Iren Stock Earnings Reports

Key points for investors: IREN reported strong Q1 FY'26 results with revenue of $240M (up 28% QoQ, 355% YoY) and adjusted EBITDA of $92M. The company announced a transformational 5-year AI cloud contract with Microsoft worth $9.7B that calls for deployment of NVIDIA GB300 GPUs across 200 MW at the Childress campus; the deal includes a 20% upfront prepayment and is expected to generate ~ $1.94B in annual recurring revenue and ~85% project EBITDA margin. IREN plans to scale its GPU fleet from ~23,000 today to 140,000 GPUs by end-2026 (supporting an estimated ~$3.4B annualized run rate revenue) while using only ~16% of its secured 3 GW power capacity, leaving substantial optionality. The GPU/ancillary CapEx for the Microsoft commitment is ~$5.8B (with favorable supplier terms and staged payment timings), and the company expects attractive returns: unlevered IRRs in the low double-digits and targeted levered IRRs of ~25–30% (with upside under different leverage or residual value assumptions). Funding plan highlights: $1.8B cash at end of October, $400M of GPU financing secured to date, $1.9B of customer prepayments (20%) that fund roughly one-third of GPU CapEx, and intent to raise ~ $2.5B of secured financing against GPUs/contract cash flows (with other options including equity, convertibles, corporate debt, and operating cash flow). Operationally, IREN emphasizes vertical integration (site development through GPU operations) as a differentiator, ongoing conversions of Canadian ASIC sites to GPUs, accelerated construction at Childress (Horizons 1–4) engineered to Tier-3 equivalent standards and flexible rack densities (130–200 kW/rack), and Sweetwater hub progress (Sweetwater 1 energization on schedule). Management stresses disciplined, capital-efficient execution, material prepayments and supplier financing that improve project returns, and a strong appetite/demand environment for both air- and liquid-cooled GPU capacity. Risks/considerations: reliance on successful execution of construction and GPU deployments to meet timelines (contracts include penalties), funding execution for remaining CapEx, potential GPU refresh/residual value uncertainty, and market recontracting dynamics beyond initial contract terms.