IREN Ltd. 10-Q Summary: Quarter Ended March 31, 2026
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended March 31, 2026. IREN Ltd. is a vertically integrated provider of AI Cloud Services and Bitcoin mining. The company is transitioning its strategic focus from Bitcoin mining to High-Performance Computing (HPC) and AI Cloud Services, leveraging its portfolio of grid-connected land and renewable power. As of the reporting date, the company operates seven data center sites with 4,510MW of total power capacity and approximately 150,000 GPUs installed or on order.
Key Financial Metrics
| Metric | Three Months Ended Mar 31, 2026 | Nine Months Ended Mar 31, 2026 |
|---|---|---|
| Total Revenue | $144.8 million | $569.8 million |
| Net Income (Loss) | $(247.8) million | $(18.6) million |
| EBITDA | $(139.8) million | $279.0 million |
| Adjusted EBITDA | $59.5 million | $226.5 million |
| Cash and Cash Equivalents | $2,213.3 million | $2,213.3 million (Balance Sheet) |
| Convertible Notes Payable | $3,687.8 million | $3,687.8 million (Balance Sheet) |
| Operating Cash Flow | N/A | $289.3 million |
Note: Revenue is split between Bitcoin mining ($111.2M for Q3) and AI Cloud Services ($33.6M for Q3). The company reported a net loss for the quarter primarily due to significant non-cash impairment charges and stock-based compensation.
Material Changes vs. Prior Period
- Revenue Composition: While total revenue remained flat quarter-over-quarter ($144.8M vs. $144.8M), the mix shifted significantly. Bitcoin mining revenue decreased by 21% to $111.2M due to lower Bitcoin prices and reduced hashrate, while AI Cloud Services revenue surged 839% to $33.6M.
- Impairment Charges: The company recorded a material impairment of assets of $140.4 million for the quarter (nil in the prior year quarter). This relates to Bitcoin miners and IT equipment displaced as part of the strategic transition to AI Cloud Services.
- Operating Expenses: Selling, general, and administrative (SG&A) expenses increased to $81.8 million from $29.1 million year-over-year, driven largely by a $23.7 million increase in stock-based compensation and higher employee benefits.
- Balance Sheet: Total assets grew to $7.26 billion from $2.94 billion at the end of the prior fiscal year, reflecting significant capital investment in property, plant, and equipment (PP&E) and a substantial increase in cash reserves.
Guidance, Outlook, and Risks
Strategic Outlook: Management is accelerating the transition of Bitcoin mining operations to AI Cloud Services. A subsequent event disclosed a strategic initiative to retrofit air-cooled data centers at the Childress campus for AI use, with an estimated additional impairment charge of approximately $520 million expected to be incurred subsequent to the reporting period.
Recent Developments (Subsequent Events):
- NVIDIA Agreement: Entered into a $3.4 billion, five-year agreement to provide dedicated GPU services to NVIDIA.
- NVIDIA Private Placement: Agreed to sell investment rights for up to 30 million shares (approx. $2.1 billion potential proceeds) to NVIDIA, exercisable based on GPU delivery volumes.
- Acquisitions: Agreed to acquire Mirantis, Inc. (cloud software) for approx. $625 million and Nostrum Group (Spanish data center developer) for approx. EUR 165 million.
Risks and Contingencies:
- Tariffs: The company is contesting a U.S. Customs assessment of a 25% tariff on mining hardware imports, potentially totaling $100 million.
- Regulatory: Ongoing dispute with the Canada Revenue Agency regarding a $27.7 million GST assessment.
- Capital Needs: Significant capital requirements remain for data center expansion and GPU procurement, with total commitments reaching $11.9 billion as of March 31, 2026.
Investor Verification Checklist
- Impairment Trajectory: Verify the final scope and timing of the estimated $520 million additional impairment charge related to the Childress campus transition.
- GPU Supply Chain: Confirm delivery schedules and pricing stability for the $3.5 billion in GPU purchase agreements with Dell and the NVIDIA supply arrangement.
- Debt Structure: Review the terms of the $3.7 billion in outstanding convertible notes and the impact of the recent induced conversion expense ($111.8 million) on future dilution.
- Regulatory Outcomes: Monitor the resolution of the U.S. tariff dispute ($100M exposure) and the Canadian GST appeal ($27.7M exposure).
- Acquisition Integration: Assess the regulatory approval status and integration plans for the Mirantis and Nostrum Group acquisitions.