Iren, formerly Iris Energy, has secured a cloud contract with an unnamed “leading frontier lab,” as the company released its full-year results for FY2026.

Speaking during the company’s earnings call, co-founder and co-CEO Daniel Roberts noted that the company now has annual recurring revenue (ARR) of $4 billion, including contracts with the likes of Cohere, Prometheus, Perplexity, Figure AI, Fal.ai, and Higgsfield AI.

He added that, of that ARR, $1 billion is currently operating and is expected to ramp up during 2027, including a further $700 million associated with Iren’s contract with Nvidia, which was signed in May 2026, and spans five years with a total contract value of $3.4bn.

According to Iren’s Annual Report filing with the SEC, this, along with the company’s $9.7bn cloud deal signed with Microsoft in November 2025, “represent[s] a substantial majority of our contracted revenue.” The first phase of capacity for that contract was delivered in August 2026.

It goes on to note: “The loss of, or any material reduction in committed capacity by, any significant customer, or any failure by a significant customer to accept capacity or perform its payment or other obligations, could have a material adverse effect on our results of operations and cash flows.”

Iren’s remaining performance obligations are valued at $16.6bn, while the aggregate contracted value of lease arrangements was approximately $11.4 billion.

Iren has been publicly listed since 2021, though previously focused on its Bitcoin mining operations. This is the first full year of operations in which the company has placed its AI cloud efforts front and center, and with that in mind, Iren is currently set to be “effectively decommissioned” by the end of December 2026.

While this is the aim, Iren still derives the vast majority of its revenue from its Bitcoin mining operations.

The company’s Bitcoin mining capacity sits around 380MW at present, while its AI cloud capacity was just 40MW as of the end of June 2026. For the full year, AI cloud revenue was $128.8m, up from $16.4m in 2025, while Bitcoin mining brought in $578.2m, up from $501m the year prior. Iren typically liquidates its Bitcoin on a daily basis, converting the proceeds into fiat currency to fund its operating and capital expenditures.

Together, this brings the company’s full operating capacity to 420MW, while it has a pipeline of 5GW planned across sites in British Columbia, Canada (x3 and 160MW); Texas, US (x3 and 2.75GW); Oklahoma, US (1.6GW); Bundey, Australia (800MW), and Badajoz, Spain (300MW).

It is noted by Iren that there is some degree of risk associated with changing its strategy: “Any potential further expansion of AI cloud services or expansion into additional markets will take time to implement, and there can be no assurance that we will be successful in doing so in the near term or at all.”

While revenue for both Bitcoin mining and AI cloud services was up Year-on-Year (YoY), Iren posted a net loss of $702.6 million, while the year prior had a net profit of $86.9m.

This was largely related to the increasing operating expenses, which reached $1.534bn in 2026, up from $324.7m in 2025. The three areas that increased the most were impairment of assets, depreciation costs, and “selling, general, and administrative” costs.

The impairment of assets increased as part of the company’s efforts to retrofit its air-cooled data centers in British Columbia and Childress, and develop direct-to-chip liquid cooling for the Childress data centers for its AI cloud services. Impairment alone increased $631.6 million YoY.

Depreciation increased by approximately $236m, which was put down to the company’s “higher operating capacity” at Childress, and the additional GPUs deployed.

Selling, general, and administrative costs, meanwhile, increased by around $313 million, of which more than half went to the company’s “stock-based compensation expense.”

“The increase in stock-based compensation expense was primarily related to the September 2025, October 2025 and May 2026 vesting of certain market-based RSUs and stock options and the resulting accelerated recognition of the remaining unrecognized compensation cost, the amortization of certain stock-based payment awards modified and awarded in the fourth quarter of the fiscal year 2025, and the amortization of RSUs issued to employees and directors during the year ended June 30, 2026.”

In July 2026, both co-CEOs at Iren were further awarded each 9,099,328 units of restricted stock.

Another operating expense noted is the cost of power, which Iren said was approximately 27 percent of its total revenue.

The company held cash or cash equivalents of $5.89bn, and restricted cash of $1.7bn, most of which is for the Microsoft contract’s capex related to GPUs.

CFO Anthony Lewis noted that the company has this year secured circa $19 billion in funding, including prepayments, GPU funding, convertible notes, and equity. He added that the company is expecting capex for 2027 of between $25m and $30m, including covering the remaining capex for Microsoft and its ongoing retrofitting efforts.

Lewis added: “We are targeting roughly an additional $8 billion of GPU financing and prepayments in support of GPU capex requirements, noting the healthy prepayments that we are seeing in recent contracting and the growing market for GPU financing.”

At the time of writing, Iren shares are valued at $37.68.