Key points
- IREN reported fiscal 2026 results on August 27 and disclosed a new multi-year AI Cloud contract with an unnamed "leading frontier AI lab." The stock fell about 13% Friday.
- The release prices IREN's GPU debt by customer. A $3.6 billion investment grade financing tied to the Microsoft contract carries 6.0%. New financings of $2.8 billion for what IREN calls non investment grade customer deployments include $2.4 billion at a 9.0% fixed rate, led by Blue Owl and PIMCO.
- AI Cloud revenue passed bitcoin mining revenue for the first time in the June quarter, $70.5 million against $66.7 million.
- Fiscal 2026 revenue was $707.0 million and the net loss was $702.6 million, including $638.8 million of non-cash impairments tied to decommissioning mining hardware.
IREN (IREN) reported results for the fiscal year ended June 30, 2026 after Thursday's close and said it has signed a new multi-year AI Cloud contract with a leading frontier AI lab. The company didn't name the customer. The stock fell hard on the report, down 13.3% by early Friday afternoon.
The same release sets out what IREN pays to finance the graphics processors those contracts run on, and the rate depends on who the customer is. A $3.6 billion investment grade financing supporting the Microsoft (MSFT) contract carries a weighted average rate of 6.0% across a US private placement and a delayed draw term loan, before fees. IREN also disclosed $2.8 billion of new GPU financings covering what it calls non investment grade customer deployments. The largest piece is $2.4 billion led by Blue Owl and Pacific Investment Management Company, as adviser to certain investors, at a 9.0% fixed rate. That money funds 90% of the GPU capital expenditure for an air-cooled expansion at Mackenzie, an 80-megawatt site in British Columbia.
Customer prepayments cover 45% to 55% of GPU capital expenditure on recent contracts, IREN said, and it put committed cash, GPU financing and prepayments at $14 billion.
What did IREN report for fiscal 2026?
| US$m | Q4 FY26 | Q3 FY26 | FY26 | FY25 |
|---|---|---|---|---|
| AI Cloud Services revenue | 70.5 | 33.6 | 128.8 | 16.4 |
| Bitcoin mining revenue | 66.7 | 111.2 | 578.2 | 484.6 |
| Total revenue | 137.2 | 144.8 | 707.0 | 501.0 |
| Net income (loss) | (684.0) | (247.8) | (702.6) | 86.9 |
| Adjusted EBITDA | 19.2 | 59.5 | 245.7 | 269.7 |
AI Cloud revenue was larger than bitcoin mining revenue for the first time in the June quarter. Total revenue still fell from the March quarter, because mining revenue dropped $44.5 million while AI Cloud added $36.9 million.
The fiscal 2026 net loss of $702.6 million includes $638.8 million of non-cash impairments, of which $450.4 million landed in the June quarter. IREN attributes those charges primarily to decommissioning bitcoin mining hardware as sites are converted for AI Cloud. Adjusted EBITDA for the June quarter was $19.2 million, down from $59.5 million in March, which IREN attributes to higher employee costs and platform investment ahead of the AI Cloud revenue ramp.
What is contracted ARR?
Annualized run-rate revenue is GPU hourly pricing for commissioned GPUs under contract, multiplied by 8,760 hours, plus storage and ancillaries. IREN reported $1 billion of operating ARR as of August 26 and $4 billion of contracted ARR for 2026 capacity.
The footnotes narrow the second figure. IREN says the $4 billion is targeted to be operational by December 31, 2026, based on internal assumptions about utilization and pricing, and that revenue ramps only after each data center is commissioned, tested and accepted by the customer. The release also states that ARR is an operating metric rather than a US GAAP measure and that recognized revenue may be materially lower. Hedge fund positioning in the name has been split on that gap, as we covered when Stanley Druckenmiller bought $4 million of IREN in the same quarter Bridgewater sold 96% of its stake.
Who are IREN's newest customers?
Beyond the unnamed frontier lab, IREN listed recent signings with Cohere, Perplexity and Figure AI, along with three smaller AI companies. It said 2026 capacity is largely sold out and that it's in late-stage discussions over a significant portion of 2027 capacity. Recent three-year contracts price above $20 million of revenue per megawatt of IT load, IREN said, with active discussions near $25 million.
The Microsoft work is further along. IREN delivered Horizon 1, the first of four 50-megawatt liquid-cooled deployments at its Childress, Texas campus, under a five-year, $9.7 billion contract announced in November 2025. That deployment also earned Nvidia (NVDA) Exemplar Cloud status on the GB300 NVL72. Horizon 2 is commissioning and Horizons 3 and 4 are in late-stage construction, targeted for delivery in the fourth quarter of 2026.
WhiteFiber proposed $250 million of convertible notes on August 18 and warned it would still need more financing, and our neocloud explainer covers how these companies fund capacity they haven't built yet.
IREN traded at $35.15 at 2:30 p.m. ET on Friday, August 28, down 13.3% from Thursday's close of $40.53. Core Scientific was down 6.9% on the session, Nebius 5.7% and CoreWeave 3.7%.
"We started IREN with a simple observation: the digital world can scale almost instantly, but the physical world cannot," said Daniel Roberts, co-founder and co-chief executive of IREN. He said 2026 capacity is "largely sold out" and that 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."
Sources
- IREN, FY26 results release, Exhibit 99.1 to its Form 8-K accepted August 27, 2026. Source for the frontier lab contract, the 6.0% and 9.0% financing rates, the ARR figures and footnotes, the revenue and loss table and the Roberts quotes.
- IREN, Horizon 1 delivery release, August 13, 2026. Source for the five-year, $9.7 billion Microsoft contract announced in November 2025 and the NVIDIA Exemplar Cloud status.
- IREN, Form 10-K for fiscal 2026. Source for Mackenzie, British Columbia at 80 megawatts of planned gross capacity.
- Price data for IREN, CoreWeave, Nebius and Core Scientific retrieved August 28, 2026 at 2:30 p.m. ET.
This article is for information only and is not investment advice. Prices are as of early afternoon on August 28, 2026 and will move.
