IREN 8-K

Summary

Q1 FY27 results with FY2027 investment targets. Revenue growth accelerated to +66.4% Q/Q from -5.4%, driven by AI Cloud growth that offset lower Bitcoin mining revenue.

Q1 capital expenditures rose +315% Q/Q to $2.69B; the FY2027 capex plan is $15B (+1024% Y/Y at midpoint). IREN targets more than $4B of annualized run-rate revenue (ARR)—annualized revenue for commissioned GPUs under contract, not GAAP revenue—operational by 1/31/2027, potentially extending to the end of February. The target, shifted from year-end due to a customer-requested design change and supplier timing, is fully contracted and described as funded. Of the $15B remaining FY2027 capex, $9B is expected from cash, committed GPU financing and prepayments, with another $6B targeted from financing and other sources subject to market conditions; IREN also targets 0.8GW of data-center capacity by the end of calendar 2027. Q2 FY27 cash operating expense, which excludes stock-based compensation, is expected to increase.

Developments

• Revenue backlog, comprising performance obligations, lease arrangements and other estimated revenue under committed contracts subject to delivery and service-availability requirements, rose 22% Q/Q to $20.3B; approximately two-thirds was with investment-grade counterparties.
• Horizon 1 entered service for Microsoft and achieved NVIDIA Exemplar Cloud status for GB300 NVL72 systems. Horizons 2–4 advanced to late-stage construction, while liquid-cooled data-center construction continued at Sweetwater and began at the 100MW Mackenzie site.
• After quarter-end, IREN expanded its contract with a Leading Frontier AI Lab, signed a five-year contract at about $22M per IT-MW with customer prepayments covering 90% of associated GPU capex, and signed a short-term contract at $40M per IT-MW. It also contracted H100 GPUs at double the prior Prince George contract’s pricing. Average annual revenue per IT-MW on three- and five-year deals signed in Q1 FY27 was up 11% and 12%, respectively, from Q4 FY26.
• IREN reported more than 30,000 acres secured, supporting more than 5GW of secured power and a development pipeline exceeding 35GW. The pipeline is potential capacity at various stages before grid connection agreements and is speculative.

Results with guidance

Metric	Q1 FY27 actual	FY2027 guide
Capital expenditures	$2.69B+315% Q/Q	$15B+1024% Y/Y at midpoint

Results without guidance

Metric	Q1 FY27	Change
Revenue	$228M	+66% Q/Q
Operating income	-$186M	vs -$620M Q/Q
Net income	-$263M	vs -$684M Q/Q
Operating cash flow	$529M	-71% Q/Q
Cash and cash equivalents	$3.52B	-40% Q/Q

What moved the numbers

• AI Cloud revenue was $200M, up 182% Q/Q, comprising $135M of services revenue and $65M of lease revenue; the prior quarter had $71M of services revenue and no lease revenue. Bitcoin mining revenue was $28M vs $67M.
• Adjusted EBITDA (non-GAAP) was $66M vs $19M. The quarter included $106M of stock-based compensation and $148M of depreciation and amortization, both excluded from adjusted EBITDA.
• Deferred revenue added $645M to operating cash flow, down from $1.72B in the prior quarter; accounts receivable and other receivables used $205M, vs a $63M source.
• Total debt, including finance leases and net of unamortized issuance costs, was $10.2B vs $7.84B. Net debt, which deducts unrestricted and restricted cash from debt, was $4.43B vs $216M; data-center assets were $6B, with 20-year useful lives.

Other guidance (4)

Metric	Period	Guidance
ARR	January 2027	at least $4B
Data center capacity	End of calendar 2027	0.8
Cash and committed GPU financing and prepayments	FY2027	$9B
Target GPU financing, prepayments, data center financing and other corporate level sources	FY2027	$6B

Figures extracted from the filings and checked against their text; changes and verdicts computed from them.