IREN shares tank following 23% Q2 revenue slide
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The news: Nasdaq-listed data centre play IREN has seen its shares tumble in extended trading after posting a 23% quarter-on-quarter slide in revenue amid the transition from bitcoin mining operations to AI workloads and AI cloud.
The numbers: At 9:43am AEDT, Nasdaq-listed IREN shares had fallen 11.5% to USD39.79 ($57.43).
IREN’s Q2 revenue came in at USD184.7 million, down from USD240.3 million in the preceding quarter. This was below the market consensus expectation for revenue of USD235.4 million, according to Visible Alpha.
The company also swung to a net loss of USD155.4 million from net income of USD384.6 million in the preceding quarter. This was a more severe loss than the expected USD27.6 million.
The context: IREN said it was hit by unrealised losses related to prepaid forwards and capped calls associated with convertible notes, which contrasts with the “significant unrealised gains on such positions” in the first quarter of FY26. This incurred a one-time debt conversion inducement expense of USD219.2 million.
The company also faced bitcoin mining hardware impairments of USD31.8 million as it swaps out application-specified integrated circuits with GPU chips, which are suitable for AI workloads, across its data centres in British Columbia.
There were also stock-based compensation expenses totalling USD58.2 million. This was in part due to USD22.3 million of accelerated amortisation on performance-based restricted units and options due to higher share prices.
What they said: “Last quarter marked meaningful progress across capacity expansion, customer engagement, and capital formation, reflecting IREN’s progress as a scaled AI Cloud platform,” co-founder and co-CEO of IREN Daniel Roberts said.
“We are seeing the strongest demand environment to date, and importantly, that demand is being met by a proven execution capability.”
The source: IREN media release
