IREN — FY26 Earnings Summary

Financial Performance

• Total revenue for the year ended June 30, 2026, was $707.0 million, up from $501.0 million in the prior year.
• AI Cloud Services revenue increased approximately 8x to $128.8 million for FY26, compared to $16.4 million in FY25.
• Bitcoin Mining revenue was $578.2 million for FY26, compared to $484.6 million in FY25.
• Net loss for FY26 was $702.6 million, compared to net income of $86.9 million in FY25.
• The FY26 net loss was significantly impacted by non-cash asset impairments of $638.8 million, primarily related to the decommissioning of Bitcoin mining hardware.
• Adjusted EBITDA for FY26 was $245.7 million, down from $269.7 million in FY25.
• Adjusted EBITDA margin for FY26 was 35%, down from 54% in FY25.
• Cash and cash equivalents increased to $7,619.5 million as of June 30, 2026, from $564.5 million in the prior year.
• Deferred revenue increased to $1,842.6 million ($46.5 million current + $1,796.1 million non-current) as of June 30, 2026, compared to $0.9 million in the prior year.
• Total debt increased to $7,593.0 million ($169.4 million current + $7,423.6 million non-current) as of June 30, 2026, from $962.8 million in the prior year.
• Operating cash flow for FY26 was $2,100.4 million, compared to $245.9 million in FY25.

Guidance and Future Outlook

• The company targets cumulative delivery of 0.3GW (IT) in 2026 and 0.8GW (IT) in 2027.
• 2026 capacity is largely sold out, with Horizon 1 delivered to Microsoft and Horizon 2 commissioning underway.
• Horizon 3 and 4 are in late-stage construction, targeting delivery in Q4 2026.
• The company is in late-stage discussions with new customers for a significant portion of 2027 capacity.
• Customer and financing discussions for 2028 capacity are progressing in parallel.
• New liquid-cooled deployments are planned at Mackenzie, Canal Flats, and Prince George during 2027 to optimize power headroom.
• Development is progressing at new sites in Sweetwater (Texas), Kiowa (Oklahoma), Bundey (Australia), and Badajoz (Spain).
• The company aims to achieve $4 billion in contracted ARR for 2026 capacity by December 31, 2026.

Business Segments and Product Lines

• Signed a new multi-year AI Cloud contract with a leading frontier AI lab.
• Recent customer signings include Cohere, Prometheus, Perplexity, Figure AI, Fal AI, and Higgsfield AI.
• Horizon 1, the first of four 50MW (IT) liquid-cooled deployments, was delivered to Microsoft and achieved NVIDIA Exemplar Cloud status on GB300 NVL72.
• The company completed the acquisition of Mirantis and Nostrum, expanding software and services capabilities and entering the European market.
• Contract pricing is increasing, with recent 3-year contracts exceeding $20 million revenue per MW (IT), representing approximately a 2-year payback period.
• Active discussions are underway at approximately $25 million per MW (IT).
• Customer prepayments represent 45-55% of GPU capex for recent contracts.
• Headcount nearly tripled in FY26, accompanied by five recent C-suite appointments.

Market and Competitive Landscape

• The company reports a diversified customer base across hyperscalers, enterprises, AI developers, and frontier labs.
• Exponential AI consumption growth is driving demand for compute capacity well beyond available supply.
• The company has secured stronger pricing and more attractive contract terms as its market position has strengthened.
• The company is executing a global expansion across a >5GW data center pipeline.

Risks and Challenges

• Significant non-cash impairment charges may occur upon the retirement of Bitcoin mining hardware or other hardware due to obsolescence or site conversion.
• The company faces risks related to securing additional capital, financing terms, and servicing debt obligations.
• Potential delays, cost overruns, or supply chain constraints regarding GPU and hardware procurement could impact delivery timelines.
• Regulatory changes, including tariffs, trade policies, and energy market regulations, could affect operations and costs.
• Integration risks exist regarding the recently acquired businesses, Mirantis and Nostrum.
• The company relies on third-party power, network, and utilities providers, with risks associated with grid stability and power availability.
• The company does not currently pay cash dividends and may not do so in the foreseeable future.

Management Commentary and Tone

• Co-Founder and Co-CEO Daniel Roberts stated that the founding thesis of scaling the physical world to match digital demand has become tangible.
• Management highlighted that 2026 capacity is largely sold out and the company is well-positioned to compound growth as the structural shortage of compute deepens.
• Management emphasized the strategic allocation of capacity to a diversified customer base to preserve room for higher-value managed services and software.
• The tone reflects confidence in the company's ability to secure capital sources and execute on its expansion strategy.

Other Key Points

• The company secured $3.6 billion in investment-grade GPU financing for the Microsoft contract at a 6.0% interest rate, funding 96% of associated GPU capex with prepayments.
• New $2.8 billion in GPU financings were secured for non-investment grade customer deployments at a 9.0% fixed rate, funding 90% of associated GPU capex.
• Total GPU financings and prepayments amount to $14 billion, making the company well-capitalized.
• The company raised $4,742.8 million from the issuance of ordinary shares and $6,299.6 million from convertible notes during FY26.
• The company incurred $111.8 million in debt conversion inducement expense during FY26 related to the induced conversion of convertible notes.
• The definition of Adjusted EBITDA was updated for FY26 to exclude debt conversion inducement expense.