IREN FY2026 Q4: AI Cloud quarterly revenue $70.5M, full year +687%, ARR locked at $4B
IREN reported June quarter revenue of $137.2 million, including $70.5 million in AI Cloud revenue, representing substantial quarterly growth. The company posted a net loss of $684 million for the quarter, driven primarily by noncash impairments of $450.4 million and a $102.1 million decrease in fair value of mining hardware held for sale. Cost of revenue declined $6.6 million, principally from lower electricity usage following reduced mining activities.
The company's Annual Recurring Revenue (ARR) trajectory accelerated sharply. IREN exited Q4 at approximately $0.5 billion ARR, has since reached $1 billion, and expects to exceed $4 billion by the end of the December quarter. The company secured $4 billion in contracted ARR for 2026 capacity, with $1 billion already operational, demonstrating strong customer demand and revenue visibility.
IREN's cash position stood at $7.6 billion on the balance sheet as of June 30, with $1.7 billion restricted. The company raised approximately $19 billion in funding over the past 12 months, comprising $16 billion across customer prepayments, GPU financing, and convertible notes, alongside approximately $3 billion in equity. Over the past three months alone, IREN raised $6.5 billion in GPU financing, with customer prepayments funding more than 100% of associated GPU CapEx.
GPU financing was structured across multiple rate tiers. The company raised $3.6 billion for its Microsoft contract at a weighted average of approximately 6%, and $2.8 billion for non-investment-grade deployments, including $2.4 billion at a 9% fixed rate. Three-year contract pricing increased approximately 125% since November, while five-year pricing rose approximately 70%, with recent three-year contracts pricing in excess of $20 million per megawatt of IT load. Customer prepayments funded 45% to 55% of GPU CapEx on recent deals.
IREN's capacity pipeline remains robust, with over 5 gigawatts of secured grid connections in development. The company targets 1.2 gigawatts gross capacity for 2027. FY2027 capital expenditure guidance ranges from approximately $25 billion to $30 billion. The company is optimizing existing sites with spare power capacity, allowing additional GPU deployments without new grid connections to improve capital efficiency. The data center portfolio remains 100% unencumbered, providing future financing flexibility.
The company's diversified customer base includes new contracts with Cohere, Prometheus, Perplexity, Figure AI, and a leading Frontier AI lab, alongside renewals from Together AI and Bioworks AI. IREN delivered Horizon 1 to Microsoft, achieving NVIDIA exemplar cloud status on GB300 NVL72, demonstrating its ability to integrate and operate the full AI infrastructure stack. The acquisition of Mirantis, now an NVIDIA-certified hypervisor, enhances the company's software layer, enabling higher-margin managed services and on-demand compute offerings.