Key Highlights
- Q1 revenues reached $62.7M, falling short of the $64.68M analyst projection
- The company recorded an adjusted loss of -$0.86 per ADS versus expectations of just -$0.03
- Management’s Q2 revenue forecast of $35M–$45M trails analyst estimates of $98.15M 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
Canaan Inc. (CAN) experienced a sharp decline of nearly 10% in pre-market activity on Tuesday following the cryptocurrency mining equipment manufacturer’s disappointing first-quarter earnings report and significantly reduced second-quarter revenue projections.
The organization disclosed first-quarter revenues totaling $62.7 million, marginally beneath the analyst consensus projection of $64.68 million. Although this number aligned with Canaan’s previously issued guidance, it represented a 24% year-over-year contraction from the $82.8 million recorded in Q1 2025.
The more concerning development emerged in profitability metrics. The company delivered an adjusted loss per ADS of -$0.86, dramatically underperforming the analyst forecast of -$0.03 by a substantial $0.83 margin.
The quarterly net loss totaled $88.7 million, representing an increase from the $86.4 million loss reported during the corresponding quarter of the previous year. The adjusted EBITDA loss expanded dramatically to $76.3 million, compared with a $38.1 million loss in the year-earlier period.
The company’s cash position decreased to $43.5 million by March 31, representing a decline from the $80.8 million balance at year-end 2025. Management disclosed that approximately $42 million in customer payments were collected during April 2026.
Second Quarter Forecast Catches Market Off Guard
The most alarming aspect of the announcement centered on forward guidance. Canaan projected Q2 revenues ranging from $35 million to $45 million. The $40 million midpoint represents a staggering 59% shortfall compared to the $98.15 million analyst consensus figure.
Management attributed the conservative projection to “near-term market conditions and evolving customer dynamics” impacting their business environment.
Chief Executive Officer Nangeng Zhang addressed the challenging landscape. “Despite bitcoin price fluctuations, 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.
Operational Expansion Continues Despite Financial Headwinds
The quarterly report wasn’t entirely negative. Canaan 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 by March 31, 2026.
The company’s installed mining capacity across 10 collaborative mining ventures reached approximately 11 EH/s, representing a sequential increase of 10.7%.
Throughout 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 active hashrate capability.
Additionally, the company established hash-to-heat infrastructure within the Nordic region, with 2 MW presently operational.
These strategic initiatives demonstrate Canaan’s commitment to expanding operational capacity, despite the challenging financial performance reflected in quarterly results.
The company indicated that its Q2 revenue projection range of $35 million to $45 million remains provisional and subject to revision based on evolving market dynamics.
