Highlights

  • Fiscal 2026 revenue rose to $707.0 million from $501.0 million, while the company posted a net loss of $702.6 million.
  • Impairment charges reached $638.8 million, mostly on Bitcoin mining hardware displaced by the shift toward AI Cloud Services.
  • Contracts include a Microsoft agreement worth about $9.7 billion through 2031 and an NVIDIA cloud contract of about $3.4 billion.
  • Cash stood at $5.90 billion, and convertible notes outstanding totaled $6.75 billion in principal at June 30, 2026.

IREN (NASDAQ:IREN) shares were trading near their 52-week low at USD 28.25 on October 21, 2026, up 6.10%. The AI cloud and data center operator completed the Nostrum Group acquisition in June, reported its fiscal year ended June 30, 2026 results in a Form 10-K filed on August 27, and closed the Mirantis acquisition in August.

IREN Limited is incorporated in Australia and lists its principal executive offices in Sydney. It describes itself as a vertically integrated AI Cloud Services platform that owns the data center, compute and software layers, serving hyperscalers, frontier labs, AI developers and enterprises. It also mines Bitcoin, and aims to substantially complete a shift of that capacity to AI by December 31, 2026. Its fiscal year ends June 30.

Fiscal 2026 Results: Revenue Growth and a Large Loss

Total revenue for fiscal 2026 was $707.0 million, up from $501.0 million. AI Cloud Services revenue grew to $128.8 million from $16.4 million, and Bitcoin mining revenue rose to $578.2 million from $484.6 million.

The net loss was $702.6 million, or $2.22 per diluted share, against net income of $86.9 million, or $0.39 per diluted share, in fiscal 2025. The company attributed the swing mainly to higher impairment, depreciation, selling, general and administrative expense, debt conversion inducement expense and finance expense, partly offset by a $558.5 million unrealized gain on financial instruments.

Impairment of assets was $638.8 million, compared with $7.2 million, relating primarily to Bitcoin mining hardware and equipment displaced by the move to AI. Depreciation rose to $417.7 million, selling, general and administrative expense to $449.1 million, and a $111.8 million debt conversion inducement expense related to older convertible notes. Adjusted EBITDA, a non-GAAP measure, was $245.7 million against $269.7 million. Operating cash flow was an inflow of $2.10 billion.

Contracts, Acquisitions and Funding

Under the Microsoft Agreement signed November 2, 2025, IREN will provide dedicated GPU services from its Childress, Texas campus over a five-year average term, with total contract value of about $9.7 billion through 2031. Horizon 1 was delivered to and accepted by Microsoft in August 2026 while Horizons 2 to 4 are targeted for phased delivery from the fourth quarter of calendar 2026, with grace periods to the second quarter of 2027. IREN also signed a five-year cloud contract with NVIDIA worth about $3.4 billion in May 2026 and, in July, contracts worth about $2.8 billion in aggregate with AI developers including Prometheus, Perplexity and Together AI.

The company said its contracts are concentrated and that revenue generally begins only after capacity is delivered and accepted. Operating AI Cloud Services capacity was about 40MW at year end, against about 380MW of installed Bitcoin mining capacity.

Acquisitions added Nostrum Group, a Spain-based data center developer, for 837,424 ordinary shares and about EUR 82 million in cash, and Mirantis, a cloud software provider, for about $544 million, payable through 12.6 million shares plus about $40 million in cash and restricted stock units. The company also granted NVIDIA the right to invest up to $2.1 billion in ordinary shares, subject to GPU delivery and regulatory conditions.

Funding was extensive. IREN issued convertible notes in October and December 2025 and May 2026, leaving $6,745.7 million of principal outstanding, and put in place a roughly $3.6 billion senior secured GPU financing program. It sold ordinary shares through its at-the-market program, issuing 47,165,838 shares for about $2.5 billion in gross proceeds from March 4 through August 14, 2026, when 394,058,648 shares were outstanding. Cash and cash equivalents were $5,895.6 million, with a further $1,723.9 million restricted. Management believes liquidity is sufficient for the next 12 months. The 10-K also notes a securities class action that was dismissed with prejudice in February 2026 and is on appeal.

Outlook

The 10-K contains no numerical revenue guidance. Management said it plans to deliver the remaining Microsoft tranches, bring more GPU capacity online and fund investments through customer prepayments, asset-backed financing, convertible notes and equity.