Key Highlights

  • IREN reported fiscal 2026 revenue of $707.0 million, up from $501.0 million, with AI cloud services revenue of $128.8 million.
  • Bitcoin mining revenue was $578.2 million for the year, and AI cloud revenue was $70.5 million in the fourth quarter.
  • The fourth-quarter net loss was $684.0 million, which the company attributed largely to a $638.8 million impairment on Bitcoin-mining hardware.
  • IREN had cash of $5.9 billion at June 30 and arranged $2.8 billion of new financing for GPU capital expenditure.

IREN (NASDAQ:IREN) is changing what it sells.

In its fiscal 2026 results, published on August 27, 2026 for the year ended June 30, 2026, the company reported total revenue of $707.0 million, up from $501.0 million, but the more telling line was AI cloud services revenue of $128.8 million, compared with $16.4 million a year earlier. Bitcoin mining still produced most revenue, yet the direction of travel is toward renting out graphics-processing capacity.

From Mining to AI Infrastructure

IREN builds and operates data centers, historically to mine Bitcoin and increasingly to host and supply high-performance computing for artificial intelligence. In the technology services sector it now resembles an infrastructure provider: customers pay for access to GPU clusters, while IREN controls the power, buildings and cooling. Bitcoin mining revenue was $578.2 million for the year, against $484.6 million in fiscal 2025.

What the Results Showed

In the fourth quarter alone, revenue was $137.2 million, of which AI cloud revenue was $70.5 million, meaning AI cloud accounted for slightly more than half of quarterly revenue. Adjusted EBITDA for the quarter was $19.2 million. The company reported a quarterly net loss of $684.0 million, which it attributed largely to a $638.8 million impairment linked to decommissioning Bitcoin-mining hardware. That is a non-cash accounting charge rather than an operating cash outflow, but it shows the cost of retiring older equipment.

IREN said its operating annualized recurring revenue was $1 billion as of August 26, 2026, and it referred to contracted annualized recurring revenue of $4 billion. These are company-defined measures rather than audited revenue, and contracted figures depend on customers taking delivery as scheduled.

Contracts and Capacity

The company said it delivered the first 50 megawatts of liquid-cooled capacity, known as Horizon 1, under its agreement with Microsoft, and announced a new multi-year contract with what it called a leading frontier AI laboratory. It also listed recent customers including Cohere, Perplexity, Figure AI and Fal AI, and said it had acquired Mirantis and Nostrum Group. On capacity, IREN described 0.3 gigawatts of IT capacity for 2026 as largely sold out and 0.8 gigawatts for 2027 as in late-stage discussions, with recent contracts exceeding $20 million of revenue per megawatt over three years.

Financing

Building this capacity is capital-intensive. IREN reported cash of $5.9 billion at June 30, 2026 and said it had arranged $2.8 billion of new financing covering 90% of GPU capital expenditure, alongside $3.6 billion of Microsoft-related financing at 6.0%. Debt of this scale adds fixed obligations, and the company will need customers to keep paying on schedule for the arithmetic to hold. Financing of this kind also ties the company's fortunes to the creditworthiness of its counterparties and to interest-rate conditions when new borrowing is arranged.

IREN's 2027 Capacity Contracts and Financing Drawdown

The risks are considerable. Customer concentration is likely to be high in a business built around a few large contracts, and the release describes late-stage discussions, not signed agreements, for much of the 2027 capacity. Delays in power connections, construction or hardware delivery could postpone revenue while financing costs begin. GPU hardware can become obsolete, and the impairment on Bitcoin equipment illustrates how quickly asset values can change. Remaining Bitcoin exposure, which is still substantial, links part of revenue to a volatile digital-asset price and to mining difficulty.

Developments to follow include whether the 2027 capacity is contracted, how quickly Horizon deployments reach customers, the ratio of AI cloud to mining revenue in coming quarters, and how much debt is actually drawn against the financing facilities.