IREN Limited’s IREN second-quarter fiscal 2026 loss of 44 cents per share came in wider than the Zacks Consensus Estimate pegged at a loss of 9 cents per share. The company reported earnings of 9 cents per share in the year-ago quarter.
IREN reported a net loss of $155.4 million against a net income of $384.6 million in the previous quarter.
Total revenues decreased 23.1% sequentially to $184.7 million, missing the consensus estimate by 16.49%.
IREN’s shares have gained 5.4% year to date compared with the Zacks Finance sector’s 1.9% growth.
IREN’s Q2 Operating Details
In the fiscal second quarter, bitcoin revenues were $167.4 million, down 28.2% sequentially. AI Cloud Services revenues were $17.3 million compared with $7.3 million in the previous quarter, reflecting sequential growth of 137%.
IREN Limited Price, Consensus and EPS Surprise
IREN Limited price-consensus-eps-surprise-chart | IREN Limited Quote
Adjusted EBITDA was $75.3 million compared with $91.7 million in the previous quarter. The adjusted EBITDA margin expanded to 41% from 38% in the previous quarter.
Second-quarter fiscal 2026 operating expenses were $235.5 million, remaining flat sequentially.
IREN’s quarterly results were primarily impacted by non-cash and non-recurring items. This included about $219 million in unrealized financial instrument losses and a one-time debt conversion expense, along with a $31.8 million mining hardware impairment tied to its ASIC-to-GPU transition and $58.2 million in stock-based compensation. These impacts were partially offset by a $182.5 million tax benefit.
IREN’s Balance Sheet Details
IREN had $3.26 billion in cash and cash equivalents as of Dec. 31, 2025, compared with $1.03 billion as of Sept. 30, 2025.
The company has secured $3.6 billion in additional GPU financing tied to its Microsoft contract at less than 6% interest. Financial year-to-date funding totals $9.2 billion, sourced from customer prepayments, convertible notes, GPU leasing and GPU financing.
IREN’s Growth Outlook
The targeted 140,000-GPU expansion is expected to generate $3.4 billion in annual recurring revenues by the end of 2026.
Construction of Childress Horizon 1–4 is progressing to support the large Microsoft deployment.
British Columbia AI expansion is advancing, with $0.4 billion ARR already contracted and additional negotiations underway.
A new 1.6 GW Oklahoma data center campus increases total secured grid-connected power to beyond 4.5 GW, materially expanding long-term growth capacity.
IREN structures its growth strategy around three core pillars — Capacity, Customers and Capital — leveraging its large secured power footprint, deep hyperscaler engagement and diversified financing capabilities to scale its AI cloud platform efficiently and competitively.
IREN’s Zacks Rank & Stocks to Consider
Currently, IREN carries a Zacks Rank #3 (Hold).
Credicorp BAP, Moody's Corporation MCO and S&P Global, Inc. SPGI are some better-ranked stocks in the broader Zacks Finance sector. Each of the three stocks currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Credicorp shares have surged 87.4% over the past year. BAP is set to report its fourth-quarter 2025 results on Feb. 12, 2026.
Moody's shares have declined 9% over the past year. MCO is set to report its fourth-quarter 2025 results on Feb. 18, 2026.
S&P Global’s shares have fallen 13% over the past year. SPGI is set to report its fourth-quarter 2025 results on Feb. 10, 2026.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
