Canaan (NASDAQ:CAN) Announces Quarterly Earnings Results

Canaan (NASDAQ:CAN) posted its earnings results on Tuesday. The company reported ($0.13) EPS for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.07), Zacks reports. Canaan had a negative return on equity of 71.85% and a negative net margin of 51.66%.The company had revenue of $196.27 million during the quarter, compared to the consensus estimate of $25.30 million.

Here are the key takeaways from Canaan’s conference call:

• $196 million in Q4 revenue (up 30.4% QoQ and 121.1% YoY), driven by a record 14.6 exahash sold and product revenue of $165 million, topping the midpoint of guidance.
• Secured a >50,000-unit order of A15 Pro from a leading North American miner and reported the order was fully delivered by early January 2026, highlighting supply-chain execution.
• Self-mining and treasury: installed hash rate reached ~9.91 EH (7.7 EH energized), mined ~300 BTC in Q4, and year-end holdings were 1,750 BTC and 3,961 ETH (≈$166M), providing liquidity but subject to price volatility.
• Margins and non-cash charges pressured results: a $13.9 million inventory write-down, ~$44 million fair-value loss on crypto plus $15 million on preferred share conversion contributed to an adjusted EBITDA loss of $40.5 million.
• 2026 strategy centers on securing direct U.S. power capacity (targeting potential gigawatt-scale load by year-end 2026), exploring AI HPC co-location, and scaling 2C/SMB channels—long-term growth aims but execution and capital discipline are emphasized; Q1 revenue guide is $60–70 million.

Canaan Stock Down 6.9%

Shares of NASDAQ:CAN opened at $0.57 on Wednesday. The firm has a market cap of $210.69 million, a P/E ratio of -0.83 and a beta of 2.85. Canaan has a 12-month low of $0.50 and a 12-month high of $2.22. The business has a fifty day simple moving average of $0.77 and a 200 day simple moving average of $0.92.

Canaan announced that its board has authorized a share buyback plan on Wednesday, December 17th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its stock is undervalued.

Trending Headlines about Canaan

Here are the key news stories impacting Canaan this week:

• Positive Sentiment: Q4 revenue surge — Canaan reported total Q4 revenue of US$196.3M, up 121% year‑over‑year and well above Street expectations, driven by strong product and mining-related sales. PR Newswire: Q4 and FY2025 Results
• Positive Sentiment: Operational strength in mining — Canaan reported record crypto treasury and mining scale (BTC/ETH holdings and >10 EH/s deployed hashrate, plus record computing power sold), supporting long‑term asset value and mining revenue potential. PR Newswire: January 2026 Mining Update
• Neutral Sentiment: Earnings call / transcripts available — Management held the Q4 earnings call; transcripts and highlights are posted (useful for details on revenue mix, inventory and mining strategy). These provide color but didn’t change the underlying numbers. Seeking Alpha: Q4 2025 Call Transcript
• Neutral Sentiment: Short interest data appears unreliable — recent short‑interest reporting shows zero shares and NaN changes, indicating stale or misreported data; no clear short squeeze or covering signal from reported figures.
• Negative Sentiment: EPS miss and widening loss — Canaan reported Q4 EPS of ($0.13) vs. consensus ($0.06), and posted negative net margin and ROE metrics, signaling profitability pressures despite revenue growth. MarketBeat: Q4 Results Summary
• Negative Sentiment: Very weak Q1 guidance — management issued Q1 2026 revenue guidance roughly $60–70M versus consensus near $166.5M, a large downward guide that likely drove intra‑day selling as it implies sequential slowdown. PR Newswire: Q4 Results (guidance)
• Negative Sentiment: Analyst target cut — Rosenblatt lowered its price target (from $4.00 to $2.50) recently; they remain a “buy,” but the cut reduces near‑term implied upside and could weigh on sentiment. TickerReport / Benzinga

Institutional Investors Weigh In On Canaan

A hedge fund recently raised its stake in Canaan stock. Goldman Sachs Group Inc. increased its stake in Canaan Inc. Sponsored ADR (NASDAQ:CAN) by 52.0% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 587,451 shares of the company’s stock after acquiring an additional 200,869 shares during the quarter. Goldman Sachs Group Inc. owned about 0.21% of Canaan worth $516,000 at the end of the most recent reporting period. Institutional investors own 70.14% of the company’s stock.

Analyst Ratings Changes

CAN has been the topic of a number of research reports. BTIG Research reaffirmed a “buy” rating on shares of Canaan in a research note on Friday, January 16th. Rosenblatt Securities cut their price objective on Canaan from $4.00 to $2.50 and set a “buy” rating on the stock in a report on Monday. Benchmark upped their target price on Canaan from $2.00 to $4.00 and gave the stock a “buy” rating in a report on Thursday, October 23rd. HC Wainwright reiterated a “buy” rating on shares of Canaan in a research report on Wednesday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Canaan in a report on Wednesday, January 21st. Six research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Canaan has an average rating of “Moderate Buy” and an average price target of $2.75.

About Canaan

Canaan Inc is a China-based technology company specializing in the design and manufacture of high-performance computing hardware for the digital currency and blockchain industry. The company’s core business revolves around application-specific integrated circuit (ASIC) miners, which are purpose-built machines optimized for cryptocurrency mining. By focusing on energy efficiency and processing power, Canaan’s mining rigs aim to deliver competitive hash rates while managing power consumption in large-scale operations.

The flagship product line, known as AvalonMiner, encompasses a range of models tailored to different scales of mining activity, from small-scale hobbyist setups to industrial farms.