Canaan Reports $8 Million Q3 Net Income, $14.5 Million Revenue and New $20 Million Buyback

Canaan Inc. reported third-quarter 2026 revenue of $14.5 million and GAAP net income of $8.0 million, with non-GAAP adjusted EBITDA of $22.4 million, according to PR Newswire. The company also announced a new $20 million share repurchase program under a $100 million board authorization.

Canaan's Revenue Mix and Buyback

Revenue of $14.5 million compared with $31.9 million in the second quarter of 2026 and $150.5 million in the same period of 2025. Products revenue was $4.8 million, mining revenue was $9.5 million and other revenue was $0.3 million. The company sold 1.0 million TH/s of computing power in the quarter.

Canaan recorded a gross loss of $8.6 million and a loss from operations of $42.9 million. A $51.9 million fair value gain on cryptocurrency holdings, cited by chief financial officer Jin "James" Cheng, contributed to the net income result. Inventory-related non-cash write-downs were approximately $8.2 million, down from $25.3 million in the second quarter.

Chairman and chief executive Nangeng Zhang said: "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." The board approved the $100 million repurchase authorization on November 6, 2026, over a 12-month period, and the initial $20 million program covers outstanding ADSs or Class A ordinary shares.

Canaan's Texas Power Pipeline

The 1 GW Duval County, Texas power project received a conditional "Studied Load – Firm" classification under ERCOT's Batch Zero process, subject to further studies and approvals. Canaan is also advancing a second 1 GW project in Zapata County, Texas, which is in early-stage development and preparation for grid connection studies.

During the quarter Canaan provided $50 million in restricted cash as collateral for a letter of credit supporting long-term infrastructure contracts, alongside project prepayments of approximately $3.3 million. In October it completed an approximately $1.1 million power-related land purchase in the United States.

Canaan's West Texas Mining Stake

According to akta.pro company records, Canaan acquired Cipher Mining's 49% stake in three operational West Texas mining projects in February 2026 for approximately $39.75 million, securing 4.4 EH/s of hashrate and 120 MW of sub-$0.03/kWh power capacity on the ERCOT grid. The same records list a $72 million registered direct offering of 63,660,477 ADSs at $1.131 per ADS in November 2025.

Steps After the Quarter

Canaan plans to change its ADS ratio from one ADS representing 15 Class A ordinary shares to one representing 375 shares, a 1-for-25 reverse ADS split, expected effective on or about December 4, 2026. For the fourth quarter of 2026, the company expects total revenues of $18 million to $22 million.