IREN Q1 FY2027: AI Cloud revenue nearly tripled to $200M, while quarterly capex reached $4.8B

IREN started as a Bitcoin miner that secures its own land and power and builds its own data centers; campuses named in the release include Childress, Mackenzie and Sweetwater, plus a development in Badajoz, Spain. It now sells AI Cloud services on NVIDIA GPU systems and, in a new revenue line this quarter, AI Cloud Lease. The release names NVIDIA, Microsoft and 13 other customers under contract. Bitcoin Mining revenue fell as the AI Cloud business grew.

The release reports this quarter against the June quarter only, and both halves of the business moved fast. AI Cloud became about 88% of revenue, and adjusted EBITDA rose to about 3.5 times the June quarter’s (both our arithmetic). At the same time, IREN spent about $4.8 billion on data centers and GPUs in three months, borrowed to do it, and moved its headline run-rate target back. This piece looks at the revenue, then the spending and the balance sheet, then the targets.

IREN Q1 FY2027 results at a glance

$ millions	Q1 FY2027 (Sept. 30)	Q4 FY2026 (June 30)
AI Cloud Services revenue	135	71
AI Cloud Lease revenue	65	—
Bitcoin Mining revenue	28	67
Total revenue	228	137
Operating loss	(186)	(620)
Net loss	(263)	(684)
Adjusted EBITDA	66	19
Net cash from operating activities	529	1,811
Payments for PP&E and computer hardware	4,824	1,978
Net debt	4,430	216

The capex line is our arithmetic: payments for property, plant and equipment net of computer hardware plus payments for computer hardware, both from the cash flow statement.

AI Cloud revenue up 182% in a quarter

AI Cloud revenue was $200 million, against $71 million in the June quarter: $135 million from AI Cloud Services and $65 million from AI Cloud Lease, a new line this quarter. The CEO’s quote ties it to Horizon 1 going into service for Microsoft. AI Cloud segment gross margin was 86%, in line with the prior quarter, per the release; that figure excludes depreciation and site-level costs.

Bitcoin Mining revenue fell to $28 million from $67 million, and its segment margin before depreciation fell to about 36% from about 64% (our arithmetic). Total segment gross profit was $182 million, against $104 million.

The loss narrowed, but depreciation and stock pay grew

The operating loss was $186 million, against $620 million in the June quarter, which included $450 million of impairments. This quarter’s costs below gross profit were mostly two lines: depreciation and amortization of $148 million, up from $112 million, and selling, general and administrative expenses of $217 million, of which $106 million was stock-based compensation (against $43 million). Finance expense rose to $73 million from about $24 million as debt grew. The net loss was $263 million, a margin of (116)%.

Adjusted EBITDA, which adds back depreciation, stock compensation, impairments and fair-value items, was $66 million, a 29% margin, against $19 million and 14%.

$4.8B of capex against $228M of revenue

IREN paid $2,131 million for property, plant and equipment and $2,693 million for computer hardware in the quarter, about $4.8 billion in total and about 21 times the quarter’s revenue (our arithmetic). Property, plant and equipment on the balance sheet rose to $12,344 million from $6,753 million.

Operating cash flow of $529 million helped, but customers paying in advance accounted for more than all of it: deferred revenue added $645 million of cash, after $1,722 million in the June quarter. Deferred revenue on the balance sheet, current and non-current, rose to about $2.54 billion from about $1.84 billion (our arithmetic).

The rest was borrowed or drawn from cash. IREN drew $2,360 million under financing facilities and raised $498 million from new shares. Total debt rose to $10,208 million from $7,836 million, cash and cash equivalents fell to $3,522 million from $5,896 million, and restricted cash rose to $2,256 million. Net debt, as IREN reconciles it, went to $4,430 million from $216 million.

The release says $15 billion of fiscal 2027 capex remains from September 30. It expects $9 billion to come from cash, committed GPU financing and customer prepayments, and targets the other $6 billion from further GPU financing, prepayments, data center financing and corporate sources, “subject to market conditions”. The $9 billion counts undrawn committed facilities and contracted prepayments not yet received, and is subject to the conditions of those facilities, including the release of escrowed proceeds. The release also notes that its 0.8GW capacity target for the end of calendar 2027 may require additional capex in fiscal 2027.

Backlog of $20.3B, and the $4B target moved to January

Revenue backlog, which includes remaining performance obligations, lease arrangements and other amounts IREN estimates it may recognize under committed contracts, rose 22% to $20.3 billion, about two-thirds with investment-grade counterparties per the release. The CEO says operating annualized run-rate revenue (ARR) doubled to about $1 billion.

The target of more than $4 billion of ARR, which the release calls “fully contracted and fully funded” (a term it limits to the 0.3GW program behind the target and conditions on its financing facilities), was previously set for year-end 2026. It is now targeted to be operational by January 31, 2027 “following a customer-requested change and supplier timing”, and may extend to the end of February 2027. The release says revenue is expected to ramp after commissioning, testing and customer acceptance in the months following each data center’s delivery, that ARR is an operating metric, not GAAP revenue, and that recognized revenue may be materially lower.

After the quarter, IREN says it expanded its contract with an unnamed “Leading Frontier AI Lab”, signed a five-year contract at about $22 million of annual revenue per IT megawatt with customer prepayments covering 90% of the related GPU capex, and a short-term contract at $40 million per IT megawatt. It says contracted pricing rose 11% on three-year and 12% on five-year deals, measured as estimated average annual revenue per MW for contracts signed in Q1 FY27 against Q4 FY26, weighted by ARR and based on internal assumptions. After the quarter, it also contracted H100 GPUs at double the pricing of its prior H100 contract at Prince George.

What to watch in Q2 FY2027

• The $4 billion ARR date. Now January 31, 2027, possibly the end of February, after year-end 2026 previously; revenue ramps after customer acceptance.
• Funding the remaining $15 billion. $9 billion is identified, subject to facility conditions; $6 billion is a target subject to market conditions.
• Net debt. $4.43 billion at September 30, from $216 million three months earlier.
• Depreciation. $148 million in Q1, up from $112 million.
• Customer prepayments. They funded much of operating cash flow in the last two quarters.

Quick answers

What was IREN’s revenue in Q1 FY2027?

Revenue for the quarter ended September 30, 2026, was $228 million, up 66% from $137 million in the June quarter. AI Cloud revenue was $200 million, up 182%, and Bitcoin Mining revenue $28 million.

Is IREN profitable?

Not on a GAAP basis. The net loss was $263 million, narrower than the $684 million loss in the June quarter. Adjusted EBITDA, a non-GAAP measure, was $66 million, a 29% margin.

When will IREN reach $4 billion of ARR?

IREN now targets more than $4 billion of annualized run-rate revenue to be operational by January 31, 2027, possibly extending to the end of February 2027; the target was previously year-end 2026. ARR is not GAAP revenue, and the release says revenue ramps after commissioning and customer acceptance.

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Sources and method. Every company figure is IREN’s own disclosure, read directly from SEC EDGAR and linked above. Revenue by segment, the statement of operations, the September 30 and June 30 balance sheets, the quarterly cash flow statement, the adjusted EBITDA, segment gross profit, net debt and operating cash expense reconciliations, backlog, the ARR target and its timing, contract pricing, post-quarter contracts, the capex funding plan and the CEO’s quotation come from Exhibit 99.1 to the Form 8-K filed 2026-11-05 (accession 0001878848-26-000065) for the quarter ended 2026-09-30, which presents the June quarter as its comparison. IREN’s fiscal year ends June 30, so this is the first quarter of fiscal 2027. The results were filed with the SEC at 4:03 pm ET on 2026-11-05 (Form 8-K acceptance time on the EDGAR filing index), after the US market closed; the release scheduled its webcast for 5:00 p.m. ET the same day.

No consensus estimate is included, so this piece makes no claim that the quarter beat or missed expectations. The release gives no revenue or earnings guidance figure; its forward-looking items are the ARR target, the capex funding plan, capacity targets and an expected increase in cash operating expense for Q2 FY27, for which it gives no figure. This piece makes no claim about the share-price reaction.

Our arithmetic, labelled as such: AI Cloud at about 88% of revenue; adjusted EBITDA at about 3.5 times the June quarter’s; total capex of $4,824 million ($2,131 million + $2,693 million) and $1,978 million in the June quarter ($1,329 million + $649 million), and capex at about 21 times revenue; the Bitcoin Mining segment margins of about 36% and 64%; deferred revenue of about $2.54 billion and $1.84 billion; and restricted cash of $2,256 million ($2,208 million current + $48 million non-current). These are approximations, not reported numbers. The 66%, 182%, 86%, 29%, 22% and pricing figures are as printed in the release. The interpretation (that the quarter’s revenue progress came with a much larger build-out funded mainly by debt and prepayments) is our analysis, not a company statement or a forecast.

Related: IREN Q4 FY2026, the prior quarter; CoreWeave Q2 2026 and Nebius Q2 2026, which also rent out AI compute.