IREN Limited (NASDAQ: IREN) shares rebounded nearly 20% to $21.62 in Friday’s premarket trading after the company reported a 182% sequential increase in AI Cloud revenue to $200 million for its fiscal first quarter.
The rebound followed a two-day selloff in which IREN shares lost approximately 26.3%.
Total revenue rose 66% to $228 million in the quarter ended September 30, 2026, exceeding analysts’ consensus estimate of $221.28 million, according to LSEG data. IREN also reported a 22% increase in its contracted revenue backlog to $20.3 billion at quarter-end.
The results included a revised timeline for IREN’s target of more than $4 billion in operating annualized run-rate revenue (ARR), which the company now expects to reach in January 2027 rather than December 2026, with a possible extension through February.
IREN also expanded an agreement with an existing frontier AI laboratory customer after quarter-end and signed additional computing contracts, including a five-year agreement requiring customer prepayments covering 90% of the associated estimated GPU capital expenditure.
AI Cloud Revenue, Quarterly Results and New Contracts
IREN’s quarterly AI Cloud revenue comprised $135 million from cloud services and $65 million from cloud leasing. The business generated $71 million in the preceding quarter, entirely from cloud services.
Bitcoin mining revenue declined to $28 million from $67 million over the same period as IREN continued decommissioning mining hardware to make way for AI computing capacity.
IREN reported an 86% gross profit margin for its AI Cloud segment, unchanged from June. The company’s non-GAAP measure excludes depreciation, amortization, and site-level costs.
Its net loss narrowed to $263 million from $684 million in the previous quarter. The comparison was affected by about $450 million in impairment charges recorded in the June quarter, mainly related to the retirement of Bitcoin mining equipment, versus just $2 million in the September quarter.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $66 million from $19 million over the same period.
The new five-year computing contract carries estimated annual revenue of approximately $22 million per megawatt of IT capacity. IREN also signed a separate short-term agreement with estimated annual revenue of approximately $40 million per IT megawatt.
The company also reported securing new contracts for its older-generation NVIDIA H100 GPUs at double the price under a previous contract at Prince George.
Approximately two-thirds of IREN’s contracted revenue backlog is associated with investment-grade counterparties or their guarantors, according to the company. Recognition of this contracted revenue is subject to delivery and service requirements.
IREN Moves $4 Billion-Plus Operating ARR Target Into 2027 and Details Funding
IREN ended September with $1 billion in operating ARR, twice the previous quarter’s level, after its first Horizon data center entered service for Microsoft.
Management attributed the delay in reaching its more than $4 billion operating ARR target to customer-requested network changes affecting Microsoft-related infrastructure and delays in equipment deliveries from suppliers. IREN said it would not face financial penalties for delays arising from Microsoft’s requested modifications.
During an earnings call, Chief Financial Officer Anthony Lewis said IREN expected to recognize approximately one-quarter of its September-end operating ARR as revenue during the December quarter.
Lewis also said incremental capacity at Horizon and Mackenzie was not expected to contribute material revenue during that period. Most of the additional capacity was scheduled to arrive in late December or early 2027.
IREN calculates operating ARR using contracted hourly pricing for commissioned GPUs, annualized over a full year, together with associated storage and ancillary revenue. The measure differs from recognized revenue, which depends on commissioning, testing, and customer acceptance.
The company said its initial 300-megawatt IT capacity program supporting the more than $4 billion ARR target is fully contracted and funded, subject to conditions attached to committed financing facilities.
However, IREN’s broader expansion plan still requires additional financing. The company outlined approximately $15 billion in remaining planned capital expenditure for fiscal 2027, measured from September 30. It identified approximately $9 billion in cash, committed GPU financing, and contracted customer prepayments.
That amount includes restricted cash, undrawn financing facilities, and customer payments not yet received.
IREN expects to fund the remaining $6 billion through additional targeted GPU financing, customer prepayments, data center financing, and other corporate funding sources, subject to market conditions. The additional funding would support future capacity expansion beyond the initial program underlying the company’s more than $4 billion operating ARR target.
IREN Tokenized Stock Price
Separately, IREN Limited Tokenized bStocks (IRENB) was quoted at $21.48, down 0.12% over the preceding 24 hours, according to CoinMarketCap. IRENB is a tokenized instrument distinct from IREN’s Nasdaq-listed shares.