IREN AI Cloud Revenue Jumps 182% To $200M

IREN reported $228 million in quarterly revenue as AI Cloud revenue jumped 182% to $200 million and its revenue backlog rose 22% to $20.3 billion.

Key Takeaways

Total quarterly revenue was $228 million, up 66% sequentially.
AI Cloud revenue hit $200 million, up 182% sequentially, with an 86% gross margin.
Revenue backlog rose 22% sequentially to $20.3 billion, while the more than $4 billion ARR target moved to January 2027 and may extend to February 2027.

What Happened

IREN said AI Cloud remained its biggest business line in the quarter, bringing in $200 million of revenue, while Bitcoin mining revenue was $28 million. The company posted a net loss of $263 million for the quarter and adjusted EBITDA of $66 million.

In its SEC filing, IREN reported that total quarterly revenue increased 66% sequentially to $228 million. Revenue backlog increased 22% sequentially to $20.3 billion, and the company said approximately two-thirds of that backlog is with investment-grade counterparties.

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The company also said more than $4 billion ARR target is fully contracted and fully funded. But that target, previously set for year-end 2026, is now targeted for January 2027 following a customer-requested change and supplier timing, and may extend to February 2027.

Key Numbers

Metric	this period	the same period a year earlier	Change
Total quarterly revenue	$228 million		Up 66%
AI Cloud revenue	$200 million	$71 million	Up 182%
AI Cloud gross margin	86%
Revenue backlog	$20.3 billion		Up 22%
Net loss	$263 million	$684 million
Adjusted EBITDA	$66 million	$19 million

Source: IREN Ltd earnings release.

Outlook And Expansion

IREN said contracted pricing kept rising, up 11% on three-year deals and up 12% on five-year deals. The company also said it signed a short-term contract for $40 million per IT-MW of revenue.

After the quarter ended, IREN expanded a contract with a leading frontier AI lab. It also said it secured more than 30,000 acres of land and more than 5GW of secured power, and achieved NVIDIA Exemplar Cloud status for NVIDIA GB300 NVL72 systems at Horizon 1.

“This quarter Horizon 1 went into service for Microsoft with NVIDIA Exemplar status, AI Cloud revenue nearly tripled to $200 million, and operating ARR doubled to a billion,” said Daniel Roberts, Co-Founder and Co-CEO of IREN.