IREN's Q2 Loss Wider Than Expected, Revenues Decline Q/Q

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).

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