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Sep 30, 2025
IREN Ltd Q1 2026 Earnings Report
Iris Energy reported record revenue and net income for Q1 FY26, driven by strong bitcoin mining results and new AI cloud contracts.
Key Takeaways
Iris Energy delivered a standout quarter, achieving record revenue of $240.3M and net income of $384.6M, boosted by a $9.7B AI Cloud deal with Microsoft and significant expansion plans.
Secured a $9.7B AI Cloud contract with Microsoft, contributing $1.9B expected ARR.
Total revenue surged to $240.3M, driven by strong bitcoin mining performance.
Reported net income of $384.6M, including gains from financial instruments.
Adjusted EBITDA increased to $91.7M, reflecting operational improvement.
Revenue by Segment
Forward Guidance
Iris Energy is targeting $3.4B in AI Cloud ARR by end of 2026 and expanding infrastructure to support up to 140k GPUs.
Positive Outlook
- Microsoft contract adds $1.9B ARR with phased deployments through 2026.
- Transition of 160MW British Columbia site to GPU infrastructure underway.
- New contracts with Together AI, Fluidstack, and Fireworks AI.
- Ample power capacity from 3GW grid-connected portfolio for future growth.
- Strong capital position with $1.8B in cash and new financing secured.
Challenges Ahead
- Unrealized gains contributed significantly to net income, possibly not recurring.
- Adjusted EBITDA margin declined from 65% to 38% QoQ.
- High capital expenditures with $280.9M used in investing activities.
- Operating income was negative due to high SG&A and depreciation.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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