IREN said over $4 billion in annual recurring revenue projected for 2026 has been pushed out to at least January. The company said the delay stems from a customer request, which co-CEO Daniel Roberts identified as Microsoft. Quarterly revenue still beat estimates, but the stock has fallen 55% over the past month.
IREN pushed more than $4 billion in annual recurring revenue projected to land in 2026 out to at least January, the neocloud said in its Thursday earnings report. The move could extend payment to February.
The company attributed the delay to "a customer-requested change and supplier timing." On a call with analysts, co-CEO Daniel Roberts said the customer is Microsoft.
Revenue beats estimates as the stock slides
Revenue climbed 66% from the prior quarter to $228 million, above the $221 million average analyst estimate, according to LSEG. AI Cloud revenue more than doubled to $200 million, and the rest came from bitcoin mining, IREN's primary business before it pivoted to AI.
Net loss narrowed to $263 million from $684 million in the prior period. However, shares of IREN rose in extended trading after a 55% drop over the past month. The report followed a 26% post-election plunge in the stock.
Financing worries hit neocloud stocks
Investors are watching the company closely as the AI trade shows signs of unwinding. Concerns are mounting that cash-burning companies reliant on debt will struggle to meet their obligations as interest rates rise and lenders back out of the market. The Nasdaq had its worst day since April 2025 on Thursday.
CoreWeave has plunged 60% in the past month and Nebius is down 48% over that stretch.
Backlog and spending plans
IREN said its revenue backlog increased 22% from the prior period to $20.3 billion, with approximately two-thirds held with investment-grade counterparties. The company said the $4 billion ARR target is fully contracted and funded.
Still, IREN said it plans $15 billion in capital expenditures for the rest of this fiscal year. That includes $9 billion in cash and committed financing and $6 billion in target financing, which is subject to market conditions.
Source: CNBC
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