IREN shares fell 8.2% in after-hours trading Thursday, closing at $37.19 after the Bitcoin miner-turned-AI data center operator reported a $684 million quarterly loss in its fiscal 2026 results.
The company's AI cloud services generated $70.5 million in the quarter ended June 30, marking the first time this segment surpassed Bitcoin mining revenue of $66.7 million. AI cloud now accounts for 51.4% of IREN's quarterly revenue, up from $33.6 million in the previous quarter.
Mining revenue declined 40% quarter-over-quarter as IREN converted mining sites for AI use. Total revenue fell 5% to $137.2 million for the quarter.
The substantial quarterly loss included $450.4 million in asset impairments, primarily from retired mining hardware, plus $127.2 million in write-downs and losses on equipment held for sale or disposed of. Adjusted EBITDA fell 68% to $19.2 million from $59.5 million, reflecting higher employee costs and investment ahead of the AI cloud expansion.
For the full fiscal year, revenue rose 41% to $707 million, but impairments of $638.8 million resulted in a $702.6 million annual loss, compared with a $86.9 million profit in fiscal 2025.
IREN reported $4 billion in contracted annualized run-rate revenue scheduled to operate by year-end. The company secured $6.4 billion in GPU financing, including $3.6 billion at a 6% weighted-average interest rate tied to a five-year, $9.7 billion AI cloud agreement with Microsoft. IREN also signed a $3.4 billion AI cloud contract with Nvidia in May covering managed GPU services as part of a partnership to deploy up to 5 gigawatts of AI infrastructure.
