Iren Q1 2027 Earnings Report

After a 26% drop in its post-election share price, neocloud IREN said in its earnings report Thursday that more than $4 billion in annual recurring revenue planned for 2026 has been pushed back until at least January.

IREN said the move, which could extend payment until February, is due to “a change requested by the customer and the supplier’s schedule.”

During the company’s earnings call, IREN co-CEO Daniel Roberts said Microsoft is the customer.

“They made a request to reconfigure and upgrade some of the network infrastructure and the purpose of that request was really to enable the 200 megawatts of capacity to serve these latest generation frontier models,” Roberts said.

IREN shares rose in extended trading, but that comes after a 55% decline over the past month.

The company said its revenue rose 66% from the previous quarter to $228 million, beating analysts’ average estimate of $221 million, according to LSEG. AI Cloud revenue more than doubled to $200 million. IREN makes the rest of its revenue from Bitcoin mining, which was its main business before the company turned to AI.

IREN’s net loss narrowed to $263 million from $684 million in the prior period. Last year’s figures were not included in the results release.

The company is being closely watched by investors as the AI ​​sector shows signs of slowing, particularly after Democrats won Tuesday’s midterm elections. Concerns are growing that cash-burning companies that rely on debt will struggle to meet their obligations as interest rates rise and lenders withdraw from the market. The Nasdaq experienced its worst day since April 2025 on Thursday.

“Capital markets have become more selective in recent weeks, and questions have undoubtedly shifted from the size of the contract to its ability to be delivered, financed and profitably operated,” Roberts said on the call.

CoreWeavewhich is expected to report results on Tuesday, has plunged 60% over the past month. Nebiuswhich will report next Thursday, is down 48% over this period.

IREN said the order backlog increased 22% from the previous period to $20.3 billion, with “approximately two-thirds of that with investment-grade counterparties.” The ARR’s $4 billion target is fully contracted and funded, the company said.

“There’s a disconnect between what we’re seeing in the public market and what we’re seeing at the customer level,” Roberts told CNBC’s Seema Mody.

Iren nevertheless said it plans to spend $15 billion in capital expenditures for the remainder of this fiscal year, including $9 billion in cash and committed financing, and $6 billion in “target” financing, which is “subject to market conditions.”

The neocloud said prices for its compute continued to rise and that it had expanded an existing contract with a leading AI lab. He declared that he had contracts with NvidiaMicrosoft and 13 other customers.

Roberts said some data center construction in the coming year would be supported by Nvidia and Microsoft, but about a third would go to companies willing to offer large prepayments for capacity.

“We just had a customer agree to fund 90% of the GPU capital expenditure,” Roberts said, referring to graphics processing units.

IREN said community opposition can be combatted by using local suppliers, using water efficiently and creating jobs.

“I think whether it’s Texas, Australia, Spain, everywhere, all we see is people want to make sure that the data centers pay for themselves and do the right thing, and that seems completely reasonable,” Roberts said.

IREN said it had deliberately not yet purchased all the GPUs it would need for next year to reduce risk.

—CNBC’s Isabel O’Brien contributed to this report.

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