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Canaan
(NASDAQ:CAN)
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Rating:46Neutral
Price Target:
$0.58
▲(45.75% Upside)
Action:Downgraded
Date:01/27/26
The score is held down primarily by weak financial performance (ongoing losses and negative cash flow) and bearish technicals (downtrend with negative momentum). A strong and optimistic Q3 earnings call with raised guidance provides meaningful support, but valuation signals are limited due to negative earnings and no dividend.
Positive Factors
Sustained Revenue Acceleration
Sustained, large revenue acceleration indicates renewed product demand and improving market traction. Over multiple quarters this trend supports stronger scale economics and revenue visibility, reducing execution risk for capacity expansion and R&D investments over the next several quarters.
Negative Factors
Persistent Negative Margins & Cash Flow
Ongoing negative gross and net margins and recurring negative operating/free cash flow indicate the company still struggles to convert revenue into sustainable profits. Over months this weak cash generation increases reliance on external funding and pressurizes investment in R&D and capex.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Acceleration
Sustained, large revenue acceleration indicates renewed product demand and improving market traction. Over multiple quarters this trend supports stronger scale economics and revenue visibility, reducing execution risk for capacity expansion and R&D investments over the next several quarters.
Read all positive factors
Canaan (CAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$273.32M
Dividend Yield3.74%
Average Volume (3M)21.36M
Price to Earnings (P/E)―
Beta (1Y)2.12
Revenue Growth27.88%
EPS Growth49.54%
CountryUS
Employees399
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.45
Shares Outstanding703,832,700
10 Day Avg. Volume14,355,084
30 Day Avg. Volume21,357,041
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.74
Price to Sales (P/S)0.61
P/FCF Ratio0.00
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$2.00Price Target Upside400.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.13
Revenue Forecast (FY)$207.32M
Canaan Business Overview & Revenue Model
Company Description
Canaan Inc. operates as a holding company, primarily engaged in the design, production, and sale of Bitcoin mining hardware, in addition to supplying various associated services. A key focus for the company is the advancement and implementation of...
How the Company Makes Money
Canaan generates revenue primarily through the sale of its ASIC mining machines, which are in high demand as the cryptocurrency market expands. The company also earns income from software services that optimize mining operations for clients, provi...
Canaan Earnings Call Summary
Earnings Call Date:Sep 08, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Negative
The call highlighted stronger liquidity, disciplined expense management, positive mining cash contribution, Project ABC progress, share repurchases, and continued investment in mining efficiency, compute-to-heat, Avalon Home, and long-term power resources. However, these positives were outweighed by the difficult Bitcoin mining environment, Q2 revenue below guidance, sharply lower Q3 revenue guidance of USD 11 million to USD 15 million, weak equipment demand, pricing pressure, a large adjusted EBITDA loss, accounting charges, and Nasdaq bid-price compliance risk.Positive Updates
Mining Operations Became the Primary Revenue Contributor
Mining revenue was approximately USD 18 million in Q2, accounting for 55% of total revenue. The company mined 243 Bitcoins, and mining revenue continued to cover direct operating costs such as power and hosting. Excluding depreciation, mining gross margin was 20%.
Negative Updates
Revenue Missed Prior Guidance
Q2 total revenue was approximately USD 32 million, below the previous guidance range of USD 35 million to USD 45 million. Management attributed the shortfall to the sharp decline in Bitcoin prices during the second half of the quarter, more cautious miner equipment purchases, elevated industry inventory, and increased price competition.
Read all updates
Q2-2026 Updates
Positive
Negative
Mining Operations Became the Primary Revenue Contributor
Mining revenue was approximately USD 18 million in Q2, accounting for 55% of total revenue. The company mined 243 Bitcoins, and mining revenue continued to cover direct operating costs such as power and hosting. Excluding depreciation, mining gross margin was 20%.
Read all positive updates
Company Guidance
Management expects total revenues for the third quarter of 2026 to be between USD 11 million and USD 15 million, with miner sales and average selling prices to remain under pressure in the third quarter; it expects to prepare new Avalon Home products for mass production in the third quarter, plans to deploy at least a part of the 60 machines to its mining fleets next year, and said its confidence in securing gigawatt scale load by the end of 2026 remains intact, while it is still too early to give a specific revenue mix target for Avalon Home.Canaan Financial Statement Overview
Summary
Income Statement
25
Negative
Balance Sheet
40
Negative
Cash Flow
30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 441.56M | 529.74M | 269.32M | 211.48M | 4.46B | 4.91B |
| Gross Profit | -21.06M | 41.16M | -84.32M | -240.78M | 1.58B | 2.81B |
| EBITDA | -155.25M | -75.22M | -143.33M | -330.11M | 526.74M | 1.82B |
| Net Income | -299.33M | -210.27M | -249.75M | -414.15M | 478.84M | 1.96B |
Balance Sheet | ||||||
| Total Assets | 446.25M | 602.88M | 463.01M | 493.30M | 4.69B | 5.63B |
| Cash, Cash Equivalents and Short-Term Investments | 66.01M | 80.78M | 96.49M | 96.15M | 695.83M | 2.68B |
| Total Debt | 60.50M | 54.90M | 94.99M | 1.43M | 25.73M | 31.07M |
| Total Liabilities | 153.54M | 165.52M | 196.76M | 145.11M | 529.62M | 2.17B |
| Stockholders Equity | 292.72M | 437.37M | 266.25M | 348.19M | 4.16B | 3.46B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 0.00 | -218.57M | -126.93M | -12.49B | 1.25B |
| Operating Cash Flow | 0.00 | 0.00 | -199.26M | -123.62M | -11.83B | 1.29B |
| Investing Cash Flow | 0.00 | 0.00 | 60.97M | 39.63M | -211.42M | 5.39M |
| Financing Cash Flow | 0.00 | 0.00 | 139.75M | 90.00M | -2.55B | 884.38M |
Canaan Technical Analysis
Neutral
0.40
Price Trends
0.30
Positive
0.33
Positive
0.46
Negative
Market Momentum
0.02
Positive
54.15
Neutral
47.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAN, the sentiment is Neutral. The current price of 0.4 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.30, and below the 200-day MA of 0.46, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.15 is Neutral, neither overbought nor oversold. The STOCH value of 47.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CAN.
Canaan Risk Analysis
Canaan disclosed 91 risk factors in its most recent earnings report. Canaan reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
If we issue additional equity securities in the future, you may suffer dilution, and trading price of our ADSs may decline. Q4, 2023
2.
We have a limited history in the operation of mining facilities. Q4, 2023
Canaan Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.48B | 43.05 | 5.52% | ― | 3.11% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $330.63M | -2.05 | -30.81% | ― | 73.04% | 24.91% | |
47 Neutral | $59.38M | -3.68 | -11.17% | ― | 3.11% | 46.15% | |
46 Neutral | $273.32M | -0.81 | -80.25% | 3.74% | 27.88% | 49.54% | |
44 Neutral | $593.14M | -8.66 | -22.63% | ― | -6.22% | 61.98% | |
43 Neutral | $12.94M | -1.02 | -5.14% | ― | -6.25% | 32.66% |
* Technology Sector Average
CAN
Canaan
0.37
-0.51
-57.78%
DDD
3D Systems
3.52
0.62
21.38%
INVE
Identiv
2.37
-1.08
-31.30%
NNDM
Nano Dimension
1.58
0.01
0.64%
EBON
Ebang International Holdings
2.07
-2.44
-54.11%
CRSR
Corsair Gaming
13.46
4.54
50.90%
Canaan Corporate Events
Canaan Posts Record Crypto Holdings and JV Recovery as It Shifts to Nasdaq Capital Market
Jul 14, 2026
Canaan Inc. reported unaudited bitcoin mining results for June 2026, highlighting production of 64 BTC and a net addition of 49 BTC to its treasury despite grid maintenance disruptions. The company’s cryptocurrency holdings reached record le...
Canaan Transfers CAN Listing to Nasdaq Capital Market, Seeks Extended Bid-Price Compliance
Jul 6, 2026
On June 29, 2026, Canaan received Nasdaq approval to transfer the listing of its American Depositary Shares from the Nasdaq Global Market to the Nasdaq Capital Market, a move that became effective at the opening of trading on July 1, 2026 and leav...
Canaan Executives Buy Over 1 Million ADSs in Open-Market Purchases
Jun 24, 2026
On June 24, 2026, Canaan Inc. disclosed that chairman and chief executive officer Nangeng Zhang and chief financial officer Jin “James” Cheng had recently acquired a combined 1,065,000 American Depositary Shares in open market transact...
Canaan Reports Record May Mining Efficiency and Expands Hash-to-Heat, Tether Partnerships
Jun 11, 2026
Canaan reported unaudited May 2026 bitcoin mining results on June 11, 2026, showing self-mining output of 90 BTC plus 24 BTC from customer payments, bringing its treasury to 1,867 BTC and 3,952 ETH at month-end. The company ended May with 10.05 EH...
Canaan Wins Nordic Hash-to-Heat District Heating Contract
May 19, 2026
On May 19, 2026, Singapore-based Canaan Inc. announced it had won a competitive bid to supply its Avalon A1566HA hydro-cooled “hash-to-heat” equipment to a district heating network in the Nordic region. The project, developed with a le...
Canaan Posts Q1 2026 Revenue in Line With Guidance as Crypto Treasury Hits Record
May 19, 2026
Canaan Inc. reported unaudited first-quarter 2026 results on May 19, 2026, posting total revenue of US$62.7 million, in line with prior guidance, as it completed final deliveries under a major U.S. order and navigated weaker bitcoin-driven demand....
Canaan Posts Record Crypto Treasury and Expands Global Hashrate in April 2026 Update
May 14, 2026
Canaan reported April 2026 operational data showing continued expansion of its crypto mining platform and balance sheet holdings despite industry-wide margin pressure. The company’s self-mining and customer payment flows lifted its cryptocur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.