Cango (NYSE:CANG) Posts Earnings Results, Misses Expectations By $0.54 EPS

Cango (NYSE:CANG) released its quarterly earnings results on Sunday. The company reported ($0.73) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.54), Zacks reports. The firm had revenue of $102.00 million for the quarter, compared to analysts’ expectations of $100.41 million. Cango had a negative return on equity of 88.32% and a negative net margin of 125.53%.

Here are the key takeaways from Cango’s conference call:

• Cango reported Q1 2026 revenue of $102 million but a net loss from continuing operations of $261.1 million, driven largely by non-cash impairment charges and a fair-value loss tied to Bitcoin collateral as Bitcoin prices fell.
• The company said it reduced long-term debt to $30.6 million from $557.6 million at year-end, reflecting a major deleveraging effort funded in part by selling Bitcoin and repaying related-party loans.
• Management emphasized a shift to efficiency over scale, with proactive retirement of older S19 miners and replacement with more energy-efficient S21 machines helping lower cash mining costs to $76,928 per Bitcoin, down 9% from Q4 2025.
• The company is using a temporary revenue-sharing leasing model at some higher-cost sites, where counterparties cover power and operating expenses, reducing Cango’s direct cash exposure but also limiting near-term hash-rate stability.
• Cango is advancing its EcoHash AI infrastructure initiative, with pilot retrofitting and testing underway in Georgia and management saying revenue generation from the project is expected to begin in the second half of 2026.

Cango Stock Down 4.2%

Shares of NYSE CANG opened at $0.40 on Wednesday. The firm has a market cap of $71.60 million, a P/E ratio of -0.11 and a beta of 0.97. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.71 and a current ratio of 0.71. Cango has a 1 year low of $0.33 and a 1 year high of $2.10. The firm’s 50 day moving average price is $0.46 and its 200 day moving average price is $0.96.

Analysts Set New Price Targets

CANG has been the topic of several recent analyst reports. Weiss Ratings upgraded shares of Cango from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, May 26th. Wall Street Zen raised Cango from a “strong sell” rating to a “sell” rating in a research note on Sunday, May 17th. Zacks Research raised Cango from a “strong sell” rating to a “hold” rating in a research note on Thursday, April 16th. Finally, HC Wainwright restated a “buy” rating and issued a $3.00 price target on shares of Cango in a report on Tuesday, February 10th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $3.00.

Institutional Investors Weigh In On Cango

Hedge funds have recently modified their holdings of the stock. BNP Paribas Financial Markets raised its stake in shares of Cango by 34.5% during the third quarter. BNP Paribas Financial Markets now owns 15,923 shares of the company’s stock valued at $68,000 after purchasing an additional 4,082 shares during the period. Marshall Wace LLP purchased a new position in shares of Cango in the fourth quarter valued at $1,677,000. Jump Financial LLC purchased a new position in shares of Cango in the second quarter valued at $246,000. Finally, CI Investments Inc. grew its holdings in Cango by 206.7% during the 4th quarter. CI Investments Inc. now owns 105,456 shares of the company’s stock valued at $158,000 after purchasing an additional 71,076 shares in the last quarter. 4.22% of the stock is owned by institutional investors and hedge funds.

About Cango

Cango Inc (“Cango”) is a leading smart automotive transaction service provider in China, headquartered in Shanghai. The company operates an online‐to‐offline platform that integrates vehicle sourcing, financing, distribution and insurance, offering a comprehensive ecosystem for automakers, dealers and consumers. Leveraging big data analytics and cloud computing, Cango connects buyers and sellers through its proprietary digital infrastructure, facilitating transparent and efficient transactions across the automotive value chain.

Cango’s core offerings include auto financing solutions for new and used vehicles, extended consumer loans and wealth management products.