tiprankstipranks
Trending News
More News >
Canaan (CAN)
NASDAQ:CAN
US Market
Advertisement

Canaan (CAN) AI Stock Analysis

Compare
2,229 Followers

Top Page

CAN

Canaan

(NASDAQ:CAN)

Rating:49Neutral
Price Target:
$0.50
▼(-28.57% Downside)
Canaan's overall stock score is primarily impacted by its poor financial performance, characterized by consistent losses and negative cash flows. While the earnings call showed some positive developments, such as revenue growth and improved EBITDA, the ongoing operational inefficiencies and valuation concerns weigh heavily on the stock's attractiveness.
Positive Factors
Earnings
Canaan Inc. delivered $100.2m in total revenue for 2Q25, an increase of 39.5% year-over-year and a 21% sequential jump, exceeding both management’s guidance and Street expectations.
Financial Performance
Canaan Inc. reported 2Q25 gross profit of $9.3m, marking its second straight quarter of positive gross profit and a significant improvement from the prior year's gross loss.
Stock Buyback
The company's board of directors has approved a $30 million stock buyback program, which could support the share price.
Negative Factors
Nasdaq Delisting Notice
Canaan Inc. faces uncertainty due to U.S. tariffs and a Nasdaq delisting notice after its stock traded below $1.00 for 30 consecutive business days.
Stock Valuation
The stock's valuation reflects extremely negative investor sentiment, suggesting that any positive news could drive the share price significantly higher.
Tariffs Impact
The imposition of tariffs by the U.S. government impacted Canaan Inc.'s customer order flow and self-mining deployments, as many miners adopted a 'wait-and-see' approach and delayed their bitcoin mining rig purchases.

Canaan (CAN) vs. SPDR S&P 500 ETF (SPY)

Canaan Business Overview & Revenue Model

Company DescriptionCanaan Inc. engages in the research, design, and sale of integrated circuits (IC), and lease of final mining equipment by integrating IC products for bitcoin mining and related components in the People's Republic of China. It is also involved in the assembly and distribution of mining equipment and spare parts; and distribution of artificial intelligence products, as well as mining business. The company has operations in the United States, Australia, Kazakhstan, Canada, Indonesia, Mainland China, Malaysia, Thailand, Cyprus, and internationally. Canaan Inc. was founded in 2013 and is headquartered in Singapore.
How the Company Makes MoneyCanaan Inc. generates revenue primarily through the sale of its proprietary ASIC (Application-Specific Integrated Circuit) mining hardware, which is widely used in the cryptocurrency mining industry, particularly for Bitcoin. These mining machines are sold to individual miners, mining pools, and large-scale mining operations. Additionally, the company has expanded into the AI sector, offering AI chips and systems designed for smart devices and data centers. Canaan's earnings are significantly influenced by the demand for cryptocurrency mining equipment, which is in turn affected by the price of cryptocurrencies and advancements in mining technologies. Strategic partnerships and collaborations with other technology firms also contribute to its revenue streams, enhancing its market reach and product offerings.

Canaan Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call indicated strong financial performance and growth in key areas such as revenue, gross profit, and Bitcoin production. However, challenges remain, particularly concerning operating losses and the impact of U.S. tariff policies. The company is optimistic about future prospects and is focusing on strategic expansions and product developments.
Q2-2025 Updates
Positive Updates
Record Quarterly Revenue
Total revenue for Q2 reached $100.2 million, up 40% year-over-year, breaking the $100 million mark.
Strong Growth in Gross Profit
Gross profit rose to $9.3 million, a significant increase from $0.6 million in Q1.
Positive EBITDA
EBITDA turned profitable at $1.68 million and adjusted EBITDA reached $25.3 million, both hitting record highs since Q1 2024.
Significant Increase in Avalon Home Miner Revenue
Revenue from Avalon Home Miners increased 359% from $1.3 million in the previous quarter to $5.7 million.
Growth in Bitcoin Production and Revenue
Self-mining operations produced 284 Bitcoins, up 9.4% from the previous quarter, with mining revenue reaching a record $28.1 million, an increase of over 15%.
Expansion in North America
Manufacturing capability in the U.S. is now operational, complementing existing capacity in Malaysia, and helping meet demand despite tariff challenges.
Negative Updates
Operating Loss
Operating loss narrowed to $27.1 million, indicating improvement but still a significant loss.
Tariff Policy Challenges
The new tariff policy environment increased costs for U.S. customers, causing some delays in mining site development and hash rate deployment.
U.S. Demand Softness
Softening U.S. demand under the pressure of tariff uncertainties affected business, though efforts to expand in Asia helped offset this.
Company Guidance
During the second quarter of 2025, Canaan Inc. reported impressive financial performance, with total revenue reaching $100.2 million, marking a 40% increase year-over-year, and the highest quarterly revenue in the past 10 quarters. The company achieved a gross profit of $9.3 million, significantly up from $0.6 million in the previous quarter, and an operating loss that narrowed to $27.1 million. EBITDA turned profitable at $1.68 million, while adjusted EBITDA soared to $25.3 million, both setting record highs since Q1 2024. Canaan's product sales contributed approximately $72 million, with $55.9 million from Avalon Industrial Mining Solutions and $5.7 million from the Avalon Home-Use Miner Series, which saw a 359% increase from the prior quarter. The company's self-mining operations produced 284 Bitcoins, generating $28.1 million in revenue, a 15% increase from Q1. Looking ahead, Canaan projected Q3 2025 revenue to range between $125 million and $145 million, reflecting cautious optimism amid ongoing market and policy uncertainties.

Canaan Financial Statement Overview

Summary
Canaan faces significant financial challenges, with consistent losses and negative cash flows. Despite a manageable debt load, the negative profit margins and cash flow trends suggest operational inefficiencies and strategic hurdles.
Income Statement
25
Negative
Canaan has experienced significant revenue fluctuations over the years, marked by a decline from 2019 to 2023. The gross profit margin has consistently been negative, indicating challenges in covering production costs. The net profit margin is also negative, reflecting ongoing losses. Despite a brief positive turn in 2021, recent years have shown negative EBIT and EBITDA margins, highlighting persistent operational inefficiencies.
Balance Sheet
40
Negative
The company's debt-to-equity ratio remains relatively low, suggesting manageable leverage levels. However, the equity ratio has decreased over recent years, indicating shrinking equity relative to assets. Return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. Despite these challenges, the balance sheet shows some liquidity strength with cash reserves.
Cash Flow
30
Negative
Canaan's cash flow analysis reveals negative trends in operating and free cash flow, indicating challenges in generating cash from core operations. The free cash flow to net income ratio is negative, consistent with the company's net losses. While financing activities have provided liquidity, the negative growth in free cash flow raises concerns about long-term sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue317.01M269.32M211.48M656.32M771.14M68.58M
Gross Profit-46.35M-84.32M-240.78M231.98M440.83M5.79M
EBITDA-158.28M-143.33M-330.11M84.51M285.16M-34.11M
Net Income-296.79M-249.75M-414.15M70.40M308.44M-32.95M
Balance Sheet
Total Assets565.55M463.01M493.30M690.00M884.74M158.76M
Cash, Cash Equivalents and Short-Term Investments96.77M96.49M96.15M105.65M421.67M69.50M
Total Debt231.02M94.99M1.43M1.45M2.56M5.83M
Total Liabilities320.92M196.76M145.11M77.86M341.44M92.50M
Stockholders Equity244.64M266.25M348.19M612.13M543.31M66.26M
Cash Flow
Free Cash Flow-105.39M-218.57M-126.93M-201.82M196.23M6.15M
Operating Cash Flow-89.00M-199.26M-123.62M-183.94M201.86M6.48M
Investing Cash Flow25.33M60.97M39.63M846.22K
Financing Cash Flow81.97M139.75M90.00M-56.59M138.93M-17.15M

Canaan Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.70
Price Trends
50DMA
0.74
Negative
100DMA
0.72
Negative
200DMA
1.22
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
46.19
Neutral
STOCH
23.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAN, the sentiment is Negative. The current price of 0.7 is below the 20-day moving average (MA) of 0.73, below the 50-day MA of 0.74, and below the 200-day MA of 1.22, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.19 is Neutral, neither overbought nor oversold. The STOCH value of 23.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 0 New Risks

Canaan Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$35.52B8.84-11.06%1.87%8.55%-8.14%
51
Neutral
$262.92M-46.51%-9.11%58.95%
49
Neutral
$340.59M-75.92%82.61%42.42%
49
Neutral
-9.27%19.30%
48
Neutral
$295.51M-9.62%7.35%16.59%
43
Neutral
$95.63M33.98%-11.85%-157.04%
41
Neutral
$26.83M-7.04%154.52%47.31%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CAN
Canaan
0.70
-0.22
-23.91%
DDD
3D Systems
2.12
0.24
12.77%
QMCO
Quantum
7.42
4.91
195.62%
NNDM
Nano Dimension
1.35
-0.73
-35.10%
EBON
Ebang International Holdings
3.88
-1.90
-32.87%
MKFG
Markforged Holding
4.74
2.54
115.45%
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.Date of analysis: Sep 03, 2025