Canaan (NasdaqGM:CAN) has just posted its Q1 2026 numbers, with revenue of about US$62.7 million and a basic EPS loss of US$0.13, while trailing twelve month revenue sits at roughly US$509.7 million and TTM EPS is a loss of US$0.38. Over recent quarters the company has seen revenue move from US$82.8 million in Q1 2025 to US$100.2 million in Q2, US$150.5 million in Q3 and US$196.3 million in Q4. Over the same period, EPS losses shifted from US$0.27 to US$0.03, US$0.05 and US$0.13 respectively. Together, these figures highlight a picture where growth expectations and top line momentum are currently drawing more attention than near term margin pressure.

See our full analysis for Canaan.

With the headline figures in place, the next step is to set these results against the most widely held stories about Canaan to see which narratives the numbers support and which they call into question.

TTM revenue above US$500 million but losses still heavy

• Over the last twelve months, Canaan generated about US$509.7 million in revenue but reported a net loss of roughly US$212.6 million, so each dollar of sales currently comes with a sizeable loss attached.
• Supporters of the bullish narrative argue that expanding ASIC product lines and a growing mining hardware market can eventually improve this picture. However, the latest trailing loss compares with a loss of about US$249.8 million in the prior TTM data point, which means the business is still absorbing large losses even as revenue has risen from about US$269.3 million.
• The bullish view points to potential future margin improvement, but recent quarters show Q1 2026 net loss of about US$88.7 million versus US$86.4 million in Q1 2025, which does not yet align with the idea of clear margin recovery.
• Revenue forecasts of roughly 23.4% annual growth support the growth narrative, although the current loss profile in the hundreds of millions of US dollars indicates that converting that growth into earnings remains an open execution task for management.

Supporters who want to see how this earnings print fits into the optimistic long term story around revenue growth, margin potential, and ASIC leadership can go deeper with the full bull case here 🐂 Canaan Bull Case

Market paying just 0.6x sales for high forecast growth

• Canaan is trading at a P/S of about 0.6x compared to a peer average of 4.4x and a US Tech industry average of 3.0x, while analysts forecast revenue growth of roughly 23.4% per year. This means the market is currently paying a lower revenue multiple for faster forecast growth than the broader US market at 11.6%.
• What stands out for the bullish camp is that forecasts around 23.4% annual revenue growth, combined with this low P/S multiple, align with a growth-at-a-low-sales-multiple narrative, even though the trailing twelve month EPS is a loss of US$0.38 and net losses over the past five years have increased on average by about 46.8% per year.
• Consensus commentary that Canaan could benefit from expanding manufacturing bases and broader demand for mining hardware is consistent with the higher growth forecast, but the gap between a low 0.6x P/S and higher peer multiples suggests investors are building in a discount for execution and financing risk.
• Bulls effectively need these higher growth rates to translate into margin improvement over time. Otherwise, the low valuation may simply be reflecting the reality of TTM net losses of about US$212.6 million despite more than US$500 million in revenue.

Cash runway and dilution keep bears focused on risk

• Risk data flags that Canaan has less than one year of cash runway and has materially diluted shareholders over the past year. This sits alongside an unprofitable TTM profile and expectations that the company will remain loss making over the next three years.
• Bears highlight that this combination of limited cash runway and ongoing losses could force further funding moves. That concern is consistent with the record of widening losses of about 46.8% per year over five years and recent quarterly net losses staying in the tens of millions of US dollars, even as revenue stepped up from US$82.8 million in Q1 2025 to US$196.3 million in Q4 2025.
• The cautious narrative also focuses on concentration in Bitcoin mining hardware, which aligns with the risk summary that calls out material financial risk and recent volatility in the share price over the past three months.
• Against a current share price of about US$0.44 and analyst price targets anchored around US$1.69, skeptics question whether financing and business concentration risks are fully reflected, especially with TTM net income still around a US$212.6 million loss.

If you are weighing these downside risks against the growth story, it is worth reading how cautious investors frame the long term threats around regulation, competition, and funding in the full bear case 🐻 Canaan Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Canaan on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With all of this in mind, the story around Canaan is clearly mixed, with real concerns set against genuine optimism about potential rewards. Act now to review the latest figures, pressure test your own assumptions, and weigh up 2 key rewards and 4 important warning signs

See What Else Is Out There

Canaan pairs TTM revenue of about US$509.7 million with a roughly US$212.6 million loss, a limited cash runway, and ongoing shareholder dilution concerns.

If you want companies where financial strength is more of a comfort than a question mark, start comparing ideas with the solid balance sheet and fundamentals stocks screener (46 results) today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.