IREN announced its latest quarterly results. Its AI Cloud business continued to expand rapidly, with revenue increasing significantly quarter over quarter. However, adjusted EBITDA fell short of analysts’ expectations. The company said its target of more than $4 billion in ARR is fully backed by contracts and funding, and is expected to be achieved in early 2027.
I. Key Financial Data
☆Revenue: $228 million, versus expectations of approximately $221 million.
☆Net loss: $263 million.
☆Adjusted EBITDA: $6 million, below market expectations of $73.56 million.
☆Pre-tax loss: $261 million, better than expectations of $282.69 million.
☆EBIT: Loss of $186 million.
II. AI Cloud Business Grows Rapidly
AI Cloud revenue reached $200 million this quarter, nearly tripling year over year. Growth was mainly driven by the launch of new services and expanded contracts with existing customers.
The company also said that pricing for signed contracts continues to rise, with prices increasing by about 11% for three-year contracts and about 12% for five-year contracts.
III. Future Outlook and Funding
IREN is targeting annualized recurring revenue (ARR) of more than $4 billion by January 2027.
The company said that all the contracts and funding needed to achieve this ARR target are in place. For the approximately $15 billion in remaining capital expenditures for FY27, the company expects to meet its funding needs through its own cash, financing, and customer prepayments.
