Cango Inc. (NYSE: CANG) reported Q2 2026 revenue of US$50.8 million, down about 64% from US$139.8 million a year earlier, while diluted loss per ordinary share from continuing operations narrowed to US$1.99 from US$8.26. The company remained unprofitable, with a continuing-operations net loss of US$81.6 million and an adjusted EBITDA loss of US$10.7 million, as lower mining-machine impairment partially offset weaker mining revenue.
Core Earnings Data
For the quarter ended June 30, Cango’s operating loss and continuing-operations net loss narrowed year over year despite the sharp revenue decline. The main reason was that mining-machine impairment fell to US$42.9 million from US$256.9 million, although the company also recorded an US$8.5 million disposal loss this quarter.
The prior-year quarter included a US$158.6 million loss from discontinued operations, while Q2 2026 did not. Continuing-operations figures therefore provide the more comparable view of year-over-year performance.
| Metric | Q2 2026 | Q2 2025 | Year-over-Year Change |
|---|---|---|---|
| Revenue | US$50.8 million | US$139.8 million | Down about 64% |
| Cost of revenue, excluding depreciation | US$50.7 million | US$112.8 million | Down about 55% |
| Operating loss | US$80.6 million | US$177.1 million | Loss narrowed about 55% |
| Net loss from continuing operations | US$81.6 million | US$176.8 million | Loss narrowed about 54% |
| Diluted loss per ordinary share, continuing operations | US$1.99 | US$8.26 | Loss narrowed about 76% |
| Mining-machine impairment | US$42.9 million | US$256.9 million | Down about 83% |
| Adjusted EBITDA | Loss of US$10.7 million | Profit of US$102.5 million | Swung to a loss |
Adjusted EBITDA is a non-GAAP measure and includes changes in the fair value of crypto assets under Cango’s definition.
Business and Operating Performance
Bitcoin mining generated US$47.4 million, representing most of Cango’s quarterly revenue, while other revenue totaled US$3.4 million. Total revenue decreased approximately 50% from Q1 2026 after the company reduced operating hashrate, phased out older and less efficient S19-series machines, and moved some capacity to a hosted leasing model.
Cango mined 656 Bitcoins during the quarter. Operating hashrate stood at 27.58 EH/s on June 30, consisting of 19.84 EH/s of self-mining capacity and 7.74 EH/s of leased capacity. The adjusted fleet mix helped reduce average cash cost per Bitcoin by approximately 5% sequentially to US$73,313.
The company also continued developing its AI computing infrastructure. Its Georgia site completed conversion in early July and can support up to 3 megawatts, with container units installed and GPU hardware arriving in stages. Management said the site was onboarding customers and expected revenue recognition to begin in Q3 through bare-metal GPU hosting and colocation services.
Lower Impairment Narrowed the GAAP Loss, but Adjusted Results Remained Negative
The improvement in Cango’s GAAP loss primarily reflected lower non-cash charges rather than a return to operating profitability. Mining-machine impairment declined by US$214.0 million year over year, more than offsetting the impact of lower revenue on the reported operating loss.
Adjusted EBITDA moved in the opposite direction, falling from a US$102.5 million profit to a US$10.7 million loss. This comparison was heavily influenced by crypto-asset fair-value changes: Q2 2025 included a US$78.5 million gain, while Q2 2026 included a US$4.1 million loss. The current-quarter result shows that lower fleet costs and improved unit economics had not yet restored positive adjusted EBITDA.
Profitability and Balance Sheet
Total operating costs and expenses were US$131.4 million. Besides US$50.7 million of cost of revenue excluding depreciation, expenses included US$16.9 million of depreciation, approximately US$8.4 million of general and administrative expenses including related-party fees, US$42.9 million of impairment, and the US$8.5 million disposal loss.
Cash and cash equivalents increased to US$10.1 million from US$7.2 million at the end of March. Cango held 1,056 Bitcoins in treasury and reported mining machines with a net carrying value of US$58.7 million. Related-party long-term debt was US$31.2 million, compared with US$30.6 million in March, while the June balance sheet also listed US$8.0 million of short-term debt and a US$10.0 million convertible note.
Cango launched a Bitcoin hedging program during the quarter to reduce exposure to price volatility and improve the predictability of operating cash flows. Management described the program as a risk-management tool rather than a speculative strategy, with related short-term positions recorded on the balance sheet.
Risks Investors Should Monitor
- Mining scale and profitability: The hashrate reduction lowered operating costs and average cash cost per Bitcoin, but it also contributed to an approximately 50% sequential revenue decline, while adjusted EBITDA remained negative.
- Bitcoin price and accounting volatility: Crypto-asset fair-value changes materially affected both GAAP and adjusted results. The new hedging program may reduce exposure but introduces short-term positions that require disciplined execution.
- Further fleet-related charges: Cango recorded US$42.9 million of impairment and US$8.5 million of disposal losses as it removed less efficient mining machines. Additional fleet adjustments could continue to affect reported earnings.
- AI commercialization: The Georgia site was still onboarding customers at the time of the report. Management expected Q3 revenue recognition, making the pace of customer deployment and utilization an important execution point.
- Liquidity and debt obligations: Quarter-end cash was US$10.1 million, while the balance sheet included short-term debt, a convertible note, and related-party long-term debt. These obligations remain relevant while the company is reporting operating and adjusted EBITDA losses.
Summary
Cango’s Q2 2026 results reflected a deliberate reduction in mining scale intended to improve fleet efficiency and cash costs. Lower impairment substantially narrowed the GAAP loss, but revenue contracted sharply and adjusted EBITDA turned negative as the benefit from prior-year crypto fair-value gains disappeared. Investors will need to watch whether lower mining unit costs can translate into positive operating results and whether the Georgia AI site begins generating revenue on management’s planned timetable.
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