Key Highlights

● Revenue rose to $707.0 million for the year, from $501.0 million previously.

● Net loss was $702.6 million, driven by $638.8 million of hardware impairments.

● AI Cloud Services revenue jumped to $128.8 million from just $16.4 million.

● Contracted annualised run-rate revenue for 2026 capacity reached $4 billion.

IREN Limited (NASDAQ:IREN) reported results for the financial year ended 30 June 2026 on 27 August 2026. Revenue rose to $707.0 million from $501.0 million, yet the company recorded a net loss of $702.6 million, compared with Net Income of $86.9 million a year earlier. The release attributes the loss to impairments of $638.8 million, mainly linked to decommissioning Bitcoin Mining hardware.

Business and sector

IREN describes itself as a vertically integrated AI Cloud platform, providing data centres, compute and software for artificial intelligence Training and inference. It holds power and land in North America, Europe and the Asia-Pacific region. Until recently the company was known mainly for Bitcoin mining, which still contributes most of its revenue, but it is shifting capacity towards AI Cloud services.

The sector is Capital intensive. Operators must secure power, build liquid-cooled facilities, buy graphics processing units and finance them, usually against contracts with large customers. Demand depends on AI developers continuing to buy computing capacity.

Reported results

AI Cloud Services revenue was $128.8 million, up from $16.4 million, while Bitcoin Mining revenue was $578.2 million, up from $484.6 million. Adjusted EBITDA, a non-GAAP measure, fell to $245.7 million from $269.7 million, a Margin of 35% compared with 54%.

The fourth quarter alone produced revenue of $137.2 million, a net loss of $684.0 million and adjusted EBITDA of $19.2 million, so most of the annual loss fell into that period.

IREN reported operating annualised run-rate revenue of $1 billion as of 26 August 2026, and contracted annualised run-rate revenue of $4 billion for 2026 capacity, which it aims to have operational by 31 December 2026, subject to internal assumptions and customer acceptance. These are non-GAAP operating metrics, not reported revenue.

Contracts, capacity and financing

The company announced a new multi-year AI Cloud contract with an unnamed leading frontier AI lab, and listed recent customers including Cohere, Prometheus, Perplexity, Figure AI, Fal AI and Higgsfield AI. The first of four 50MW liquid-cooled deployments at Childress, known as Horizon 1, was delivered to Microsoft, with Horizon 2 being commissioned and Horizons 3 and 4 targeted for delivery in the fourth quarter of 2026.

IREN targets about 0.3GW of cumulative IT capacity in 2026 and 0.8GW in 2027, within a pipeline of more than 5GW. It said 2026 capacity is largely sold out.

Capital spending was substantial: $2,998.0 million on property, plant and equipment and $1,335.1 million on computer hardware. Cash and equivalents were $5,895.6 million at 30 June 2026. Financing included a $3.6 billion investment-grade GPU Facility for the Microsoft contract at 6.0%, and $2.8 billion of other GPU financings, including $2.4 billion at a fixed 9.0%.

Risks and uncertainties

The scale of obligations is a central uncertainty. Delivery depends on construction schedules, equipment Supply and customer acceptance, and the targets above are management expectations. The company's own wording notes that contracted figures rely on internal assumptions.

Earnings remain exposed to Bitcoin prices and mining economics, and the large Impairment shows that hardware can lose value quickly. Higher-cost, non-investment-grade Debt adds interest burden, while concentration in a few large customers could magnify the effect of any delay.

Statements about 2027 and 2028, including late-stage discussions and pricing above $20 million of revenue per MW, are not signed commitments.

IREN's Build-Out Still Ahead

Readers may monitor the delivery of Horizons 2 to 4, the progress towards the 31 December 2026 operating target, and whether the discussed 2027 capacity is converted into contracts. The next quarterly results will show how AI Cloud revenue develops relative to Bitcoin Mining and how costs and financing charges affect profitability.