Canaan Inc. (NASDAQ:CAN) reported third-quarter 2026 adjusted earnings of $0.01 per share, exceeding analysts' expectations for a loss of $0.15 per share, while revenue of $14.5 million fell below the consensus estimate of $34.9 million. Shares of the bitcoin mining equipment and computing infrastructure company declined 6.93% in premarket trading on Tuesday.

Quarterly revenue decreased 90% from $150.5 million in the corresponding period of 2025, reflecting lower computing power sales, reduced average selling prices and weaker demand for bitcoin mining equipment.

Revenue Declines as Mining Equipment Demand Slows

Canaan reported product revenue of $4.8 million, compared with $118.6 million a year earlier.

Mining revenue declined to $9.5 million from $30.6 million in the third quarter of 2025.

The company attributed the overall revenue contraction to reduced equipment demand and pricing competition across the bitcoin mining industry.

Chairman and Chief Executive Officer Nangeng Zhang commented:

"Despite continued weakness in bitcoin mining equipment demand and intense industry pricing competition, we delivered US$14.5 million in Q3 revenue, near the upper end of our guidance range."

Net Income Reaches $8 Million Following Cryptocurrency Valuation Gain

Canaan reported GAAP net income of $8.0 million, compared with a net loss of $27.7 million in the prior-year quarter.

The result was primarily supported by a $51.9 million fair value gain on cryptocurrency holdings as bitcoin prices recovered toward the end of the reporting period.

As of September 30, 2026, the company held approximately 1,875 bitcoin in its treasury.

Canaan also reported a mining gross margin of approximately 30% before depreciation, supported by electricity costs averaging approximately $0.043 per kilowatt-hour.

Fourth-Quarter Revenue Guidance Set at $18 Million to $22 Million

For the fourth quarter of 2026, Canaan expects revenue between $18 million and $22 million, representing a midpoint of $20 million.

The forecast reflects the company's expectations for continued challenges in the bitcoin mining equipment market, including demand conditions and competitive pricing.

Texas Energy Project and Share Repurchase Programme

Canaan reported progress on its energy infrastructure development strategy after receiving conditional classification under ERCOT's Batch Zero process for its proposed 1-gigawatt Duval County power project in Texas.

The company also announced a new $20 million share repurchase programme under a broader $100 million authorisation approved by its board.

The third-quarter results reflected a substantial decline in equipment-related revenue, while cryptocurrency valuation gains contributed to reported profitability. The company's fourth-quarter outlook indicates expectations for revenue to remain below the levels recorded in the corresponding period of 2025.

Canaan stock price