IREN Reports Q2 FY26 Results

Financing - Company secured $3.6 billion in GPU financing for a Microsoft contract with an interest rate of less than 6% per annum, covering 95% of GPU-related capital expenditures [7] - The financing, along with a Microsoft prepayment of $1.9 billion, supports a targeted expansion of 140,000 GPUs, aiming to deliver $3.4 billion in annual recurring revenue (ARR) by the end of calendar year 2026 [7][14] - Over $9.2 billion in funding has been secured in the financial year to date through various sources including customer prepayments and GPU leasing [7] Data Center Expansion - A new 1.6GW data center campus is being developed in Oklahoma, increasing the company's secured grid-connected power to over 4.5GW [7] - Grid studies are complete, with power expected to ramp up from 2028, and the site spans 2,000 acres with low latency network connectivity [7] Financial Performance - For the quarter ended December 31, 2025, total revenue decreased to $184.7 million from $240.3 million in the previous quarter [27] - The company reported a net loss of $155.4 million, compared to a net income of $384.6 million in the prior quarter [27] - Adjusted EBITDA decreased to $75.3 million from $91.7 million in the previous quarter, reflecting ongoing transitions and operational challenges [30] Management Commentary - Management highlighted meaningful progress in capacity expansion, customer engagement, and capital formation, indicating a strong demand environment for AI Cloud services [8][9] - The company is focused on transitioning from Bitcoin mining to AI Cloud services, with increasing capacity allocated to higher-value AI workloads [7][8]