Financial Data and Key Metrics Changes - Revenue for Q1 FY26 reached $240 million, representing a 28% increase quarter over quarter and a 355% increase year over year [16] - Adjusted EBITDA was $92 million, reflecting continued margin strength despite higher payroll tax expenses of $33 million accrued in the quarter [16][17] - Operating expenses increased primarily due to higher depreciation and SG&A expenses, largely driven by a higher share price [16] Business Line Data and Key Metrics Changes - The company announced a significant $9.7 billion AI cloud contract with Microsoft, expected to generate approximately $1.94 billion in annual recurring revenue [5][17] - The expansion plan includes scaling the GPU fleet from 23,000 GPUs to 140,000 GPUs by the end of 2026, which is projected to support an annualized run rate revenue of approximately $3.4 billion [6][10] Market Data and Key Metrics Changes - The AI cloud services market is experiencing strong demand, with the company positioned as a strategic partner for major technology firms, including Microsoft [6][9] - The company is seeing increased demand for air-cooled variants of NVIDIA's GPUs, indicating robust market interest [10][33] Company Strategy and Development Direction - The company is focused on vertical integration, controlling the entire stack from power supply to GPU deployment, which is seen as a key differentiator in the AI cloud services market [7][8] - Future expansions will leverage existing data centers to maintain capital efficiency while accommodating growing customer demand [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of the Microsoft contract and the overall growth strategy, emphasizing the importance of maintaining a strong balance sheet and access to capital markets [20][21] - The company anticipates continued strong demand for its services, particularly in AI workloads, and is actively engaging with various customer segments [32][44] Other Important Information - The company has secured $1.8 billion in cash as of the end of October, which will support upcoming capital expenditures [20] - The design enhancements for data centers are aimed at ensuring long-term value protection and accommodating future generations of GPUs [12][30] Q&A Session Summary Question: Can you expand on the strategic value of the Microsoft deal? - The deal demonstrates the company's capability to service a major technology firm and validates its proprietary data center design, enhancing its market credibility [22][23] Question: What is the expected return profile of the Microsoft deal? - The unlevered IRR is expected to be in the low double digits, while the levered IRR could reach 25-30% depending on financing structures [24][25] Question: How is the company addressing GPU demand and future-proofing? - The design accommodates future generations of GPUs with higher rack densities, ensuring scalability and efficiency [29][30] Question: What is the level of interest in the Sweetwater site? - There is strong interest across all sites, including Sweetwater, with significant capacity available for future service offerings [35] Question: How does the company view risk in cloud deals versus colocation? - The company believes cloud deals present a better risk proposition compared to colocation, especially with the backing of a strong credit profile like Microsoft's [46][47] Question: What are the dynamics of pricing in the cloud market? - The company is experiencing increasing demand and pricing per GPU hour, indicating a robust market environment [31][32] Question: Can you provide an update on the contracting of GPUs in British Columbia? - The company has contracted 12,000 out of the initial 23,000 GPUs, with ongoing strong demand and late-stage discussions for the remaining capacity [43][44]

DISCLAIMER Q1 FY26 Results Presentation NASDAQ: IREN November 6, 2025 Forward-Looking Statements These and other important factors could cause actual results to differ materially by the forward-looking statements made in this investor update. Any forward-looking statement that IREN makes in this investor update speaks only as of the date of such statement. Except as required by law, IREN disclaims any obligation to update or revise, or to publicly announce any update or revision to, any of the forward- look ...

Core Insights - IREN Ltd. (NASDAQ: IREN) reported its Q1 FY26 earnings after the market closed on November [1] Financial Performance - The company disclosed its earnings results for the first quarter of fiscal year 2026 [1]

IREN Limited (NASDAQ:IREN) shares were up after the company released its first-quarter earnings report after Thursday's closing bell, beating estimates on the top and bottom lines. Here's a look at the details in the report. IREN stock is moving. See the real-time price action here.The Details: IREN reported quarterly earnings of $1.08 per share, which beat the consensus estimate of 14 cents.Quarterly revenue came in at $240.3 million, which beat the Street estimate of $235.5 million and was up from revenue ...

Financial Performance - Total revenue for the three months ended September 30, 2025, was $240.3 million, a significant increase from $52.8 million for the same period in 2024, representing a growth of approximately 354%[146] - Net income for the quarter was $384.6 million, compared to a net loss of $51.7 million in the prior year, indicating a turnaround in profitability[146] - The company generated EBITDA of $662.7 million for the quarter, compared to $(18.8) million in the same quarter of 2024[146] - Adjusted EBITDA for Q3 2025 was $91.7 million, with an adjusted EBITDA margin of 38%, compared to $2.5 million and 5% in Q3 2024[189] - Total revenue increased to $240.3 million in Q3 2025 from $52.8 million in Q3 2024, driven by a significant rise in Bitcoin mining revenue[202] - Bitcoin mining revenue rose to $232.9 million in Q3 2025, up from $49.6 million in Q3 2024, attributed to an increase in average Bitcoin price and operating hashrate[204] - Selling, general and administrative expenses surged to $138.4 million in Q3 2025 from $25.2 million in Q3 2024, largely due to increased stock-based compensation and payroll taxes[208] - Impairment of assets for Q3 2025 was $16.3 million, compared to $6.9 million in Q3 2024, indicating increased asset write-downs[191] - Depreciation expense for Q3 2025 was $85.2 million, up from $33.9 million in Q3 2024, primarily due to hardware expansion[209] - Income tax expense for Q3 2025 was $(190.7) million, significantly higher than $(1.3) million in Q3 2024, driven by deferred tax expenses[220] Operational Capacity - As of September 30, 2025, the company had approximately 2,100 GPUs operating in its data centers, contributing to its AI Cloud Services revenue[143] - The installed hashrate capacity for Bitcoin mining operations was approximately 50 EH/s as of September 30, 2025[144] - The company procured approximately 21,200 GPUs during the quarter, increasing its total GPU fleet to approximately 23,300 GPUs[156] - The company has three data center sites in Texas, with the Childress site having approximately 650MW of operating capacity and an installed hashrate capacity of approximately 40.1 EH/s[149] - Average operating hashrate increased to 45.3 EH/s in Q3 2025 from 12.1 EH/s in Q3 2024, enhancing mining efficiency[204] Contracts and Agreements - The company signed multi-year cloud services contracts for approximately 5,000 GPUs during the quarter, with additional contracts signed in October 2025 for 4,000 GPUs and 1,100 GPUs[154] - A significant agreement with Microsoft was established to provide dedicated GPU services valued at approximately $9.7 billion through 2031[155] - The company entered into GPU purchase agreements totaling approximately $1.1 billion for over 20,000 GPUs, expected to be delivered by early 2026[231][235] Cash and Liquidity - As of September 30, 2025, cash and cash equivalents were $1,032.3 million, providing a strong liquidity position for future investments[146] - Cash and cash equivalents as of September 30, 2025, totaled $1,032.3 million, with a net operating cash inflow of $142.4 million for the quarter[222] - Net cash from operating activities was $142.4 million for the three months ended September 30, 2025, compared to a net cash used of $(3.9) million for the same period in 2024[243] - Net cash from financing activities was $606.1 million for the three months ended September 30, 2025, compared to $84.7 million in 2024, mainly from the issuance of 23,041,102 shares[249] Market and Economic Factors - Bitcoin mining rewards are subject to "halving" adjustments, with the next halving expected to reduce the reward to 3.125 Bitcoins on April 20, 2024, and further reductions to 1.5625 Bitcoins in 2028 and 0.78125 Bitcoins in 2032[168] - The company faces potential disruptions in the global supply chain, which could lead to shortages of advanced mining machines, impacting operational efficiency[171] - Access to low-cost electricity, particularly renewable power, is critical for the company's Bitcoin mining and HPC services, as energy consumption is extensive[172] - Regulatory scrutiny on the energy and environmental impact of Bitcoin mining may lead to new measures that could restrict operations or increase power costs[173] - The company competes with various global Bitcoin miners and HPC service providers, which may increase competition and reduce its share of Bitcoin network rewards[175] - Inflation and macroeconomic risks have led to increased operating expenses, which could adversely affect the company's financial condition and results of operations[176] - Tariffs imposed by the United States on imported miners and equipment could result in higher costs and impact the company's operational timelines[182] Performance Metrics - Key performance indicators include EBITDA and Adjusted EBITDA, which are used to assess the company's financial condition and operational performance[183] - Net electricity costs per Bitcoin mined remained stable at $35.4 in Q3 2025, compared to $35.3 in Q3 2024, showing consistent operational efficiency[200] - Interest income rose to $7.1 million in Q3 2025 from $2.3 million in Q3 2024, attributed to an increase in cash balances[215] - Unrealized gain on financial instruments for Q3 2025 was $665.0 million, compared to nil in Q3 2024, related to changes in fair value of financial transactions[218] Investments and Future Plans - The company is focusing on power cost optimization initiatives at its Childress site to enhance profitability through energy trading[254] - Research and development efforts are ongoing to optimize operational environments and efficiencies in proprietary data centers[253] - The company has issued $1 billion in convertible notes, maturing in 2031, with an initial conversion price of approximately $85.63 per share[228]

News Release IREN Reports Q1 FY26 Results Secured $9.7bn AI Cloud Contract with Microsoft Targeting $3.4bn AI Cloud ARR by End of 2026, Expansion to 140k GPUs1 NEW YORK, November 6, 2025 (GLOBE NEWSWIRE) - IREN Limited (NASDAQ: IREN) ("IREN" or "the Company") today reported its financial results for the three months ended September 30, 2025. Highlights Q1 FY26 Financial Results * Includes unrealized gains, primarily on prepaid forwards and capped calls in connection with convertible notes Project Update Bri ...

Core Insights - IREN Limited has entered a significant $9.7 billion partnership with Microsoft, marking a strategic shift towards artificial intelligence [1] - The company has also signed a $5.8 billion procurement deal with Dell Technologies to source GPUs and related equipment [2] - Following the Microsoft announcement, IREN's stock experienced a notable surge, reflecting investor optimism [3] - Analysts have varied opinions on the partnership, with some expressing confidence in IREN's growth prospects while others raise concerns about potential risks [5][6] Group 1: Partnership and Strategy - The five-year agreement with Microsoft involves IREN supplying access to NVIDIA GB300 GPUs through its AI Cloud platform, indicating a major strategic pivot [1] - The partnership includes a 20% prepayment, which underscores the commitment to scaling AI infrastructure [1] - IREN's transition from a Bitcoin mining company to a vertically integrated AI Cloud provider is aimed at capturing the increasing demand for compute power [2] Group 2: Market Reaction - IREN shares surged 20.03% in pre-market trading following the announcement, closing up more than 5% at $71.35 [3] - Analysts from Cantor Fitzgerald and Bernstein have raised their price targets significantly, reflecting strong confidence in IREN's future growth [3][4] Group 3: Analyst Opinions - While some analysts view the Microsoft partnership as "game-changing," others, like Jim Chanos, criticize it as a "high-risk financing arrangement" that may negatively impact shareholder value [5] - Concerns have been raised about potential decreases in earnings per share (EPS) and increased balance sheet risk due to the partnership [5] - Despite the bullish sentiment, IREN's stock fell 8.91% ahead of its earnings report, indicating some market volatility [6]

Core Viewpoint - IREN stock price has experienced a strong rally, reaching a record high as traders anticipate its earnings, supported by the growing momentum in the artificial intelligence industry [1] Group 1 - IREN stock price surged to a high of $76, indicating significant investor interest and confidence [1]

Core Viewpoint - IREN Limited is experiencing a significant increase in its consensus price target, driven by its strategic initiatives and strong financial performance in the data center and Bitcoin mining sectors, particularly with a focus on renewable energy [1][6]. Price Target and Market Sentiment - Analysts have set an average price target of $78.50 for IREN, reflecting positive sentiment and expectations for strong stock performance [2][6]. - The average price target has risen from $57.17 three months ago, marking a 37.3% increase, and from $51.86 a year ago, representing a 51.3% increase [3][4]. Strategic Partnerships and Growth Prospects - IREN's recent $9.7 billion AI Cloud contract with Microsoft, which includes a 200MW capacity and a 20% upfront payment, is expected to significantly enhance its growth prospects in the AI industry [2][6]. - The company manages nearly 3GW of power, with 810MW operational in British Columbia and Texas, positioning it well for future growth [3]. Financial Performance Expectations - IREN is projected to achieve revenue of $231 million for the first fiscal quarter of FY26, which is a 325% increase from the previous year [4]. - The anticipated earnings per share (EPS) for this period is $0.13, indicating strong financial performance [4].

Core Insights - IREN Limited has signed a significant $9.7 billion AI cloud services agreement with Microsoft to deploy NVIDIA GB300 GPUs at its Texas campus [1][2] - The company also entered into a $5.8 billion agreement with Dell Technologies for the purchase of GPUs and related equipment [3] - IREN's stock price increased by 14.68%, closing at $76.41 following the announcements [4] Group 1: Agreements and Financials - The multi-year GPU cloud services contract with Microsoft spans five years and includes a 20% prepayment [2] - The agreement with Dell Technologies involves phased deployment of GPUs through 2026, supporting 200MW of critical IT load [3] - IREN plans to finance these capital expenditures through existing cash, customer prepayments, operating cash flows, and additional financing initiatives [3] Group 2: Strategic Implications - The partnership with Microsoft is seen as a demonstration of IREN's vertically integrated AI Cloud platform's strength and scalability [4] - The collaboration is expected to unlock new growth opportunities for both IREN and Microsoft, as well as their customers [4]