IREN Delivers $200 Million of AI Cloud Revenue

The Tip Desk · November 11, 2026 · 3 min read

The vertically integrated AI cloud platform booked $228 million of total revenue in the three months ended September 30, 2026, as AI Cloud nearly tripled and operating ARR reached a billion.

IREN (IREN) reported AI Cloud revenue of $200 million for the three months ended September 30, 2026, nearly tripling from $71 million in the prior quarter and accounting for most of the company’s $228 million of total revenue.

The vertically integrated AI cloud platform said total quarterly revenue increased 66% sequentially. AI Cloud Services revenue rose to $135 million from $71 million, and AI Cloud Lease revenue appeared at $65 million after nil in the prior quarter. Bitcoin Mining revenue fell to $28 million from $67 million.

Co-Founder and Co-CEO Daniel Roberts said Horizon 1 went into service for Microsoft with NVIDIA Exemplar status, AI Cloud revenue nearly tripled, and operating ARR doubled to a billion. The company had reported $1 billion of operating ARR in its fiscal 2026 update.

AI Cloud segment gross margin was 86%, in line with the prior quarter. Adjusted EBITDA rose to $66 million from $19 million, and Adjusted EBITDA margin expanded to 29% from 14%. Net loss narrowed to $263 million from $684 million. Asset impairment fell to $2 million from $450 million.

Revenue backlog increased 22% sequentially to $20.3 billion, with approximately two-thirds tied to investment-grade counterparties. Contracted pricing rose 11% on three-year deals and 12% on five-year deals for contracts signed in the first quarter of fiscal 2027 and the fourth quarter of fiscal 2026.

The more than $4 billion ARR target, previously aimed at year-end 2026, is now targeted for January 2027 and may extend to February 2027 after a customer-requested design change and supplier timing, the company said. The target is fully contracted and fully funded. ARR is an operating metric, not GAAP revenue; recognized revenue may be materially lower.

After quarter-end, IREN expanded an existing contract with a leading frontier AI lab, signed a short-term contract at $40 million per IT-megawatt of revenue, and signed a five-year contract at about $22 million per megawatt with 90% of associated GPU capex prepaid. It also contracted H100 GPUs at double previous pricing.

Horizon 2 through 4 progressed to late-stage construction. The company said it had secured more than 30,000 acres of land supporting more than 5 gigawatts of secured power and a development pipeline of more than 35 gigawatts. Construction continued at Sweetwater, Mackenzie, and other campuses, and a civil works license was secured for a 300-megawatt development in Badajoz, Spain.

Cash and cash equivalents declined to $3,522 million from $5,896 million. Net debt rose to $4,430 million from $216 million. Property, plant and equipment, net, increased to $12,344 million from $6,753 million, and total assets rose to $20,613 million from $15,790 million.

Payments for computer hardware increased to $2,693 million from $649 million, and payments for property, plant and equipment net of computer hardware rose to $2,131 million from $1,329 million. Selling, general and administrative expenses rose to $217 million from $128 million, and research and development expenses appeared at $7 million after nil. Finance expense increased to $73 million from $24 million.

The company said $15 billion of remaining planned fiscal 2027 capex is expected to be met by $9 billion of cash and committed GPU financing and prepayments, plus $6 billion of target GPU financing, prepayments, data center financing and other corporate-level sources subject to market conditions. Future capacity targets include 0.8 gigawatts of data center capacity by the end of calendar 2027, which may require additional capex in fiscal 2027.