IREN shares jump 14% as AI Cloud revenue hits $200 million

IREN (IREN) shares jump 14%. The company reported revenue of $228 million, in line with estimates.

Shares rose 14.0% at 9:35 a.m. ET, from an $18.03 close.

AI Cloud revenue rose 182% to $200 million from the prior quarter. Bitcoin mining revenue fell to $28 million from $67 million.

Here's how the company did:

• Revenue: $228 million vs. $137 million in the prior quarter, in line with $227.66 million expected
• Net loss: $263 million vs. $684 million in the prior quarter
• Adjusted EBITDA: $66 million vs. $19 million in the prior quarter

Total revenue rose 66% from the prior quarter. Revenue fell in each of the three prior quarters, from $240.3 million in the quarter ended Sept. 30, 2025 to $137.2 million in the quarter ended June 30, 2026.

AI Cloud contracts and ARR target

The company targets more than $4 billion of annualized run-rate revenue, or ARR, and the target is fully contracted and fully funded. It was previously set for year-end 2026 and is now targeted for January 2027, and may extend to February 2027.

Co-Founder and Co-CEO Daniel Roberts said, “The more than $4 billion of contracted ARR is funded and now targeted for January, after a customer-requested design change and supplier timing moved it from year-end.”

Since quarter-end, it signed a five-year contract at about $22 million per megawatt, with customer prepayments covering 90% of the associated GPU capex. It also signed a short-term contract at $40 million per megawatt and expanded an existing contract with a Leading Frontier AI Lab.

Revenue backlog rose 22% from the prior quarter to $20.3 billion, with about two-thirds of it owed by investment-grade counterparties. Contracted pricing rose 11% on three-year deals and 12% on five-year deals.

Capital and funding

Total assets were $20.6 billion at Sept. 30, including $6 billion of data center assets with 20-year useful lives. Cash and cash equivalents were $3.52 billion.

GAAP balance-sheet debt was $10.21 billion, and net debt was $4.43 billion, against $216 million at June 30.

Of $15 billion of remaining planned fiscal 2027 capex, $9 billion is covered by cash and committed GPU financing and prepayments. Another $6 billion would come from target GPU financing, prepayments, data center financing and other corporate sources, subject to market conditions.

Development progress

Horizon 1 was delivered to Microsoft, and Horizon 2 through 4 have progressed to late-stage construction. The company has more than 5GW of secured power and more than 35GW of development pipeline, on more than 30,000 acres of land.

Operating cash expense, which excludes stock-based compensation, was $118 million, up from $85 million in the prior quarter.