IREN Ltd files 8-K: results of operations

Item 2.02 Results of Operations and Financial Condition.

2 IREN Q3 FY26 Results Transcript We talked about films like The Matrix and Ready Player One, not as science fiction, but as a signal. Worlds where digital adoption was total, instantaneous, and infinite. The insight we kept coming back to was this: digital adoption curves can go from zero to one overnight, but the real world doesn't scale that way. Power, infrastructure, land, data centers — these take years to permit, finance and build. The bigger the demand, the harder delivery becomes. That gap between exponential digital growth and the physical world's ability to service that structural disconnect is exactly what we set out to solve. That scarcity is now defining where AI infrastructure gets built and who can build it. Eight years later, that thesis is playing out exactly. This quarter, we demonstrated what disciplined execution against it looks like at a global scale.

In AI infrastructure, secured power is only valuable if it can be converted into customer-ready compute. That conversion is hard. It requires site control, grid connection work, permitting, design, procurement, construction, GPU installation, networking, commissioning, financing, and customer delivery, all coming together on tight timelines. IREN's strength is bringing those pieces together. We have experienced site teams, standardized designs, and repeatable construction processes that allow us to build across multiple sites in parallel. As we scale, each phase builds on the prior phase. The template becomes more repeatable, the procurement and construction process becomes more efficient, and the site teams carry that experience forward. That is where IREN has built its moat, and why real assets and real capabilities are harder to replicate than they might appear.

That execution capability is showing up in the numbers. More capacity, more revenue, stronger funding certainty, and in the partnerships we're announcing today. This was a significant quarter and a significant week. Let me run through the highlights. On capacity, we increased secured power to five gigawatts, added new sites in Europe and APAC, energized Sweetwater 1 on schedule, and have Horizon 1 GPU commissioning now underway for Microsoft. On customers, all of our operational capacity is fully contracted. We are not chasing demand. We are racing to build supply fast enough to meet it. In this market, the moment compute comes online, it goes to work. That is the nature of the structural imbalance of AI infrastructure between supply and demand, and it is why time-to-compute is the most important metric we track.

We increased ARR under contract to $3.1 billion, remain on track to hit $3.7 billion exiting calendar 2026, and this week signed a $3.4 billion five-year AI Cloud contract with NVIDIA. The first step in a broader strategic partnership I will come to in a moment. On capital, we had $2.6 billion of cash at 30 April, and we continue to progress GPU, data center, and corporate level financing initiatives to support the next phase of build-out.

3 IREN Q3 FY26 Results Transcript But the headline today is the NVIDIA partnership, and it deserves a little more than a bullet point. Let me explain what this partnership actually means. We are working with NVIDIA to support deployment of up to five gigawatts of NVIDIA DSX-aligned AI infrastructure across our global data center platform, alongside DGX environments and the DSX AI factory reference architecture. The $2.1 billion NVIDIA investment is structured to reflect that. Their rights to invest only vest as NVIDIA GPU infrastructure is deployed across IREN campuses and only fully vest upon deployment of 600,000 GPUs. NVIDIA's capital is directly tied to execution. That's not a passive financial investment. NVIDIA is a partner who wins as we deliver. The $3.4 billion AI Cloud contract announced today, supporting NVIDIA's own internal workloads, is the first step in that partnership.

Eight years ago, Will and I set out to build the infrastructure the digital world would need. Today, the world's leading AI infrastructure company has chosen IREN as the partner to help build it. This next slide shows exactly how we do it against this. So here is our plan. In 2026, we are targeting 480 megawatts of AI Cloud capacity, 150,000 GPUs, and 3.7 billion of ARR by year-end. That is the near-term plan and the clearest bridge from capacity to revenue. In 2027, we are scaling to 1,210 megawatts, with an additional 730 megawatts currently under construction across British Columbia and Texas, including Childress and the initial phase at Sweetwater 1. The construction flywheel we are running in 2026 carries directly into this next phase. Beyond 2027, we are building against a five gigawatt global power portfolio.

North America, our new European platform in Spain, and an APAC pipeline anchored by large-scale Australian opportunities. The sequence of delivery matters because it dictates time-to-compute, and time-to-compute is what drives revenue. Each phase supports the next, that's how the platform compounds. One more thing before we move on. This week we welcomed Mirantis into the IREN family. Six hundred and fifty engineers, operators and customer support professionals who have spent more than a decade running cloud infrastructure for over 1,500 enterprise customers globally. To Alex and the whole Mirantis team, welcome. I'll come back to what this means for our delivery capability later on. But let me start with 2026, where construction and customer demand are coming together most visibly.

The 2026 expansion is focused on delivering 480 megawatts of AI cloud capacity across Childress, Prince George, and Mackenzie. This is where the roadmap translates into near-term deployments, customer handoffs, and ARR conversion. We'll start with the largest and most complex 2026 work stream, the 300 megawatt Horizon 1 to 4 liquid-cooled deployment at Childress, where NVIDIA GB300 NVL72 installations are now underway.

4 IREN Q3 FY26 Results Transcript Horizon 1 is scheduled for Microsoft handoff in Q3, and Horizons 2 to 4 remain on track for delivery by the end of this year. This is a major execution milestone. It demonstrates our ability to design, build, fit out and commission large-scale next-generation liquid cooled infrastructure for a hyperscale customer on an accelerated schedule. We have around 3,000 workers on-site right now. That level of activity reflects both the urgency of AI infrastructure demand, and also the depth of our execution capability on the ground. Importantly, the model is repeatable. Horizon 1 establishes the build template. Each subsequent phase benefits from the same design, supply chain, construction sequencing, and site team. That is how we drive faster deployment phases every time.

Alongside the liquid-cooled build, we're also converting existing air-cooled capacity into AI Cloud deployments across British Columbia and Childress. In British Columbia and Childress, we are progressing 180 megawatts of air-cooled AI Cloud capacity by leveraging existing infrastructure. At Prince George, all air-cooled GPUs have now been delivered and are either operating or undergoing commissioning across the 50 megawatt site. At Mackenzie, 80 megawatts of data center capacity has been prepared for GPU installations commencing in the second half of 2026. Finally, at Childress, data center retrofits are underway across an initial 50 megawatts ahead of GPU deliveries in the second half of this year. This is a capital efficient part of the roadmap. We are taking existing sites and converting them toward higher value AI Cloud workloads.

It works because we already have the operational teams, infrastructure, and site control in place. Air-cooled capacity can come online faster than liquid-cooled. In a market where time-to-compute is everything, that speed is a commercial advantage, and we are using it. We're already seeing this dynamic play out commercially with capacity continuing to be contracted ahead of commissioning as customers prioritize speed to market. We now have $3.1 billion of ARR under contract, including approximately $700 million of ARR associated with a $3.4 billion five-year contract for Blackwell GPUs to be deployed across 60 megawatts of air-cooled capacity at Childress for NVIDIA. Against the full 2026 expansion, we are targeting $3.7 billion of ARR by year-end, across 150,000 GPUs.