IREN Revenue Climbs 66% — But Its $4 Billion Revenue-Pace Target Moves Into 2027
Customer contracts reached $20.3 billion, while IREN targets another $6 billion in funding for its planned expansion.
IREN, which supplies data centers, computing power and software for artificial intelligence, grew September-quarter revenue 66% to $228 million from the previous quarter, according to results released Thursday with an SEC filing. The company moved its target for more than $4 billion in annualized revenue pace from year-end 2026 to January 2027, potentially extending through February, because of a customer-requested design change and supplier timing.
AI Expands, Bitcoin Mining Shrinks
AI Cloud generated $200 million, up 182% from the June quarter. Services supplied $135 million and leases contributed $65 million; the preceding quarter had $71 million in services revenue and no lease revenue. Bitcoin mining revenue fell to $28 million from $67 million.
IREN owns its sites, graphics processors and the software customers use to deploy AI workloads. Customers mainly reserve capacity under multi-year contracts, buying computing equipment access or managed cloud services. The company is winding down Bitcoin mining to make room for AI.
The AI Cloud gross margin held at 86%, but that measure excludes depreciation, amortization and site-level costs. The quarterly net loss narrowed to $263 million from $684 million, including $148 million in depreciation and amortization and $106 million in stock-based pay. Asset impairments were $2 million, compared with $450 million in the June quarter.
Adjusted earnings before interest, taxes, depreciation and amortization reached $66 million, versus $19 million. IREN shares soared about 21% to $21.76 in Friday trading.
Contracts Outrun Recognized Revenue
Committed customer revenue reached $20.3 billion, up 22% from the preceding quarter, with approximately two-thirds tied to investment-grade counterparties. That backlog includes amounts contingent on delivering capacity and making services available.
IREN says the capacity supporting its more than $4 billion annualized revenue target is fully contracted and funded. The target is an operating measure based on contracted graphics-processor pricing, utilization assumptions and ancillary services—not revenue already earned. Recognized revenue may be materially lower, and its ramp depends on commissioning, testing and customer acceptance.
After quarter-end, IREN expanded an existing agreement with a leading frontier AI lab and signed a five-year contract with estimated annual revenue of approximately $22 million per megawatt of computing load. Customer prepayments cover 90% of the associated estimated graphics-processor capital costs. A separate short-term agreement carries estimated annual revenue of $40 million per megawatt.
Pricing on three-year contracts signed during the September quarter rose 11% against the June quarter's deals; five-year pricing rose 12%. Newly contracted H100 graphics processors fetched double the pricing under the previous Prince George contract.
Horizon 1 entered service for Microsoft and achieved NVIDIA Exemplar Cloud status for its NVIDIA GB300 NVL72 systems. Horizon 2–4 reached late-stage construction, while liquid-cooled construction progressed at Sweetwater 1 and began at the 100MW Mackenzie site.
The $6 Billion Funding Target
IREN plans $15 billion in remaining fiscal 2027 capital spending. Its funding plan combines $9 billion of cash, committed graphics-processor financing and customer prepayments with $6 billion of targeted funding that remains subject to market conditions. The committed-source figure includes undrawn facilities and contracted prepayments not yet received; funding availability also carries conditions.
“We own the land, the power and the data centers under all of it, which gives us more ways to fund growth and lets us set its pace,” IREN co-founder and co-CEO Daniel Roberts said in the earnings statement.
Operating activities generated $529 million during the September quarter, down from $1,811 million in the June quarter. Investing activities used $5,146 million, while financing activities brought in $2,779 million, including $498 million from ordinary-share issuance.
The company's adjusted net debt measure reached $4,430 million, versus $216 million at June-end. Unrestricted cash and equivalents stood at $3,522 million, down from $5,896 million, as net property, plant and equipment increased to $12,344 million from $6,753 million.
IREN's next revenue-pace milestone is targeted for January 31, 2027, with a possible extension to the end of February. The broader expansion still requires the $6 billion of targeted funding beyond its cash and committed sources.
Sources
- 8-K Filing — IREN Ltd (IREN) — SEC EDGAR
- Exhibit irenreportsq1-fy27result.htm — IREN Ltd 8-K exhibit — SEC EDGAR
- Iren stock rebounds as company's Q1 AI cloud revenue surges — Yahoo Finance
- IREN Stock Pops After Q1 AI Cloud Revenue Nearly Triples to $200 Million — benzinga.com
- IREN Stock Jumps After Earnings -- AI Cloud Revenue Is Taking Off — Yahoo Finance
- IREN's bitcoin mining revenue drops 58% as firm plans full exit by year-end — theblock.co
- IREN Q1 2027 Earnings Call Transcript — benzinga.com
