Canaan's first-half revenue nearly halves as gross profit turns to loss

Canaan reported first-half 2026 revenue of about $94.6 million, down from $183.0 million a year earlier, and swung from a gross profit to a $52.2 million gross loss. The results appear in unaudited interim financial statements furnished with a Form 6-K filed Friday, September 11. They cover the six months ended June 30, rather than a new quarter or an overnight operating update.

Revenue mix

The Nasdaq-listed company, which designs and sells bitcoin-mining computing equipment and also reports mining revenue, recorded declines in both businesses. Product revenue fell to $56.5 million from $130.2 million. Mining revenue declined to $36.8 million from $52.3 million, while other revenue rose to $1.3 million from $414,000. Products remained the larger revenue category, but accounted for most of the reduction in total sales.

Gross loss and operating loss

Costs fell less than revenue. Total cost of revenues was $146.8 million, compared with $173.0 million in the prior-year half. Product costs alone were $102.6 million against $56.5 million of product revenue; mining costs were $43.1 million against $36.8 million of mining revenue. Those disclosed lines show costs exceeding revenue in each of the two principal categories. The resulting consolidated gross loss of $52.2 million compared with a $10.0 million gross profit a year earlier.

Fair-value and other non-operating items

Lower operating expenses did not offset that reversal. Total operating expenses declined to $71.5 million from $74.7 million. Research and development, sales and marketing, and general and administrative expenses each fell, although the company recorded a $9.2 million impairment on property, equipment and software. Loss from operations widened to $123.8 million from $64.7 million.

Balance sheet compression

Below the operating line, Canaan recorded a $34.2 million cryptocurrency fair-value loss, compared with an $8.3 million gain in the first half of 2025. A separate financial-derivatives fair-value loss of $24.9 million compared with a $9.4 million gain. These are reported fair-value changes, not measures of operating cash outflow. Net loss widened to $186.4 million from $97.5 million, after tax expense and losses of equity investees.

Cash flow snapshot

The balance-sheet comparisons use December 31, 2025, as their starting point. Cash declined to $66.0 million at June 30 from $80.8 million at year-end. Inventories fell to $128.8 million from $180.8 million, and net accounts receivable fell to $1.7 million from $19.3 million. Total current assets declined to $310.6 million from $433.3 million. These balances describe the company's position at the two reporting dates; they are distinct from the year-over-year income-statement comparisons.

What remains undisclosed

The non-current cryptocurrency balance fell to $47.0 million from $83.3 million. Cryptocurrency receivables moved in different directions: the current balance declined to $29.1 million from $52.7 million, while the non-current balance increased to $41.8 million from $35.1 million. Total assets fell to $446.2 million from $602.9 million, and total shareholders' equity declined to $292.7 million from $437.4 million.

Additional detail

Operating cash use narrowed despite the larger net loss. Net cash used in operating activities was $51.9 million for the first half of 2026, compared with $199.6 million a year earlier. Purchases of property, equipment and software declined to $5.6 million from $21.0 million. Proceeds from cryptocurrency disposals were $20.7 million, down from $51.1 million; cryptocurrency purchases were $27,000, compared with $2.4 million.

The 6-K says these latest interim statements supersede numbers in previous 6-K exhibits if there is a discrepancy. This accession contains no separate MD&A exhibit, and the supplied packet includes no management narrative, non-GAAP reconciliations, third-quarter or full-year guidance, or share-price or bitcoin-price reaction. The filing therefore establishes the reported financial changes without supplying management's explanation or an outlook. All financial amounts above are converted from Exhibit 99.1's thousands-of-U.S.-dollars presentation.

Filing reference

Form 6-K AccNo 0001104659-26-107048 with Exhibit 99.1 furnishes the unaudited interim statements for the six months ended June 30, 2026 (accepted September 11, 2026 ~16:01 ET).