IREN reports Q1 FY27 results, AI Cloud revenue nearly triples
Total Revenue228M USD
AI Cloud Services Revenue200M USD
Adjusted EBITDA66M USD
Net Income (Loss)-263M USD
Analysis
Mixed-to-positive: AI Cloud revenue nearly tripled sequentially and Adjusted EBITDA swung to $66 million with a 29% margin, while the $263 million net loss and a roughly one-month slip in the over $4 billion ARR target to January/February 2027 temper the momentum. The $20.3 billion backlog and newly signed above-market per-megawatt pricing support continued demand strength.
Key points
- Total revenue increased 66% sequentially to $228 million for the quarter ended September 30, 2026.
- AI Cloud revenue nearly tripled to $200 million (AI Cloud Services $135m, AI Cloud Lease $65m), up from $71 million; AI Cloud segment gross margin was 86%.
- Bitcoin mining revenue fell to $28 million from $67 million as capacity continues to shift toward AI Cloud.
- Net loss narrowed to $263 million from $684 million; Adjusted EBITDA rose to $66 million from $19 million, a 29% margin.
- Revenue backlog increased 22% sequentially to $20.3 billion, with about two-thirds held by investment-grade counterparties.
- The more than $4 billion ARR target is fully contracted and funded, but timing has slipped from year-end 2026 to January 2027 (possibly February 2027) due to a customer-requested design change and supplier timing.
- Since quarter-end, IREN expanded its contract with a leading frontier AI lab, signed a five-year contract at about $22 million per megawatt with 90% of GPU capex prepaid, and a short-term contract at $40 million per megawatt.
- Horizon 1 went into service for Microsoft with NVIDIA Exemplar Cloud status; Horizon 2-4 are in late-stage construction, and new liquid-cooled construction began at a 100MW site in Mackenzie.
- Total assets reached $20.6 billion and total debt was $10.2 billion; remaining FY27 capex of $15 billion is expected to be funded by $9 billion of cash and committed financing plus $6 billion of additional targeted financing.
Site updates (3)
| Site | Status | Active | In build | Theoretical |
|---|---|---|---|---|
ChildressChildress, TX Horizon 1 delivered to Microsoft, achieving NVIDIA Exemplar Cloud status; Horizon 2-4 in late-stage construction; air-cooled retrofits continued. | ActiveUnder construction | — | — | — |
MackenzieMackenzie, BC New liquid-cooled data centers commenced construction at a 100MW (gross) site; air-cooled retrofits continued. | ActiveUnder construction | — | 100 MWgross | — |
| Disclosed | — | — | 300 MWgross |