IREN reported the June quarter — its fiscal fourth quarter and full year to 30 June 2026 — after the US close on 27 August. Revenue was $137.2 million against a $138.89 million consensus, a 1.2% shortfall, down 26.7% year over year. The net loss was $684.0 million, of which $450.4 million is an impairment against Bitcoin mining hardware being decommissioned as sites convert. The shares closed at $40.53 on the day of the print.
Our preview said Thursday needed four operational facts more than it needed a headline beat. It delivered three of them clearly on the call, and left one — the GPU count itself — undisclosed. The shares fell 7.5% after hours, to $37.50.
What the preview asked, and what the print answered
AI Cloud revenue for June — $70.5 million, and it is now the larger half. Against $33.6 million in March, AI Cloud revenue grew 110% sequentially, while Bitcoin mining fell 40% to $66.7 million. AI Cloud is 51% of revenue, from 23% one quarter earlier. This was the income-statement proof the preview asked for, and it arrived unambiguously: the crossover happened in the quarter management said it would.
Commissioned GPUs and utilization — not disclosed. The release gives $4 billion of contracted ARR for 2026 capacity and $1 billion of operating ARR as of 26 August, and defines ARR as GPU-hour pricing for commissioned GPUs under contract times 8,760 hours. That definition means the $1 billion is backed by installed, contracted hardware rather than orders — a useful constraint — but the underlying GPU count and utilisation are not given. The gap the preview named between ordered, installed and earning capacity is still not measurable from outside.
The schedule for Horizon 2–4 — answered. Horizon 1, the first of four 50MW liquid-cooled Childress deployments, was delivered to Microsoft in August, after quarter-end, running NVIDIA Exemplar Cloud on GB300 NVL72. Horizon 2 is commissioning; Horizons 3 and 4 target delivery in the fourth calendar quarter of 2026. Cumulative delivery targets are 0.3 GW of IT load in 2026 and 0.8 GW in 2027 against a pipeline above 5 GW.
Capital still required — answered on the call, and it is a very large number. The release gives the funding structure: $3.6 billion of investment-grade GPU financing at 6.0% for the Microsoft contract, funding 96% of associated GPU capex alongside prepayments, plus $2.8 billion of new non-IG financings including $2.4 billion led by Blue Owl and PIMCO at 9.0% for Mackenzie. Recent customer prepayments run 45–55% of GPU capex. The call supplied the demand side of that equation: CFO Anthony Lewis guided fiscal 2027 capital expenditure of approximately $25 billion to $30 billion, against approximately $14 billion of existing cash and committed GPU financing and prepayments — including $7.6 billion of cash at 30 June, $1.7 billion of it restricted and mostly earmarked for Microsoft GPU capex. IREN is targeting roughly $8 billion more in GPU financing and prepayments, with the balance from data-centre financing, operating cash flow and corporate sources; the entire data-centre portfolio, Horizons 1 through 4 included, is unencumbered today. Roberts framed the shift as the market coming to them: $6.5 billion of GPU financing in three months, more than 100% of associated GPU capex once prepayments are counted, and $2.8 billion of it raised with no investment-grade offtake and still priced in single digits.
What changed in the story
Cash flow reads as a triumph and is not one. Operating cash flow was $1,811.1 million for the quarter. $1,722.2 million of it is deferred revenue — customer prepayments — and the balance-sheet deferred-revenue balance is now $1.84 billion. On this site's convention for IREN, free cash flow was negative $167.1 million for the quarter and negative $2.23 billion for the year. Prepayments are real money and they de-risk the build, but they are a liability being drawn down against future delivery, not earnings converting to cash.
The old business is being written off in public. Impairments were $638.8 million for the year against $7.2 million in fiscal 2025, primarily decommissioning mining hardware as sites convert. Full-year revenue still grew 41% to $707.0 million, but the year swung from $17.3 million of operating income to a $1,046.7 million operating loss.
Margin gave way to spending, not to price. Adjusted EBITDA fell to $19.2 million from $59.5 million in March, a 14% margin against 41%, while gross profit was almost unchanged at $103.9 million against $104.9 million. The whole difference is SG&A: $128.3 million against $81.8 million. IREN is hiring and building ahead of the revenue, which is the correct thing to do into a sold-out year and the wrong thing to extrapolate from.
And dilution continues regardless of the financing story. IREN issued $2,112 million of ordinary shares in the quarter alongside $3.0 billion of new convertible notes and $938 million of the financing facility. Shares outstanding went 380.2 million at 30 June and 394.1 million by 14 August, from 283.5 million last October. Customer- and lender-funded GPUs have not replaced equity issuance.
What is coming
The call gave the ARR bridge the release left implicit. IREN exited the June quarter at roughly $0.5 billion of ARR; it is $1 billion today after Microsoft accepted Horizon 1, and that is the level that carries through the end of the September quarter. More than $4 billion is contracted by the end of the December quarter, including Horizons 2 through 4 — but "a significant amount of the December capacity is expected to come on late in the quarter", so the reported revenue effect lands predominantly in the March quarter. Anyone modelling $4 billion of ARR into calendar 2026 revenue is a quarter early. Separately, roughly $700 million of ARR tied to the NVIDIA cloud contract ramps in 2027 and is not in the $4 billion.
Two other dates matter. Mining is expected to be effectively decommissioned by the end of December 2026, which ends the impairment cycle and the revenue drag together. And September-quarter cash SG&A is guided up another $40–50 million sequentially — the spend runs ahead of the revenue for at least one more quarter.
2026 capacity is described as largely sold out, at contract prices above $20 million per MW of IT load on three-year terms with roughly two-year paybacks, and discussions at about $25 million per MW; the $4 billion comes from under 10% of a 5 GW-plus portfolio of secured grid connections. IREN has not announced its next report date; our calendar carries an estimate of 18 November 2026.
What we learned
- AI Cloud passed Bitcoin mining. $70.5 million against $66.7 million, 51% of revenue from 23% one quarter earlier, after growing 110% sequentially. The transition is now an income-statement fact, not a plan.
- Total revenue still fell. $137.2 million, down 26.7% year over year and 5.2% sequentially, and 1.2% below the $138.89 million consensus — because mining is being removed faster than AI Cloud is being installed.
- The $1.81 billion of operating cash flow is prepaid revenue. $1,722.2 million of it is deferred revenue; free cash flow was negative $167.1 million for the quarter and negative $2.23 billion for the year.
- Mining is being impaired out of the business: $450.4 million this quarter and $638.8 million for the year, against $7.2 million in fiscal 2025, as sites convert.
- The capital number finally exists: $25–30 billion of fiscal 2027 capex, against about $14 billion of cash and committed financing in hand and roughly $8 billion more targeted. Commissioned GPU counts and utilisation remain undisclosed.
IREN Limited (Nasdaq: IREN) reported its fourth fiscal quarter and the year ended 30 June 2026 after the US close on 27 August 2026, in Exhibit 99.1 to the Form 8-K of the same date; the FY2026 Form 10-K was filed the same evening. Revenue by segment, the impairment, adjusted EBITDA, the cash-flow and balance-sheet lines, the ARR figures and its definition, contract pricing, the Horizon schedule, the financing terms and the customer names are the company's own disclosures; the full figure set is on the IREN June-quarter earnings page. Free cash flow of negative $167.1 million is derived as operating cash flow less both hardware lines, the convention this site stores for IREN, and the percentage changes, the AI Cloud share of revenue and the gross-margin arithmetic are ours. IREN's release contains no per-share data and the 10-K tags only an annual diluted loss of $2.22, so no quarterly EPS is stated here or stored. The consensus of a $0.42 adjusted loss on $138.89 million of revenue is press-reported on a Zacks basis, carried in our preview; IREN does not report an adjusted EPS, so no like-for-like earnings surprise is computed. Annualised run-rate revenue is an operating metric, not GAAP revenue. The fiscal 2027 capital-expenditure guide, the funding plan, the ARR bridge and its timing, the mining decommissioning date and the September-quarter SG&A guide are from the earnings call held the same evening, 27 August 2026, and sit alongside the rest of the call on the earnings call page; all are forward-looking statements by the company, not forecasts by this site. The closing price of $40.53 is 27 August 2026, before the release, and the after-hours price of $37.50, down 7.5%, is as at 6:42 p.m. Eastern the same day, sourced to stockanalysis.com.
