IREN (IREN) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 FY26 revenue of $240.3 million, up 355% year-over-year, with net income of $384.6 million and adjusted EBITDA of $91.7 million, driven by both Bitcoin mining and AI Cloud Services.

• Signed a $9.7 billion, five-year AI Cloud contract with Microsoft, expected to generate $1.94 billion in annual recurring revenue and includes a 20% upfront prepayment.

• Strategic focus on scaling AI Cloud services, with plans to expand GPU fleet from 23,000 to 140,000 by end of 2026, supporting a projected $3.4 billion annualized run rate revenue.

• Major multi-year contracts signed with Together AI, Fluidstack, and Fireworks AI, supporting growth to over $500 million AI Cloud ARR by end of Q1 2026.

• Significant capital raised through $1 billion convertible notes, $1 billion at-the-market equity offering, and $400 million in GPU financing.

Financial highlights

• Q1 FY26 revenue reached $240.3 million, up 28% quarter-over-quarter and 355% year-over-year.

• Net income was $384.6 million, reversing a net loss of $51.7 million in the prior year quarter.

• Adjusted EBITDA was $91.7 million, with EBITDA of $662.7 million, reflecting unrealized gains on financial instruments.

• Bitcoin mining revenue grew to $232.9 million, with a 17% increase in average operating hashrate and 12% more Bitcoin mined.

• AI Cloud Services revenue rose to $7.3 million, with ongoing transition from ASICs to GPUs in British Columbia.

Outlook and guidance

• Targeting $3.4 billion in annualized run rate revenue by end of 2026, leveraging only 16% of secured 3 GW power.

• GPU fleet expansion to 140,000 by end of 2026, with significant ramp in AI cloud and data center capacity.

• Sweetwater 1 (1.4 GW) substation energization scheduled for April 2026, Sweetwater 2 (600 MW) for late 2027.

• Ongoing strong demand for both air-cooled and liquid-cooled NVIDIA GPUs, with disciplined, measured growth approach.

• Sufficient liquidity for the next 12 months, with ongoing investments in data center expansion and hardware.