IREN Reports a $702.6m FY26 Loss After $638.8m of Impairments, and Sets Out Two Tiers of GPU Financing
IREN Limited reported results for its 2026 financial year, ended June 30, 2026, on Thursday, August 27. Total revenue was $707.0m, up 41% from $501.0m the year before. The company reported a net loss of $702.6m, against net income of $86.9m in the prior year, according to its own results release, carried by the filings aggregator StockTitan. IREN reports in US dollars.
The reversal was not a revenue problem. It was an asset problem. IREN recorded $638.8m of non-cash asset impairments during the year, against $7.2m the year before, driven principally by the decommissioning of Bitcoin mining hardware. Selling, general and administrative expenses also rose steeply, to $449.1m from $136.5m.
Two businesses moving in opposite directions
AI cloud services revenue was $128.8m for the year, up from $16.4m - a roughly eightfold increase. Bitcoin mining revenue was $578.2m, up 19% from $484.6m, and still supplied about four-fifths of the top line for the year as a whole.
The fourth quarter shows the mix shifting. Quarterly revenue was $137.2m, of which AI cloud services contributed $70.5m and Bitcoin mining $66.7m - the first quarter in which the AI line came in above the mining line on the figures IREN disclosed. The release's quarterly table sets the June 2026 quarter against the March 2026 quarter rather than against the same quarter a year earlier, and it does not publish prior-year quarterly comparatives, so no year-on-year quarterly change is given here.
Adjusted EBITDA - which IREN states is a non-GAAP financial measure, defined by the company rather than prepared under generally accepted accounting principles - was $245.7m for the year, down 9% from $269.7m. In the fourth quarter it was $19.2m. The net loss figures above are GAAP; the two measures should not be read against each other.
The financing stack
Alongside the results, IREN set out how it is paying for graphics processing units, in two distinct tranches at two distinct costs. The company disclosed $3.6bn of investment-grade GPU financing for the Microsoft contract at approximately 6.0%, and a further $2.8bn of GPU financings for other customers, including a $2.4bn facility led by Blue Owl and Pacific Investment Management Company at 9.0%. Those two figures sum to $6.4bn, but that total is Frontier Tech Wire's arithmetic: the release presents the tranches separately and does not itself publish a combined GPU financing figure.
IREN said those financings cover between 90% and 96% of the associated GPU capital expenditure. It also said customer prepayments run at 45% to 55% of GPU capex - meaning a substantial share of the hardware is funded by the customers who will use it before it is installed.
During the financial year the company raised $2.1bn through ordinary share issuance, $3.0bn through convertible notes and $938.0m through financing facilities. At June 30 it held $5,895.6m of cash and cash equivalents, $1,670.3m of current restricted cash and $53.7m of non-current restricted cash. The company itself rounds the position to over $7.5bn; the release does not carry a single line item labelled total liquidity.
Company-defined contract metrics
IREN reported $1bn of operating annualised recurring revenue as of August 26, 2026, and $4bn of contracted annualised recurring revenue for its 2026 capacity. The release states that ARR is a non-GAAP operating metric and may differ materially from recognised revenue. Both figures are company-defined and unaudited, and should be read as management's own characterisation of its contract book rather than as an accounting measure.
On pricing, the company said recent three-year contracts have been signed at more than $20m per megawatt of IT load, with active discussions at approximately $25m per megawatt. Those are self-reported contract terms and IREN did not name the counterparties to them.
The company said its 2026 capacity is largely sold out - its own characterisation, not an audited disclosure - and said it is executing a global data centre pipeline exceeding 5GW, targeting cumulative IT delivery of approximately 0.3GW in 2026 and 0.8GW in 2027.
Deployments and customers
IREN said it delivered Horizon 1, the first of four 50MW liquid-cooled GPU deployments, to Microsoft at its Childress site, and that it obtained NVIDIA Exemplar Cloud status on GB300 NVL72 systems. Commissioning of Horizon 2 is under way, with Horizons 3 and 4 in late-stage construction and delivery targeted for the fourth quarter of 2026. These are company statements about its own operations and are unaudited.
Customers named in the results include Microsoft, Cohere, Prometheus, Perplexity, Figure AI, Fal AI and Higgsfield AI, alongside a new multi-year AI cloud contract with what the company described as a leading frontier AI lab, which it did not name.
Daniel Roberts, co-founder and co-chief executive, said in the release: "We started IREN with a simple observation: the digital world can scale almost instantly, but the physical world cannot."
IREN reported after Thursday's US close. In that session the Nasdaq composite ended at 26,541.35, up 1.6%, and the Russell 2000 at 3,014.34, up 0.3%, per the Associated Press market wrap. The US market is open as this article is filed on Friday and no closing level for Friday exists yet, so no post-results price move is reported here.
