IREN Limited (NASDAQ: IREN) reported a fiscal fourth-quarter revenue of $137.2 million on August 27, down from $187 million a year prior, reflecting a wider net loss. Notably, this quarter was part of a planned transition as the company shifts from Bitcoin mining to AI cloud services, exceeding consensus estimates of $132.29 million. Contracted annual recurring revenue is expected to surpass $4 billion by year-end, with $1 billion already operational.
AI cloud revenue surged to $70.5 million in the quarter, more than doubling sequentially and growing eightfold year-over-year to $128.8 million for the full year. The company’s key partnerships are solidified, as Microsoft conducted a physical inspection of IREN’s building, part of a $9.7 billion contract, and NVIDIA awarded the facility “Exemplar Cloud” status. New contract prices have risen from approximately $20 million to $25 million per megawatt, indicating improved pricing power.
Despite the positive undertones, IREN’s stock fell around 8% following the report, closing at $40.53 on August 27 before dipping in after-hours trading. The stock is down approximately 47% from its 52-week high of near $77. Nearly 29% of IREN’s float is sold short, reflecting skepticism about its near-term profitability timeline, which management has indicated could extend to 2029 or 2030.
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