saying legal/commercial milestones have not been reached. On home miners, management said policy changes hurt the category and that the company is prioritizing channel development and new/upgraded products in the second half. On product demand, NG said the mining equipment market needs higher hash price levels for a meaningful recovery, estimating that around $40-$45 per hash per day would signal clearer improvement.