IREN Unveils Q1 FY26 Financial Results

Bassyonni

ago 2 hours

IREN Limited (NASDAQ: IREN) has recently disclosed its financial results for the first quarter of fiscal year 2026, concluding on September 30, 2025. The company reported notable achievements in revenue growth and profitability, positioning it strongly in the competitive AI Cloud services sector.

Financial Highlights of Q1 FY26

Total Revenue: $240.3 million, representing a 355% increase from $52.8 million in Q1 FY25.
Net Income: $384.6 million, a turnaround from a net loss of $51.7 million in the same quarter last year.
Adjusted EBITDA: Reached $91.7 million, a substantial increase of 3,568% compared to $2.5 million in the previous year.
EBITDA: Achieved $662.7 million, significantly up from a loss of $18.8 million in Q1 FY25.

Strategic Partnerships and Growth Initiatives

IREN has secured a $9.7 billion contract with Microsoft, which involves phased deployments at the Childress data center through 2026. The agreement includes a five-year average term and a 20% customer prepayment. This contract is expected to contribute approximately $1.9 billion to IREN’s annual run-rate revenue, targeting a total of $3.4 billion in AI Cloud ARR by the end of 2026 while expanding to 140,000 GPUs.

Notable Contract Signings

In addition to Microsoft, IREN has entered into new multi-year contracts with companies like Together AI, Fluidstack, and Fireworks AI. These collaborations are crucial for supporting the company’s ambitious goal of surpassing $500 million in AI Cloud ARR by the end of Q1 FY27.

Project Updates and Development Efforts

British Columbia: Transition of data centers from ASICs to GPUs, with completion expected by the end of 2026.
Childress Development: Accelerated construction of liquid-cooled data centers, with significant enhancements to the original design.
Sweetwater Hub: Energization of substation Sweetwater 1 (1,400 MW) targeting April 2026, and Sweetwater 2 (600 MW) expected to be energized by late 2027.

Financial Strategy and Outlook

As of October 31, 2025, IREN’s cash and cash equivalents were reported at $1.8 billion. The company issued $1.0 billion in zero-coupon convertible notes and secured an additional $200 million in GPU financing, totaling $400 million. IREN plans to fund its near-term capital expenditures using an amalgamation of existing cash, operational cash flows, Microsoft prepayments, and further financing initiatives.

Daniel Roberts, Co-Founder and Co-CEO of IREN, emphasized the company’s commitment to disciplined execution, asserting, “We have made significant headway in our AI Cloud expansion, leveraging our partnerships to solidify our standing as a leading AI Cloud Service Provider.”

Conclusion

IREN’s performance in Q1 FY26 showcases its rapid growth and strategic positioning in the AI Cloud services market. With substantial revenue increases, strong project updates, and visionary partnerships, IREN continues to establish itself at the forefront of the industry.