Neocloud IREN disclosed in its earnings report that approximately $4 billion in annualized recurring revenue expected to arrive in 2026 has been postponed to at least January, with potential extension into February. The company attributed the delay to a customer-requested modification and supplier timing considerations. During the earnings call, co-CEO Daniel Roberts identified Microsoft as the customer behind the request, explaining that the infrastructure reconfiguration and upgrade aims to enable 200 megawatts of capacity to support latest-generation frontier AI models.
The announcement came following a substantial decline in IREN’s stock price, which dropped 26% following recent elections and has fallen 55% over the past month. Despite the stock performance, shares rose in extended trading after the earnings report. The company reported revenue of $228 million for the most recent quarter, exceeding the $221 million average analyst estimate. AI Cloud revenue more than doubled to $200 million, while the remainder came from bitcoin mining operations.
IREN’s net loss narrowed considerably to $263 million compared to $684 million in the prior period. The company increased its revenue backlog by 22% to $20.3 billion, with approximately two-thirds attributed to investment-grade counterparties. Roberts noted that the $4 billion in delayed annual recurring revenue is fully contracted and funded.
Capital expenditure plans for the remainder of the fiscal year total $15 billion, comprising $9 billion in cash and committed financing alongside $6 billion in target financing subject to market conditions. Roberts indicated that compute prices continue to rise and that the company has expanded an existing contract with a leading frontier AI laboratory. He emphasized a distinction between market sentiment and customer-level activity, noting that data center construction would be backed by Nvidia and Microsoft, with approximately one-third funded by companies offering substantial prepayments for capacity. The company stated it has deliberately avoided purchasing all necessary GPUs for the coming year to mitigate risk.
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