Key Takeaways
- First-quarter revenue reached $62.7M, falling short of the $64.68M analyst projection
- The company recorded an adjusted loss per ADS of -$0.86 versus expectations of just -$0.03
- Second-quarter revenue forecast of $35M–$45M significantly underperforms the $98.15M consensus by 59%
- Net losses expanded to $88.7M while adjusted EBITDA losses surged to $76.3M
- Shares of CAN plummeted approximately 10% during pre-market hours after the disclosure
Shares of Canaan Inc. (CAN) tumbled nearly 10% during Tuesday’s pre-market session after the Bitcoin mining equipment manufacturer delivered weaker-than-anticipated first-quarter results and provided second-quarter guidance that significantly undershot Wall Street projections.
The Beijing-based company disclosed first-quarter revenue of $62.7 million, falling marginally short of the Street’s $64.68 million estimate. Although the number aligned with Canaan’s previously issued guidance range, it represented a 24% year-over-year contraction from the $82.8 million recorded in the first quarter of 2025.
The more alarming news emerged from the profitability metrics. The mining hardware specialist reported an adjusted loss per American Depositary Share of -$0.86, dramatically worse than the -$0.03 loss analysts had forecasted—a staggering miss of $0.83 per share.
The company’s net loss for the three-month period totaled $88.7 million, compared with $86.4 million during the corresponding quarter of the previous year. More concerning, adjusted EBITDA losses ballooned to $76.3 million, doubling from the $38.1 million loss posted twelve months earlier.
Canaan’s cash position deteriorated to $43.5 million as of March 31, down substantially from $80.8 million at 2025 year-end. Management noted that approximately $42 million in customer payments were collected during April 2026.
Second Quarter Forecast Shocks Wall Street
The most jarring element of Canaan’s announcement centered on its forward-looking statements. Canaan projected second-quarter revenue in the range of $35 million to $45 million. The $40 million midpoint sits a striking 59% below the analyst consensus forecast of $98.15 million.
Management attributed the conservative projection to “near-term market conditions and evolving customer dynamics” affecting demand visibility.
Chief Executive Officer Nangeng Zhang addressed the challenging market backdrop. “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 Expansion Continues Despite Financial Headwinds
Amid the financial struggles, some operational metrics demonstrated positive momentum. Canaan successfully 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 quarter-end.
The company’s installed computing capacity across its portfolio of 10 joint-mining ventures reached approximately 11 exahashes per second (EH/s), reflecting sequential growth of 10.7%.
In a strategic transaction during the period, Canaan purchased a 49% ownership stake in ABC Projects located in West Texas from Cipher Mining, contributing roughly 4.4 EH/s of active hashrate capacity to its operations.
Additionally, the company launched hash-to-heat infrastructure initiatives in Nordic countries, with 2 megawatts currently operational.
These strategic expansion efforts demonstrate Canaan’s commitment to building operational scale despite the challenging financial performance and market headwinds.
Management cautioned that the second-quarter revenue guidance range of $35 million to $45 million remains fluid and could be adjusted based on evolving market dynamics.
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