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IREN shares fell about 3.9% in the latest trading as the company reported a rapidly expanding AI contract book alongside significantly lower recognized AI revenue. IREN says it expects $4 billion of contracted annualized run-rate revenue tied to 2026 capacity, compared with $1 billion of operating ARR as of Aug. 26.
Contracted ARR Runs Ahead of Reported Revenue
IREN reported $1 billion of operating ARR as of Aug. 26 and said it expects $4 billion of contracted ARR tied to 2026 capacity. The company cautions that ARR is an operating metric rather than U.S. GAAP revenue.
Its filings state that recognized revenue can be materially lower because new capacity must go through commissioning, testing, and customer acceptance before revenue ramps. AI Cloud Services revenue still increased sharply, rising from $16.4 million in fiscal 2025 to $128.8 million in fiscal 2026. Fourth-quarter AI Cloud revenue reached $70.5 million.
Earnings Show Cost of AI Transition
IREN reported total fiscal 2026 revenue of $707 million, up from $501 million a year earlier. Bitcoin mining remained the larger business during the year, contributing $578.2 million compared with $128.8 million from AI Cloud Services.
The company posted a $702.6 million net loss, compared with an $86.9 million profit in fiscal 2025. IREN attributed much of the loss to $638.8 million of non-cash impairments, primarily from decommissioning Bitcoin mining hardware as sites are converted for AI workloads. Adjusted EBITDA fell to $19.2 million in the fourth quarter from $59.5 million in the previous quarter as staffing and platform investment increased ahead of additional AI revenue.
IREN Says 2026 Capacity Is Largely Sold
IREN says its AI customer base includes Microsoft, NVIDIA, Cohere, Perplexity and other developers. It also announced another multi-year contract with an unnamed frontier AI laboratory in August. Co-CEO Daniel Roberts said that their 2026 capacity has largely sold out.
IREN delivered the first 50-megawatt Horizon deployment to Microsoft in August under a five-year, $9.7 billion cloud-services contract. Three additional Horizon deployments were scheduled for delivery during 2026.
Financing Supports Rapid GPU Expansion
IREN says existing cash, committed GPU financing and customer prepayments provide about $14 billion of available capital. Its latest financing arrangements include $3.6 billion supporting the Microsoft contract and another $2.8 billion for other GPU deployments.
Customer prepayments have also funded part of the required GPU spending. IREN said recent agreements cover roughly 45% to 55% of associated GPU capital expenditure before financing. The company is simultaneously winding down much of its legacy Bitcoin mining infrastructure and plans to substantially complete that transition by Dec. 31, 2026.
