Weak earnings performance overshadowed a key milestone in IREN’s ongoing transition from a Bitcoin mining company into an AI cloud infrastructure provider.
IREN shares slid 8% in Friday’s premarket session after its fiscal fourth-quarter report revealed the substantial near-term expenses associated with expanding its AI business.
Revenue for the quarter declined 5% from the previous quarter to $137.2 million, while adjusted EBITDA fell 68% to $19.2 million. Rising employee expenses and investments made ahead of the AI cloud expansion contributed to the decline. On a year-over-year basis, revenue and adjusted EBITDA dropped 85% and 93%, respectively.
IREN also recorded a net loss of $684 million. The figure included a $450.4 million non-cash impairment charge, primarily associated with taking Bitcoin mining equipment out of service. As the company converts existing mining facilities into AI infrastructure, it is absorbing significant costs before the new business reaches full revenue generation.
The company said it has $4 billion in contracted annualized run-rate revenue linked to capacity expected to come online in 2026. Of that amount, approximately $1 billion is already operational.
Despite the pressure on profitability, the quarter marked a significant turning point for IREN. AI cloud revenue more than doubled from the previous quarter, reaching $70.5 million and exceeding Bitcoin mining revenue of $66.7 million for the first time.
AI cloud operations accounted for 51.4% of quarterly revenue, compared with 48.6% generated by Bitcoin mining. Mining revenue dropped 40% from the prior quarter as IREN continued reallocating electricity and infrastructure toward its expanding AI operations.
