FY26
Filed Aug 27, 2026IREN Reports FY26 Results New Multi-Year Contract with Leading Frontier AI Lab $4bn Contracted ARR for 2026 Capacity; $1bn Operating ARR Today1,2 $2.8bn GPU Financings Fund 90% of Associated GPU Capex
FY26 revenue rose to $707.0m and AI Cloud Services Revenue increased ~8x to $128.8m, while the company reported a $(702.6)m net loss, a $(638.8)m impairment of assets, and lower Adjusted EBITDA of $245.7m versus $269.7m in FY25.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total RevenueGAAP | $707.0m | – | – |
| AI Cloud Services RevenueGAAP | $128.8m | – | ~8x |
| Bitcoin Mining RevenueGAAP | $578.2m | – | – |
| Total cost of revenueGAAP | $(219.7)m | – | – |
| Selling, general and administrative expensesGAAP | $(449.1)m | – | – |
| Depreciation and amortizationGAAP | $(417.7)m | – | – |
| Impairment of assetsGAAP | $(638.8)m | – | – |
| Operating (loss) incomeGAAP | $(1,046.7)m | – | – |
| Finance expenseGAAP | $(59.3)m | – | – |
| Interest incomeGAAP | $80.6m | – | – |
| Unrealized gain (loss) on financial instrumentsGAAP | $558.5m | – | – |
| Debt conversion inducement expenseGAAP | $(111.8)m | – | – |
| Net income (loss)GAAP | $(702.6)m | – | – |
| Net Income (loss) MarginGAAP | (99)% | – | – |
| Adjusted EBITDAnon-GAAP | $245.7m | – | – |
| Adjusted EBITDA Marginnon-GAAP | 35% | – | – |
| Q4 FY26 Total RevenueGAAP | $137.2m | – | – |
| Q4 FY26 AI Cloud Services RevenueGAAP | $70.5m | – | – |
| Q4 FY26 Bitcoin Mining RevenueGAAP | $66.7m | – | – |
| Q4 FY26 Operating (loss) incomeGAAP | $(620.4)m | – | – |
| Q4 FY26 Net income (loss)GAAP | $(684.0)m | – | – |
| Q4 FY26 Adjusted EBITDAnon-GAAP | $19.2m | – | – |
| Q4 FY26 Adjusted EBITDA Marginnon-GAAP | 14% | – | – |
| Current contracted ARR for 2026 capacityother | $4bn contracted ARR | – | – |
| Operating ARRother | $1bn | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AI Cloud ServicesFY26 and Q4 FY26 results reflected ongoing transition from Bitcoin mining to AI Cloud Services. | $128.8m | – | ~8x |
| Bitcoin MiningBitcoin mining hardware was decommissioned as sites are converted to support AI Cloud growth. | $578.2m | – | – |
2026 to 2028 outlook
- Note$4bn of ARR targeted to be operational by December 31, 2026
- Note2026: capacity largely sold out
- Note2027: late-stage discussions with a range of new customers over a significant portion of capacity
- NoteTargeting cumulative delivery of approximately 2026: 0.3GW (IT)
- NoteTargeting cumulative delivery of approximately 2027: 0.8GW (IT)
- NoteHorizon 3-4 in late-stage construction, targeting delivery in Q4 2026
- NoteRecent 3-year contracts >$20m revenue per MW (IT)
- NoteActive discussions at ~$25m per MW (IT)
- NoteRecent customer prepayments represent 45-55% of GPU capex
What drove it
- Signed a new multi-year AI Cloud contract with a leading frontier AI lab.
- Other recent signings included Cohere, Prometheus, Perplexity, Figure AI, Fal AI and Higgsfield AI.
- Horizon 1, the first of four 50MW (IT) liquid-cooled deployments at Childress, was delivered to Microsoft.
- NVIDIA Exemplar Cloud status was achieved on GB300 NVL72.
- The acquisitions of Mirantis and Nostrum were completed, strengthening software and services capabilities and expanding the platform to Europe.
- Contracted pricing is increasing, with recent 3-year contracts >$20m revenue per MW (IT).
Concerns
- FY26 net income (loss) was $(702.6)m, compared with $86.9m in FY25.
- Net income (loss) in FY26 was impacted by non-cash impairments of $(638.8)m, primarily related to decommissioning Bitcoin mining hardware as sites are converted to support AI Cloud growth.
- Adjusted EBITDA was $245.7m in FY26, compared with $269.7m in FY25, and Q4 FY26 Adjusted EBITDA decreased reflecting increased employee related costs and broader platform investment ahead of AI Cloud Services revenue ramp.
- Recognized revenue may be materially lower than ARR.
- Revenue expected from $4bn of ARR targeted to be operational by December 31, 2026 is subject to commissioning, testing and customer acceptance.
- The company identifies significant customer concentration risk in its AI Cloud Services business.
- The company has substantial and increasingly larger capital needs related to data center developments and hardware purchase commitments.
What to watch
- Commissioning, testing and customer acceptance for capacity targeted to be operational by December 31, 2026.
- Delivery of Horizon 3-4 targeted in Q4 2026.
- Execution of the 2027 target for cumulative delivery of approximately 0.8GW (IT).
- Conversion of late-stage discussions for a significant portion of 2027 capacity into customer contracts.
- AI Cloud Services revenue ramp following deployment of contracted capacity.
- Funding execution for $2.8bn of GPU financings supporting non-investment grade customer deployments.
Balance sheet and cash flow
- Cash and cash equivalents: $5,895.6m as of June 30, 2026; $564.5m as of June 30, 2025.
- Restricted cash, current portion: $1,670.3m as of June 30, 2026; - as of June 30, 2025.
- Debt, current portion: $169.4m as of June 30, 2026; - as of June 30, 2025.
- Debt, less current portion: $7,423.6m as of June 30, 2026; $962.8m as of June 30, 2025.
- Net cash from operating activities: $2,100.4m for the year ended June 30, 2026; $245.9m for the year ended June 30, 2025.
- Net cash used in investing activities: $(4,723.0)m for the year ended June 30, 2026; $(1,380.5)m for the year ended June 30, 2025.
- Payments for property, plant and equipment net of computer hardware: $(2,998.0)m for the year ended June 30, 2026; $(573.5)m for the year ended June 30, 2025.
- Payments for computer hardware: $(1,335.1)m for the year ended June 30, 2026; $(799.2)m for the year ended June 30, 2025.
- Net cash from financing activities: $9,680.1m for the year ended June 30, 2026; $1,294.7m for the year ended June 30, 2025.
- Proceeds from the issuance of Ordinary shares: $4,742.8m for the year ended June 30, 2026; $601.8m for the year ended June 30, 2025.
- Proceeds from convertible notes: $6,299.6m for the year ended June 30, 2026; $701.2m for the year ended June 30, 2025.
- Deferred revenue, less current portion: $1,796.1m as of June 30, 2026; - as of June 30, 2025.
- Existing cash and committed GPU financing and prepayments: $14bn.
Analysis
IREN reported FY26 total revenue of $707.0m, compared with $501.0m in FY25. The revenue mix continued to move toward AI Cloud Services, where revenue was $128.8m versus $16.4m in FY25 and the company described the increase as ~8x. Bitcoin Mining Revenue remained the larger reported revenue line at $578.2m, compared with $484.6m in FY25. In Q4 FY26, AI Cloud Services Revenue was $70.5m, while Bitcoin Mining Revenue was $66.7m.
The transition carried substantial reported costs. FY26 operating (loss) income was $(1,046.7)m, compared with operating income of $17.3m in FY25, and net income (loss) was $(702.6)m compared with net income of $86.9m. The company attributed the FY26 loss in part to non-cash impairments of $(638.8)m, primarily from the decommissioning of Bitcoin mining hardware as sites are converted for AI Cloud growth. Depreciation and amortization was $(417.7)m and selling, general and administrative expenses were $(449.1)m.
Adjusted EBITDA was $245.7m, compared with $269.7m in FY25, while Adjusted EBITDA Margin was 35%, compared with 54%. Q4 FY26 Adjusted EBITDA was $19.2m and Adjusted EBITDA Margin was 14%, versus $59.5m and 41% in Q3 FY26. Management said the Q4 decline reflected increased employee related costs and broader platform investment ahead of the AI Cloud Services revenue ramp. Headcount nearly tripled in FY26 alongside five recent C-suite appointments.
Cash generation and financing activity were large during FY26. Net cash from operating activities was $2,100.4m, including $1,841.7m of deferred revenue, while net cash used in investing activities was $(4,723.0)m. The company reported $5,895.6m of cash and cash equivalents, $1,670.3m of current restricted cash, and $7,423.6m of debt less current portion at June 30, 2026. Financing included $4,742.8m of proceeds from issuing Ordinary shares, $6,299.6m of convertible-note proceeds, and $938.0m of financing-facility proceeds.
The operating outlook centers on contracted AI infrastructure rather than formal revenue guidance. IREN reported $4bn contracted ARR for 2026 capacity and $1bn operating ARR as of August 26, 2026, while cautioning that recognized revenue may be materially lower than ARR. Capacity is described as largely sold out for 2026, with $4bn of ARR targeted to be operational by December 31, 2026. Execution milestones include Horizon 3-4 delivery targeted in Q4 2026 and cumulative delivery targets of approximately 0.3GW (IT) in 2026 and 0.8GW (IT) in 2027. The company also disclosed $3.6bn of investment grade GPU financing for the Microsoft contract at a 6.0% rate and new $2.8bn GPU financings, including a $2.4bn financing at a 9.0% fixed rate for the Mackenzie air-cooled expansion.
Management, verbatim
This year, that founding thesis became tangible.
Daniel Roberts, Co-Founder and Co-CEO of IREN
Our 2026 capacity is largely sold out.
Daniel Roberts, Co-Founder and Co-CEO of IREN
With increasing availability of a broad range of capital sources to fund our expansion, we are well positioned to keep compounding as the structural shortage of compute deepens.
Daniel Roberts, Co-Founder and Co-CEO of IREN
Not in the filing
stated, not guessed- GAAP diluted EPS and non-GAAP diluted EPS were not reported.
- Gross margin was not reported.
- Free cash flow was not reported.
- Formal revenue, gross-margin, operating-expense, and tax-rate guidance was not reported.
- Prior-period guidance was not provided.
- FY26 revenue percentage change was not reported.
- FY26 Bitcoin Mining Revenue percentage change was not reported.
- Q4 FY26 year-over-year comparisons were not reported.
- Q4 FY26 percentage changes were not reported.
- Share repurchases, dividends, and dividend guidance were not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.