IREN Postpones Over $4 Billion in Annual Revenue at Client's Request
Over $4 billion in IREN's annual recurring revenue, expected in 2026, has been postponed to at least January, with a possible delay until February.
In its quarterly report, IREN attributed the postponement to changes in configuration and modernization of network infrastructure at the client's request, as well as supplier timelines. Co-CEO Daniel Roberts stated that the client is Microsoft. According to him, the upgrade is intended to provide 200 MW of capacity for working with advanced AI models.
For the quarter, IREN's revenue increased by 66%, reaching $228 million, exceeding analysts' average forecast of $221 million. Revenue from AI Cloud more than doubled, reaching $200 million. The net loss decreased to $263 million compared to $684 million in the previous period. The remaining revenue came from Bitcoin mining, which was the company's primary focus before its transition to AI.
The company stated that its recurring revenue target is fully contracted and financed. The revenue backlog grew by 22%, reaching $20.3 billion; approximately two-thirds of this is accounted for by counterparties with investment-grade ratings.
By the end of the current fiscal year, IREN plans to allocate $15 billion for capital expenditures. Of this amount, $9 billion is covered by cash and already confirmed financing, while another $6 billion depends on targeted financing contingent on market conditions. The company also reported an increase in prices for computing power, an expansion of the contract with a leading advanced AI models laboratory, and an intention not to pre-purchase all the graphics processors needed for the next year to reduce risks.
