AI cloud revenue soars but transformation pains persist; IREN (IREN.US) Q4 loss unexpectedly widens, stock falls over 8% after hours

Zhitong Finance APP reports that after the U.S. stock market closed on Thursday, AI cloud infrastructure service provider IREN (IREN.US) saw its share price drop more than 8%, after the company reported an unexpectedly widened loss for the fourth fiscal quarter and revenue that fell short of market expectations.

The financial report shows that IREN’s fourth-quarter revenue fell quarter-over-quarter to $137.2 million, missing the market expectation of $153.2 million. By business segment, AI cloud service revenue increased from $33.6 million in the previous quarter to $70.5 million; Bitcoin mining revenue decreased from $111.2 million in the previous quarter to $66.7 million, while the market expected $65.6 million.

Net loss for the fourth fiscal quarter expanded from $247.8 million in the previous quarter to $684 million, while analysts on average expected a loss of $204.3 million. This reflects the impact of phasing out Bitcoin mining hardware as mining sites are converted to support AI cloud business growth.

Adjusted EBITDA for the fourth quarter decreased from $59.5 million to $19.2 million, below the market expectation of $57.1 million. This was due to higher employee-related costs and more extensive platform investments made before the growth in AI cloud service revenue.

AI cloud service revenue for fiscal year 2026 is expected to grow approximately 7 times year-on-year, reaching $128.8 million.

“Our founding vision for IREN was simple: the digital world can expand almost instantly, but the physical world cannot,” said co-CEO Daniel Roberts. “This year, that founding principle became reality. The exponential growth in AI consumption has led to demand for computing power that far exceeds the supply of current infrastructure.”

Roberts also said: “Our capacity for 2026 is essentially sold out. This includes Horizon 1, the first of four leading-edge liquid-cooled GPU deployment projects that we successfully delivered to Microsoft this month.”