What were the key takeaways from IREN’s earnings call?

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What does IREN do and what are its main business segments?

What were the key takeaways from IREN's earnings call?

Did IREN beat or miss consensus estimates last quarter?

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**Key Takeaways**:
- **$9.7B Microsoft Deal**: Delivers $1.9B ARR with 85% margin, 20% upfront prepayment, and 25-30% levered IRR. Represents a strategic partnership for hyperscale AI compute.
- **140,000 GPU Expansion**: Targeting $3.4B ARR by end-2026, leveraging 16% of 3 GW power. Sweetwater (2 GW) and Canadian sites drive growth.
- **Financial Strength**: $1.8B cash, $2.5B secured financing, and 35%+ equity IRR on cloud deals. Dell's GPU financing reduces capital intensity.
- **Strategic Differentiation**: Vertically integrated platform, future-proofed data centers, and hyperscale credit risk mitigation.
- **Customer Demand**: Strong precontracting of GPUs, with hyperscalers favoring bare metal service over software stack.

**【CEO Summary Section】**
- **Revenue Growth**: Q1 FY '26 revenue reached $240 million, up 355% year-over-year, driven by AI cloud expansion and the Microsoft contract.
- **Microsoft AI Cloud Contract**: Signed a $9.7 billion 5-year deal with Microsoft, generating $1.9 billion annual recurring revenue (ARR) and 85% EBITDA margin. Includes 20% upfront prepayment ($1.94 billion) and deployment of 40,000 NVIDIA GB300 GPUs at Childress campus.
- **AI Cloud Expansion**: Scaling GPU fleet from 23,000 to 140,000 by end-2026, targeting $3.4 billion ARR. Expansion leverages 16% of 3 GW secured power, with 460 MW allocated for Microsoft.
- **Strategic Differentiation**: Vertically integrated platform (substation to GPU) enables faster deployment, cost efficiency, and superior customer service. Microsoft views IREN as a strategic partner for AI compute.
- **Future Growth**: 140,000 GPU fleet supports hyperscale AI workloads, with optionality for future expansion. Sweetwater campus (2 GW capacity) remains a key growth driver.

**【CFO Financial Commentary】**
- **Financial Performance**: Adjusted EBITDA of $92 million, reflecting 85% margin on Microsoft contract. Operating expenses increased due to share-based payments and payroll taxes.
- **Funding Strategy**: $1.8 billion cash at end-October, with $2.5 billion secured financing against GPUs. Prepayments and operating cash flows cover 1/3 of $5.8 billion CapEx for Microsoft deal.
- **Return Profile**: Unlevered IRR of low double digits, levered IRR 25-30% (assuming $2.5 billion debt). Potential upside with 20% residual value (RV) assumption, pushing levered IRR to 35-50%.
- **Capital Efficiency**: Dell's in-built financing for GPU purchases (no upfront payment) and 20% prepayment reduce capital intensity.

**【Q&A Highlights】**
- **IRR and Risk-Return**: Levered IRR of 25-30% for Microsoft deal, with upside from RV. Cloud returns (35%+ equity IRR) preferred over colocation due to higher risk-adjusted returns.
- **GPU Deployment**: 40,000 GPUs for Microsoft, with air-cooled B200/B300 variants. 12,000 of 23,000 initial GPUs precontracted, with strong demand for inference and AI-native workloads.
- **Future-Proofing**: Data centers designed for 200 MW super clusters, flexible rack densities (130-200 kW), and Tier 3 concurrent maintainability. Liquid cooling infrastructure planned for future GPU generations.
- **Customer Demand**: Strong interest in Sweetwater (2 GW) and Canadian sites. Bare metal service preferred by hyperscalers, with no immediate need for software stack.
- **Execution Track Record**: No missed construction deadlines; 140,000 GPU deployment on track for end-2026.

IREN Limited (IREN) Q1 2026 Earnings Call Transcript

- **10x EBITDA Growth**: FY 2025 marked a breakout year with record financial and operational achievements.
- **50 Exahash Mining Platform**: Generates $1B+ annualized revenue, funding AI cloud expansion.
- **10,000+ GPU AI Cloud Expansion**: 2-3 year payback periods via single-digit GPU financing.
- **$2B+ Data Center Pipeline**: Horizon 1 (38,000 GPUs) and Sweetwater (600,000+ GPUs) position for long-term AI infrastructure growth.
- **Strong Financials**: $177M Q4 net income, $565M cash, and 1.1-1.2 PUE data centers drive operational efficiency.

**【CEO Summary Section】**
- Delivered record FY 2025 results with 10x EBITDA growth and strong net income, driven by 50 exahash Bitcoin mining and expanding AI cloud services.
- Scaled contracted grid-connected power to 3 GW and operating data center capacity to 810 MW, with 400% growth in Bitcoin mining capacity.
- AI cloud expansion to 10,000+ GPUs, including liquid-cooled NVIDIA GB300 deployments at Prince George and Horizon 1 in Texas.
- Launched construction of Sweetwater, a 2 GW data center hub, and commenced Horizon 2 project for additional AI compute capacity.

**【CFO Financial Commentary】**
- Q4 FY 25 revenue: $187M (up $42M from prior quarter), with $180M from Bitcoin mining and $7M from AI cloud.
- GAAP net income: $177M, driven by $36,000 all-in Bitcoin mining costs vs. $99,000 spot price.
- Cash position: $565M, total assets: $2.9B, supporting continued growth in AI infrastructure.

**【Q&A Highlights】**
- **GPU Financing**: Secured 100% GPU financing at single-digit rates for 10,900+ GPUs, enabling 2-3 year payback periods.
- **Data Center Efficiency**: British Columbia sites operate at 1.1 PUE (air-cooled) and 1.2 PUE (liquid-cooled), competitive with global peers.
- **Horizon 1 Utilization**: 19,000 GB300 capacity designed for cloud services, with flexibility for colocation or hyperscale partnerships.
- **Sweetwater Progress**: 1.4 GW substation construction on track for April 2026 energization, with flexibility for cloud, colocation, or powered shells.
- **Customer Demand**: 10,000+ GPUs under contract, with multi-year cloud agreements for new GPU deployments.
- **Financing Strategy**: Diversified capital sources including asset-backed loans, convertible bonds, and project-level debt.


IREN Limited (IREN) Q4 2025 Earnings Call Transcript

- **Record Q3 Performance**: $148M revenue, $24M net profit, 28% QoQ profit growth. Bitcoin mining at 29.4 exahash, 50 exahash target on track.
- **AI Cloud Surge**: 33% QoQ revenue growth, 97% hardware margins. New white-labeled compute contracts with leading AI providers.
- **AI Infrastructure Momentum**: Horizon 1 (50MW liquid-cooled) 75% built, Sweetwater (2GW) site prep underway. Global AI data center demand to hit 156GW by 2030.
- **Capital Discipline**: $43M Bitcoin CapEx pause reinvested into AI. No equity raises planned; exploring debt and JV options for scaling.


**【CEO Opening Remarks】**
- Q3 FY2025 revenue reached $148 million, up 24% QoQ, driven by Bitcoin mining and AI Cloud growth. Net profit of $24 million, up 28% QoQ.
- Bitcoin mining hashrate averaged 29.4 exahash, up 30% QoQ, with 50 exahash target set for June 2025. All-in hash cost of $23/ph/day, gross margin >50%.
- AI Cloud revenue grew 33% QoQ to $3.8 million, with GPU utilization near 100%. New contracts post-Q3 include white-labeled compute for leading U.S. AI Cloud providers.
- Capital allocation prioritized AI infrastructure, pausing Bitcoin mining expansion beyond 50 exahash to allocate $43M to AI projects.

**【CFO Financial Summary】**
- Q3 GAAP net income: $24.2 million (vs. $18.9M Q2). Adjusted EBITDA: $83.3 million (vs. $62M Q2). Cash balance: $160 million.
- Bitcoin mining revenue: $141.2 million (QoQ +24%). AI Cloud revenue: $3.8 million (QoQ +33%).
- Operating expenses: $36.5 million (QoQ +30%), driven by expanded mining operations. GPU fleet hardware margins >95%.
- CapEx for Q4 2025: $250 million for 50 exahash expansion, Horizon 1 liquid-cooled data center, and Sweetwater site prep.

**【Kent Draper - AI Cloud Update】**
- IREN Cloud scaled from 248 GPUs (Aug 2023) to 1,896 H100/H200 GPUs (Q3 2025). GPU fleet utilization >95%, hardware profit margins 97%.
- Prince George facility supports dual Bitcoin mining and AI workloads, with 47MW air-cooled capacity for B200 inference GPUs.
- New customer pipeline includes multi-year contracts for liquid-cooled Blackwell GPUs, with demand exceeding Horizon 1's 50MW capacity.

**【Daniel Roberts - AI Infrastructure Strategy】**
- Horizon 1 (50MW liquid-cooled) on track for Q4 2025 delivery. Site design for 200kW/rack density, 6ms latency to Dallas.
- Childress 750MW transformation underway, targeting full liquid-cooled AI campus. Sweetwater (2GW) targeted for April 2026 energization.
- AI data center colocation demand forecast: 156GW global by 2030 (CAGR 35%). IREN's 2.9GW secured power capacity positions for leadership share.

**【Q&A Highlights】**
- **GPU Scaling**: AI Cloud expansion will use GPU financing and customer prepayments, not equity. Discussions with hyperscalers and neoclouds for multi-year contracts.
- **Horizon 1 Progress**: 75% construction complete, with substation and earthworks on track. Multiple anchor tenant negotiations in advanced stages.
- **Capital Structure**: No equity raises planned. Exploring debt, project-level financing, and JV options for Sweetwater development.
- **Bitcoin Mining Flexibility**: 50 exahash pause allows capital redeployment, but optionality to resume expansion based on market conditions.


IREN Limited (IREN) Q3 2025 Earnings Call Transcript

- **Record Q2 Financials**: $113.5M revenue, $53.7M operating cash flow, and $18.9M net profit, driven by Bitcoin mining scale.
- **Strategic Projects**: 
  - **Horizon 1**: 75-megawatt liquid-cooled AI data center in Childress, targeting 200-kW rack density for Blackwell GPUs.
  - **Sweetwater 2**: 600-megawatt expansion in West Texas, creating a 2-gigawatt hub with grid connection in 2028.
- **Bitcoin Mining Growth**: On track for 50 exahash by mid-2025, with 50 megawatts/month data center construction.
- **AI Market Momentum**: Liquid cooling scarcity, hyperscale demand for 1+ gigawatt campuses, and post-DeepSeek AI interest.
- **Financial Transition**: U.S. GAAP reporting from July 2025, with $440M convertible notes and ATM flexibility.

**【Management Opening Remarks】**
- Lincoln Tan welcomed participants and highlighted the webcast with accompanying slides. He emphasized the forward-looking nature of the discussion and reminded listeners of the disclaimer for forward-looking statements.

**【CEO Commentary】**
- **Record Q2 Results**: $113.5M Bitcoin mining revenue, $53.7M operating cash flow, and $18.9M net profit after tax. Adjusted EBITDA increased by $60M to $62.6M.
- **Three Key Initiatives**: 
  1. **Horizon 1**: A 75-megawatt liquid-cooled AI data center in Childress, targeting completion by mid-2025, designed for 200-kilowatt rack density.
  2. **Sweetwater 2**: A 600-megawatt expansion in West Texas, creating a 2-gigawatt hub with Sweetwater 1, with grid connection target in 2028.
  3. **Bitcoin Mining Expansion**: On track for 50 exahash by mid-2025, with 50 megawatts of monthly data center construction capacity.
- **Strategic Focus**: Leveraging Bitcoin mining to bootstrap data centers and exploring single-site colocation opportunities for hyperscalers.

**【CFO Financial Commentary】**
- **Financial Highlights**: $113.5M revenue, $53.7M operating cash flow, $18.9M net profit. Convertible notes of $440M with 3.25% interest rate and transition to U.S. GAAP reporting from July 2025.
- **Balance Sheet**: Total assets of $1.9B, equity of $1.3B, and $427.3M closing cash. ATM proceeds of $372.3M and convertible note proceeds of $311.7M.
- **Accounting Changes**: Impact of U.S. GAAP on convertible notes and derivatives post-July 2025.

**【Q&A Highlights】**
- **Horizon 1**: CapEx of $6M-$7M per IT megawatt, leveraging existing infrastructure and long-lead item ordering. Strategic value in demonstrating delivery capability for AI data centers.
- **Sweetwater 2**: Late-stage development with grid connection risks, but material to West Texas hyperscale demand. Conversations with hyperscalers for 1+ gigawatt campuses.
- **Financing Strategy**: Flexibility with ATM, project debt for colocation contracts, and skepticism toward JVs. Focus on customer contracts to attract financing.
- **Market Dynamics**: Escalating power shortages (36GWh U.S. deficit), liquid cooling scarcity, and institutional Bitcoin adoption driving growth.


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