IREN
IREN Limited36.59
+1.11+3.13%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q4 '25)
FY Q2 '26
ERCOT noise dismissed; cloud favored
Q&A largely reaffirmed scripted progress on capacity and $3.4B ARR target, while quashing ERCOT batching noise: Sweetwater's full 2GW lands in batch 0, energization hits Q2 with zero business impact. Management sharpened AI cloud preference over colo—200MW slots yield $300M in colo but billions via cloud—thanks to GPU financing slashing effective costs to 3%. Hyperscalers demand bare-metal access; software plays small. Older GPUs draw inference bids, extending tails. ERCOT chatter changes nothing. Investors watch Sweetwater ramps, deal conversions.
Last Quarter (Q3 '25)
FY Q1 '26
Details Microsoft IRRs, cloud preference.
Q&A unpacked the Microsoft deal's returns, pegging unlevered IRR at low double digits after internal colo charge, levering to 25-30% with $2.5B targeted debt—higher if leverage hits $3B or GPUs retain value. Management doubled down on AI cloud over colocation, touting 35%+ equity IRRs versus colo's recontracting risks and lower yields. They detailed 76,000 GPUs across four Childress phases, BC contracting progress to 12,000+ of 23,000, and strong demand including Sweetwater interest. Cloud trumps colo returns. Execution confidence shone through on timelines and penalties. Investors will eye demand durability across sites.
Key Stats
Market Cap
10.56BP/E (TTM)
21.03Basic EPS (TTM)
1.74Dividend Yield
0%Recent Filings
10-Q
Q2 FY2026 results
IREN crushed Q2 FY2026 ended December 31, 2025, with revenue leaping 59% y/y to $184.7M—Bitcoin mining up 47% y/y to $167.4M, AI Cloud Services surging 550% y/y to $17.3M—while operating cash flow hit $214M YTD. Yet Q2 operating loss widened to $116.4M from $17.3M profit, thanks to $99.2M depreciation (up 175% y/y), $100.8M SG&A (up 249% y/y from stock comp), $31.8M impairments on miners shifted to AI, and $111.8M debt conversion costs; net loss hit $155.4M versus $21.9M last year, with net far exceeding operating due to $107.4M unrealized derivative losses and inducement. Cash swelled to $3.3B on $3.6B financing inflows, funding $1.1B capex; convertible debt totals $3.7B across maturities to 2033. Signed $9.7B Microsoft GPU deal. Bitcoin volatility looms large.
8-K
Q2 revenue down, AI push on
IREN reported Q2 FY26 results on February 5, 2026, with revenue dropping to $184.7m from $240.3m in Q1 amid its Bitcoin mining to AI Cloud shift, yet Adjusted EBITDA held at $75.3m. Secured $3.6bn GPU financing for Microsoft contract and launched 1.6GW Oklahoma data center, boosting power to >4.5GW. Targets $3.4bn ARR by year-end. Non-cash hits drove $155.4m net loss.
8-K
Closes $2.3B notes, refis old debt
IREN closed $2.3B in low-coupon convertible notes—$1.15B 0.25% due 2032 and $1.15B 1.00% due 2033—on December 8, 2025, alongside a $1.63B equity raise of 39.7M shares at $41.12. Proceeds refinanced $544M of higher-rate 2029/2030 notes at a premium, netting $2.27B total while capping dilution up to $82.24/share via $201M capped calls. Debt matures out to 2033.
8-K
Prices $2B notes, share offering
IREN priced $2B in low-coupon convertible notes—$1B 0.25% due 2032 and $1B 1.00% due 2033, settling December 8—while issuing 39.7M shares at $41.12 for $1.63B gross. Proceeds fund $544.3M repurchase of higher-rate existing notes due 2029/2030 and $174.8M capped calls. Deal independent. Hedges may pressure shares.
8-K
IREN launches $2B+ notes, equity
IREN announced a proposed $1B convertible notes offering due 2032, $1B due 2033—plus up to $300M options—alongside a registered direct ordinary shares offering. Proceeds will fund capped calls, repurchase portions of existing 2029/2030 convertible notes, and working capital. Deals aren't contingent. Hedging may pressure shares.
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