IREN reports 23% revenue slump and $155M Q2 net loss
IREN posted a fiscal Q2 net loss of $155.4 million (44¢/share), missing estimates by 35¢ and reversing from prior-quarter net income of $384.6 million. Quarterly revenues fell 23.1% sequentially to $184.7 million, driven by a 28.2% drop in bitcoin mining revenue partially offset by 137% growth in AI cloud services.
1. Q2 Financial Results
In the fiscal second quarter, IREN recorded a net loss of $155.4 million (44¢ per share), compared with net income of $384.6 million in the prior quarter. This loss exceeded the consensus estimate of a 9¢/share loss by 35¢, reflecting substantial non-cash charges and operational headwinds.
2. Revenue and Segment Performance
Total revenues declined 23.1% quarter-over-quarter to $184.7 million, missing analyst forecasts by 16.5%. Bitcoin mining revenues fell 28.2% to $167.4 million, while AI cloud services grew 137% sequentially to $17.3 million, highlighting a strategic shift toward higher-margin AI offerings.
3. Non-Cash Charges and Operating Expenses
IREN incurred about $219 million in unrealized financial losses, a $31.8 million mining hardware impairment, and $58.2 million in stock-based compensation, partly offset by a $182.5 million tax benefit. Operating expenses remained flat at $235.5 million, supporting an adjusted EBITDA of $75.3 million and a 41% margin.
4. Balance Sheet Strength and Financing
As of December 31, IREN held $3.26 billion in cash and equivalents, up from $1.03 billion at September 30. The company secured $3.6 billion in sub-6% GPU financing under its Microsoft contract, contributing to $9.2 billion of year-to-date funding for its planned 140,000-GPU expansion.