Neocloud IREN disclosed in its earnings report that approximately $4 billion in annual recurring revenue initially expected during 2026 has been pushed to at least January, with potential extension into February. The company attributed the delay to a customer-requested infrastructure reconfiguration. During the earnings call, co-CEO Daniel Roberts identified Microsoft as the customer, noting the request aimed to upgrade network infrastructure to support 200 megawatts of capacity for next-generation frontier models.
IREN’s quarterly revenue reached $228 million, surpassing the $221 million analyst consensus estimate. The AI Cloud division more than doubled its revenue to $200 million, with the remainder derived from bitcoin mining operations. Net losses narrowed substantially to $263 million compared to $684 million in the prior quarter.
The delayed revenue announcement came following significant stock volatility, with shares declining 26% following recent midterm elections and dropping 55% over the preceding month. Extended-trading gains followed the earnings release. The broader AI sector faced headwinds, with the Nasdaq experiencing its worst trading day since April 2025. Peer companies CoreWeave and Nebius both registered substantial declines over the same period.
Despite market challenges, IREN’s revenue backlog increased 22% to $20.3 billion, with approximately two-thirds attributed to investment-grade counterparties. The company announced capital expenditure plans totaling $15 billion for the remainder of its fiscal year, comprising $9 billion in cash and committed financing plus $6 billion in target financing subject to market conditions. Roberts noted a divergence between public market sentiment and customer-level activity, stating that capital markets have become more selective regarding contract deliverability, financing viability, and profitability potential.
The company maintained contracts with Nvidia, Microsoft, and 13 other customers. Roberts indicated upcoming data center construction would be partially backed by Nvidia and Microsoft, with approximately one-third funded through large customer prepayments for capacity. IREN stated it had strategically delayed GPU purchases for the coming year to reduce risk exposure and noted expanding an existing contract with a leading frontier AI laboratory.
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