Canaan (CAN)
NASDAQ:CAN
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Canaan
(NASDAQ:CAN)
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Rating:46Neutral
Price Target:
$0.58
▲(2.28% Upside)
Action:DowngradedDate: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
$320.48M
Dividend YieldN/A
Average Volume (3M)9.44M
Price to Earnings (P/E)―
Beta (1Y)2.10
Revenue Growth97.15%
EPS Growth46.65%
CountryUS
Employees463
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.09
Shares Outstanding749,194,900
10 Day Avg. Volume9,764,009
30 Day Avg. Volume9,436,651
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 Cap0.62
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit4.85
Enterprise Value/Ebitda-2.18
Forecast
1Y Price Target
$2.19Price Target Upside283.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$440.63M
Canaan Business Overview & Revenue Model
Company Description
Canaan, Inc. is a holding company, which engages in developing and selling Bitcoin mining machines and related services. It focuses on the development of green mining. The company was founded by Jia Xuan Li, Xiang Fu Liu and Nan Geng Zhang on Janu...
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:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 22, 2026
Earnings Call Sentiment Negative
The call highlighted very strong 2025 operational and revenue achievements — record quarterly and annual revenue, large institutional orders, record computing power sold, product launches (A16 XP), and expansion of mining operations and crypto treasury. However, significant near-term headwinds were emphasized: severe Bitcoin price volatility, non-cash valuation losses and inventory write-downs compressing profitability, an adjusted EBITDA loss, and an extremely cautious 2026 revenue outlook ($60–$70 million), implying a sharp slowdown. While the company has solid execution, liquidity, and strategic initiatives (power pipeline, product upgrades, and manufacturing footprint), the negative near-term demand outlook and notable one-time and recurring margin pressures weigh heavily on sentiment.Positive Updates
Record Quarterly and Full-Year Revenue
Q4 revenue of $196 million (company-stated QoQ growth of +30.4% in CEO remarks and +13.4% in CFO remarks) and +121.1% year-over-year. Full-year 2025 revenue of $530 million, up 139.6% YoY — the highest annual revenue in recent years.
Negative Updates
Sharp Near-Term Revenue Outlook
Company provided a very cautious outlook for 2026 with expected total revenue of only $60–$70 million (management repeated similar Q1 guidance), implying a material contraction from 2025 levels and signaling significant near-term demand weakness.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Full-Year Revenue
Q4 revenue of $196 million (company-stated QoQ growth of +30.4% in CEO remarks and +13.4% in CFO remarks) and +121.1% year-over-year. Full-year 2025 revenue of $530 million, up 139.6% YoY — the highest annual revenue in recent years.
Read all positive updates
Company Guidance
Canaan gave a cautious 2026 outlook, guiding total revenue of $60–70 million (the CFO reiterated the same $60–70M range for Q1) versus $530 million in 2025, and said it expects H1 pricing and demand pressure but is preparing for a recovery later in the year; management is prioritizing capital discipline, project‑level financing (no one‑off large capex), and pursuing a U.S. power pipeline that could reach gigawatt scale by year‑end 2026. Product and timing guidance includes A16 mass production beginning after Lunar New Year with volume ramp by end‑Q1 2026, and management cited economic thresholds such as an all‑in payback Bitcoin price of ~$100–110k and marginal shutdown levels of ~ $37k for A15 Pro (competitor S21+ ~$50k, S19 XP ~$66k) and ~ $30k for A16. To preserve liquidity while preparing to act on recovery, the company ended Q4 with about $81M cash, repurchased ~2.8M ADS for $2M under a $30M program, and is taking conservative steps (Q4 inventory write‑down $13.9M; non‑cash fair‑value loss $44M).Canaan Financial Statement Overview
Summary
Income Statement
25
Negative
Balance Sheet
40
Negative
Cash Flow
30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 529.74M | 269.32M | 211.48M | 651.53M | 771.14M |
| Gross Profit | 41.16M | -84.32M | -240.78M | 230.29M | 440.83M |
| EBITDA | -75.22M | -143.33M | -330.11M | 76.87M | 285.16M |
| Net Income | -210.27M | -249.75M | -414.15M | 69.88M | 308.44M |
Balance Sheet | |||||
| Total Assets | 602.88M | 463.01M | 493.30M | 690.00M | 884.74M |
| Cash, Cash Equivalents and Short-Term Investments | 80.78M | 96.49M | 96.15M | 105.65M | 421.67M |
| Total Debt | 54.90M | 94.99M | 1.43M | 3.75M | 4.88M |
| Total Liabilities | 165.52M | 196.76M | 145.11M | 77.86M | 341.44M |
| Stockholders Equity | 437.37M | 266.25M | 348.19M | 607.67M | 543.31M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | -218.57M | -126.93M | -1.82B | 196.23M |
| Operating Cash Flow | 0.00 | -199.26M | -123.62M | -1.73B | 201.86M |
| Investing Cash Flow | 0.00 | 60.97M | 39.63M | -30.86M | 846.22K |
| Financing Cash Flow | 0.00 | 139.75M | 90.00M | -371.93M | 138.93M |
Canaan Technical Analysis
Neutral
0.57
Price Trends
0.48
Positive
0.65
Negative
0.81
Negative
Market Momentum
0.01
Negative
65.81
Neutral
88.69
Negative
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 0.57 is above the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.48, and below the 200-day MA of 0.81, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 65.81 is Neutral, neither overbought nor oversold. The STOCH value of 88.69 is Negative, 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $111.12M | -5.07 | -12.39% | ― | -49.41% | 36.71% | |
53 Neutral | $727.44M | -50.52 | -2.91% | ― | 11.86% | 87.45% | |
49 Neutral | $16.17M | -1.36 | -7.04% | ― | 11.39% | 30.41% | |
47 Neutral | $345.38M | -3.31 | -44.09% | ― | 77.95% | -217.94% | |
46 Neutral | $320.48M | -1.54 | -60.72% | ― | 97.15% | 46.65% | |
45 Neutral | $315.49M | 7.65 | 14.09% | ― | -12.09% | ― |
* Technology Sector Average
CAN
Canaan
0.48
-0.21
-30.43%
DDD
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14.29%
INVE
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4.64
1.30
38.92%
NNDM
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1.67
0.06
3.73%
EBON
Ebang International Holdings
2.47
-1.05
-29.90%
CRSR
Corsair Gaming
6.82
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-2.85%
Canaan Corporate Events
Canaan Receives Nasdaq Deficiency Notice Over Minimum Bid Price
Jan 16, 2026
On January 14, 2026, Canaan Inc. received a notice from Nasdaq that the company was not in compliance with the exchange’s minimum bid price rule after its American depositary shares traded below US$1.00 for 30 consecutive business days, a de...
Canaan Posts Record Crypto Treasury and Hashrate Growth, Expands Energy-Efficient Mining Initiatives
Jan 14, 2026
In an unaudited update for December 2025 released on January 14, 2026, Canaan reported that its installed hashrate grew 82% year-on-year and operating hashrate 61%, significantly outpacing the roughly 34% growth in the global Bitcoin network over ...
Canaan Launches 3 MW Compute Heat Recovery Pilot for Canadian Greenhouse
Jan 6, 2026
On January 6, 2026, Canaan Inc. announced a 3.0 MW proof-of-concept heat recovery project in partnership with Bitforest Investment in Manitoba, Canada, using its Avalon liquid-cooled computing servers to capture and reuse waste heat as a supplemen...
Canaan Inc. Renews $30 Million Share Buyback Program Amid Industry Advances
Dec 17, 2025
Canaan Inc. has renewed its US$30 million share buyback program, reflecting confidence in its long-term value and strategic progress, while highlighting improved operational performance and expanded global customer engagement in Q3 2025. This move...
Canaan Inc. Announces November 2025 Bitcoin Production and Strategic Developments
Dec 10, 2025
Canaan Inc. reported its November 2025 bitcoin production and mining operations, highlighting an increase in both deployed and operating hashrates despite market challenges. The company achieved a stable production of 89 BTC and expanded its crypt...
Canaan Inc. Reports Strong Q3 2025 Financial Results with Record Revenues
Nov 18, 2025
On November 18, 2025, Canaan Inc. announced its unaudited financial results for the third quarter of 2025, showcasing a strong performance with total revenues reaching $150.5 million, a 104.4% increase year-over-year. The company achieved record-b...
Canaan Inc. Reports Strong October 2025 Bitcoin Mining Performance and Strategic Advances
Nov 12, 2025
Canaan Inc. reported its October 2025 bitcoin mining operations, highlighting a consistent operational performance with improvements in deployed and operating hashrate, miner efficiency, and installed power capacity. The company produced 92 BTC an...
Canaan Inc. Secures $72 Million in Direct Offering
Nov 7, 2025
On November 7, 2025, Canaan Inc. announced the successful closing of a US$72 million registered direct offering with institutional investors including Brevan Howard, Galaxy Digital, and Weiss Asset Management. This offering, initially announced on...
Canaan Inc. Secures $72 Million Investment from Leading Institutional Investors
Nov 4, 2025
On November 4, 2025, Canaan Inc. announced a strategic investment of $72 million from Brevan Howard, Galaxy Digital, and Weiss Asset Management through the purchase of American depositary shares. This investment, which involves no derivative instr...
Canaan Inc. Announces $72 Million ADS Offering to Boost North American Expansion
Nov 4, 2025
On November 4, 2025, Canaan Inc. announced a US$72 million registered direct offering of American Depositary Shares (ADSs), with plans to issue 63,660,477 ADSs at a price of US$1.131 each. The proceeds from this offering are intended to fund the a...
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.