Bitcoin miner IREN faced a challenging quarter, missing analyst expectations while its AI services revenue showed significant growth.
IREN stock continued to retreat early Friday after the bitcoin miner and artificial intelligence play late Thursday missed estimates for its fiscal Q2 2026. Shares tumbled more than 11% on Thursday as bitcoin undercut $63,000 to fall to 16-month lows.
IREN reported a net loss of $155.4 million, compared with net income of $19 million last year. Total revenue increased to $184.7 million from $114 million. Analysts polled by FactSet expected a net loss of $88 million on $224 million in revenue.
"Last quarter marked meaningful progress across capacity expansion, customer engagement and capital formation, reflecting IREN's progress as a scaled AI Cloud platform," co-CEO Daniel Roberts said in the release. "We are seeing the strongest demand environment to date, and importantly that demand is being met by a proven execution capability."
He added that the company has more than 4.5 gigawatts (GW) of secured power, while IREN is on track to reach its target of $3.4 billion in annual recurring revenue (ARR) by the end of the 2026 calendar year, according to the release.
Bitcoin mining revenue surged almost 47% to $167.4 million but fell short of views for $202 million. AI cloud services revenue was $17.3 million for the quarter, up from $2.7 million last year. FactSet expected $27 million in revenue for the segment.
IREN reported that cash and cash equivalents stood at $2.8 billion as of Jan. 31. The company noted that it has secured $9.2 billion in funding fiscal year-to-date across customer prepayments, convertible notes, graphics processing unit (GPU) leasing and GPU financing.
The company added that it has secured $3.6 billion in GPU financing for its Microsoft deal from November. That month, IREN inked a $9.7 billion deal to give Microsoft access to Nvidia GB300 GPUs over a five-year period.
IREN Stock Performance
IREN fell about 5% early Friday. Shares initially more than 12% late Thursday after the report.
That followed a tumble of more than 11% Thursday as the price of bitcoin unraveled. The stock drilled further below its 50-day line after undercutting that moving average on Wednesday.
IREN has fallen more than 48% from its 2025 high of 76.87 in early November. The stock is approaching its December low of 33.34.
Meanwhile, the price of bitcoin on Friday recovered modestly to $68,000. Bitcoin on Thursday evening retreated near $60,000, which marked its lowest price since early October 2024.
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