IREN Limited reported a sharp drop in quarterly revenue, falling to $144.8 million for the three months ending March 31, 2026. That’s down from $184.7 million in the previous quarter, a decline of about 22%. The main causes were weaker Bitcoin market conditions and the removal of older mining hardware before new GPU systems could start billing customers at full capacity.
The financial picture was even rougher under the surface. The company recorded a net loss of $247.8 million, compared to a loss of $155.4 million in the prior quarter. Adjusted EBITDA fell to $59.5 million from $75.3 million. Costs did come down by $25.9 million, largely because reduced mining activity lowered power consumption.
Non-cash charges hit the bottom line
A significant part of the loss came from non-cash items. The quarter included $140.4 million in impairments, mostly from retired mining equipment. On top of that, there were $23.7 million in unrealized losses tied to capped call options linked to convertible notes. Those are accounting adjustments, not cash outflows, but they still hit reported earnings hard.
Expanding AI cloud and strategic partnerships
IREN has been leaning harder into AI computing services. The company signed a major five-year, $3.4 billion contract with NVIDIA to provide cloud services using air-cooled Blackwell GPUs. Those systems will be placed inside 60 megawatts of existing data center space at the Childress site. Customer usage is expected to ramp up from early 2027.
Beyond that, IREN and NVIDIA entered into a broader partnership covering up to 5 gigawatts of capacity. The agreement covers data center designs and infrastructure built around NVIDIA systems across IREN’s global power base. As part of the deal, IREN granted NVIDIA a five-year option to buy up to 30 million shares at $70 each. If fully exercised, that could bring IREN up to $2.1 billion, subject to regulatory approvals.
Construction milestones and Texas expansion
IREN said it energized the Sweetwater 1 substation on schedule. The company is also advancing the Horizon 1-4 liquid-cooled sites at Childress, which will support its existing $9.7 billion contract with Microsoft. The company said it is converting data centers from ASIC mining machines to GPUs as part of that buildout.
IREN shares rose about 10% in after-hours trading to $62.50. NVIDIA stock was nearly flat. The partnership revolves mainly around IREN’s 2-gigawatt Sweetwater campus in Texas. By comparison, one gigawatt of power can supply roughly 750,000 homes at once, so the scale is substantial.
Revenue pipeline and future capacity
IREN said its immediate expansion plan to 480 megawatts by the end of this year remains on schedule. The Horizon 1-4 sites are expected to be complete by year-end, and operating capacity is already fully contracted. The company reports $3.1 billion in annual recurring revenue under contract and expects that figure to rise to $3.7 billion by the end of 2026.
Looking ahead to 2027, IREN is aiming for 1,210 megawatts of capacity. That includes the Childress Horizons 5-6 sites, more air-cooled space at Childress, and the first phase of Sweetwater 1. Beyond 2028, the company expects more capacity at Sweetwater and Kiowa across its secured 5-gigawatt power portfolio. IREN also said projects in Australia are nearing connection agreements.
European expansion through acquisitions
IREN also agreed to buy Ingenostrum SL, a data center developer in Spain. The deal gives IREN its first European base. It adds about 490 megawatts of secured grid-connected power and brings a development pipeline above 1 gigawatt. Spain offers access to renewable energy, strong grid connections, and supportive AI policies that fit large data center projects.
The Nostrum team brings experience in development, engineering, construction, and operations. Separately, IREN bought Mirantis, which adds software, orchestration, customer support, and operating tools for its AI Cloud platform.
Funding the buildout
The company said near-term capital spending should be funded from $2.6 billion in cash as of April 30, along with operating cash flow, GPU financing, data center financing, and corporate-level funding that is already underway.
IREN’s pivot from pure Bitcoin mining to AI infrastructure is proceeding at a fast pace. The revenue decline shows the near-term pain of that transition. But the company is betting big that the long-term payoff from AI cloud services will far outweigh the short-term losses.
