Canaan (CAN) Stock Plummets 10% on Disappointing Q1 Results and Dire Q2 Forecast

Key Takeaways

• Q1 revenue reached $62.7M, falling short of the $64.68M analyst consensus
• The company posted an adjusted loss per ADS of -$0.86 versus expectations of -$0.03
• Second quarter revenue forecast of $35M–$45M significantly trails the $98.15M consensus by 59%
• The company’s net loss expanded to $88.7M while adjusted EBITDA loss surged to $76.3M
• Shares of CAN declined approximately 10% during pre-market hours after the earnings release

Shares of Canaan Inc. (CAN) tumbled nearly 10% in pre-market activity on Tuesday following the cryptocurrency mining equipment manufacturer’s disappointing first quarter results and underwhelming guidance for the current quarter.

Canaan Inc., CAN

The Beijing-based company disclosed first quarter revenue of $62.7 million, falling marginally short of Wall Street’s consensus forecast of $64.68 million. Though the number aligned with Canaan’s previously issued guidance range, it represented a 24% year-over-year decline from the $82.8 million generated in the first quarter of 2025.

The more alarming development emerged from profitability metrics. The firm reported an adjusted loss per American Depositary Share of -$0.86, substantially worse than the -$0.03 loss that analysts had projected—a miss of $0.83.

Canaan’s net loss totaled $88.7 million for the period, compared with a loss of $86.4 million during the corresponding quarter of the previous year. The adjusted EBITDA loss ballooned to $76.3 million, a significant deterioration from the $38.1 million loss recorded twelve months earlier.

The company’s cash position weakened to $43.5 million as of the end of March, down from $80.8 million at year-end 2025. Management disclosed that approximately $42 million in customer payments were collected during April 2026.

Second Quarter Forecast Falls Dramatically Short

The most concerning aspect of Tuesday’s announcement centered on forward-looking projections. Canaan issued second quarter revenue guidance ranging from $35 million to $45 million. The $40 million midpoint represents a staggering 59% shortfall compared to the $98.15 million analyst consensus.

Management attributed the conservative forecast to “near-term market conditions and evolving customer dynamics.”

Bright Spots in Mining Operations

Despite financial headwinds, certain operational metrics showed progress. Canaan mined 257 bitcoins throughout the first quarter and expanded its digital asset holdings to an all-time high of 1,807.60 BTC and 3,951.53 ETH as of March 31, 2026.

The company’s total installed mining computing capacity across its portfolio of 10 joint-mining initiatives reached approximately 11 exahashes per second (EH/s), representing a sequential increase of 10.7%.

In a strategic transaction during the quarter, Canaan purchased a 49% ownership stake in ABC Projects located in West Texas from Cipher Mining, contributing roughly 4.4 EH/s of live hashrate capacity to its operations.

Additionally, the firm initiated hash-to-heat infrastructure deployment in Nordic countries, with 2 megawatts currently operational.

These strategic initiatives demonstrate Canaan’s commitment to expanding operational capacity and diversification, even as near-term financial performance faces substantial pressure.

Management cautioned that the second quarter revenue guidance range of $35 million to $45 million could shift based on evolving market dynamics.

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