IREN (NasdaqGS:IREN) Q2 2026 Earnings call February 05, 2026 05:00 PM ET Company ParticipantsAnthony Lewis - CFOBen Sommers - Equity Research AssociateBrett Knoblauch - Managing DirectorDaniel Roberts - Co-Founder and Co-CEOJohn Todaro - Managing DirectorJoseph Vafi - Managing DirectorKent Draper - CCOMichael Ng - Managing DirectorMike Colonnese - Managing DirectorMike Power - VP of Investor RelationsConference Call ParticipantsDarren Aftahi - Research AnalystMichael Donovan - Senior Research AnalystNick Gi ...

Financial Data and Key Metrics Changes - Total revenue for Q2 FY 2026 was $184.7 million, a decrease of 23% compared to the previous quarter, primarily due to lower Bitcoin mining revenue [19][21] - Adjusted EBITDA declined mainly due to reduced Bitcoin mining revenue, partially offset by lower payroll tax accruals and power costs [20][21] - The company recorded $31.8 million in mining hardware impairment associated with the transition to AI cloud, compared to $16 million in the prior period [21] Business Line Data and Key Metrics Changes - AI cloud revenue is accelerating as deployments ramp up, with significant growth expected from the commissioning of new GPUs at the Prince George site [19][22] - The company has secured $2.3 billion in annualized revenue run rate under contract, including approximately $0.4 billion at Prince George, with expectations for this to increase [16][17] Market Data and Key Metrics Changes - The company has secured underwriting commitments for $3.6 billion of GPU financing at an interest rate of less than 6%, which supports a $9.7 billion AI contract with Microsoft [5][23] - Demand for AI cloud services remains strong, with multiple advanced negotiations underway for larger scale deployments [6][16] Company Strategy and Development Direction - The company focuses on a vertically integrated model, controlling the design, build, and operation of its data centers, which enhances cost management and service quality [11][14] - The strategy revolves around the "three Cs": capacity, customers, and capital, which are interdependent and reinforce each other [8][26] - The company aims to scale into one of the world's largest AI cloud platforms, leveraging its secured power and operational capabilities [10][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transition to AI cloud, expecting subsequent quarters to reflect a growing contribution from AI cloud revenues [22] - The company highlighted that demand is not a limiting factor for reaching its $3.4 billion annualized revenue target by the end of 2026, with significant runway for growth beyond that [17][27] Other Important Information - The company has secured a new 1.6 GW site in Oklahoma, increasing its total secured power to over 4.5 GW, which is crucial for future growth [7][14] - The company ended January with a strong cash position of $2.8 billion and has secured $9.2 billion from various financing sources to support growth [24] Q&A Session Summary Question: Update on ERCOT and its impact on Sweetwater - The company believes Sweetwater will likely be included in the batching process, securing the full 2 GW of power [31] Question: Economics on colocation versus AI cloud - The company sees AI cloud as capturing higher value compared to colocation, with ongoing strength in demand for cloud services [33][34] Question: Energization dates for Sweetwater - Sweetwater 1 is on track to energize in Q2, with customer engagement expected to improve due to the batching process [51][52] Question: ARR recognition timeline - Revenue from the Microsoft contract is expected to commence progressively over the year, starting in Q2 [55] Question: Pricing environment for cloud deals - The company is seeing strong demand and interest in longer tenors for cloud contracts, indicating a favorable pricing environment [58][60]

IREN (NasdaqGS:IREN) Q2 2026 Earnings call February 05, 2026 05:00 PM ET Speaker13Good day, and thank you for standing by. Welcome to IREN Q2 FY 2026 results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one ag ...

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