$CAN

Canaan Inc.

CIK:0001780652|SEC Filings

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Revenues
Other revenues	$ 2,716	$ 2,069	$ 622
Total revenues	529,735	269,324	211,477
Cost of revenues
Other cost	(2,307)	(817)	(2,308)
Total cost of revenues	(488,577)	(353,644)	(452,257)
Gross (loss) profit	41,158	(84,320)	(240,780)
Operating expenses:
Research and development expenses	(63,145)	(61,323)	(64,845)
Sales and marketing expenses	(13,585)	(5,708)	(8,175)
General and administrative expenses	(68,066)	(71,691)	(71,249)
Impairment on property, equipment and software	(10,167)	(11,303)	(21,126)
Impairment on cryptocurrency			(4,706)
Gain on disposal of property, equipment and software	1,576	7,215	0
Total operating expenses	(153,387)	(142,810)	(170,101)
Loss from operations	(112,229)	(227,130)	(410,881)
Interest income	266	536	956
Interest expense	(1,966)	(521)
Change in fair value of cryptocurrency	(11,428)	42,427
Change in fair value of financial instruments other than derivatives	(46,584)	20,571	(10,918)
Change in fair value of financial derivatives	(9,473)	17,606
Excess of fair value of convertible preferred shares	(28,179)	(50,725)	(59,199)
Foreign exchange gains (losses), net	(3,525)	14,135	12,309
Other income, net	5,629	10,832	2,240
Loss before income tax expense	(207,489)	(172,269)	(465,493)
Income tax benefit (expense)	(2,778)	(77,483)	51,340
Net loss	(210,267)	(249,752)	(414,153)
Foreign currency translation adjustment, net of nil tax	803	(13,577)	(6,966)
Total comprehensive loss	$ (209,464)	$ (263,329)	$ (421,119)
Weighted average number of shares used in per Class A and Class B ordinary share calculation:
- Basic (in shares)	7,042,820,966	4,072,386,826	2,579,202,596
- Diluted (in shares)	7,042,820,966	4,072,386,826	2,579,202,596
Net loss per Class A and Class B ordinary share (cent per share)
- Basic (in dollars per share)	$ (2.99)	$ (6.13)	$ (16.06)
- Diluted (in dollars per share)	$ (2.99)	$ (6.13)	$ (16.06)
Cost of revenues
Share-based compensation expenses were included in:
Share-based compensation expense	$ 339	$ 312	$ 207
Research and development expenses
Share-based compensation expenses were included in:
Share-based compensation expense	4,643	7,289	9,098
Sales and marketing expenses
Share-based compensation expenses were included in:
Share-based compensation expense	246	156	234
General and administrative expenses
Share-based compensation expenses were included in:
Share-based compensation expense	17,571	23,159	32,535
Products revenue
Revenues
Revenues	413,783	223,233	176,898
Cost of revenues
Cost of revenues	(360,251)	(301,258)	(368,116)
Mining revenue
Revenues
Revenues	113,236	44,022	33,957
Cost of revenues
Cost of revenues	$ (126,019)	$ (51,569)	$ (81,833)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Cash flows from operating activities
Net loss	$ (210,267)	$ (249,752)	$ (414,153)
Adjustments for:
Revenue recognized on acceptance of cryptocurrency	(152,934)	(90,273)	(58,959)
Cost recognized on payment of cryptocurrency	55,941	9,821	8,854
(Receipt) return of cryptocurrency as customer deposits	1,720	5,080	(4,922)
Change in fair value of cryptocurrency	11,428	(42,427)
Change in fair value of financial derivatives	9,473	(17,606)
Other income, net	337	5,025
Realized loss on sale of cryptocurrency			(6,135)
Depreciation and amortization of property, equipment and software	47,347	28,257	59,641
Amortization of intangible assets	212	159
Foreign exchange (loss) gain	477	12,020	(9,302)
Provision of allowance for doubtful receivables	85	2,982	14
Deferred income tax (benefit) expense	72	66,150	(45,686)
Loss (gain) on disposal of property, equipment and software	(1,576)	(7,215)	18
Share-based compensation expense	22,799	30,916	42,074
Change in fair value of financial instruments other than derivatives	46,584	(20,571)	10,918
Excess of fair value of convertible preferred shares	28,179	50,725	59,199
Reduction in the carrying amount of the operating lease right-of-use assets	1,721	1,910	2,481
Interest of operating lease liabilities	101	90	115
Interest of long-term loan	628	521
Impairment loss of cryptocurrency			4,706
Impairment loss of property, equipment and software	10,167	11,303	21,126
Write-down of inventories	14,055	90,807	174,838
Write-down of prepayments	694	9,745	5,627
Provision for reserve for inventory purchase commitments	3,904		9,816
Unrecognized tax benefit	924	6,933
Changes in assets and liabilities:
Accounts receivable	(17,661)	97	(3,011)
Inventories	(138,321)	(129,272)	(123,679)
Cryptocurrency		(1,761)
Prepayments and other current assets	(8,082)	43,321	122,471
Other non-current assets	(3)	3	2,008
Accounts payable	10,841	7,222	(10,237)
Contract liabilities	(15,112)	4,802	19,026
Income tax payable	(701)	588	(3,596)
Accrued liabilities and other current liabilities	6,775	(26,238)	6,332
Other non-current liabilities	370	(517)	9,161
Operating lease liabilities	(1,395)	(2,107)	(2,365)
Net cash used in operating activities	(271,218)	(199,262)	(123,620)
Cash flows from investing activities:
Purchase of property, equipment and software	(24,612)	(19,304)	(3,312)
Proceeds from disposal of property, equipment and software	686	8,783	2,295
Proceeds from sale of cryptocurrency	93,077	71,494	40,645
Purchase of cryptocurrency	(12,419)
Net cash (used in) investing activities	56,732	60,973	39,628
Cash flows from financing activities:
Payment for repurchase of ordinary shares	(5,000)
Proceeds from issuance of convertible preferred shares, net of issuance costs	99,650	129,810	24,575
Issuance of ordinary shares pursuant to preferred shares financing, net of offering cost	1
Proceeds from borrowings from long-term loan		9,937
Repayment of long-term loan	(16,972)
Proceeds from resale of treasury stock	1,609	768	2,420
Repurchase for tax withholdings on vesting of restricted share units	(1,609)	(768)	(2,420)
Net cash provided by financing activities	197,879	139,747	90,005
Net increase (decrease) in cash	(16,607)	1,458	6,013
Effect of exchange rate changes on cash	897	(1,124)	(11,410)
Cash at the beginning of year	96,488	96,154	101,551
Cash at the end of year	80,778	96,488	96,154
Supplemental disclosure of cash flow information:
Cash paid for interest	1,338	370
Cash paid for income tax	1,437	52	2,876
Supplemental disclosure of non-cash investing and financing activities:
Mining equipment transferred from inventory to property, equipment and software	38,038	38,405	24,052
Issuance of ordinary shares pursuant to share lending arrangement	944	$ 236	511
At-the-Market Offering Agreements
Cash flows from financing activities:
Proceeds from issuance of ordinary shares, net of issuance costs	49,470		$ 65,430
Registered Direct Offering
Cash flows from financing activities:
Proceeds from issuance of ordinary shares, net of issuance costs	$ 70,730

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Current assets:
Cash	$ 80,778	$ 96,488
Accounts receivable, net	19,290	1,514
Inventories	180,816	94,620
Prepayments and other current assets	99,707	90,874
Cryptocurrency receivable, current	52,699	50,525
Total current assets	433,290	334,021
Non-current assets:
Cryptocurrency	83,339	61,821
Cryptocurrency receivable, non-current	35,133	19,057
Property, equipment and software, net	44,028	40,163
Intangible assets	689	901
Operating lease right-of-use assets	2,880	3,495
Deferred tax assets	191	295
Other non-current assets	489	476
Non-current financial investment	2,845	2,782
Total non-current assets	169,594	128,990
Total assets	602,884	463,011
Current liabilities:
Current portion of long-term loans	28,515	16,658
Accounts payable	25,600	13,975
Contract liabilities	9,317	24,248
Income tax payable	11,403	10,932
Accrued liabilities and other current liabilities	54,548	43,406
Operating lease liabilities, current	1,706	1,237
Convertible preferred shares		68,113
Total current liabilities	131,089	178,569
Non-current liabilities:
Long-term loans	23,731	7,279
Operating lease liabilities, non-current	948	1,701
Deferred tax liabilities	117	153
Other non-current liabilities	9,631	9,055
Total liabilities	165,516	196,757
Contingencies (Note 21)
Shareholders' equity:
Treasury stocks (US$0.00000005 par value; 229,281,465 shares and 366,981,615 shares as of December 31, 2024 and 2025, respectively)	(37,172)	(57,055)
Additional paid-in capital	1,177,057	816,363
Statutory reserves	14,892	14,892
Accumulated other comprehensive loss	(56,653)	(57,456)
Accumulated deficit	(660,757)	(450,490)
Total shareholders' equity	437,368	266,254
Total liabilities and shareholders' equity	602,884	$ 463,011
Class A ordinary shares
Shareholders' equity:
Ordinary shares value	$ 1