IREN AI Cloud revenue hits $200M, Bitcoin mining drops to $28M

IREN reported $200 million in AI Cloud revenue for the quarter ended September 30, 2026, a 182% sequential increase from the $71 million recorded in the previous quarter. The company filed these results with the SEC on November 5, marking a significant shift in its revenue composition away from its traditional Bitcoin mining operations.

Revenue Mix Shifts to AI

While AI Cloud sales expanded, Bitcoin mining revenue declined to $28 million, down from $67 million in the preceding period. Total revenue for the quarter rose to $228 million from $137 million, indicating that the overall business expanded even as mining became a smaller share of the total. The AI Cloud segment reported a gross margin of 86% for the period.

The financial results show a narrowing of losses despite the continued investment in infrastructure. IREN reported a net loss of $263 million for the September quarter, compared with a loss of $684 million in the prior quarter. Adjusted EBITDA increased to $66 million from $19 million. The company noted that the coexistence of strong revenue growth and a substantial accounting loss reflects the capital-intensive nature of the transition to AI infrastructure.

Backlog and Delivery Timelines

IREN stated that its revenue backlog increased to $20.3 billion, with approximately two-thirds of that amount associated with investment-grade counterparties. Management indicated that a target of more than $4 billion in annual recurring revenue is fully contracted and funded. However, the timetable for reaching this target moved from the end of 2026 to January 2027 due to a customer-requested design change and supplier timing. The company said completion of the target could extend into February.

The Horizon 1 facility entered service for Microsoft during the period. IREN also reported signing additional contracts after the quarter-end. The filing described planned remaining fiscal-year capital spending and the financing expected to be used for these projects. The company’s results reflect a transformation already visible in its income statement, with AI infrastructure now driving the majority of revenue growth.