Iris Energy Limited · Q2 2026

The quarter in short

Revenue $137M, down 26.7% year over year and 5.2% on the quarter. Adjusted EPS -$0.41, down 612% year over year and 64.0% on the quarter. GAAP EPS −$1.88. Free cash flow −$167M, up 34.6% year over year and 86.9% on the quarter. Adjusted EPS beat consensus by 2%.

What we learned

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

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