IREN disclosed that AI cloud revenue for the quarter ended September 30, 2026, reached $200 million, up from $71 million in the prior quarter. The same period saw Bitcoin mining revenue drop from $67 million to $28 million.
Revenue mix and margins
Total revenue increased to $228 million from $137 million, reflecting growth driven by AI cloud services. AI cloud revenue rose 182 % sequentially and the segment reported an 86 % gross margin. The company noted that gross margin does not equate to cash profit after financing, corporate expenses, depreciation, and capital expenditures.
Profitability and losses
IREN posted a net loss of $263 million for the quarter, compared with a loss of $684 million in the previous quarter. Adjusted EBITDA improved to $66 million from $19 million.
Backlog and contract timing
The firm’s revenue backlog grew to $20.3 billion, with roughly two‑thirds linked to investment‑grade counterparties. Management indicated a target of over $4 billion in annual recurring revenue, now expected to be achieved by January 2027 after a customer‑requested design change delayed the timetable.
Operational updates
IREN highlighted the commissioning of its Horizon 1 facility for Microsoft and mentioned additional contracts signed after quarter‑end. Planned capital spending for the fiscal year and associated financing were also outlined.
Implications for Bitcoin mining
The decline in mining revenue reflects a shift in IREN’s business mix rather than a direct indication of Bitcoin network strength. Network difficulty, global hashrate and other miners’ activities remain separate factors.
