Iren Shares Jump 19% as AI Cloud Revenue Reaches $135 Million

Revenue for the fiscal first quarter, reported Thursday, increased 66% from the previous quarter to $228 million, topping analysts’ $217.9 million estimate, according to FactSet. Iren posted a loss of $263 million, narrower than its $684 million loss in the fourth quarter but wider than analysts’ expected loss of $254.4 million.

AI cloud services generated $135 million in revenue, while AI cloud lease revenue reached $65 million. Iren said pricing power continued to improve: contracted rates on three-year deals rose 11% from the previous quarter, and rates on five-year deals increased 12%.

The company had aimed to exceed $4 billion in annual recurring revenue by year-end. Iren said the target is fully contracted and funded, but supplier timing and a customer-requested change have delayed it until January, with a possible further extension to February. Its revenue backlog closed the quarter at $20.3 billion, up 22% from the prior quarter.

“We own the land, the power and the data centers under all of it, which gives us more ways to fund growth and lets us set its pace,” co-Chief Executive Officer Daniel Roberts said. Investors have increasingly scrutinized the financial sustainability of the AI infrastructure buildout as Iren’s shares have fallen from their May peak.