The numbers are not pretty. IREN reported a $684 million net loss in its fiscal fourth quarter, including a $450.4 million non-cash impairment tied mostly to decommissioning bitcoin mining hardware. The company is repurposing its mining sites for AI infrastructure, and that process comes with costs before the cloud revenue shows up fully.
Revenue fell 5% from the prior quarter to $137.2 million. Adjusted EBITDA dropped 68% to $19.2 million. On a year-over-year basis, those figures were down 85% and 93%, respectively. Employee costs and investments tied to the AI cloud ramp are eating into the bottom line.
Investors reacted by sending shares down 8% in pre-market trading on Friday. The market tends to focus on what it can see now, and right now the income statement looks rough.
AI Revenue Overtakes Mining
Still, there is a milestone buried in the report. AI cloud revenue more than doubled quarter over quarter to $70.5 million. Bitcoin mining revenue came in at $66.7 million, down 40% from the previous quarter, as power and infrastructure were redirected toward the AI business.
For the first time, AI cloud services accounted for more than half of quarterly revenue. The split was 51.4% from AI, 48.6% from mining. That is a meaningful shift for a company still known primarily as a bitcoin miner.
The quarterly numbers do not capture the full runway. IREN says it has $4 billion in contracted annualized run-rate revenue tied to its 2026 capacity. Only $1 billion of that is operational right now. In other words, the company is booking or at least contracting revenue ahead of the actual buildout.
A Costly Transition
There is a reason the stock fell even with that kind of pipeline. The transition is expensive. The impairment charge reflects the fact that some mining hardware is being retired earlier than originally planned. The company is converting mining sites, and that creates a period where costs are high and revenue recognition lags.
The market has been cautious about miners moving into AI for some time. The promise is real, but so are the execution risks. IREN’s shift is happening faster than some expected, which explains the jump in AI revenue. But the path also carries more uncertainty than a simple hardware refresh.
It is hard to say whether the market overreacted or not. The drop makes sense if investors are worried about cash burn and execution. Perhaps the market is waiting for more evidence before treating the AI business as the main story. At the same time, the AI revenue growth is not just talk. The company still has a long way to go, but the latest report shows the transition is underway, with real numbers behind it.
