IREN · IREN Limited

IREN's Q3 FY26 results reflect the transitional challenges of shifting from Bitcoin mining to higher-value AI Cloud services, with total revenue declining 21.6% quarter-over-quarter to $144.8m primarily due to lower Bitcoin prices and hardware decommissioning for GPU installations. Cost of revenues fell $25.9m from reduced electricity usage tied to lower mining capacity, but net loss widened to $(247.8)m driven by $(140.4)m non-cash impairments on decommissioned mining hardware and $(23.7)m unrealized losses on convertible note capped calls. Adjusted EBITDA of $59.5m indicates underlying operational resilience despite the pivot. Management highlights strong execution, including energizing Sweetwater 1 substation, advancing Childress liquid-cooled data centers for a $9.7bn Microsoft contract, and securing a landmark $3.4bn NVIDIA deal for Blackwell GPUs. The 5GW NVIDIA partnership, with a $2.1bn investment right, validates IREN's power and data center capabilities amid global compute shortages. With $3.1bn ARR contracted ($1.9bn Microsoft, $0.7bn NVIDIA, $0.5bn Prince George GPUs) and $3.7bn targeted by year-end via 480MW expansion, IREN is positioned for multi-year growth. Acquisitions of Mirantis (software/orchestration) and Nostrum (Spain capacity) enhance delivery and geographic footprint across 5GW pipeline. $2.6bn cash as of April 30 supports capex through GPU financing and cash flows, though forward-looking ARR assumes timely GPU delivery and utilization with material risks disclosed.