IREN Q2 Revenue Misses Estimates by 7% as AI Services Soar 35%
IREN reported Q2 revenue of $18.5 million, 7% below analyst estimates, driven by weaker bitcoin mining sales, while its AI services division saw sequential revenue growth of 35%, accounting for 22% of total quarterly revenue. Gross margin contracted by 4 percentage points year-over-year to 28% as energy costs rose.
1. Q2 Financial Results
IREN reported second-quarter revenue of $18.5 million, falling 7% short of consensus estimates. The shortfall was primarily due to lower bitcoin mining output and rising operational costs, which also pressured gross margin down to 28%.
2. AI Services Division Performance
The company’s AI services segment achieved 35% sequential revenue growth, contributing 22% of total Q2 revenue. Management highlighted new enterprise contracts and expanded data-center capacity as key drivers of this momentum.
3. Margin and Cost Dynamics
IREN’s gross margin contracted by 4 percentage points year-over-year amid elevated energy expenses for its mining operations. The company is evaluating power-purchase agreements to stabilize future operating costs.
4. Outlook and Guidance
While bitcoin market volatility poses risks, IREN expects AI services to contribute over 25% of revenue in Q3. Management reiterated plans to ramp up GPU-based infrastructure by mid-2026 to support further AI growth.