Iris Energy reported Q4 revenue of $137M, missing estimates as its business transitions from Bitcoin mining to AI infrastructure.

IREN Limited, formerly known as Iris Energy, reported fiscal fourth-quarter 2026 revenue of $137.2 million, falling short of analyst estimates of approximately $140 million. The result marks a 26.8% decline from the prior quarter’s $144.8 million.

The quarterly revenue breakdown highlights the company’s strategic pivot. AI cloud services generated $70.5 million during the period, surpassing Bitcoin mining revenue of $66.7 million and establishing AI as the majority contributor to IREN’s top line.

For the full fiscal year 2026, IREN recorded total revenue of $707 million. To support its infrastructure expansion, the company has secured $2.8 billion in GPU financings, covering more than 90% of the capital expenditures required for its AI buildout.

The bottom line, however, reflects substantial transitional costs. IREN posted a net loss of $702.6 million for the fiscal year. Approximately $638.8 million of that loss stemmed from non-cash impairment charges tied to the decommissioning of Bitcoin mining hardware.

Looking ahead, IREN’s contracted annualized run-rate revenue for 2026 stands at $4 billion, though only about $1 billion is currently operational. The company operates all its data centers using 100% renewable energy.

Revenue dipped quarter-over-quarter even as the AI segment expanded, indicating that mining revenue is contracting faster than AI revenue is scaling. While the $2.8 billion in GPU financings provides a financial cushion, IREN will need its contracted annual recurring revenue to convert into actual billings on schedule.

Although the $702.6 million net loss will likely dominate earnings headlines, the non-cash nature of the impairment charges suggests that IREN’s underlying cash position may remain healthier than GAAP figures indicate.