We use cookies to improve your experience, analyze site usage, and show relevant ads. Go to our Privacy Policy for details.
The call signals strong strategic progress: substantial secured power (5 GW), a transformative NVIDIA partnership with aligned capital, clear ARR targets ($3.1B contracted, $3.7B target), execution momentum on major projects, and capability-building acquisitions (Mirantis, Nostrum). These positives are partially offset by a near-term financial drag from winding down Bitcoin mining—manifested as a QoQ revenue decline (-21.6%), lower mining revenue (-33.6%), a large net loss ($247.8M) driven by noncash impairments ($140.4M), and a back‑end weighted revenue ramp that requires continued on-time project delivery and financing. Overall, management presents a confident execution narrative with tangible commercial commitments and cash resources, but the company is in a capital‑intensive transition phase with near-term earnings pressure.
Management guided to deliver 480 MW of AI cloud capacity in 2026 (including a 300 MW liquid‑cooled Horizon One–Four build at Childress and ~180 MW of air‑cooled conversions), install ~150,000 GPUs and reach $3.7 billion of ARR by year‑end (up from $3.1 billion ARR already under contract), while running a platform with 5.0 GW of secured power (including 490 MW in Spain from the Nostrum deal), $2.6 billion of cash at April 30, and a recently announced NVIDIA five‑year AI cloud agreement (~$3.54B) tied to 60 MW of air‑cooled Blackwell capacity (≈$700M of ARR); they said roughly 50k air‑cooled GPUs remain uncontracted for 2026, expect 95% of Microsoft GPU CapEx to be funded via prepayments/GPU financing, plan to scale to 1.21 GW in 2027 (with ~730 MW under construction) and ultimately build a 5 GW global platform, and reaffirmed disciplined, phased financing and capital‑efficiency as core to hitting these targets.
Secured power increased to 5.0 GW (portfolio-level secured power). Near-term 2026 target of 480 MW of AI cloud capacity and 150k GPUs; 2027 target to scale to 1.21 GW with 730 MW under construction; multi-year build intent toward a 5 GW global platform.
Signed a multi-year NVIDIA partnership including a reported ~$3.54B five-year AI cloud contract and a $2.1B NVIDIA investment tied to deployment; NVIDIA investment vests with deployment (rights fully vest upon deployment of 600k GPUs), aligning capital with execution.
ARR under contract increased to $3.1B with a target of $3.7B ARR by year-end 2026 (implying ~19.4% upside to hit target); all operational capacity is fully contracted and capacity is being contracted ahead of commissioning.
Week One energized on schedule; Horizon One GPU commissioning underway for Microsoft with Microsoft handoff expected in Q3; 300 MW liquid-cooled Horizon One–Four at Childress progressing (~3,000 workers on site); Prince George 50 MW GPUs delivered and operating/commissioning; Sweetwater One substation energized.
Acquired Mirantis (650 engineers/operators) to bolster cloud orchestration, Kubernetes and AI infrastructure management; acquired Nostrum Group to enter Europe (adds ~490 MW of secured power in Spain and development team ~50 people).
Cash and cash equivalents of $2.6B at April 30. GPU CapEx financing strategy includes prepayments and secured debt; ~95% of Microsoft GPU-related CapEx expected to be funded by prepayments/GPU financing (previous Microsoft GPU financing averaged ~3% interest).
AI cloud services revenue grew to $33.6M from $17.3M sequentially, an increase of ~94.2%, reflecting early revenue traction from AI cloud deployments despite the ongoing transition.
Good day, and thank you for standing by. Welcome to IREN Limited Q3 FY 2026 results. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you need to press star 11 on your telephone keypad. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Mike Power, vice president of investor relations. Please go ahead.
Good afternoon, and welcome to IREN Limited’s Q3 FY 2026 results presentation. And thank you for your patience as we get assembled. I am Mike Power, VP of Investor Relations, and with me on the call today are Daniel Roberts, cofounder and co-CEO; Anthony Lewis, CFO; and Kent Draper, chief commercial officer. Before we begin, please note that this call is being webcast live with an accompanying presentation. For those dialed in by phone, you can elect to ask a question through the moderator after our prepared remarks. I would like to remind everyone that certain statements made during this call may constitute forward-looking statements. Those statements are based on current expectations and assumptions, and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to slide two of the accompanying presentation and our SEC filings for more information.
During today's call, we will also refer to certain ...
