Neocloud IREN says $4 billion in annualized revenue being delayed due to customer request — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- IREN said more than $4 billion in annual recurring revenue projected for 2026 was pushed to at least January, with payment potentially extending into February, after Microsoft requested network changes intended to enable 200 megawatts of capacity for latest-generation frontier models.
- IREN reported revenue up 66% from the prior quarter to $228 million, beating the $221 million analyst average, as AI Cloud revenue more than doubled to $200 million; net loss narrowed to $263 million from $684 million.
- IREN said revenue backlog increased 22% to $20.3 billion, with approximately two-thirds involving investment-grade counterparties, while the $4 billion ARR target was fully contracted and funded.
- IREN plans $15 billion in capital expenditures for the rest of its fiscal year: $9 billion in cash and committed financing plus $6 billion in target financing subject to market conditions.
- IREN said one customer agreed to fund 90% of GPU capital expenditures and that Nvidia and Microsoft would back some data-center construction planned for next year; it deliberately has not bought all GPUs needed for next year to reduce risk.
- IREN shares rose in extended trading, even as the stock was down 55% over the past month; its post-election decline was 26%.
- Daniel Roberts said on Thursday’s earnings call that capital markets have become more selective, shifting questions from contract size to whether AI capacity can be delivered, financed and run profitably.
Why it matters: Microsoft’s reconfiguration is intended to enable 200 megawatts of capacity for newer frontier models. For IREN, the revenue delay coincides with $15 billion in planned fiscal-year spending, including $6 billion in financing subject to market conditions, as scrutiny turns to delivery, funding and profitability.
Ask SkimNews
