Canaan (NASDAQ:CAN) Releases Earnings Results, Misses Estimates By $0.07 EPS

Canaan (NASDAQ:CAN) announced its quarterly earnings results on Tuesday. The company reported ($0.13) EPS for the quarter, missing the consensus estimate 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%.

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 Performance

CAN traded up $0.01 during trading on Tuesday, reaching $0.62. The company’s stock had a trading volume of 4,142,410 shares, compared to its average volume of 19,052,402. The company’s fifty day moving average price is $0.78 and its 200-day moving average price is $0.92. Canaan has a 52-week low of $0.50 and a 52-week high of $2.22. The company has a market capitalization of $230.45 million, a price-to-earnings ratio of -0.91 and a beta of 2.85.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. BTIG Research reaffirmed a “buy” rating on shares of Canaan in a report on Friday, January 16th. Benchmark raised their price target on Canaan from $2.00 to $4.00 and gave the stock a “buy” rating in a research note on Thursday, October 23rd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Canaan in a research report on Wednesday, January 21st. Wall Street Zen downgraded Canaan from a “hold” rating to a “sell” rating in a report on Saturday, January 17th. Finally, Rosenblatt Securities cut their target price on shares of Canaan from $4.00 to $2.50 and set a “buy” rating on the stock in a report on Monday. Six analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Canaan presently has an average rating of “Moderate Buy” and an average target price of $2.75.

Institutional Trading of Canaan

A hedge fund recently raised its stake in Canaan stock. Goldman Sachs Group Inc. increased its holdings in shares of Canaan Inc. Sponsored ADR (NASDAQ:CAN) by 52.0% during the first quarter, according to 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 period. Goldman Sachs Group Inc. owned approximately 0.21% of Canaan worth $516,000 as of its most recent SEC filing. 70.14% of the stock is currently owned by institutional investors.

Canaan announced that its Board of Directors has approved a share buyback plan on Wednesday, December 17th that permits the company to repurchase $0.00 in shares. This repurchase authorization permits the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its shares are undervalued.

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.