Updated: November 6, 2025
Key takeaways (today):
- Revenue: $240.3 million for fiscal Q1 FY26, up 355% year over year.
- Profitability:Net income $384.6 million (benefiting from sizable unrealized gains tied to financing instruments); Adjusted EBITDA $91.7 million.
- Mix: ~97% of revenue from Bitcoin mining ($232.9M) and ~3% from AI Cloud services ($7.3M) as the AI ramp begins.
- AI roadmap: Targeting $3.4B AI Cloud ARR by end‑2026 with an expansion to 140,000 GPUs; newly signed $9.7B, five‑year Microsoft contract expected to contribute ~$1.9B ARR on its own.
- Balance sheet:$1.8B cash and cash equivalents as of Oct. 31, 2025; additional financing in place to fund build‑out.
What IREN reported today (Nov 6, 2025)
IREN Limited (NASDAQ: IREN) — the advanced‑computing data center operator formerly known for Bitcoin mining — posted record fiscal Q1 FY26 results after the bell. Revenue climbed to $240.3M (from $52.8M a year ago), while net income swung to $384.6M from a $(51.7)M loss in the prior‑year period. Management also reported Adjusted EBITDA of $91.7M and EBITDA of $662.7M, with the company noting that the quarter’s bottom line includes unrealized gains primarily related to prepaid forwards and capped calls connected to convertible notes. The earnings call is scheduled for 5:00 p.m. ET today.
Segment mix: mining still dominant, AI Cloud building
Inside the $240.3M topline, Bitcoin mining revenue was $232.9M (~96.9%) and AI Cloud services revenue was $7.3M (~3.0%). The company reiterated that AI Cloud is early but accelerating, supported by multi‑year deals with Together AI, Fluidstack and Fireworks AI and by its Microsoft partnership.
Context: Reuters also highlighted today that IREN’s pretax profit beat expectations and that management is targeting $3.4B AI Cloud ARR by end‑2026, including ~$1.9B from the Microsoft contract.
The Microsoft catalyst — and why it matters for the outlook
Earlier this week, IREN announced a $9.7 billion, five‑year AI Cloud contract with Microsoft, including a 20% prepayment to help fund equipment purchases. The deployment centers on IREN’s Childress, Texas campus, where the company is building new liquid‑cooled data centers expected to deliver ~200MW of critical IT capacity. To source the infrastructure (including Nvidia next‑gen GB300 systems), IREN signed a separate $5.8B procurement agreement with Dell Technologies. The Microsoft deal is milestone‑based, meaning execution against delivery timelines is essential.
In its earnings release today, IREN tied that Microsoft win to a broader AI build‑out plan: 140,000 GPUs and $3.4B AI Cloud ARR by end‑2026 (management’s target), with the Microsoft contract expected to contribute about $1.9B to ARR once fully ramped. The company also aims to exceed $500M AI Cloud ARR by the end of Q1 2026 through newly signed multi‑year agreements. Note: management characterizes these ARR figures as targets based on internal assumptions and timing of GPU deliveries; they are not fully contracted.
Capacity, projects and timing signals to watch
- British Columbia (160MW): Transitioning sites from ASICs to GPUs, with completion targeted by end‑2026.
- Childress, Texas (750MW): Accelerating construction of Horizon 1‑4 liquid‑cooled halls (targeting 200MW critical IT load for Microsoft). Design upgrades include Tier 3‑equivalent concurrent maintainability, 100MW superclusters for high‑performance training, and 130–200kW rack densities.
- Sweetwater Hub (2GW): Substation Sweetwater 1 (1,400MW) energization targeting April 2026; Sweetwater 2 (600MW)late 2027.
Why it matters: These milestones determine how quickly AI Cloud revenue can shift from the low‑single‑digit share reported this quarter to something that moves the consolidated P&L — and how reliably IREN can meet the milestone‑based obligations embedded in its Microsoft contract.
Balance sheet & funding
As of October 31, 2025, IREN reported $1.8 billion in cash and cash equivalents. In October, it also issued $1.0B zero‑coupon convertible notes and secured $200M of incremental GPU financing (total $400M). Management said near‑term capex will be funded with a mix of cash, operating cash flows, Microsoft prepayments and additional financing initiatives.
How the street is framing today’s print
Third‑party roundups published this afternoon flagged the record profitability yet noted that revenue came in roughly in line to slightly below some published consensus figures — an unsurprising outcome given the fast‑moving shift from mining to AI and the timing of contract ramps.
Reuters’ brief underscores the profit swing and ARR ambitions, aligning with the company’s release. Meanwhile, additional same‑day headlines (e.g., Yahoo Finance news posts) emphasize the headline numbers: $240.3M revenue and $384.6M net income for the quarter ended September 30, 2025.
What to listen for on today’s 5:00 p.m. ET call
- AI Cloud revenue cadence: How quickly does the AI contribution move from ~3% today toward mid‑/high‑teens and beyond in 2026? Any near‑term KPIs (bookings, utilization, average $/GPU‑month)?
- Microsoft deployment milestones: Specific timing for Childress capacity hand‑offs, and any gating items tied to GB300 supply or liquid‑cooling infrastructure.
- Capital allocation: Updated capex phasing, financing costs, and how the 20% Microsoft prepayment is being staged against vendor orders.
- Risk disclosures: Management already cautioned that ARR targets rely on internal assumptions and on‑time GPU commissioning; expect Q&A on contingencies if timelines slip.
Bottom line
Today’s print cements IREN’s 2025 turnaround: triple‑digit revenue growth, a swing to positive net income, and a balance sheet built to fund the AI data‑center pivot. But the numbers also show the story’s next act still lies ahead — converting signed AI contracts into revenue at scale, on schedule, against ambitious build targets. With the Microsoft $9.7B deal as a demand anchor and 140k GPUs planned, execution across 2026 is the critical watch‑item for investors and partners alike.
Sources (today & this week)
- IREN Q1 FY26 earnings release (Nov 6, 2025): headline results, segment mix, ARR targets, project milestones, cash/financing, and call details.
- Reuters (Nov 6, 2025 recap via TradingView): profit swing, revenue figure, and ARR guidance context.
- Reuters (Nov 3, 2025): Microsoft $9.7B contract details, Dell sourcing, 200MW Childress deployment, and milestone‑based structure.
- Yahoo Finance (Nov 6, 2025): headline revenue and net income recap.
Note: This article covers IREN Limited (NASDAQ: IREN). It is distinct from Iren S.p.A., the Italian multi‑utility listed in Milan.
