Key Highlights
- Fourth-quarter revenue reached $137.2 million, falling approximately 12.7% below analyst expectations of $157.14 million
- AI Cloud operations generated $70.5 million, representing 51.4% of total quarterly revenue—a first-time majority milestone
- A net loss of $684 million was recorded, primarily driven by non-cash write-downs related to discontinued bitcoin mining equipment
- Annual recurring revenue reached $1 billion following Microsoft’s acceptance of Horizon 1, with management projecting $4 billion by year-end
- Shares declined 7.23% during after-hours trading after finishing the regular session up 2.4% at $40.53
On Wednesday, IREN announced fourth-quarter revenue of $137.2 million, undershooting analyst consensus projections of $157.14 million. The stock finished regular trading at $40.53, representing a 2.4% gain, before tumbling 7.23% to $37.60 in extended trading hours.
The approximately $19.9 million gap between actual results and forecasts—representing a 12.7% miss—occurred as the company systematically dismantled its cryptocurrency mining infrastructure to make way for advanced GPU installations.
The company reported an earnings per share loss of $0.41, surpassing the Zacks consensus projection of a $0.50 loss per share. This delivered a positive earnings surprise of 18%.
The quarterly net loss totaled $684 million. However, the majority consisted of non-cash charges, including $450.4 million in impairments on retired mining equipment and $102.1 million from fair value adjustments on mining hardware designated for sale.
Quarterly revenue also decreased by $7.6 million compared to the previous quarter. Company leadership attributed this sequential decline to the intentional shutdown of mining operations in preparation for upcoming GPU infrastructure deployments.
AI Cloud Operations Become Dominant Revenue Driver
AI Cloud operations generated $70.5 million during the quarter, accounting for 51.4% of overall revenue. This milestone represents the first instance where AI Cloud has become the majority revenue contributor, highlighting IREN’s strategic transformation from cryptocurrency mining to artificial intelligence infrastructure.
The quarter concluded with approximately $500 million in annual recurring revenue. Following Microsoft’s acceptance of the Horizon 1 facility, this figure jumped to $1 billion.
The company disclosed that it has already secured contracts worth over $4 billion in ARR for 2026 capacity, with full deployment targeted for the December quarter.
An additional $700 million in ARR connected to an NVIDIA cloud agreement is scheduled to begin ramping up in 2027.
Capital Structure and Financial Strategy
Over the trailing twelve months, IREN raised approximately $19 billion through various channels including customer advance payments, GPU-backed financing, convertible debt instruments, and equity offerings. The company’s cash position as of June 30, 2026 totaled $7.6 billion, with $1.7 billion subject to restrictions.
Co-CEO Daniel Roberts highlighted the emerging GPU financing market’s rapid maturation. “The GPU financing asset class was virtually non-existent twelve months ago, yet we’ve successfully raised $6.5 billion through this channel in just the past three months,” he explained.
Capital expenditure guidance for FY2027 was set at $25 billion to $30 billion. This allocation will support Microsoft infrastructure, air-cooled deployments scheduled for calendar 2027, and liquid-cooled facilities at Childress and Sweetwater 1 sites during the second half of 2027.
Company executives indicated that data center and GPU capital spending should increase 15% to 20% for new and existing projects, while anticipating revenue growth will exceed this spending increase.
First-quarter SG&A expenses are projected to increase by $40 million to $50 million sequentially as the organization expands investments in sales operations, marketing initiatives, research and development, and cloud service functions.
Complete decommissioning of bitcoin mining activities is scheduled for completion by December 2026.
The stock has traded within a 52-week range of $22.63 to $76.87, illustrating persistent market uncertainty regarding the timeline for converting AI infrastructure investments into recognized revenue streams.
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