NEW YORK, August 27, 2026, 17:58 (EDT)
- IREN was at $38.11 as of 18:00 EDT, falling 5.97% in after-hours trade.
- AI Cloud revenue increased almost eight times to $128.8 million in fiscal 2026.
- An impairment charge of $638.8 million shifted an $86.9 million profit to a $702.6 million loss.
Shares of IREN Limited NASDAQ: IREN dropped 5.97% in after-hours trading on Thursday. Despite strong expansion in AI Cloud, the costs from infrastructure transition and associated accounting impacts weighed on the company.
The findings reveal an expensive transition. IREN is substituting Bitcoin-mining hardware for liquid-cooled GPU capacity, but known AI revenue continues to represent a small portion of overall group sales.
AI Cloud revenue for fiscal 2026 climbed to $128.8 million, compared to $16.4 million previously. Revenue from bitcoin mining was up 19.3% at $578.2 million. Overall revenue advanced 41.1% to $707 million IREN results.
| Fiscal-year metric | FY25 | FY26 | Change |
|---|---|---|---|
| AI Cloud revenue | $16.4M | $128.8M | +685% |
| Bitcoin-mining revenue | $484.6M | $578.2M | +19.3% |
| Total revenue | $501.0M | $707.0M | +41.1% |
| Adjusted EBITDA | $269.7M | $245.7M | -8.9% |
| Net income/(loss) | $86.9M | -$702.6M | NM |
The fourth quarter saw a less impressive showing. AI Cloud revenue rose two-fold quarter-on-quarter to $70.5 million. Revenue from bitcoin mining declined by 40% to $66.7 million, resulting in total revenue dropping 5.2% to $137.2 million.
Adjusted EBITDA for the quarter fell by 67.7% to $19.2 million. IREN attributed the decline to increased employee expenses and investments linked to its upcoming AI expansion. The company’s workforce almost tripled during the fiscal year.
The quarterly loss of $684 million factored in a $450.4 million impairment. Impairments for the full year totaled $638.8 million, largely due to retired mining equipment. While these charges are non-cash, they highlight the rapid depreciation of older hardware.
Capital intensity stays high. Investment outflows for the quarter totaled $2.114 billion. Financing inflows amounted to $5.711 billion, with $3 billion from convertible notes and $2.112 billion raised through share issuance.
Deferred revenue contributed $1.722 billion to operating cash flow for the quarter. As of the end of June, cash, restricted cash, and equivalents totaled $7.620 billion. This level of liquidity underpins ongoing construction and incorporates both customer prepayments and outside funding.
Management stated that most of the company’s 2026 capacity has already been sold. IREN disclosed $1 billion in annualized run-rate revenue and $4 billion contracted for target capacity by year-end. The company noted that ARR is not GAAP revenue, and actual recognized sales could be significantly lower.
IREN revealed a new multi-year agreement with a leading AI lab. Its latest three-year contracts generate more than $20 million in annual revenue per deployed megawatt. Clients’ advance payments account for 45% to 55% of related GPU expenditures.
The stock ended regular trading at $40.53, then dropped to $38.11 at 18:00 EDT. During after-hours, it traded between $37.50 and $41.80 Public market data. Based on Google Finance’s reported share count, the loss wiped out about $865 million in market value.
Prior to the report, analysts maintained an optimistic outlook. According to Google Finance, there were seven Buy ratings, two Hold ratings, and one Sell rating. The consensus price target averaged $77.44, a number that may shift as analysts update their forecasts following the results.
Risks: IREN faces the challenge of completing data centers on time and translating contracted ARR into recorded revenue. Possible headwinds include GPU technology becoming outdated, heavy reliance on a few customers, high financing expenses, and potential additional dilution, all of which may impact returns.
The market is factoring in execution risk rather than demand concerns. IREN holds contracts and has secured funding. Now, investors require proof that the AI build will deliver sustainable cash margins.
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