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IREN shares slide after results, despite AI cloud revenue surge

The company reported fiscal Q4 revenue of $137.2 million, down year over year, but said AI cloud revenue more than doubled sequentially to $70.5 million.

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IREN Limited reported fiscal fourth-quarter results on Aug. 27, with revenue of $137.2 million, down from $187.0 million a year earlier, and a wider net loss. Shares fell sharply after the release, reflecting investor focus on the headline numbers.

The company said the quarter was designed as a transition period as Bitcoin mining revenue continues to wind down and AI cloud revenue ramps up. IREN reported AI cloud revenue that more than doubled sequentially to $70.5 million, grew roughly eightfold year over year for the full year to $128.8 million, and beat consensus expectations cited by the outlet, with investors instead weighing the slower shift toward profitability.

IREN highlighted contracted annualized recurring revenue, saying it is on track to exceed $4 billion by year end, with $1 billion of that already operating. It also pointed to customer validation and capacity economics, including Microsoft physically inspecting the first building IREN built under a five-year, $9.7 billion contract, and NVIDIA awarding its Exemplar Cloud status after testing GB300 equipment on site.

On financing and expectations, the article says customer prepayments now cover 45% to 55% of GPU capital expenditures and a new $2.8 billion facility covers roughly 90% of associated GPU spend, reducing the need to fund the buildout through new share issuance. However, management commentary indicates 2029 or 2030 as a realistic window for sustained profitability, which the outlet links to the market reaction after earnings.

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