IREN reported a 12% sequential decline in quarterly revenue to $137.2 million for the fourth fiscal quarter of 2026, missing Wall Street’s $157.1 million forecast, as AI cloud services revenue more than doubled to $70.5 million while bitcoin mining revenue fell 40% to $66.7 million. Full-year revenue rose 41% to $707 million, driven by a sevenfold increase in AI cloud services to $128.8 million, though total revenue remained below the company’s stated growth trajectory.
The company recorded a net loss of $684 million in the quarter, compared with a $247.8 million loss in the prior period, primarily due to $450.4 million in asset impairments and a $102.1 million reduction in the fair value of mining assets held for sale. For the full year, IREN posted a net loss of $702.6 million, reversing a $86.9 million profit in fiscal 2025, as $638.8 million in impairments weighed on results.
Cash and equivalents totaled $7.6 billion at June 30, 2026, up from $2.2 billion at the end of the prior quarter, reflecting strong liquidity despite heavy capital commitments. Adjusted EBITDA declined to $19.2 million from $59.5 million in the previous quarter, while cost of revenues fell $6.6 million to $33.3 million.
IREN secured $4 billion in contracted annual recurring revenue (ARR) for 2026 capacity, with $1 billion already operational. Microsoft’s acceptance of Horizon 1 increased operating ARR to $1 billion, with the company targeting ARR to exceed $4 billion by December 2026. Contract pricing has surged since November 2025, with three-year deals rising 125% to over $25 million per IT megawatt and five-year contracts up 70% to just below $20 million per IT megawatt, implying roughly a two-year payback period.
The shift away from bitcoin mining is accelerating, with operations set to be decommissioned by the end of December 2026. IREN plans to commission 0.5 gigawatts of gross capacity in 2026, rising to 1.2 gigawatts in 2027, including 0.5 gigawatts of air-cooled IT capacity in the first quarter and liquid-cooled capacity in the fourth quarter of 2027. The company’s global pipeline exceeds 5 gigawatts, with sites in Texas, Oklahoma, British Columbia, Spain, and Australia.
Financing remains robust, with $19 billion raised over the past 12 months through customer prepayments, GPU financing, convertible notes, and equity. Recent GPU financing totaled $6.5 billion, including $3.6 billion at approximately 6% interest from investment-grade lenders and $2.4 billion at 9% led by Blue Owl and Pacific Investment Management Company. Fiscal 2027 CapEx is projected at $25–30 billion, with funding expected to come from existing cash, committed financing, and additional GPU and data center financing.
IREN has mobilized over 4,000 personnel across active sites and expects employee growth to triple in fiscal 2026 and again in 2027. Daniel Roberts, co-founder and co-CEO, noted that "the digital world scales almost instantly. The physical world does not," emphasizing constraints in power, land, and data center capacity as the primary bottlenecks. Kent Draper, chief commercial officer, added that "the contracts are not the driver in this industry. It is getting the compute online."
