IREN reported first-quarter FY27 results on 5 November 2026 with total revenue of $228 million, up 66% sequentially, driven by AI Cloud revenue of $200 million, up 182%, according to its GlobeNewswire release and Form 10-Q for the period ended 30 September 2026. Bitcoin mining contributed $28 million. The company posted a net loss of $263 million and adjusted EBITDA of $66 million.
Co-CEO Daniel Roberts said AI Cloud revenue “nearly tripled to $200 million, and operating ARR doubled to a billion.” AI Cloud broke into $135 million of services and $65 million of lease revenue. IREN said its contracted backlog stands at $20.3 billion, with about two-thirds investment-grade.
What IREN reported for AI Cloud and the ARR timeline
IREN said a “more than $4 billion” annualised recurring revenue target is “fully contracted and fully funded,” but the company moved the timing from year-end 2026 to January 2027, and said it may extend to the end of February, after a “customer-requested design change and supplier timing.” Horizon 1 is in service for Microsoft with NVIDIA Exemplar hardware, the company said.
Remaining FY27 capital expenditure is about $15 billion, of which roughly $9 billion is covered by cash, committed GPU financing and prepayments, and about $6 billion remains subject to capital markets. After a qualifying event, IREN cites indicative five-year pricing of about $22 million per IT megawatt with 90% of GPU capex prepaid, and short-term pricing of about $40 million per IT megawatt. Those figures are IREN’s disclosed commercial metrics.
The release refers to a “Leading Frontier AI Lab” among customers without naming it. TSN follows that wording and does not invent a name.
Bitcoin mining at $28 million remains a minority of revenue in this mix, which matters for anyone still modelling IREN as a pure hash-rate story. The 10-Q and IR package present AI Cloud services and lease lines separately, so customers on managed GPU services and those on leased capacity both show up in the $200 million total without being collapsed into a single opaque cloud number.
How this sits with other miner-to-AI cloud stories
TSN has covered IREN’s Perplexity Blackwell Ultra work, TeraWulf’s Google and Anthropic-linked financing, and Core Scientific’s earlier AI conversion financing. Those pieces track the same industry shift from bitcoin hash rate to contracted GPU cloud. This quarter’s note is IREN’s own mix: AI Cloud already dominant in revenue, mining still present, and a large ARR target delayed by weeks for design and supply reasons rather than cancelled.
What a slipped $4bn ARR date changes for IREN’s AI Cloud story
On IREN’s numbers, AI Cloud is already the main revenue engine, while the “more than $4 billion” ARR line remains contracted and funded with a January 2027 delivery window that can stretch into February. That is a schedule change, not a de-booking, in the company’s language. The $15 billion remaining FY27 capex split — $9 billion covered, $6 billion market-dependent — is the financing hinge for whether Horizon build-out keeps pace with those contracts.
Prepaid structures at the $22 million per IT-megawatt five-year indication, with 90% of GPU capex prepaid, shift cash timing toward IREN while locking customers into multi-year capacity. Short-term $40 million per IT-megawatt pricing sits beside that as a different product shape. Neither figure is a substitute for reading the contracted backlog of $20.3 billion and the investment-grade share IREN discloses.
For counterparties watching neocloud suppliers, the practical signals are Microsoft Horizon 1 in service, a backlog weighted toward investment-grade names, and prepaid GPU structures that pull customer capital forward. The next earnings package and any further customer-timing disclosures will show whether the January–February ARR window holds. The unnamed “Leading Frontier AI Lab” stays unnamed here because IREN did not identify it.
Sources
- IREN Reports Q1 FY27 Results (GlobeNewswire, 5 November 2026)
- IREN Form 10-Q for the quarterly period ended 30 September 2026 (SEC, filed 5 November 2026)
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- Google Backstops Financing for TeraWulf’s $19bn Anthropic Leases
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