Iris Energy (IREN) - 2026 Q2 - Quarterly Results

Financial Performance - Total revenue for Q2 FY26 decreased to $184.7 million, down from $240.3 million in Q1 FY26 [8]. - Net loss for Q2 FY26 was $(155.4) million, compared to a net income of $384.6 million in Q1 FY26 [8]. - Adjusted EBITDA for Q2 FY26 decreased to $75.3 million, down from $91.7 million in Q1 FY26 [8]. - Total revenue for the quarter ended December 31, 2025, was $184.7 million, a decrease of 23.2% from $240.3 million in the previous quarter [30]. - Bitcoin mining revenue decreased to $167.4 million from $233.0 million, while AI cloud services revenue increased to $17.3 million from $7.3 million [30]. - Adjusted EBITDA for the quarter was $75.3 million, with an adjusted EBITDA margin of 41%, compared to $91.7 million and 38% in the previous quarter [34]. - Net loss for the quarter was $155.4 million, compared to a net income of $384.6 million in the previous quarter, reflecting a significant decline [30]. - The company reported a finance expense of $10.7 million for the quarter, up from $9.3 million in the previous quarter [30]. - The company incurred a debt conversion inducement expense of $111.8 million during the quarter, impacting net income significantly [34]. Cash and Assets - IREN's cash and cash equivalents were $2.8 billion as of January 31, 2026, with over $9.2 billion in funding secured for the financial year to date [4]. - Cash and cash equivalents increased to $3,260.6 million as of December 31, 2025, from $1,032.3 million at the end of the previous quarter [32]. - Total assets rose to $7,027.6 million from $4,267.4 million, indicating strong asset growth [28]. - Total liabilities increased to $4,516.4 million from $1,391.2 million, primarily due to an increase in convertible notes payable [28]. Business Strategy and Expansion - IREN secured $3.6 billion in GPU financing for a Microsoft contract, with an interest rate of less than 6% per annum [4]. - The company is on track for a targeted 140,000 GPU expansion, aiming to deliver $3.4 billion in annual recurring revenue (ARR) by the end of calendar year 2026 [4]. - The company is expanding its data center capacity with a new 1.6GW campus in Oklahoma, increasing secured grid-connected power to over 4.5GW [4]. - The transition from Bitcoin mining to AI Cloud is ongoing, with a focus on higher-value AI workloads [8]. - IREN's ARR under contract includes approximately $0.4 billion from the Prince George site, with ongoing negotiations expected to support over $0.5 billion in ARR [4]. Adjusted EBITDA Changes - The company plans to change its definition of Adjusted EBITDA starting in the fiscal year ending June 30, 2026, to exclude debt conversion inducement expenses [26]. Non-Cash Items - The company reported significant non-cash and non-recurring items impacting net income, including unrealized losses of $(219.2) million related to convertible notes [8].