IREN Q4 FY2026 earnings: AI cloud revenue $70.5M exceeds mining for first time; ARR reaches $1B, targets $4B by year-end

For the June quarter, IREN reported revenue of $137.2 million, with AI Cloud revenue reaching $70.5 million. The company reported a net loss of $684 million for the quarter, driven 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 fell $6.6 million, primarily due to lower electricity usage from reduced mining activities.

Annual Recurring Revenue (ARR) has grown significantly. IREN exited Q4 at roughly $0.5 billion, has reached $1 billion today, and expects to exceed $4 billion by the end of the December quarter. The company has secured $4 billion in contracted ARR for 2026 capacity, with $1 billion already operational, demonstrating strong customer demand and revenue visibility.

IREN holds $7.6 billion in cash on the balance sheet as of June 30, with $1.7 billion restricted. Over the past 12 months, the company has secured approximately $19 billion in funding, comprising $16 billion across customer prepayments, GPU financing, and convertible notes, alongside approximately $3 billion in equity. For fiscal year 2027, the company has provided CapEx guidance of approximately $25 billion to $30 billion.

GPU financing has been substantial. IREN raised $3.6 billion for the Microsoft contract at a weighted average of about 6%, and $2.8 billion for non-investment-grade deployments, including $2.4 billion at a 9% fixed rate. Over the past three months alone, the company raised $6.5 billion in GPU financing, with customer prepayments funding more than 100% of the associated GPU CapEx.

Pricing power remains robust. Three-year contract pricing has increased about 125% since November, while five-year contract pricing is up approximately 70%. Recent three-year contracts are pricing in excess of $20 million per megawatt of IT load. On recent deals, customer prepayments are funding 45% to 55% of GPU CapEx.

The company has 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. IREN'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. 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.

IREN maintains a substantial development pipeline of over 5 gigawatts of secured grid connections, with 2027 capacity targeting 1.2 gigawatts gross. The company's data center portfolio remains 100% unencumbered, providing future financing flexibility. IREN is also optimizing existing sites with spare power capacity, allowing for additional GPU deployments without new grid connections, improving capital efficiency.