Financial Performance - For the quarter ending September 30, 2025, the company reported total revenue of $240.3 million, a significant increase of 355% compared to $52.8 million in the first quarter of fiscal 2025, exceeding analyst expectations of $235.5 million by approximately 2.04% [1] - The company achieved a net profit of $384.6 million, recovering from a net loss of $51.7 million in the same period last year [1] - Adjusted EBITDA surged to $91.7 million, a staggering increase of 3568% year-over-year from $2.5 million, while EBITDA reached a record $662.7 million, compared to a loss of $18.8 million in the previous year [1] Business Segmentation - The primary revenue source showed significant differentiation, with Bitcoin mining contributing $232.9 million and AI cloud services generating $7.3 million in revenue [1] - The company mined 2,039 Bitcoins during the quarter, a 150% increase from 813 Bitcoins mined in the same period last year, driven by an increase in average operational hash rate to 45.3 EH/s [1] Operating Expenses and Financial Instruments - Operating expenses rose to $236 million, primarily due to increases in depreciation, stock-based compensation, and impairment costs [1] - The company recorded an unrealized gain of $665 million related to financial instruments associated with convertible note transactions during the quarter [1] Financing and Capital Structure - As of October 31, 2025, the company had $1.8 billion in cash and cash equivalents, maintaining strong liquidity [2] - On October 14, 2025, the company successfully issued $1 billion in zero-coupon convertible bonds, and with an additional $200 million GPU financing, the total financing amount reached $400 million [2] Strategic Outlook - The company continues to expand its AI cloud services business, recently signing a $9.7 billion GPU service contract with Microsoft for its facility in Childress, Texas, marking a strategic shift towards AI cloud services [2] - The company has signed multiple contracts totaling approximately 5,000 GPUs for AI cloud services and maintains $1.03 billion in cash and cash equivalents [2] - For 2026, the company aims to achieve an annual recurring revenue (ARR) of $3.4 billion from AI cloud services by year-end, expanding GPU capacity to 140,000, and targeting an ARR of over $500 million by the end of Q1 2026 through new multi-year contracts with partners [2]

Core Insights - IREN Limited reported a quarterly loss of $0.34 per share, significantly worse than the Zacks Consensus Estimate of $0.14, marking an earnings surprise of -342.86% [1] - The company achieved revenues of $240.3 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 8.83% and showing substantial growth from $54.39 million year-over-year [2] - IREN Limited's stock has increased approximately 678.1% year-to-date, outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $234.73 million, while the estimate for the current fiscal year is $0.69 on revenues of $1.05 billion [7] - The trend of estimate revisions for IREN Limited has been unfavorable, resulting in a Zacks Rank of 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which IREN Limited belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Inter & Co. Inc. (INTR), is expected to report quarterly earnings of $0.14 per share, reflecting a year-over-year increase of 40% [9]

Financial Data and Key Metrics Changes - Revenue for Q1 FY 2026 reached $240 million, representing a 28% increase quarter-over-quarter and a 355% increase year-over-year [18] - Adjusted EBITDA was $92 million, reflecting continued margin strength despite higher payroll tax expenses of $33 million due to strong share price performance [18][19] - Operating expenses increased primarily due to higher depreciation and SG&A expenses, largely driven by a higher share price [18] 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 [6][7] - 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 [8][10] Market Data and Key Metrics Changes - The AI Cloud strategy is driving strong growth, with the company positioned as a trusted provider of AI Cloud services to major technology firms [6][8] - Demand for air-cooled variants of NVIDIA's GPUs is strong, with expectations for continued growth in AI workloads across various customer segments [11][51] Company Strategy and Development Direction - The company emphasizes its vertically integrated model, controlling the entire stack from power generation to GPU deployment, which is seen as a key differentiator in the market [9][10] - Future expansions will leverage existing data centers to maintain capital efficiency while accommodating increasing customer demand for AI compute [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of the AI Cloud strategy and the ability to meet customer demand, highlighting the strategic value of the Microsoft contract [8][19] - The company is focused on maintaining a strong balance sheet while exploring various funding options to support ongoing capital expenditures [22][24] Other Important Information - The company has secured $1.8 billion in cash as of the end of October, which will support upcoming capital expenditures related to the Microsoft contract [23] - The design enhancements for data centers are aimed at ensuring long-term value protection and accommodating future generations of GPUs [14][15] Q&A Session Summary Question: Can you expand on the strategic value of the Microsoft deal? - Management highlighted the significance of servicing a major technology company and the validation of their proprietary data center design [28] Question: What is the expected return profile of the Microsoft deal? - The expected unlevered annual recurring revenue (ARR) is in the low double digits, with a levered ARR potentially reaching 25%-30% [30][32] Question: How many GPUs will be deployed as part of the Microsoft deal? - Each phase of the Horizon project will accommodate 19,000 GPUs, with four phases planned [39] Question: What are the pricing dynamics in the cloud market? - Management noted increasing demand and pricing per GPU hour, indicating a robust market environment [44][51] Question: What is the level of interest in the Sweetwater site? - There is strong interest across all sites, including Sweetwater, with significant capacity available [56] Question: How does the company view risk in cloud deals versus colocation deals? - Management believes cloud deals present a better risk proposition compared to colocation, especially with a strong counterparty like Microsoft [84][86] Question: What is the status of contracting the remaining GPUs in British Columbia? - The company has contracted 12,000 out of the initial 23,000 GPUs, with strong demand continuing [78]

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 [18] - Adjusted EBITDA was $92 million, reflecting continued margin strength despite higher payroll tax expenses [18][19] - Operating expenses increased primarily due to higher depreciation and SG&A expenses, with $63 million attributed to unrealized gains on financial instruments [18][19] 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 [6][7] - The expansion plan includes scaling the GPU fleet from 23,000 to 140,000 GPUs by the end of 2026, which is projected to support an annualized run rate revenue of approximately $3.4 billion [8][10] Market Data and Key Metrics Changes - The demand for AI cloud services is increasing, with strong interest from various customer segments, including hyperscalers and AI enterprises [51][52] - The company is experiencing robust pricing dynamics in the cloud market, with expectations of rising pricing per GPU hour [44][50] Company Strategy and Development Direction - The company is focused on vertical integration, controlling the entire stack from power generation to GPU deployment, which is seen as a key competitive advantage [9][10] - Future expansions will leverage existing data centers to maintain capital efficiency while meeting growing customer demand [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on the Microsoft contract and highlighted the strategic value of the partnership [19][20] - The company is optimistic about future growth opportunities, with plans to monetize substantial power and land capacity available [101] Other Important Information - The company has secured $1 billion in zero-coupon convertible notes and an additional $200 million in GPU financing to support its expansion [23] - The construction of data centers is designed to meet hyperscale requirements, ensuring long-term operational efficiency and reliability [13][14] Q&A Session Summary Question: Can you expand on the strategic value of the Microsoft deal? - Management highlighted the validation of their proprietary data center design and the ability to service a major technology company as significant strategic value [28][29] Question: What is the expected return profile of the Microsoft deal? - The unlevered IRR is expected to be in the low double digits, with a levered IRR potentially reaching 25-30% depending on financing structures [31][32] Question: How many GPUs will be deployed as part of the Microsoft deal? - Each phase of the Horizon project will accommodate 19,000 GPUs, with four phases planned [39] Question: What are the pricing dynamics in the cloud market? - There is a strong demand for GPU services, leading to increased pricing per GPU hour, with a focus on risk-adjusted returns [44][50] Question: What is the level of interest in the Sweetwater site? - There is strong interest across all sites, including Sweetwater, with discussions ongoing about various service offerings [55] Question: How does the company view risk in cloud deals versus colocation deals? - Management believes cloud deals present a better risk proposition compared to colocation, especially with the backing of a strong counterparty like Microsoft [82][84]

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]

Core Insights - IREN Limited reported strong first-quarter earnings, surpassing both revenue and earnings estimates, which led to a positive movement in its stock price [1][2]. Financial Performance - Quarterly earnings were reported at $1.08 per share, significantly exceeding the consensus estimate of 14 cents [2]. - Revenue for the quarter reached $240.3 million, surpassing the Street estimate of $235.5 million and showing a substantial increase from $49.57 million in the same period last year [2]. Strategic Developments - The company secured several new multi-year contracts, including a significant partnership with Microsoft, enhancing its position as a leading AI Cloud Service Provider and expanding its reach into new hyperscale customer segments [3]. - Co-CEO Daniel Roberts highlighted the disciplined execution and record results achieved this quarter, along with meaningful progress in AI Cloud expansion [3]. Stock Performance - Following the earnings report, IREN stock experienced a 3.58% increase, reaching $69.65 in extended trading [4].

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 ...