Iren Stock Plunges on Missed Earnings, But Contracts Reveal $4 Billion in Contracted Revenue

Iren's recent earnings report sent its stock down 12% to €30.80 in German trading, as investors punished the AI infrastructure firm for fourth-quarter revenue of $137.2 million that fell short of the $157.14 million consensus estimate.

However, a closer look at the company's contracts reveals a different story: contracted annualized recurring revenue of $4 billion for 2026 capacity, with $1 billion already operational as of August 26. The company also disclosed that its 2026 capacity is largely sold out, according to media reports.

The revenue miss emerged from Iren's deliberate strategic pivot towards an AI cloud business, which has produced lumpy quarters due to the transition from low-margin Bitcoin mining operations. For the full fiscal year, total revenue climbed to $707.0 million from $501.0 million in the prior year, but at a net loss of $702.6 million, driven largely by a non-cash impairment of $450.4 million on retired Bitcoin mining hardware.

The company's Horizon 1 deployment with Microsoft is seen as a key milestone, representing $1 billion of the contracted ARR. Iren has also signed a multi-year AI cloud contract with an unnamed 'leading frontier AI lab,' adding to its growing customer roster in the AI infrastructure space.