IREN (IREN) Q2 2026 earnings summary

Executive summary

• Secured $3.6B in GPU financing at under 6% interest, covering 95% of GPU CapEx for a $9.7B Microsoft AI contract, supporting a targeted 140,000 GPU expansion.

• Transition from Bitcoin mining to AI Cloud accelerated, with AI Cloud revenues ramping up and more capacity allocated to AI workloads.

• Construction and operational milestones are on track, with a new 1.6GW Oklahoma site increasing total secured power to over 4.5GW.

• Major strategic developments included a $9.7B, five-year GPU services agreement with Microsoft and significant expansion of data center and GPU capacity.

• Customer demand remains strong, with multiple advanced negotiations for both new and prior generation GPUs.

Financial highlights

• Q2 FY26 revenue was $184.7M, down from $240.3M in Q1 FY26 but up from $116.1M year-over-year, driven by growth in both Bitcoin mining and AI Cloud Services.

• Net loss for the quarter was $(155.4)M, compared to net income of $384.6M in Q1 FY26, primarily due to higher non-cash and one-time expenses.

• Adjusted EBITDA was $75.3M, down from $91.7M in Q1 FY26 but up from $62.4M year-over-year.

• Major non-cash and non-recurring items included $219.2M in unrealized losses and debt conversion inducement expense, $31.8M in mining hardware impairments, and $58.2M in stock-based compensation.

• Cash and cash equivalents stood at $3,260.6M as of December 31, 2025.

Outlook and guidance

• Targeting $3.4B ARR by end of CY26, driven by 140,000 GPU expansion and ongoing AI Cloud contract growth, with $2.3B already under contract.

• Only 10% of secured power needed to reach ARR target, leaving significant runway for future growth.

• British Columbia AI Cloud expansion ongoing, with $0.4B ARR under contract at Prince George and further negotiations supporting over $0.5B ARR.

• New Oklahoma campus to ramp power from 2028, supporting future growth.

• Ongoing focus on disciplined capital allocation and long-term value creation.