IREN reports $228M revenue for Q1 FY27 driven by AI Cloud growth

IREN (NASDAQ:IREN) reported a net loss of $263 million for the first quarter of fiscal 2027, which ended September 30, according to a report from Investing.com. The company reported revenue of $228 million, which was slightly below the analyst consensus of $230.45 million.

Revenue and Segment Performance

Revenue for the quarter increased 66% sequentially from $137 million in the prior quarter. This growth was driven by the company's AI Cloud business, which saw revenue nearly triple to $200 million from $71 million in the previous quarter. During the same period, Bitcoin Mining revenue declined to $28 million from $67 million in the prior quarter.

According to Investing.com, the AI Cloud segment gross margin remained at 86%, which was in line with the prior quarter. The company also reported adjusted EBITDA of $66 million, an increase from $19 million in the previous quarter.

Daniel Roberts, Co-Founder and Co-CEO of IREN, stated, "This quarter Horizon 1 went into service for Microsoft with NVIDIA Exemplar status, AI Cloud revenue nearly tripled to $200 million, and operating ARR doubled to a billion."

Backlog and Future Targets

IREN's revenue backlog increased 22% sequentially to $20.3 billion, with approximately two-thirds of that amount contracted with investment-grade counterparties. The company disclosed that its more than $4 billion annual run-rate revenue target is "fully contracted and fully funded," according to a report from TradingView News.

Operational timing for this $4 billion target is currently targeted for January 2027, though it may extend to February 2027 due to a customer-requested design change and supplier timing.

Following the quarter-end, IREN signed a five-year contract at approximately $22 million per megawatt, noting that 90% of GPU capital expenditure was prepaid by the customer. The company also signed a short-term contract at $40 million per megawatt.

Assets and Infrastructure

As of September 30, IREN reported total assets of $20.6 billion. The company has secured more than 30,000 acres of land that supports over 5GW of secured power, and maintains a development pipeline exceeding 35GW.

IREN also reported achieving NVIDIA Exemplar Cloud status for NVIDIA GB300 NVL72 systems at Horizon 1.

Why it matters

IREN's financial results show a significant shift in revenue composition as the company expands its AI Cloud business. While the company reported a net loss of $263 million, it reported an increase in adjusted EBITDA and a substantial increase in its revenue backlog and contracted annual run-rate targets.

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Sources

• tradingview.com: IREN: AI Cloud drove revenue to $228M as more than $4B of ARR remained contracted and funded — TradingView News
• investing.com: IREN reports Q3 loss though AI Cloud revenue nearly triples By Investing.com

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.