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    IREN
    Earnings call· Mar 2026(Q3 FY26)

    IREN Q3 FY26 earnings call IREN

    May 7, 2026 Source

    Executive summary

    IREN Q3 FY26 — NVIDIA Partnership & Global AI Infrastructure Expansion

    IREN is rapidly executing its transition from Bitcoin mining to AI cloud services, highlighted by a major strategic partnership with NVIDIA and significant global capacity expansion. The company is leveraging its integrated approach to power, land, and data center construction to meet surging AI infrastructure demand, with a focus on time-to-compute and capital efficiency. The acquisition of Mirantis further strengthens its delivery and customer support capabilities as it scales its platform across North America, Europe, and APAC.

    Highlights

    5

    • Secured power increased to 5 gigawatts, supporting global AI infrastructure build-out.

    • ARR under contract reached $3.1 billion, with a target of $3.7 billion by year-end CY26.

    • Signed a $3.4 billion 5-year AI cloud contract with NVIDIA, marking a significant strategic partnership.

    • Acquired Mirantis, adding 650 engineers and cloud infrastructure expertise to enhance delivery capabilities.

    • Energized Sweetwater 1 substation on schedule and commenced GPU commissioning for Horizon 1 (Microsoft) in Q3.

    Concerns

    5

    • Reported a net loss of $247.8 million, primarily due to noncash impairments.

    • Bitcoin mining revenue decreased to $111.2 million from $167.4 million in the prior quarter.

    • Adjusted EBITDA declined to $59.5 million, down from $75.3 million QoQ.

    • Incurred $140.4 million in noncash impairments related to the decommissioning of mining hardware.

    • Experienced $23.7 million in unrealized losses related to cap calls on convertible notes.

    Guidance & targets

    6
    CategoryTargetConfidence
    ARR under contract
    $3.7 billion
    high materiality
    High
    AI cloud capacity
    480 megawatts
    high materiality
    High
    GPUs deployed
    150,000 GPUs
    high materiality
    High
    AI cloud capacity
    1,210 megawatts
    high materiality
    High
    Revenue ramp timing (Microsoft & 50,000 GPUs)
    begin ramping in Q3 2026
    medium materiality
    High
    Noncash impairments
    additional noncash impairments
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Bitcoin mining revenue
    Driven by a lower average Bitcoin price and ongoing decommissioning of mining hardware.
    		$111.2 million—down from $167.4 million—
    AI cloud services revenue
    Continued growth reflecting the transition to AI cloud.
    		$33.6 million—up from $17.3 million—

    Operational metrics

    17
    Adjusted EBITDA
    $59.5 milliondown from $75.3 million
    Q3 FY26

    Primarily on account of revenue and cost of revenue items related to the transition from Bitcoin mining to AI cloud.

    Cash and investments balance
    $2.6 billion
    as of April 30

    Cash and cash equivalents available to support near-term CapEx program.

    Secured power
    5 gigawatts
    current

    Represents one of the largest portfolios assembled for AI infrastructure globally.

    GPUs for NVIDIA investment vesting
    600,000 GPUs
    future

    NVIDIA's $2.1 billion investment fully vests upon deployment of this many GPUs.

    Mirantis employees
    650
    current

    Engineers, operators, and customer support professionals joining IREN through the Mirantis acquisition.

    Mirantis customers
    1,500+
    current

    Enterprise customers globally served by Mirantis prior to acquisition.

    Childress Horizon liquid cooled capacity
    300 megawatts
    CY26

    Deployment for NVIDIA GB300 NVL72 installations, with Horizon 1 scheduled for Microsoft handoff in Q3.

    Childress additional liquid cooled capacity
    100 megawatts
    CY27

    Part of the 2027 expansion plan.

    Prince George air cooled capacity
    50 megawatts
    CY26

    All air-cooled GPUs delivered and either operating or undergoing commissioning.

    Mackenzie data center capacity
    80 megawatts
    CY26

    Prepared for GPU installations commencing in H2 2026.

    Childress initial air cooled retrofit capacity
    50 megawatts
    CY26

    Data center retrofits underway ahead of GPU deliveries in H2 2026.

    Childress additional air cooled retrofit capacity
    250 megawatts
    CY27

    Part of the 2027 plan, with approximately 60 MW deployed for the NVIDIA AI cloud contract.

    Canal Flats air cooled retrofit capacity
    30 megawatts
    CY27

    Plan to retrofit existing infrastructure to support AI workloads.

    Sweetwater 1 initial liquid cooled IT load
    200 megawatts
    CY27

    Construction underway after high-voltage substation energization.

    Spain secured power acquisition
    490 megawatts
    current

    Acquired through Nostrum Group, establishing IREN's European platform.

    GPU financing interest rate
    3%
    current

    Average interest rate for 95% of Microsoft GPU-related CapEx funded through prepayments and GPU financing.

    Cost of revenues
    $25.9 milliondecrease
    Q3 FY26

    Primarily due to electricity costs from reduced Bitcoin mining capacity.

    Industry KPIs

    7
    MetricValueDetails
    Capacity CAPEX5 gigawattsGW
    Revenue growth$144.8 millionUSD
    Arr net new arr$3.1 billionUSD
    Rpo current rpo$3.1 billionUSD
    Bookings billings$3.4 billionUSD
    Customer account count1,500+customers
    Ai product adoption monetizationk0rdent AI platform

    Orderbook & backlog

    4
    ARR under contract$3.1 billionQ3 FY26
    Target ARR$3.7 billionend of CY26
    AI cloud contract with NVIDIA$3.4 billionQ3 FY26

    5-year contract, includes approximately $700 million of associated ARR.

    Uncontracted capacity50,000 air cooled GPUsQ3 FY26

    Scheduled for delivery in phases through H2 2026.

    Product announcements

    1
    ProductTypeDetails
    Mirantis k0rdent AI platformexpansion

    Deals & partnerships

    5
    NVIDIA5-year AI cloud contract for Blackwell GPUs$3.4 billion5 years

    Contract for Blackwell GPUs to be deployed across 60 megawatts of air cooled capacity at Childress. This is the first step in a broader strategic partnership.

    NVIDIAStrategic partnership and investment rights$2.1 billion

    Partnership to support deployment of up to 5 gigawatts of NVIDIA DGX-aligned AI infrastructure across IREN's global data center platform. NVIDIA's capital is directly tied to execution.

    MirantisAcquisition of cloud infrastructure company

    Mirantis brings over a decade of experience running cloud infrastructure for over 1,500 enterprise customers globally, and its k0rdent AI platform.

    Nostrum GroupAcquisition of European power and development platform

    Includes a team of more than 50 people across development, engineering, construction, and operations, establishing IREN's European platform.

    MicrosoftAI cloud services contract

    Horizon 1 is scheduled for Microsoft handoff in Q3 2026, representing a major execution milestone for large-scale liquid cooled infrastructure.

    Capital programs

    7
    Sweetwater 1 liquid cooled data centersunderway
    Start: Q3 FY26

    Benefit: initial 200 megawatts IT load

    High-voltage substation energized on schedule; construction underway for the initial 200-megawatt IT load phase. Designed for next-generation chip architectures like NVIDIA Vera Rubin.

    Childress Horizon 1-4 liquid cooled deploymentunderway

    Benefit: 300 megawatts

    NVIDIA GB300 NVL72 installations underway. Horizon 1 scheduled for Microsoft handoff in Q3, Horizons 2-4 on track for delivery by year-end. Demonstrates ability to design, build, fit out, and commission large-scale liquid cooled infrastructure.

    Childress Horizon 5-6 liquid cooled IT loadplanned

    Benefit: 100 megawatts

    Additional liquid cooled IT load as part of the 2027 plan.

    Mackenzie data center capacity preparationunderway

    Benefit: 80 megawatts

    Data center capacity prepared for GPU installations commencing in H2 2026.

    Childress air cooled data center retrofits (initial)underway

    Benefit: initial 50 megawatts

    Retrofits underway ahead of GPU deliveries in H2 2026, leveraging existing infrastructure.

    Childress air cooled data center retrofits (additional)planned

    Benefit: 250 megawatts

    Additional retrofits as part of the 2027 plan, with approximately 60 MW deployed for the NVIDIA AI cloud contract.

    Canal Flats air cooled capacity retrofitplanned

    Benefit: 30 megawatts

    Plan to retrofit all existing air cooled capacity to support AI workloads, capital efficient and fast to execute.

    Risks & headwinds

    4
    Noncash impairments from Bitcoin mining decommissioningQ3 FY26

    $140.4 million

    Mitigation: Strategic reallocation of infrastructure toward AI cloud growth, which is deemed a higher-value long-term opportunity.

    Unrealized losses on convertible notesQ3 FY26

    $23.7 million

    Decline in Bitcoin mining revenueQ3 FY26

    down from $167.4 million to $111.2 million

    Mitigation: Ongoing decommissioning of mining hardware and transition to AI cloud services.

    Additional noncash impairmentsfuture quarters

    expected

    Mitigation: Continued transition of remaining Bitcoin mining operations towards AI cloud.

    What to watch in Q4 FY26

    5

    Horizon 1 Microsoft handoff

    Q3 2026
    CurrentGPU commissioning underway
    TargetHandoff completed

    Why it matters

    Verifies execution capability for large-scale liquid-cooled infrastructure and marks the start of significant revenue ramp.

    Horizon 1 is scheduled for Microsoft handoff in Q3, and Horizons 2 to 4 remain on track for delivery by the end of this year.

    Q&A highlights

    5

    Asked for specific GPU count and cost for the 60 MW NVIDIA contract, and the marketability and required milestones for Sweetwater and Oklahoma sites for 2027/2028 capacity.

    Did not disclose specific GPU count but confirmed 60 MW of air-cooled Blackwells. Stated that demand for 2027/2028 capacity is extremely strong, outstripping supply, and they can market those sites now. The focus is on structuring contracts to enable a flywheel effect, and having a defined construction plan makes negotiations easier.

    “there's nothing stopping us contracting that capacity today. It just gets easier, the closer you get. So the focus is on time to compute. The demand we know is there...”

    asked by Michael Ng · answered by Kent Draper

    2 min read6 chapters

    Detailed Narrative

    01

    AI Infrastructure Thesis and Execution

    IREN's core thesis centers on bridging the gap between exponential digital growth and the physical world's ability to service it, particularly in AI infrastructure. The company emphasizes its strength in integrating site control, grid connection, permitting, construction, GPU installation, and financing to deliver compute capacity on tight timelines. This execution capability is evident in the increase of secured power to 5 gigawatts and the on-schedule energization of Sweetwater 1, with Horizon 1 GPU commissioning underway for Microsoft.

    02

    Strategic NVIDIA Partnership and Investment

    A significant highlight is the strategic partnership with NVIDIA, including a $3.4 billion 5-year AI cloud contract for NVIDIA's internal workloads. NVIDIA is also investing $2.1 billion, structured to vest as NVIDIA GPU infrastructure is deployed across IREN campuses, fully vesting upon deployment of 600,000 GPUs. This partnership aims to support the deployment of up to 5 gigawatts of NVIDIA DGX-aligned AI infrastructure globally, reflecting a deep collaboration beyond a typical customer relationship.

    03

    Capacity Expansion and Time-to-Compute Advantage

    The company's 2026 plan targets 480 megawatts of AI cloud capacity and 150,000 GPUs by year-end, with Horizon 1 for Microsoft scheduled for Q3 handoff. IREN is converting existing air-cooled capacity in British Columbia and Childress (180 MW) for AI cloud workloads, leveraging existing infrastructure for capital efficiency and speed. This 'time-to-compute' advantage allows IREN to contract capacity ahead of commissioning, securing a robust customer mix.

    04

    Global Platform Development and Geographic Expansion

    Beyond 2027, IREN is building towards a 5 gigawatt global power portfolio, expanding its footprint from North America to Europe and APAC. The acquisition of Nostrum Group adds 490 megawatts of secured power in Spain, establishing a European platform with a local team. In APAC, Australia is identified as a key anchor point due to abundant renewables, strong rule of law, and direct fiber links to major demand centers, positioning IREN to serve the region's unmet AI infrastructure needs.

    05

    Mirantis Acquisition Enhances Delivery and Support

    IREN acquired Mirantis, integrating 650 engineers and their k0rdent AI platform, which manages AI infrastructure across various environments. Mirantis' expertise in running cloud infrastructure for over 1,500 enterprise customers and its role as a founding ISV partner of the NVIDIA AI Cloud-ready initiative are expected to significantly strengthen IREN's capabilities in provisioning, monitoring, and supporting customers through increasingly complex AI deployments, directly supporting the NVIDIA AI cloud contract.

    06

    Financial Transition and Capital Strategy

    The Q3 FY26 financial results reflect an ongoing transition from Bitcoin mining to AI cloud, with Bitcoin mining revenue decreasing and AI cloud services revenue increasing. The company reported a net loss due to noncash impairments from decommissioning mining hardware. IREN's capital strategy leverages $2.6 billion in cash, operating cash flows, GPU financing (95% funded for Microsoft's GPU-related CapEx at ~3% interest), and evolving asset/project-level financing to support its phased capacity build-out.

    AI-generated summary of the company’s earnings call. Not investment advice.