IREN

- Roundhill Investments' Drew Pettit said neocloud companies such as CoreWeave and IREN are under pressure, while some parts of the AI trade could remain resilient. - JonesTrading's Mike O'Rourke said SpaceX and Meta's capital expenditure plans will be important indicators for AI infrastructure, semiconductor and memory demand. - CappThesis founder Frank Cappelleri identified roughly $140 as a key technical level for SPCX stock ahead of the company's earnings report. Investors are rotating toward cash-rich technology giants and away from debt-dependent AI plays amid funding concerns, analysts said on Tuesday, with earnings from SpaceX (SPCX), Meta Platforms (META) and Netflix (NFLX) set to put the broader tech trade in focus this week. "Big concern to us is the funding," Drew Pettit, chief investment strategist at Roundhill Investments, said during an interview with CNBC. "People are looking for the quality part of the trade right now in AI." See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox According to Pettit, neocloud companies like CoreWeave (CRWV), Iren (IREN) and others are among the businesses facing pressure. Pettit said these stocks were "in the crosshairs," adding that some parts of the broader AI trade could remain resilient. CRWV stock fell over 4.5% in pre-market trade on Tuesday after hitting an over one-year low in the previous session. It was among the top trending tickers on Stocktwits at the time of writing, with retail sentiment trending in 'extremely bullish' territory over the past day, accompanied by chatter at 'extremely high' levels. Pettit pointed to the Magnificent Seven (MAG 7) technology stocks as one area that could fare better than more financing-dependent businesses. "MAG 7, for example. The funding there isn't from debt. They have a bunch of cash," he said, adding that these companies had also benefited from years of easy financial conditions. Meanwhile, Mike O'Rourke, chief market strategist at JonesTrading, stated that elevated earnings expectations could leave stocks vulnerable if companies deliver cautious outlooks. "If the commentary is not good and earnings expectations are high for everything, you're going to see pockets of weakness," he said. "I think the rate sensitives are where you got to be worried." He singled out autos and homebuilders as sectors particularly exposed to higher borrowing costs. SpaceX is among the companies investors are watching as earnings season gathers pace, with its planned investment in AI computing capacity offering a test of the spending required to expand the industry. It is scheduled to report earnings after the bell on Tuesday, with Wall Street expecting earnings per share (EPS) of $0.13 on revenue of $12.99 billion, according to Koyfin data. O'Rourke said SpaceX's potential data-center expansion and Meta Platforms' capital expenditure plans could be important signals for the broader AI trade, including semiconductor and memory stocks. "If they're going to build out, you know, up to 10 gigawatts of data center capacity next year, that capex number is going to be huge," he said of SpaceX. O'Rourke estimated that Meta's capital expenditure growth could be around 40%, while SpaceX's spending could rise by well over 100% next year. He also expects the companies' results and guidance to carry added weight because they are reporting ahead of several other large technology companies. "These numbers are going to be key to earnings season, especially because they're coming before all those other big, high-quality Mag Seven names," he said. Meta Platforms is expected to report EPS of $6.60 on revenue of $63.34 billion. In pre-market trade on Tuesday, META stock fell 0.65%, while SPCX stock dropped as much as 1.3%. Both saw retail sentiment trending in the 'bearish' zone over the past day on Stocktwits. Frank Cappelleri, founder and president of CappThesis, said SpaceX's stock chart had looked bullish and flagged $140 as the level to watch. He said the price had been tested the previous week and also represented a 50% retracement of the stock's move from August to October. "Below that is really not that much," he said. Cappelleri also pointed to Netflix , which is also scheduled to report results after market close on Tuesday, as a potential test for the broader communication services sector. According to him, a recovery in Netflix could also help the Communication Services Select Sector SPDR Fund (XLC), which Cappelleri said had been trying to break out of a bullish chart pattern. Wall Street is expecting Netflix to report EPS of $0.82 on revenue of $12.8 billion. On Stocktwits, retail sentiment around NFLX improved to 'neutral' from 'bearish' territory over the past day. Read also: Nvidia Reportedly Sees Alibaba, ByteDance, Tencent Order $35B In RTX PRO 5500 Chips Amid US Export Curbs For updates and corrections, email newsroom[at]stocktwits[dot]com. Prabhjote Gill has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - HOOD Stock Rises Overnight: Market 'Underappreciates' The Robinhood Story, Says Analyst - NFLX Stock Tumbles Overnight: Co-CEO Wants Netflix To Be Last Service Customers 'Ever Cancel', Says Live Events 'Drive New Membership' - SPCX Stock Jumps Overnight: Musk Teases $1 Trillion Revenue By 2028 — Analyst Sees 95% Tesla Merger Odds In 2 Years

- APLD, IREN, and CORZ each dropped 4% in morning trading, despite Applied Digital announcing a 1 GW power deal in Finland. - DTCR fell only 0.8% versus the developers' 4% drop, exposing how betas ranging from 4 to 6 amplify losses in these volatile names. - Finland's 1 GW campus remains uncontracted with power not expected until 2028, making Applied Digital's after-close earnings the harder near-term test. - Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor) A first international power deal is failing to steady Applied Digital (NASDAQ:APLD) stock ahead of the company's quarterly report, as AI data center developers sell off as a group. Applied Digital stock is at $24.25, down 4% in morning trading. Also, IREN Limited (NASDAQ:IREN) stock is at $39.78, down 4%, sliding in step with Applied Digital. Core Scientific (NASDAQ:CORZ) stock is at $16.03, also lower by 4%, matching the decline in both names. IREN and Core Scientific have no results due after the close, which undermines a purely pre-earnings reading of the selloff. Meanwhile, the Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) is at $27.55, down 0.8%, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $775.29, trading 0.5% lower on the session. That gap suggests that the selling concentrated in the most volatile developer names. Quarterly results from Applied Digital arrive after the market closes today. Separately, the company announced an agreement. It provides access to up to 1 gigawatt (GW) of potential power capacity in Finland, Applied Digital's first development opportunity outside the U.S. Plans call for an AI Factory campus there capable of scaling to as much as 1 GW of potential capacity, with Applied Digital expecting initial power availability beginning in 2028. If you've saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life. Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor) Applied Digital has begun marketing the Finland site and is in discussions with leading global hyperscale customers, though no customer has signed on. Management structured the agreement to limit initial exposure, and near-term priorities remain centered on the existing U.S. portfolio. Chairman and CEO Wes Cummins said Finland shares many of the characteristics behind Applied Digital's success in North Dakota, calling the agreement a measured first step that keeps the company's strategy intact. IREN and Core Scientific both came out of Bitcoin mining and have been converting power and site assets toward AI hosting. All three, Applied Digital included, compete for the same scarce input (contracted power at scale) while carrying heavy construction spending against revenue that arrives later. Each of the three stocks swings far harder than the market, with Applied Digital stock carrying a beta of 6, a volatility gauge where 1 means moving in line with the S&P 500. Core Scientific stock trades at 5.5 and IREN stock at 4.3, which helps explain why all three are falling far faster than the data center fund. The Global X fund held Applied Digital at 4.5% of net assets as of May 31, while the fund's largest weights sit in established data center landlords and tower companies. That mix protects the fund when shares of developers such as Applied Digital, IREN and Core Scientific sell off together. Applied Digital's bull case rests on power. Power is the binding constraint in this business, the same reason the picks-and-shovels suppliers behind the data center expansion keep showing up in our free AI infrastructure report, here. An option on up to 1 GW of potential capacity in a new market costs Applied Digital little while the company keeps execution focused on U.S. sites. Skeptics could counter that the Finland capacity remains potential and uncontracted, with Applied Digital expecting initial power only beginning in 2028. Applied Digital's quarterly results landing after the close are a nearer and harder test than a site with no customer attached, and IREN stock and Core Scientific stock falling by a similar amount suggests the market is pricing sector risk alongside Applied Digital's report. Applied Digital's report after the close is the next scheduled catalyst for the whole developer group. The key question is whether the quarter turns Applied Digital's contracted capacity into visible revenue. For the time being, it's not a bad idea to keep your share-position sizes small in unpredictable stocks like APLD and its peers. If you've saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life. Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor) Contact [email protected] for any questions or corrections.

IREN Limited IREN is shifting quickly from Bitcoin mining toward a vertically integrated AI cloud platform spanning data centers, GPUs and software. This transition weighed on fourth-quarter fiscal 2026 results, but the AI business kept scaling, leaving investors to balance near-term pressure against a much larger contracted revenue opportunity. IREN describes its platform as covering the data center, compute and software layers of AI infrastructure. The stock reaction captures that tension. IREN fell 12.5% on Aug. 28, the session after results, to $35.45, then rebounded to $41.58 by Sept. 15, gaining about 17% from that low. Year to date, IREN has risen roughly 10% compared with about 2% for Cipher Digital CIFR and 26% for TeraWulf WULF. The recovery reflects improving confidence in IREN’s AI execution as contracted demand and deployment milestones move closer to revenues. However, the key question now is whether better pricing and infrastructure scale can outweigh heavy capital spending, execution risk and a valuation that already assumes strong growth. Image Source: Zacks Investment Research IREN’s latest quarter looked weak at the headline level. Revenues slipped to $137.2 million from $144.8 million in the prior quarter as Bitcoin mining capacity was decommissioned ahead of GPU installations. Yet AI Cloud Services revenues more than doubled sequentially to $70.5 million from $33.6 million. The $684 million net loss was heavily affected by $450.4 million of non-cash impairments and a $102.1 million reduction in the fair value of mining hardware held for sale.The forward picture is much stronger. IREN has $4 billion of contracted annualized run-rate revenues tied to 2026 capacity, with about $1 billion already operating, while 2026 capacity is largely sold out. Horizon 1, the first 50-megawatt deployment for Microsoft, has been delivered, and Horizons 2 through 4 are targeted for the December quarter. Recent three-year AI cloud contracts are being signed above $20 million of revenue per IT megawatt, while active discussions are around $25 million. These milestones give investors clearer evidence that the AI transition is moving from plans to operations. The opportunity comes with a large funding requirement. Management expects fiscal 2027 capital spending of roughly $25 billion to $30 billion. IREN has about $14 billion of existing cash, committed GPU financing and customer prepayments, and is targeting another $8 billion of GPU financing and prepayments. This reduces near-term financing pressure, but the scale of spending leaves little room for construction delays, weaker contract economics or problems bringing GPUs online.This is also where comparisons with Cipher Digital and TeraWulf matter. All three are using power-rich infrastructure to move beyond Bitcoin mining and capture AI or high-performance-computing demand, but their models differ. IREN is pushing further into an integrated cloud model, while Cipher Digital and TeraWulf are also building leasing and data center exposure. This gives IREN more ways to monetize each megawatt, but it also raises capital intensity and operating complexity. Estimates for IREN’s fiscal 2027 and 2028 earnings have been revised downward in the past 60 days. Image Source: Zacks Investment Research IREN’s rebound means investors are no longer looking at the same discounted setup seen immediately after earnings. At the Sept. 16 close, IREN traded at about 4.15 times forward sales, which is ahead of the industry’s 2.59 times. The premium to the broader industry means future returns will depend heavily on converting contracted ARR into recognized revenues and delivering new capacity on schedule. Image Source: Zacks Investment Research IREN’s post-earnings recovery is supported by real operating progress rather than just improving sentiment. AI cloud revenues are scaling, 2026 capacity is largely contracted, Microsoft deployment milestones are being met, and financing has become more structured. At the same time, the fiscal 2027 spending plan is enormous, reported earnings remain distorted by the mining exit, and the valuation already reflects meaningful growth. For investors already exposed to IREN, maintaining the position while watching the December-quarter deployments and ARR conversion looks sensible. Investors without exposure may want to wait for either a better entry point or clearer proof that the expansion can stay on schedule and within budget.At present, IREN carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IREN Limited (IREN) : Free Stock Analysis Report Cipher Digital Inc. (CIFR) : Free Stock Analysis Report TeraWulf Inc. (WULF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Investis Holding (SWX:IREN) has drawn investor attention after completing a CHF 100 million fixed income offering of 0.95% bonds due February 19, 2029, shortly after releasing its half year 2026 earnings. At a share price of CHF145.0, Investis Holding has seen the share price ease around 4% over the past month, while the 1 year total shareholder return of about 16% and 3 year total shareholder return above 60% point to momentum that has built over a longer period as investors weigh the recent bond issue and earnings update against the company’s broader risk profile. Spot similar property-focused stocks that pair bond issuance with earnings catalysts by scanning our hand picked list of solid balance sheet and fundamentals (439 results). Investis Holding combines a focused Swiss residential portfolio with fresh access to low coupon debt after the recent bond issue. After the share price pullback, does that mix still appear fairly priced today? Based on the most followed narrative, Investis Holding's fair value of CHF165 sits above the recent CHF145 close. That gap rests on specific expectations about rents, yields and funding costs. Read the complete narrative. Read the complete narrative. Want to understand why this valuation still prices in upside for Investis Holding even with capped rent growth? The narrative leans on measured revenue gains, slimmer profit margins and a richer future earnings multiple. Curious which earnings path and discount rate need to line up to reach that CHF165 figure. Result: Fair Value of CHF165 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Investis Holding story could change if construction catches up with demand in Geneva or if higher refinancing costs start to erode net profits. Find out about the key risks to this Investis Holding narrative. While the most followed narrative suggests Investis Holding looks 12.1% undervalued at CHF165, the current P/E of 13.3x tells a different story. It is higher than both the European real estate industry at 12.4x and the peer average at 12.9x, and above a fair ratio of 10.3x. This points to valuation risk if the market moves closer to that fair ratio. Which lens do you rely on when the story and the multiple disagree? To see how the numbers stack up using this earnings based yardstick, take a closer look at the valuation breakdown in our detailed review. See what the numbers say about this price — find out in our valuation breakdown. With mixed signals around valuation and sentiment on Investis Holding, it can be helpful to act promptly and evaluate the evidence for yourself using our breakdown of 1 key reward and 4 important warning signs. If you stop with Investis Holding, you could miss stocks that better match your goals. Use the Simply Wall St Screener to quickly surface fresh opportunities. Target potential upside by scanning a focused set of 618 high quality undiscovered gems that pair solid fundamentals with lower market attention. Strengthen portfolio resilience by reviewing a curated group of 306 resilient stocks with low risk scores that score well on financial stability and volatility. Lock in income potential by checking a hand picked selection of 419 dividend fortresses built around higher yields and consistent payout records. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IREN.SW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Applied Digital (NASDAQ:APLD) primarily generates its revenue by operating centralized digital infrastructure campuses and providing dedicated computing services designed for high-performance workloads across the North American region. It recently signed an additional facility lease for a new campus and secured supplemental credit financing for ongoing construction, while reporting an operating margin of -45% for the quarter ended May 31, 2026. IREN (NASDAQ:IREN) earns the majority of its ongoing revenue by managing vertically integrated data center facilities and actively mining digital assets across its international infrastructure footprint. While integrating a newly acquired European data center developer and closing the purchase of cloud software provider Mirantis, it recorded an operating margin of -452% for the quarter ended June 30, 2026. Revenue serves as a primary starting point for investors to evaluate a corporation's ability to attract paying clients and generate gross business volume before standard operational expenses, local taxes, or daily administrative costs are finally subtracted. For neocloud operations such as Applied Digital and IREN, revenue growth is essential to understanding if their costly artificial intelligence infrastructure buildouts are paying off. Data source: Company filings. Data as of Sept. 4, 2026. When it comes to neocloud providers such as Applied Digital and IREN, understanding revenue trends is essential to investing in these companies. A neocloud's massive, debt-fueled costs to build AI data centers means they must achieve top-line sales growth, or their business could collapse. That's why it's important to unpack IREN's recent trend of declining quarterly revenue. The company decided to shift away from mining cryptocurrency and focus on the high-growth AI infrastructure market. This caused its crypto sales to fall. In IREN's 2026 fiscal fourth quarter ended June 30, its crypto mining revenue dropped to $66.7 million compared to $111.2 million in the previous year. That said, its fiscal Q4 AI cloud sales took off, hitting $70.5 million, up from $33.6 million in the year prior. So while overall revenue dropped from fiscal Q3, it's experiencing strong growth in AI. That's the trend investors want to see. Applied Digital's situation is more straightforward. As a landlord to AI companies, it just needs to sign lease agreements that grant it long-term revenue predictability, while tenants bear the brunt of outfitting data centers with the AI hardware. The skyrocketing sales in its fiscal fourth quarter, ended May 31, demonstrates it is gaining traction in this arena. Before you buy stock in Applied Digital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Applied Digital wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of September 6, 2026. Robert Izquierdo has positions in Iren. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Analyzing Applied Digital vs. IREN: Accelerating Upward Trajectories vs. Sequential Contractions in Quarterly Revenue Generation was originally published by The Motley Fool

Image source: The Motley Fool. Thursday, Aug. 27, 2026 at 5:00 p.m. ET Vice President, Investor Relations - Mike Power Co-Founder and Co-Chief Executive Officer - Daniel Roberts Chief Financial Officer - Anthony Lewis Chief Commercial Officer - Kent Draper Operator: Good day, and thank you for standing by. Welcome to IREN FY 2026 Results Call. [Operator Instructions] Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Mike Power, Vice President, Investor Relations. Please go ahead. Mike Power: Thank you, operator. Good afternoon, and welcome to IREN's FY 2026 Results Presentation. I'm Mike Power, VP of Investor Relations. And with me on the call today are Daniel Roberts, Co-Founder and Co-CEO; Anthony Lewis, CFO; and Kent Draper, Chief Commercial Officer. Before we begin, please note that this call is being webcast live with a presentation. For those dialed in by phone, you can elect to ask a question through the moderator after our prepared remarks. I would like to remind everyone that certain statements made during this call may constitute forward-looking statements. Those statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to Slide 2 of the accompanying presentation and our SEC filings for more information in that regard. With that, I will turn the call over to Dan Roberts. Daniel Roberts: Thanks, Mike, and thanks, everyone, for joining us. So Will and I started this business on a pretty simple observation. The digital world scales almost instantly, the physical world does not. Power, land, data centers, these things take years to permit, finance and build. And this was the year that stopped being a thesis and became the defining constraint of the whole industry. So if we look at the chart on the screen across 8 models tracked by OpenRouter, weekly token usage across large language models increased nearly 17x in 8 months. Every one of those tokens runs on physical infrastructure. It is very difficult to serve demand shape like that with infrastructure on 3-year lead times. And this is the start of the cycle, not the end. Cheaper compute doesn't make existing things more efficient. It makes new things economic. Infrastructure enables applications, applications create demand for more infrastructure. Every build-out in history has worked this way, and that's the structural disconnect and it's only getting wider. So let me walk through how we're set up against that backdrop. So we operate across 3 layers from the bottom up. So first of all, the data centers, the land, the power, the substations, the cooling, arguably the hardest layer to build, and that's where the shortage begins. Then the compute, the GPUs, storage, networking that go inside the data centers. And then finally, software on top, the managed services and enterprise support. That's where Mirantis lives for us. And just today, Mirantis was named an inaugural NVIDIA-Certified Hypervisor. So we've now got NVIDIA validation at the software layer as well as the hardware. Why own all 3? Because each layer makes the one underneath it worth more. A grid connection is worth more with a data center on it, worth more again with GPUs inside, more again with services wrapped around the customer. Most of this market rents at least one of those layers. We own the entire stack. So here's how the year went. Just move on to highlights, please, operator. Thank you. Four things to take away from this update, and I'll be quick because there's more detail coming a little bit later. So firstly, customers, new multiyear cloud contracts, including Cohere, Prometheus, Perplexity, Figure AI, Fal AI, Higgsfield AI, and separately, a leading frontier AI lab whose name we're not able to disclose just yet. Revenue, $4 billion of ARR is now contracted for our 2026 capacity and $1 billion of that is operating today. This does not include revenue expected to ramp in 2027, such as the $700 million of ARR associated with our NVIDIA cloud contract. Delivering, Horizon 1 was delivered to Microsoft this month, the first of 4 50-megawatt deployments with Horizon 2 through 4 targeted for the December quarter. And finally, funding, $6.5 billion of GPU financing now in the past 3 months. With prepayments, that's more than 100% of the associated GPU CapEx funded. And $2.8 billion of it needed no investment-grade offtake and still priced in the single digits. So let me start with customers because everything else follows from them. Our 2026 capacity is largely sold out. So the questions we get now are all about 2027 and 2028. We're continuing to contract future capacity deliberately. Every contract opportunity gets weighed on 3 things. Firstly, who and what does this counterparty add to the platform, the strategic merit, not just the revenue. Second, what are the economics, price, prepayment, term, et cetera. And thirdly, what might it open up longer term for managed services and software. We've been saying this for a while now. Signing deals is not the bottleneck in this market, bringing GPUs online is. We also don't need an investment-grade offtake to fund GPUs anymore. So we're not chasing headline announcements. We're making long-term decisions about where we want this business to be. And when we'll sign, we'll tell you. We're in late-stage discussions with a range of new customers over a significant portion of 2027 capacity and 2028 conversations are well underway, too, both on customers and financing. Longer term, we want to keep building a deep diversified base of customers across the AI ecosystem, all who have master service agreements with IREN. Every megawatt we build is scarce. Before every new cluster switches on, we want it in demand from both existing customers and new ones. So not dependent on any one customer, any one negotiation or any one point in a pricing cycle. And here's who's on the platform today. So as I mentioned earlier, the headline is the new multiyear contract with a leading frontier AI lab. And to be clear, this is a new contract. It's separate from Prometheus, who we can now name as the unnamed AI developer from our July announcement. The most sophisticated buyers of AI infrastructure in the world keep choosing us. It also shows the strategy is working. We started concentrated because big customers with immediate demand with the fastest path to scale. As the platform has grown, we've deliberately broadened. Hyperscalers, enterprises, AI developers, now frontier labs across both training and inference. But honestly, the part we care about most is the third bullet point. Existing customers keep coming back. Together AI and Fireworks AI have both renewed and expanded. New logos are proving demand, whereas renewals continue to prove ongoing delivery and ongoing execution. Once we've deployed with a customer, we grow with them across sites, GPU generations and service levels. And in terms of who is signing and growing with us, Prometheus and Figure are building products for the physical world, robotics, real-world automation, and they're contracting our compute to do it. AI is moving well beyond chat. This is the thing we keep telling people, you cannot size this market off today's usage. And that is exactly why the market keeps getting caught structurally short of compute. Now let's move on to pricing. So pricing has moved a lot, 3-year contract pricing is up about 125% since November, 5-year is up about 70%. Recent 3-year contracts are pricing in excess of $20 million per megawatt of IT load, paying back the compute investment in around 2 years, while active discussions are now at around $25 million per megawatt. Recent customer prepayments are funding 45% to 55% of the GPU CapEx. What's behind that? The market is tightened, no question, but it's also who we're signing, how the deals are structured and what we attach on top in managed services, which Mirantis keeps expanding. Shorter duration and on-demand sit above that as further upside in due course. Revenue per megawatt is shorthand, by the way. We look at the whole return, price, term, prepayment, utilization, customer quality and expansion opportunity. And to be clear about what we're not doing, we're not sitting on capacity to time a spot price. We allocate capacity to build the customer base and the platform as we see fit. The pricing follows that. Okay. So from customers to what we're building. The targets, roughly 300 megawatts of IT load delivered in 2026 and another 0.5 gigawatt in 2027. That will take the platform to around 1.25 -- 1.2 gigawatts in 2027 of gross capacity, and we're continuing to build across Texas, British Columbia, Oklahoma, South Australia and Spain. And right now, today, there are more than 4,000 people mobilized across our active sites. The best example of that today is Horizon 1. So as we announced earlier, Horizon 1 was delivered to Microsoft. First of 4 50-megawatt liquid-cooled deployments at Childress, and it achieved NVIDIA Exemplar Cloud status on GB300 NVL72, which matters because we -- it proves we can integrate and operate the full platform, hardware, networking and software, not just build the shell. The delivery matters, but the template matters more. Every Horizon uses the same design, the same supply chain, the same site team and each phase carries the lessons of the last. Horizon 2 is in the process of working towards commissioning, 3 and 4 are in late construction. So all 3 are targeting delivery in the December quarter. And that approach is running at every site. So quickly on 2026. At Childress, retrofit work and GPU installs are running in parallel on the air-cooled halls. At Mackenzie, GPUs have been racked across the first 2 buildings. At Prince George, the air-cooled fleet is now fully commissioned, and liquid-cooled installation is underway. All of that remaining capacity is targeted for the December quarter. Then 2027. Sweetwater 1 is in full swing now. First building is going up. The primary substation is progressing. At Childress, Horizons 5 and 6 civils are now moving and underway and another 250 megawatts of air-cooled conversion progressing. And it's also worth mentioning in terms of Canal Flats, we've now decided to convert all of that to liquid-cooling for GB300s, and that will deliver more value from power in a site we already own. But beyond that, the pipeline steps up again. 2028, Sweetwater 2 and Kiowa in the U.S., Bundey in South Australia and Badajoz in Spain, roughly 300 megawatts and the flagship of the Nostrum portfolio of sites we closed during the quarter. All up, more than 5 gigawatts announced with a multi-gigawatt development pipeline behind it, including more Texas power, where a tighter interconnection process should favor real and well-capitalized projects. And then a quick word on design because it answers a question we're starting to get a lot. So the bear case we hear on this industry is that AI data centers get rebuilt in 10 years. We've spent this year making sure that ours don't. Sweetwater 1 is becoming the reference design for Sweetwater 2, Kiowa, Bundey and what follows after those. Common layouts, common equipment, more modularization and prefab. Each project is inheriting the last one's lessons instead of starting from 0. And the design is built for successive GPU generations, evolving cooling, including 800-volt DC, all of which has been developed in collaboration with NVIDIA. So we know compute changes faster than buildings and ours have been designed to adapt to that. But we're also getting more out of what we already own. Our existing sites have spare power beyond current deployment plans. That headroom can support more GPUs and more revenue without the need for any new grid capacity. And new grid capacity is the scarcest input in this entire industry. So revenue that doesn't need it is about the highest quality growth there is. First up, new liquid-cooled installs at Mackenzie, Canal Flats and Prince George in 2027. And over time, tools like NVIDIA MaxLPS, which smooths GPU power draw, let us safely run more compute inside the same electrical envelope. But none of this happens without people. Our headcount nearly tripled in FY '26, including hundreds of colleagues who joined through Mirantis and Nostrum, and we expect similar growth again in FY '27. Five C-suite appointments across development, product, marketing, innovation and information security, people from NVIDIA, AWS, Oracle, Google and other leading data center operators. So building our organization ahead of the revenue is obviously deliberate. It costs money before it makes money, but this is where we're going. One last piece before I pass off to Anthony is how we're funding this growth. So GPU financing first because now the model is proven at both ends of the credit spectrum. For the Microsoft contract, we raised $3.6 billion of investment-grade GPU financing at a weighted average of about 6%. With customer prepayments that funded about 96% of the associated GPU CapEx. Now here's where it gets really interesting. For non-investment-grade deployments, so the rest of the AI ecosystem, we just closed $2.8 billion of equipment financing. That includes $2.4 billion at a 9% fixed rate for Mackenzie led by Blue Owl and funds managed by PIMCO. A delayed-draw term loan alongside senior secured notes funding 90% of that GPU CapEx. Add prepayments of 45% to 55% on recent deals and total funding well exceeds the cost of the underlying GPUs, which is good because that excess is now helping to support data center CapEx on those same and future deployments. And to date, talking about data center CapEx, we have deliberately kept 100% of our data centers unencumbered, which is a growing asset base we can finance when the timing is right. So on that note, Anthony will take you how that funds the plan and the results. Thank you, Anthony. Anthony Lewis: Thanks, Dan, and good evening, everyone. Over the past 12 months, we have secured circa $19 billion in funding, nearly $16 billion across customer prepayments, GPU financing and convertible notes alongside equity of approximately $3 billion. The vast majority of this funding is either in cash or yet to be drawn down, giving us significant capacity. For FY '27, we're guiding CapEx of approximately $25 billion to $30 billion. Included in that estimate is delivery of the contracted Microsoft capacity, the other deployments to deliver on 2026 ARR and GPU and data center CapEx for air-cooled deployments scheduled across calendar year 2027. It will also support new liquid-cooled data center capacity at Childress and Sweetwater 1 for delivery in the second half of calendar year 2027 as well as earlier stage investment for 2028 and beyond. Of course, the actual CapEx for the year will depend on a range of factors, including final costings, construction schedules, delivery time lines for GPUs and long lead items, the overall contracting environment and the overall fundraising environment. Within that CapEx estimate, we expect data center and CapEx GPU requirements to be up approximately 15% to 20% for ongoing and new deployments with revenue increases expected to ultimately outpace those increases. In respect to the funding plan, as noted earlier, we have a strong starting position. Approximately $14 billion of existing cash and committed GPU financing and prepayments. That includes $7.6 billion of cash on the balance sheet at 30 June, of which $1.7 billion is restricted with most of that $1.7 billion set aside to fund Microsoft GPU CapEx. We're 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 that Dan has spoken to. The balance of the requirement we expect to meet through data center financing, operating cash flows and corporate sources. On data center financing, as Dan has spoken to, our entire data center portfolio is unencumbered today, including Horizons 1 through 4. So there is obviously a significant and growing asset base to raise asset finance against. Alongside the growing market for GPU financing, attractive customer prepayments, we feel well placed to scale our fundraising efforts to support the rapid growth of the platform. Now turning to the quarter 4 results and outlook. The quarter's results continue to reflect the ongoing transition to AI cloud. For the June quarter, revenue was $137.2 million, including AI cloud revenue of $70.5 million. This was down $7.6 million compared to the prior quarter as we decommissioned mining hardware ahead of GPU installations, partially offset by AI cloud growth. Cost of revenue also fell $6.6 million, mainly as a result of lower electricity usage from reduced mining activities. Net loss was $684 million for the quarter, largely driven by noncash impairments of $450.4 million, mostly on account of decommissioning mining hardware, plus a $102.1 million decrease in fair value of mining hardware held for sale, both reflecting costs of transitioning our existing sites to AI cloud. We currently expect mining operations to be effectively decommissioned by the end of December 2026. We expect first quarter cash SG&A to increase approximately $40 million to $50 million sequentially as we continue to invest for growth across sales and marketing, R&D, development, site and cloud operations and other functions ahead of significant revenue growth over the coming periods, which brings me to ARR. We exited Q4 at roughly $0.5 billion of ARR. It's $1 billion today following acceptance of Horizon 1 by Microsoft, and that will carry through to the end of the September quarter. And we expect more than $4 billion of ARR by the end of the December quarter, which is already under contract and includes delivery of Horizons 2 through 4. A significant amount of the December capacity is expected to come on late in the quarter, so we will see the reported revenue effect come through predominantly in the March quarter. With that, I'll hand back to Dan. Daniel Roberts: Thanks, Anthony. So just one slide to close on. 2026 is largely sold out with the $4 billion of ARR now contracted. 2027 and beyond is deliberate runway for us. So this is capacity we're continuing to convert into a broader customer base and, of course, a richer service mix. Revenue per megawatt is rising, both on structural demand as well as site optimization, and that $4 billion comes from less than 10% of our 5-gigawatt-plus portfolio of grid -- secured grid connections. So 8 years ago, we set out to solve the gap between digital demand and physical supply. I think it's fair to say the gap is here. We own the power, we own the land, we own the data centers, we own the compute, we own the software, and we have the people to service it. So for Will and I, this is only the beginning. But operator, let's open the line for questions, please. Operator: [Operator Instructions] And our first question comes from the line of Mike Ng from Goldman Sachs. Michael Ng: I just have 2 questions. First, I was just wondering if you could talk a little bit more about Mirantis and how it helps facilitate the commercialization of your compute. Was Mirantis used or helped to enable any of the signed or in negotiation deals today? Do you think you'll eventually use Mirantis to help sell some capacity into market aggregators like OpenRouter? And then I have a quick follow-up. Kent Draper: Yes, happy to jump in and thanks for the question. In terms of the Mirantis service offering, I think there's a few elements to that, that help with our business today. Firstly is, as you identified, it opens up effectively new customer classes to us. As we have spoken about at length previously, very large hyperscaler or frontier AI lab customers generally like to take compute on a bare metal basis. But smaller AI developers, labs, enterprise customers value having an orchestration layer offered over the top of bare metal compute. And so the Mirantis service offering as it relates to that orchestration layer can help open up that part of the market to us. In addition to that, it does give us the ability to provide compute in a different manner. So not only can we provide reserved managed services clusters, but it also opens up the potential for us to provide on-demand compute as an example. In addition to the orchestration layer itself, Mirantis has a long track record of servicing enterprise customers in the cloud computing space, and they bring a number of other areas of expertise, including enterprise support, monitoring and deployment capabilities that can help us monetize our platform more quickly and continue to provide very high levels of customer service. So those are a few of the areas where Mirantis adds to our existing platform. Daniel Roberts: Sorry, maybe just to add to that. I think we're now the only neocloud certified hypervisor from NVIDIA as a result of today's announcement. So that vertical integration, that full stack is playing out live time. Michael Ng: And I just wanted to follow-up on the CapEx outlook for next year, $25 billion to $30 billion. Is that all to support the 800 megawatts that you expect to contract next year? Or is it beyond next year? And then could you maybe just talk about the financing plan beyond the $14 billion of cash, GPU prepayments and other debt financing that I think you talked about? Anthony Lewis: Sure. Just in terms of the -- and thanks for the question. Just in terms of the first question. So the $25 billion to $30 billion is obviously in the -- covering the financial year to June '27. So that covers all the CapEx requirements for the 2026 deployments to -- that contribute towards the $4 billion ARR target. It covers expected data center CapEx and GPU CapEx for sort of air-cooled -- the balance of the air-cooled deployments expected to come over the course of 2027 calendar year. And it also covers a significant portion of the CapEx required for the liquid-cooled deployments in the second half of 2027 calendar year. It doesn't include CapEx requirements for the GPU compute for those new liquid-cooled facilities, which will be part of the following year's capital plan. In terms of financing, obviously, we spoke to the $14 billion, so that's secured. I also spoke to $8 billion estimated additional GPU-related CapEx. So that will be supporting the GPU deployments included in that $25 billion to $30 billion. Obviously, we've seen a very strong fundraising prepayment environment, which obviously contributes to that $8 billion number. And we've seen strong conditions, obviously, in GPU financing. Obviously, Dan spoke to the results that we have seen in the recent transactions, but there's obviously also been other transactions in the market, both for investment-grade and sub-investment-grade clients. We've also had the recent announcement by NVIDIA alongside 6 of the biggest capital allocators in the world announcing JVs, partnerships, to support further financing of AI compute as an asset class. In addition to that, we obviously have 1 to 4 substantially built and being delivered over the course of the year. That's obviously unencumbered as well as other opportunities we're looking at, both asset-backed and other group level initiatives as well. Operator: We will now take our next question, and our next question comes from Paul Golding from Macquarie. Paul Golding: Congrats on all the tremendous progress. I wanted to first ask about the British Columbia liquid-cooling pivot. And wondering if you could unpack that decisioning process a bit. It sounds like there's excess power available and there's obviously a revenue opportunity. But I was wondering how you were thinking about the relative return there and if that was organic or from demand that you've seen or speculative? And then I have a follow-up. Kent Draper: Primarily, Paul, it's driven by demand that we're seeing. And we do have a design that is very effective for the conditions that we see in British Columbia for liquid-cooling. It is something that increasingly as customers are looking towards future workloads, we do see the vast majority of customers over time looking towards liquid-cooled GPUs. And so we are certainly reflecting that in terms of the mix within our portfolio. Paul Golding: Great. And then Anthony mentioned that the compute costs that are rising are being more than covered by revenue increases. I was wondering given the continued march upwards of compute cost, what the calculus is and your thought process and strategy around taking some of the excess liquidity from prepayments and the financings that you've done and allocating that towards data center build-out versus maybe longer-dated compute purchasing given -- and maybe on a speculative basis, given that price trajectory we've seen in compute? Kent Draper: Yes. I think, in short, we're doing both. So as Dan mentioned, this is -- you need all the layers in the stack in order to be able to sell compute, you have to have the data center capacity. And we continue to see extremely strong demand within the industry and a lack of capacity available to satisfy that demand. And so we will continue to build out data center space. We will continue to make compute purchases over time and continue to add that software layer over the top to be able to expand our addressable market and secure better economics over time. So we expect to see a mix of purchases on spec as well as some purchases that may be tied to customer contracts. But as Dan said, the contracts are not the driver in this industry. It's getting the compute online. And so that is what we are heavily focused on, on the execution side of the business. Daniel Roberts: Paul, I might also just add to your CapEx question around that revenue, and it adds a little bit more to what Anthony said earlier. So if we step back and look at this revenue CapEx trade-off, the contracts that we're announcing now and the pricing per megawatt relate to GPUs that were ordered quite some time ago. So arguably, they're reflective of natural price increases beyond CapEx inflation on those GPUs. Now future generations of GPUs and costs are going up, but we didn't have to pay the cost increases on the revenue per megawatt that we've announced today necessarily because they're the older generations, if that makes sense. But there's also a bit more nuance to our CapEx needs. So yes, we've guided total CapEx of $25 billion to $30 billion for FY '27. But that we deliberately don't split it in or attribute that to a specific number of megawatts of IT load coming online because the reality is that data center CapEx is running a year or 2 ahead of delivery, but that's the nature of substations and steel. So the mix in any given year is really a function of what we're delivering in that year versus what we're building for the next one. So I think we are working on how we stagger data center CapEx and how we finance data center CapEx. As we mentioned during the presentation, 100% of our data center portfolio today is unencumbered, which creates a future opportunity. And when we're receiving prepayments equivalent to 50% of the GPUs, that's roughly equivalent to 100% of the data centers because GPUs are roughly 2/3 of your fully loaded cost for the data centers plus the GPUs. And if you're financing the GPUs at 90% gearing already, then you can see how you've got this funding flywheel that's emerging that requires arguably little equity over time to finance it. But we've then got to overlay our ambitions are growing. We're building at a higher cadence to what we've done in the past. So those funding needs continue to grow. But we've got flexibility around growth based on optimizing the funding that's available to us at any point in time. Paul Golding: That's great color, Dan. Maybe just a quick housekeeping question on the back of that, if I can sneak this one in. Just on the 2/3 compute versus data center CapEx, is that shifting at all with the increased cost of compute? Or is the labor market being tight and other inputs on the data center construction side, keeping that equation relatively stable? Daniel Roberts: No, it's staying pretty stable. I mean we're seeing inflation and costs across various components continue to tick up. So at a material level, I would assume that ratio stays relatively consistent. Operator: And our next question comes from Brett Knoblauch from Cantor Fitzgerald. Brett Knoblauch: Guys, congrats on the quarter. Great to see demand trends around '26, and certainly '27 and '28. I'm curious kind of following into Horizon 1 build-out. We've seen a lot of deals recently with maybe lower PUEs. Are you seeing any design changes that might allow for lower PUEs at other sites that you guys have coming online or other buildings coming online in '27 and '28? Or should we kind of think of that PUE with the Microsoft deal being somewhat static? Kent Draper: I mean PUEs are never entirely static, but they are largely driven by the nature of the ambient conditions in which your data centers are operating. We've spoken before that we use a highly efficient closed-loop liquid-cooling system. And that means we have very effective PUEs relative to the broader industry. We do see some continued improvements over time. And part of that is driven by items like NVIDIA's DSX reference architecture where they have looked at how you can operate chips at higher temperatures without giving up any performance on the computing side but allowing you to direct more of your overall megawatts towards the IT load and away from cooling. But those are around the edges rather than being really material drivers of decreases over time. Daniel Roberts: And I think just to add, we've been deliberately conservative on the headline PUEs that we've advertised. We even had a slide dedicated into the deck to this thematic, which is we have spare power beyond our current deployment plans, and some relate to optimizing this PUE over time. The reality is, the average PUE for a year is substantially below the maximum PUE that you require. So there's a few little tweaks that you can make that free up quite a lot of power capacity alone. We've then got the NVIDIA DSX MaxLPS opportunity. And we're aware others are using power management tools to oversubscribe megawatts as well. There's a lot of flexibility within that envelope. And to date, we've kept it simple, 200 megawatts of IT load for 300 megawatts of gross capacity, but we are also making it clear today that there is a reasonably sized opportunity in the portfolio to free up some of that spare power. Brett Knoblauch: Awesome. And then maybe I could just follow up on some of the pricing commentary that came across quite strong, I think, in prepared remarks and the release, kind of $20 million deals what you are seeing or what you've signed. Now it's kind of somewhere around $25 million. Is that -- over what duration could you clarify? And is that more one-off? Or do you think like that is kind of like the ballpark of maybe the average you're seeing across all the conversations you're having with customers? Kent Draper: No, we are seeing that consistently across live conversations with customers at the moment. And there are a variety of things that go into it. As Dan mentioned, we look at term length, prepayments, nature of the customer, likely growth requirements over time. But the pricing that we're seeing is relatively consistent at the moment. It continues to show an upward trend. We're seeing very strong competitive tension for near-term megawatts. So we certainly think that those numbers that we put out are indicative of where the market is currently at with upward pressure over time. Daniel Roberts: And to be clear, they're 3- to 5-year deals, not 2 years, not spot capacity. There is a substantial opportunity if you wanted to optimize near-term quarterly P&L to go and sell spot on demand. And that is something that we might entertain as part of the portfolio approach over time. But today, we are loving just building the customer base, diversifying across the AI ecosystem, having longer-term contracts, getting really accretive financing back in those contracts. And over time, that will buy us a license to dabble more into on-demand, shorter-term contracts, introduce software, leveraging Mirantis and other capabilities for higher revenue profiles. Operator: We will now take our next question from Michael Donovan from Compass Point. Michael Donovan: Just going back to the $20 million, $25 million in revenue per IT megawatt. How do the economics you're seeing in the U.S. compare with what you're seeing with initial conversations in Spain and Australia? Kent Draper: I think very consistent. At the end of the day, this is largely a global market for compute. A number of the customers that are accessing compute out of North America are based overseas. And so it does drive a genuine global market for compute. And there may arguably even be additional scarcity factor in some of those other locations where it relates to things like sovereign AI, for example. So I think that pricing that we're seeing in North America is very indicative of global conditions. Michael Donovan: One more follow-up, if I may. I wanted to get clarification on the Nostrum acquisition. So from my understanding, it brought roughly 490 megawatts. In your prepared remarks, you mentioned Badajoz accounting for roughly 300 megawatts. For that difference, is the 190 megawatts across a couple of different sites? Or how should we think about that? Kent Draper: Yes. So there are a number of other development sites in the Spanish portfolio where we have capacity secured, but Badajoz is the key site that we chose to focus on today as that is the nearest term build-out and the largest site within the portfolio. Operator: [Operator Instructions] Next, we have Nick Giles from B. Riley Securities. Nick Giles: Just wanted to ask one about Texas. I know it's not a fun topic, but I was just curious if you could touch on what some of these dynamics have enabled from a commercial perspective, just given that you already have 2 large-scale energized sites there. Kent Draper: And by the dynamics, you are referring to Governor Abbott's directive or something else specifically, Nick? Nick Giles: Yes, Kent, exactly. Just the directive and just given the uncertainty around some of the kind of earlier stage sites there, if that might have pushed some potential deals more towards your corner. Kent Draper: Yes. I think as it relates to Governor Abbott's directive, if you look at what that is targeting, it looks at things like transparency, grid reliability, water usage, issues in terms of impact on local communities. And these are all things that we've had a specific focus on from day 1 and have always been important to us. So if you take Childress as an example, we funded all the required grid upgrades for that project. As you know, we're located a number of miles outside of the main town area there where we don't have residential neighbors, and we're not impacting neighbors or the local community from an operational perspective. We use a highly efficient closed-loop water-cooling system, which has very minimal ongoing water usage over time. So I think everything that we've done in setting up our sites and our portfolio is in line with what Governor Abbott came out with in his directive. So I think in that sense, we actually welcome the additional transparency within the market. And then as you mentioned, we do have 2 very large sites already energized in Texas, which I think positions us extremely well outside of just those dynamics that I mentioned as we move forward here. Nick Giles: That's helpful. And then maybe just as a follow-up. We've seen a lot of deals where there's kind of initial contracted capacity, but then there's an expansion option maybe with exclusivity for some period. And I can't recall IREN having any of those expansion options embedded. Is that something that you're considering in future deals? Or have you kind of intentionally strayed away from those options? Kent Draper: Yes. We've intentionally strayed away from that historically, but it's obviously part of the bespoke conversation with each customer. As you would guess from our thesis, which Dan outlined again earlier in this call, we see very significant value in infrastructure and compute moving forward. And so if we're going to give up an option to somebody over that, we need to be compensated for it. So it really just comes down to that dynamic. But yes, we've generally shied away from it previously because we see more value typically than the counterparty. Operator: We will now take our next question from Mike Colonnese from H.C. Wainwright & Co. Michael Colonnese: Congrats on all the strong momentum here across the AI cloud business. Just one for me. I was hoping to get more color around how you plan to allocate future uncontracted capacity here. Really the specific customer segment you're most interested in pursuing heading into 2027 and how you guys are thinking about balancing pricing with financing costs when evaluating larger versus smaller customer contracts. It feels like you're trying to monetize a little bit higher on the stack with the acquisition here. Just trying to get a sense of how you guys are evaluating these deals. Kent Draper: Yes. I think Dan touched on a lot of the elements that we look at earlier in terms of the earnings overview. I mean we look to the type of customer, the industry they're in, their planned growth rates over time. As you would have seen with our customer mix, it has been shifting towards direct end users of compute. We now have added additional names in the AI-native space, a large leading frontier AI lab as well as some of these physical infrastructure-related AI developers. So we see a lot of very attractive profiles across the sector. And for us, as Dan mentioned, we've been aiming to diversify our customer base over time. We have a range of attractive long-term contracts within the portfolio that now set us up for very attractive economics as we move forward here. And that, in turn, buys us some additional flexibility to be able to look at different monetization methods, whether that is selling on a shorter-term basis in terms of reserve contracts that drive additional economics, whether it's looking at true delivery of on-demand compute, whether it's managed services offerings versus bare metal. And one of the nice things with the position that we're in today is we have optionality over all of those different areas and particularly with the development of the financing market for sub-investment-grade counterparties, which is something that we always expected to develop, and we're now really seeing the proof of that. It means that we can still continue to get very attractive financing for a range of different customer types. So we're certainly very excited at the prospects as we move forward here, being able to monetize the platform in different ways and get additional economics over time. Operator: We will now take our next question from Ben Sommers from BTIG. Benjamin Sommers: So I wanted to ask a bit on the conversations we're having for 2027 and 2028. It makes sense that we're maybe not exploring some like the really short-duration stuff now. But as you think about what you're hearing from customers in terms of the window from 3- to 5-year contracts, kind of where are you seeing most customers heading from within that time range? And what's the ideal if there's any time length in your guys' perspective? Daniel Roberts: I'll jump in, Kent. I think we're starting to see longer-term conversations -- sorry, conversations around longer term than just the 3- to 5-years. But this is the balance, right? We're running it essentially as a portfolio, anchor tenants like Microsoft give you the scale, the duration and cheap capital with the 6% GPU financing, whereas AI developers in the broader market give you slightly higher pricing, good prepayments and a lot of where the growth is. So we want to remain flexible. At the end of the day, the framework for assessing new customer contracts is, as we have outlined on this call, it's what does -- who and what does the counterparty add, what are the economics and what does it open up longer term? And yes, there's a trade-off. The investment-grade anchor gets a 6% money; non-investment grade gets 9%. So it sounds like the investment grade wins on that until you start looking at the pricing, until you start looking at the prepayments funding around 50% of the GPU CapEx. And I think those prepayments are probably the most exciting part for us, when they're funding half the GPU CapEx upfront on top of the 90% financing we're getting already, these guys are sending a pretty clear signal. It's not just about contracting capacity. They're starting to finance our build-out for us. And I think that tells you a lot about demand more than any pricing chart in the presentation. Benjamin Sommers: Super helpful. And then just one more, if I could. If you could just give any color on preliminary conversations around potential data center financing. I know you guys talked about potentially pursuing that down the road. So just wanted to ask around any preliminary conversations you've had there. Daniel Roberts: Yes, lots of preliminary conversations, and we'll let you know when we close one. But we've been busy. There's lots going on, on the customer side, lots been going on in the GPU financing. That's been the lower-hanging fruit. We've previously mentioned we'll look at refinancing effectively Horizons as they're commissioned as it makes sense to wait until they're stabilized to get a better financing package. We'll look to finance data centers as they're commissioned, but potentially also in advance of commissioning. And one of the challenges we have and the opportunity associated with being vertically integrated is you've got this staggered GPU CapEx, which starts a couple of years out from commissioning -- sorry, not GPU, data center CapEx, which starts a couple of years out from commissioning because you need to order the steel, you need to order the transformers. You need to order a whole heap of long items. And yes, a lot of those payment milestones are back-ended, but CapEx is incurred in the lead up to commissioning and finding efficient ways of financing that to allow us to scale into that 5 gigawatts really quickly, let alone the multiples of that sitting behind it in our pipeline, like that's the big unlock for us. Like the customers, they're there. Like I don't think anyone is disputing that anymore. So for us, it's all about that capital flywheel and managing it efficiently to get us in a position where we can meet that market demand because we are in a really, really unique position because we started 8 years ago, we locked up all the land and power. We've aggregated the team, the expertise, the partnership and collaboration with NVIDIA to build and operate these things. And capital efficiency is a really big part of the next unlock. And GPU CapEx efficiency is now here. Like objectively, the data we've published today, what we've closed, that is efficient, and it will only get better. In terms of the data centers, that's the next frontier, and we're pursuing it, and we're excited about it. Operator: We will now take our next question from Joseph Vafi from Canaccord Genuity. Joseph Vafi: Congrats on all the progress. I know, Dan, you commented, obviously, power remains the major constraint. We're on this call. We're having a lot of discussions on financing. Obviously, you've got a lot of resources available at your disposal, but it's a big industry and a lot of people are doing a lot of financings out there right now as well. Just some high-level thoughts, maybe Anthony or Dan, on the financing environment, sustainability, of the industry to continue to finance this broader build-out at this pace, if there's anything that you're worried about there, how IREN may have some advantages given its different pieces to the business? And then a quick follow-up. Anthony Lewis: Thanks for the question. I guess we've touched on a few of the sort of fundamentals at the moment. I guess we're seeing the evolution of the market has been -- on the GPU financing, we've seen the -- it started as a private credit-led product at sort of mid-teens returns and investment-grade cost of capital now is sort of in that 6% area. We've obviously seen the market open up in terms of the pools of capital participating in GPU financing. So private, public markets, investment grade, sub-investment grade, that's all positive. We've obviously, as I touched on, also had the other considerations such as the big announcement by NVIDIA with 6 of the biggest global allocators, which will provide more support to the market. We've also spoken about prepayments, which are obviously a big part of the overall funding position as well. We've obviously also seen the data center financing market evolve as well to support the infrastructure build-out, both in the high-yield and the investment-grade space. And obviously there's the -- there's obviously very strong conviction in capital circles in terms of the sustainability and outlook for, I guess, this fundamental shift that we've had in technology and the investment that will -- that needs to be made and also conviction in the returns that will ultimately come. So I guess it's really that conviction, which I think will attract capital and continue to attract capital. Obviously, we need to continue to evolve our plans subject to market conditions. And obviously, market conditions can go up and down. And obviously, we need to be nimble and flexible in terms of how we adapt to that environment and adjust our plans accordingly. Daniel Roberts: We hear this question a bit, Joe, which is can the financing keep pace with the asset class. But let's just look at what happened 12 months ago, GPU financing barely existed as an asset class. And then in the last 3 months, we've raised $6.5 billion of it at both ends of the credit spectrum. So that's not us getting lucky with financing, that's a market forming. And markets, they form the same way every time. Think about real estate financing, like no one asks whether an office tower with a signed tenant can get a mortgage. There's a whole capital stack that exists for construction finance, term debt, institutional money because the cash flow is contracted, the collateral is real. And that stack took years, probably a decade to build for property, and it's building the AI infrastructure in months and quarters because the same ingredients are there, the hard assets, the contracted revenue, the institutional counterparty. Blue Owl and PIMCO, like they're not bit-part players. They're the largest infrastructure lenders in the world, and they've now underwritten us, and we've got a dialogue at the highest levels there. But I think -- the analogy actually undersells it a bit because a building leased for a few decades at a few percent yield, like our contracts are paying back this compute investment in around 2 years with customers prepaying half the CapEx upfront. So lenders can see their money back in really short time frames. And property finance never had economics like that. So I think whenever there's a new emerging market, like if the demand is real, the financing follows. It always has, whether it's for railway, for telecoms, for property, for power. And in terms of whether the demand is real, I think the customers are proving it. They're proving it with prepayments. They're proving it with their end markets and their results and their revenue and their customer market traction. So the layer that hasn't really started and developed as much as the GPUs are the data centers. But in traditional speak, the data centers are actually the easier ones because they're more closely aligned to property and real-world infrastructure. And there is cash there. We know that, and it's waiting for us to pull the trigger, and we'll look more closely at that over the coming months. Operator: That was our last question for today. I'd now like to turn the conference back to Dan for his closing comments. Daniel Roberts: Thanks, operator. Thank you, everyone, for joining. So the short version of FY '26, $4 billion of ARR contracted, $1 billion is operating today. Horizon 1 is being delivered to Microsoft. And as we've just touched on extensively, a funding model that's working efficiently at both ends of the credit spectrum. So all of this achieved on a fraction of the platform that we've got today. And I guess, a shout out to the IREN team around the world and everyone who has joined us in recent months, Mirantis, Nostrum, a variety of broader players in the market, keep doing what you're doing. The plan doesn't change. We keep delivering capacity, we'll keep converting it into durable customer relationships, and we'll keep funding it with discipline. Thanks, everyone. We'll see you at the next results. Operator: Thank you for participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in Iren, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Iren wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 31, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. IREN (IREN) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

Iren (NASDAQ: IREN) isn't a 2026 story. Many investors rushed to sell their shares after the company's fiscal 2026 fourth-quarter results were released. Iren delivered $137.2 million in revenue in Q4 of fiscal year 2026 (FY26), a 26.7% year-over-year decline. A $684 million net loss in the quarter and a projected $25 billion to $30 billion in capital expenditures (capex) for fiscal 2027 made things worse and accelerated the sell-off. It's hard to call it disappointing, since it was expected this quarter. The catalysts that make people think Iren is a generational buying opportunity are on the horizon, and this earnings result strengthened the long-term thesis. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Iren is aiming for 300 megawatts of delivered power by 2026 and intends to boost that number to 800 megawatts by the end of 2027. That's a small slice of the company's 5.8 gigawatt portfolio. Although the company announced a "multi-year AI Cloud contract with a leading frontier AI lab" in the Q4 FY26 press release, that hasn't been enough for investors. Iren will be forever compared to Nebius, which is closing bigger deals at the moment and realizing AI cloud revenue at a faster rate. However, the decision to wait has been fruitful. Iren has been closing deals that come to $20 million per megawatt annually. It's even working on deals with tech companies that will provide $25 million per year for each contracted megawatt. For comparison, the 5-year, $9.7 billion deal with Microsoft was for 200 megawatts. The annual $1.94 billion from that deal puts it at $9.7 million per megawatt. That's less than half of what Iren is getting right now. If Iren were negotiating that same deal today, it could have ended up with more than $20 billion over five years. This math justifies Iren's decision to be selective with deals. The longer they wait, the more valuable their compute becomes. The Microsoft deal put Iren on the map. While the stock rallied long before this deal as investors speculated about the opportunities, the thesis truly materialized with that deal. Iren finally announced that it delivered Horizon 1 on Aug. 13. It covers 50 megawatts out of the 200 megawatts included in the deal. Iren CEO Dan Roberts said the company is working to deliver Horizons 2 to 4 "later this year." When that happens, Iren will start to realize all $1.94 billion in annual recurring revenue instead of just a quarter of that figure. Naturally, a project delivered in August will not appear in the financial results for the quarter ended June 30, 2026. That's why AI cloud revenue only came in at $70.5 million. Horizon 1 will only show up in part of next quarter's results. It will take a little longer for Horizons 2  to 4 to show up in results, but they should be in all future results when the calendar flips to 2027. Horizon 1 unlocks $485 million in annual recurring revenue. The next two fiscal quarters will feature meaningful sequential growth for Iren's cloud segment just due to the timing of Horizon 1. The delivery of additional projects will fuel the compounding. The $25 billion to $30 billion capital expenditure figure also spooked investors. That's how much Iren expects to spend in its fiscal 2027. However, Iren CFO Anthony Lewis put those concerns to rest when explaining how the company would raise the necessary capital. Iren already has $14 billion sitting on its balance sheet. Lewis said the company intends to close the gap with an additional $8 billion in graphics processing unit (GPU) financing and prepayments. He also said that data center financing was on the table. This news means shareholder dilution, a major point of contention, may be in the past. Prepayments are also rising because Iren can command higher revenue per megawatt. Iren said in its Q4 FY26 press release that prepayments have been representing 45% to 55% of GPU capex. Iren closed out Aug. 26 with $1 billion in operating annual recurring revenue. That figure includes Horizon 1. It's also expecting $4 billion in operating annual recurring revenue by the end of the year, which puts future AI cloud revenue at $1 billion per quarter. That's vastly higher than the $70.5 million in Q4 FY26 cloud revenue. The sell-off is an extreme miscalculation from investors who expected Iren to deliver meaningful results right now. That was never in the cards, but the foundation has been set for a big rally in 2027 and beyond. Before you buy stock in Iren, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Iren wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 30, 2026. Marc Guberti has positions in Iren. The Motley Fool has positions in and recommends Microsoft. The Motley Fool has a disclosure policy. Iren's Earnings Weren't Groundbreaking, but 2027 Looks Very Promising was originally published by The Motley Fool

This article first appeared on GuruFocus. IREN Limited (NASDAQ:IREN) shares sank more than 7% after its fiscal fourth-quarter results, but Citizens JMP is treating the selloff as a buying opportunity as the company's AI cloud business rapidly overtakes its shrinking Bitcoin-mining operation. Analyst Gregory Miller reiterated a Buy rating and $80 price target, implying roughly 97% upside from about $38, arguing that IREN's underlying AI cloud business continues to gain momentum. Warning! GuruFocus has detected 8 Warning Signs with IREN. Is IREN fairly valued? Test your thesis with our free DCF calculator. IREN operates large-scale data centers originally built around Bitcoin mining but is increasingly redirecting power and infrastructure toward AI cloud services. The company generates revenue by supplying GPU-based computing capacity to customers alongside its remaining cryptocurrency-mining operations. Fourth-quarter revenue fell 27% year over year to $137.23 million, although that still beat Wall Street's $132.29 million estimate. IREN posted an adjusted loss of $0.41 per share, better than the $0.55 loss analysts expected but sharply below the $0.08 profit reported a year earlier. The bigger story was underneath those headline numbers. Bitcoin-mining revenue plunged 63% to $66.7 million, while AI Cloud Services revenue jumped 907% to $70.5 million from $7 million a year earlier. AI cloud revenue also more than doubled sequentially from $33.6 million in the third quarter, showing how quickly IREN's business mix is changing. Citizens expects reported results to remain uneven while new infrastructure comes online, but Miller pointed to $1 billion of annual recurring revenue already operating and $4 billion of contracted ARR as evidence that the AI transition is gaining traction. H.C. Wainwright analyst Mike Colonnese was even more bullish, maintaining a Buy rating and $90 target, implying roughly 122% upside. IREN's investment case now hinges far more on AI execution than Bitcoin prices. Investors should watch how quickly the company converts its $4 billion of contracted ARR into reported revenue, whether GPU utilization and contract economics improve, and how much capital is required to deploy new capacity. Faster AI revenue conversion could make the current earnings volatility easier to overlook. Delays, financing pressure or weaker margins would challenge the bullish targets despite the headline growth.