Canaan Shares Dip On Q1 Revenue Miss And Weak Q2 Outlook

Canaan Inc – ADR CAN shares traded lower by 6.3% to 76 cents Tuesday morning after the crypto mining hardware maker reported first-quarter revenue of $82.8 million, topping its own guidance of $75 million but missing analysts' expectations of $90.1 million.

The company also posted a net loss of $86.4 million, narrowing from $92.9 million in the fourth-quarter but more than doubling year-over-year.

What To Know: Despite a 135.9% year-over-year revenue jump and a return to positive gross profit ($0.6 million vs. a $37.3 million loss last year), mounting operating and non-operating losses, including a $14.1 million loss on financial derivatives, dragged results.

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Mining revenue reached a record $24.3 million, up 58.6% quarter-over-quarter, as Canaan mined 259 Bitcoin BTC/USD amid expanding U.S. and global capacity.

The company noted challenges from new U.S. tariffs, increased mining costs and macro uncertainty, though it emphasized ongoing investment in R&D and supply chain flexibility.

Looking ahead, Canaan guided second-quarter revenue of $100 million, falling short of the $139.96 million consensus estimate, further pressuring the stock.

Per-share net loss was 27 cents in the first-quarter, compared to 33 cents in the fourth-quarter and 16 cents a year ago. As of March 31, Canaan held 1,468.1 bitcoins and $96.8 million in cash.

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How To Buy CAN Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Canaan’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, CAN has a 52-week high of $3.27 and a 52-week low of $0.53.