Key Takeaways
- Q1 revenue reached $62.7M, falling short of the $64.68M analyst forecast
- Company recorded an adjusted loss per ADS of -$0.86 versus consensus of -$0.03
- Q2 revenue forecast of $35M–$45M trails analyst expectations of $98.15M by 59%
- Net loss expanded to $88.7M while adjusted EBITDA loss surged to $76.3M
- Shares of CAN plummeted approximately 10% during pre-market hours
Shares of Canaan Inc. (CAN) plunged nearly 10% in pre-market action Tuesday following the cryptocurrency mining equipment manufacturer’s disappointing first-quarter earnings report and a second-quarter outlook that significantly undershot Wall Street forecasts.
For the first quarter, Canaan delivered revenue of $62.7 million, coming up short against the Street’s expectation of $64.68 million. Although this aligned with the company’s previous guidance, it represented a 24% year-over-year decline from the $82.8 million reported in Q1 2025.
The real surprise emerged in the profitability metrics. The company’s adjusted loss per ADS landed at -$0.86, dramatically missing analysts’ projection of just -$0.03—a variance of $0.83.
The net loss for the three-month period totaled $88.7 million, compared with $86.4 million during the corresponding quarter last year. Meanwhile, adjusted EBITDA loss ballooned to $76.3 million, a significant deterioration from the $38.1 million loss recorded in the prior-year period.
The company’s cash position decreased to $43.5 million at quarter-end, down from $80.8 million as of December 31, 2025. Management disclosed that approximately $42 million in customer payments were collected during April 2026.
Second Quarter Forecast Alarms Wall Street
The most jarring aspect of the announcement came from the second-quarter outlook. Canaan projects revenue ranging from $35 million to $45 million. At the midpoint of $40 million, this represents a stunning 59% shortfall relative to the analyst consensus of $98.15 million.
Management attributed the conservative guidance to “near-term market conditions and evolving customer dynamics.”
Chief Executive Nangeng Zhang addressed the challenging business climate. “Despite bitcoin price volatility, compressed hashprice conditions, elevated energy costs, and weather-related disruptions in North America, we delivered total revenue of $62.7 million, which was in line with our guidance,” Zhang stated.
Bitcoin Mining Activities Register Expansion
Despite the financial headwinds, some operational metrics showed positive momentum. The company mined 257 bitcoins throughout Q1 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.
Deployed mining capacity spanning 10 collaborative mining ventures climbed to approximately 11 EH/s, representing a 10.7% increase from the previous quarter.
Throughout the quarter, Canaan purchased a 49% stake in ABC Projects located in West Texas from Cipher Mining, incorporating roughly 4.4 EH/s of active hashrate infrastructure.
Additionally, the company rolled out hash-to-heat technology in Nordic countries, with 2 MW currently in operation.
These strategic initiatives demonstrate Canaan’s commitment to expanding operations, though they contrast sharply with the challenging financial performance.
Management cautioned that the Q2 revenue projection of $35 million to $45 million could be revised based on shifting market dynamics.
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