W.021IREN’s AI cloud revenue nearly tripled. Its $4B run-rate target slipped to January, and net debt reached $4.4B
IREN’s AI cloud revenue rose to $200M in the September quarter from $71M, and its total revenue to $228M. It spent $4.82B on data centers and hardware, and net debt rose to $4.43B from $216M at the end of June. It now targets more than $4B of annualized run-rate revenue by January 31, 2027, which may extend to the end of February, instead of December 31, and has $6B of its remaining $15B of FY27 capex still to fund.
What IREN reported
AI cloud now makes up 88% of IREN’s revenue. Revenue from renting GPUs rose to $200M in the quarter to September 30 from $71M in the June quarter, $135M from cloud services and $65M from a new lease line. Bitcoin mining revenue fell 58% to $28M as IREN moves its sites to AI. Total revenue was $228M, against analysts’ consensus of $220M by MarketBeat’s count and $230M by Investing.com’s. The net loss narrowed to $263M from $684M, a quarter that carried $450M of impairments; adjusted EBITDA was $66M, which excludes $106M of stock-based compensation. Finance expense rose to $73M from $24M.
The $4B target moved by a month or two. In August IREN targeted more than $4B of annualized run-rate revenue in operation by December 31, 2026. It now targets January 31, 2027, and says the date may extend to the end of February, citing a customer-requested design change and supplier timing. It says the $4B is fully contracted and fully funded, and that operating run-rate revenue doubled to about $1B. The release does not name the customer. Microsoft’s first block of capacity at Childress, Texas, Horizon 1, has been delivered; Horizons 2 to 4 are in late-stage construction, without dates. The Information reported on November 4 that delays at Childress had pushed back Microsoft’s spending; IREN’s release does not address the report.
AI cloud revenue, 2.8× in a quarter
IREN quarterly revenue, $M, by line: AI cloud (services and, from the September 2026 quarter, leases) and bitcoin mining. IREN’s fiscal year ends June 30. Q1–Q3 FY26 from the 10-Qs; Q4 FY26 and Q1 FY27 from the results releases, which round to $1M or $0.1M. Labels are total revenue.
Data
| $M | AI cloud | Bitcoin mining | Revenue | PP&E payments | Hardware payments | Capex |
|---|---|---|---|---|---|---|
| Q1 FY26 (Sep 2025) | 7.3 | 232.9 | 240.3 | 180.3 | 100.3 | 280.6 |
| Q2 FY26 (Dec 2025) | 17.3 | 167.4 | 184.7 | 539.7 | 179.4 | 719.1 |
| Q3 FY26 (Mar 2026) | 33.6 | 111.2 | 144.8 | 949.2 | 406.1 | 1355.2 |
| Q4 FY26 (Jun 2026) | 70.5 | 66.7 | 137.2 | 1328.9 | 649.3 | 1978.2 |
| Q1 FY27 (Sep 2026) | 200.0 | 28.0 | 228.0 | 2131.0 | 2693.0 | 4824.0 |
What it spent, and how it paid
IREN spent 21 dollars on capex for every dollar of revenue. Payments for property and equipment were $2,131M and for computer hardware $2,693M, $4.82B in all, 2.4 times the June quarter. Operating cash flow was $529M. IREN drew $2,360M from financing facilities and raised $498M from shares. Cash and equivalents fell to $3.52B from $5.90B, while restricted cash, held in escrow under debt-financing and letter-of-credit arrangements, rose to $2.26B.
Net debt rose about 21-fold in three months. Debt including finance leases was $10.21B at September 30, up $2.37B from June 30. Less cash, including restricted cash, of $5.78B, that is IREN’s own net debt figure of $4.43B, against $216M at the end of June. Customer prepayments, held as deferred revenue, rose $0.70B to $2.54B. IREN puts its remaining capital spending for the fiscal year to June 2027 at $15B. It says $9B is covered by cash, committed GPU financing and prepayments, and the other $6B, 40%, is targeted from financing, prepayments and other sources, subject to market conditions.
$4.82B of capex in one quarter
IREN capital spending, $M: payments for property, plant and equipment (data centers, power) and for computer hardware (GPUs and servers), from the cash flow statements. Q2 and Q3 FY26 are year-to-date figures less the prior period. Labels are the totals, $B.
Net debt went from $216M to $4.43B
IREN balance sheet, $B, at June 30 (grey) and September 30, 2026: debt including finance leases; cash and equivalents plus restricted cash; net debt as IREN reports it (debt less all cash); and customer prepayments held as deferred revenue, current and non-current. From the Q1 FY27 and FY26 releases.
Pricing, backlog and Texas
IREN says its new contracts are priced higher. Since the quarter ended it signed an expansion with what it calls a leading frontier AI lab, a short-term contract at $40M of revenue per IT megawatt, and a five-year contract at about $22M per IT megawatt, with the customer’s prepayments covering 90% of the GPU cost. It puts its revenue backlog at $20.3B, up 22% on the quarter, with about two-thirds from investment-grade counterparties. It still targets 0.8 GW of data center capacity by the end of 2027.
Its shares fell about 26% in the two days after the election. IREN fell 11.2% on Wednesday, and nearly 17% on Thursday, before the results; it rose 1.5% after hours, Investing.com reported. Its Childress campus and its planned 2 GW Sweetwater hub are both in Texas, whose governor-elect campaigned on a moratorium on new data center construction, AP reported. The release mentions Texas policy only in its risk factors, which cite the governor-ordered audit of data centers in ERCOT’s connection process.
40% of the rest of the year’s capex is still to fund
IREN’s remaining capital spending for its fiscal year to June 2027, $B, as stated in the Q1 FY27 release: the part covered by cash, committed GPU financing and contracted prepayments (solid) and the part targeted from financing, prepayments and other sources, subject to market conditions (outlined). The second bar is capex in the September quarter, for scale.
What this changes on 06.ai
- Pack lead (Who funds the neoclouds?): IREN’s $6B of unfunded FY27 capex, out of $15B, and net debt of $4.43B are the figures to update; its prepayments of $2.54B are customer money funding the build.
- Pack lead (What does a blue Texas mean for the data center boom?): IREN’s $4B run-rate target slipping to January or February is a delay IREN attributes to a customer-requested design change and supplier timing, not to Texas policy; The Information has linked Childress delays to Microsoft’s spending shortfall. Sweetwater’s first 300 MW (gross) was targeted for the fourth quarter of 2027 in September.
- Series lead: neocloud run-rate revenue targets against delivery dates (IREN, CoreWeave, Nebius, Nscale), as each slips or holds.
Sources and method
| Item | Figure | Source |
|---|---|---|
| Q1 FY27 | Revenue $228M (Q4 FY26 $137M); AI cloud $200M ($71M), of which services $135M and lease $65M; AI cloud gross margin 86%; bitcoin mining $28M ($67M); net loss $263M ($684M); adjusted EBITDA $66M ($19M); stock-based compensation $106M; finance expense $73M; operating cash flow $529M; payments for PP&E $2,131M and computer hardware $2,693M; financing facility proceeds $2,360M and share issuance $498M | IREN Q1 FY27 release, Nov 5 |
| Balance sheet | Cash $3,522M; restricted cash $2,208M current and $48M non-current; debt $950M current and $8,947M non-current; finance leases $179M and $132M; total debt including finance leases $10,208M ($7,836M at Jun 30); net debt $4,430M ($216M); deferred revenue $127M current and $2,417M non-current | IREN Q1 FY27 release, Nov 5 |
| Targets | More than $4B of ARR, fully contracted and fully funded, now targeted to be operational by January 31, 2027, and may extend to the end of February 2027, after a customer-requested design change and supplier timing; operating ARR doubled to about $1B; revenue backlog $20.3B, up 22% on the quarter, about two-thirds with investment-grade counterparties; 0.8 GW of data center capacity by the end of 2027; $15B of remaining FY27 capex, $9B covered and $6B targeted, subject to market conditions | IREN Q1 FY27 release; StockTitan |
| Contracts | Since the quarter: an expansion with a leading frontier AI lab; a short-term contract at $40M of revenue per IT MW; a five-year contract at about $22M per IT MW with prepayments covering 90% of the GPU capex; Microsoft Horizon 1 delivered, Horizons 2–4 in late-stage construction | IREN Q1 FY27 release, Nov 5 |
| Earlier target | $4B of ARR operational by December 31, 2026; 0.3 GW of IT capacity in 2026 and 0.8 GW cumulative in 2027; Q4 FY26 balance sheet and cash flow | IREN FY26 release, Aug 27 |
| History | Quarterly revenue by line and payments for PP&E and computer hardware, Q1–Q3 FY26 (Q2 and Q3 by difference of year-to-date figures) | IREN 10-Qs, Sep 2025–Mar 2026 |
| Microsoft | The Information reported delays at Childress led Microsoft to push back capex; Microsoft’s CFO cited delayed third-party capacity deliveries without naming IREN | Yahoo Finance, Nov 5 |
| Shares | Closed down 16.95% on Thursday; up 1.5% after hours on the results; consensus revenue $230.45M | Investing.com, Nov 5 |
| Shares | Wednesday, Nov 4: IREN −11.24% at the close | Capp Notes, Nov 4 |
| Sweetwater | 2 GW hub conditionally included in ERCOT Batch Zero as base load; first 300 MW (gross) at Sweetwater 1 targeted for Q4 2027 | IREN, Sep 8 |
| Texas | Governor-elect Hinojosa campaigned on a moratorium on new data center construction | AP, via KSBY, Nov 4 |
| Shares | Consensus revenue $219.95M | MarketBeat, Nov 5 |
Revenue: AI cloud $200M ÷ $71M = 2.82× (the release’s +182%); share $200M ÷ $228M = 87.7%; mining $28M ÷ $67M − 1 = -58.0%. Capex: $2,131M + $2,693M = $4,824M; against the June quarter’s $1,978M, 2.44×; against revenue 21.2×.
Balance sheet: debt $10,208M − (cash $3,522M + restricted $2,256M) = $4,430M, IREN’s net debt; $4,430M ÷ $216M = 20.5×. Debt rose $10,208M − $7,836M = $2,372M; prepayments $2,544M − $1,843M = $701M. June cash including restricted, $7,620M, is from the FY26 release. Funding: $6B ÷ $15B = 40.0%. Shares: (1 − 11.24%) × (1 − 16.95%) − 1 = -26.3%.
Wire reports are written within hours of the news, on a six-hour schedule. Each lists its sources and shows the arithmetic behind its figures. Not investment advice.