IREN Limited (Nasdaq: IREN) reported fiscal year 2026 results (year ended June 30, 2026) on August 27, 2026, showing total revenue of $707.0 million (up 41% year-over-year) and a large GAAP net loss driven by non-cash impairments related to the ongoing transition from Bitcoin mining to AI Cloud Services. AI Cloud revenue grew nearly 8x, and the company highlighted $4 billion of contracted ARR for 2026 capacity with $1 billion currently operating.
| Metric | Q4 2026 Estimate | Q4 2026 Result | FY 2026 Estimate | FY 2026 Result / Guidance |
|---|---|---|---|---|
| Revenue | ~$130–140M | $137.2M | ~$700–723M | $707.0M |
| AI Cloud Revenue | n/a | $70.5M | n/a | $128.8M (~8x YoY) |
| Bitcoin Mining Revenue | n/a | $66.7M | n/a | $578.2M |
| Adj. EBITDA | n/a | $19.2M | n/a | $245.7M |
| Net Income (Loss) | n/a | $(684.0)M | n/a | $(702.6)M |
| EPS (GAAP) | ~($0.39) to ($0.55) | Large loss (impairment-driven) | n/a | Large loss |
| ARR (Operating / Contracted) | n/a | $1B operating / $4B contracted | n/a | 2026 capacity largely sold out |
| Cash & Liquidity | n/a | ~$5.9B cash + restricted | n/a | Strong; GPU financing supports growth |
Actual Results: AI Cloud Inflection Amid Transition Costs
- Total Q4 revenue of $137.2 million, with AI Cloud Services contributing $70.5 million (more than doubling sequentially) and surpassing Bitcoin mining revenue ($66.7 million) for the first time.
- Full-year revenue of $707.0 million, up from $501.0 million in FY25, driven by AI Cloud growth to $128.8 million (from $16.4 million) and higher Bitcoin mining revenue.
- Adjusted EBITDA of $19.2 million in Q4 and $245.7 million for the full year (down modestly from $269.7 million in FY25 as the company invests ahead of the AI ramp).
- Large GAAP net losses ($684.0 million in Q4; $702.6 million for FY26) primarily reflecting non-cash impairments on mining hardware as capacity is repurposed for AI Cloud.
- Operating ARR (Annual Recurring Revenue) reached $1 billion following Microsoft’s acceptance of Horizon 1; $4 billion of ARR is contracted for 2026 capacity.
Why It Matters: Successful Pivot to High-Value AI Infrastructure
- AI Cloud has become the growth engine, with revenue scaling rapidly and now exceeding mining contribution in the latest quarter.
- $4 billion contracted ARR for 2026 capacity (largely sold out) and $1 billion already operating provide strong multi-year visibility and validate demand from hyperscalers, frontier labs, and AI developers.
- New multi-year contracts (including a leading frontier AI lab) plus customer wins such as Cohere, Perplexity, Figure AI, and others demonstrate diversification beyond the Microsoft relationship.
- Significant GPU financing (including $2.8 billion funding ~90% of associated CapEx) and customer prepayments reduce equity dilution and support accelerated deployment.
- Horizon 1 delivery to Microsoft and progress on Horizons 2–4 mark tangible execution on liquid-cooled, high-density AI capacity.
What’s Ahead: Capacity Delivery and ARR Ramp
- Management expects more than $4 billion of ARR by the end of the December quarter (already under contract, including Horizons 2–4).
- 2026 capacity is largely sold out, with late-stage discussions underway for a significant portion of 2027 capacity.
- Key focus areas include delivering the remaining Horizon deployments on schedule, converting the contracted backlog into operating ARR, scaling GPU deployments, and advancing 2027–2028 expansion (targeting cumulative ~0.8 GW IT by 2027 and a multi-GW longer-term pipeline).
- Pricing continues to strengthen (recent 3-year contracts >$20 million revenue per MW IT load).
- FY27 CapEx is guided at approximately $25–30 billion, supported by existing cash, committed financing, and prepayments.
Risks to Forward Expectations: Execution, Funding, and Transition Drag
- Near-term results remain pressured by the Bitcoin-to-AI transition, including impairments and lower mining contribution as capacity is converted.
- Delivery timelines for Horizons 2–4 and broader capacity build-out carry execution and supply-chain risk; any delays would defer ARR recognition.
- Very large CapEx plans ($25–30 billion in FY27) require continued access to GPU financing, customer prepayments, and capital markets on favorable terms.
- Customer concentration (notably Microsoft) and the need to successfully onboard and retain a diversified base of AI developers and enterprises remain important.
- High valuation relative to current profitability leaves the stock sensitive to any shortfalls in ARR conversion or capacity delivery.
Bottom Line: Transition Progressing with Clear Visibility
IREN delivered solid full-year revenue growth and a clear inflection in AI Cloud Services while absorbing the expected costs of exiting Bitcoin mining. The combination of $4 billion contracted ARR, Horizon 1 delivery, strengthened pricing, and substantial financing support positions the company for a meaningful revenue and ARR ramp through the remainder of calendar 2026 and into 2027.
Near-term GAAP losses and Adjusted EBITDA will continue to reflect investment and transition dynamics. Successful on-time delivery of remaining 2026 capacity and conversion of the contracted backlog into operating revenue will be the primary determinants of whether the AI Cloud platform translates into durable scale and improved profitability.
