IREN (IREN) Q1 2027 earnings summary

Executive summary

• Revenue rose 66% QoQ to $228M, led by AI Cloud revenue of $200M; net loss was $263M.

• Operating ARR reached $1B; revenue backlog was $20.3B, up 22% QoQ, with approximately two-thirds tied to investment-grade counterparties.

• More than $4B of contracted, fully funded ARR is targeted to be operational by January 2027, potentially extending to end-February.

• Vertically integrated AI Cloud, data center, and land-and-power operations support demand-led investment, while expansion depends on delivery, customer acceptance, and financing.

Financial highlights

• Revenue was $228M, including $200M from AI Cloud and $28M from Bitcoin mining; total segment gross profit was $182M, including $172M from AI Cloud.

• Adjusted EBITDA was $66M versus $19M QoQ; net loss was $263M versus $684M, including $148M of depreciation and amortization and $106M of stock-based compensation.

• SG&A was $217M, including $106M of stock-based compensation; depreciation and amortization was $148M.

• Operating cash inflow was $529M; investing cash outflow was $5.146B, driven by AI hardware and data center investment.

Outlook and guidance

• More than $4B of ARR is targeted to be operational by January 31, 2027, potentially extending to end-February; commissioning, testing, and customer acceptance affect revenue timing.

• Remaining planned FY27 CapEx was $15B, including $6B still to fund; approximately $9B of cash, committed GPU financing, and prepayments plus targeted financing and other sources are expected to cover it, subject to market conditions.

• Targeting 0.8GW of data center capacity by end-2027, with the initial 0.3GW program in final stages; further expansion may require additional CapEx.

• The Bitcoin mining transition is targeted to be substantially complete by December 31, 2026; immaterial mining operations are expected to continue through CY2027.

• Certain AI Cloud capacity previously targeted for delivery by December 31, 2026 is now expected in the following quarter due to customer design changes, supply timing, and third-party delays.