IREN Limited disclosed substantial contracted capacity metrics while reporting more modest realized financial performance in its fiscal 2026 results. The company identified $4 billion in contracted annualized run-rate revenue for calendar 2026 capacity, yet only $1 billion had commenced operations as of August 26. The remaining capacity is expected to transition to active service as deployments are completed, commissioned, tested, and formally accepted by customers.
The gap between contracted metrics and operating results reflects the capital-intensive nature of the company’s infrastructure business. IREN Limited defines operating ARR using GPU hourly pricing for commissioned units under contract, multiplied by 8,760 hours, supplemented by annualized storage and ancillary revenue. However, this represents a company-defined operating metric rather than a U.S. GAAP measure, and the company cautioned that recognized revenue may be materially lower than reported ARR figures.
The company’s AI Cloud Services segment expanded dramatically during the period. Fiscal 2026 AI Cloud Services revenue increased nearly eightfold from $16.4 million to $128.8 million, while total fiscal 2026 revenue reached $707 million, representing 41% growth. Fourth-quarter AI Cloud Services revenue doubled sequentially to $70.5 million. Infrastructure deployment progressed with Horizon 1, the first of four 50-megawatt liquid-cooled deployments, delivered to Microsoft, while Horizon 2 underwent commissioning and Horizons 3 and 4 advanced toward targeted fourth-quarter delivery.
Financial metrics reflected the company’s capital requirements and transition costs. IREN Limited reported a fiscal 2026 net loss of $702.6 million, reversing an $86.9 million profit the prior year. The result included $638.8 million in non-cash impairments primarily from decommissioned Bitcoin mining hardware. Current and long-term debt reached approximately $7.59 billion at June 30, compared with $962.8 million a year earlier, though cash and cash equivalents totaled $5.90 billion. Operating cash flow for fiscal 2026 reached $2.10 billion, including $1.84 billion from increased deferred revenue reflecting customer prepayments.
Customer prepayments contractually payable before service delivery represented 45% to 55% of estimated GPU and ancillary capital expenditure, reducing immediate upfront pressure. Recent financing arrangements, including $3.6 billion in GPU financing for the Microsoft contract and $2.8 billion supporting non-investment-grade customer deployments, covered a substantial portion of capital requirements. The company emphasized that while contracted demand demonstrates visibility, actual GAAP revenue recognition depends on delivering capacity according to schedule, obtaining customer acceptance, and sustaining contracted utilization rates.
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