IREN Has $4B in Contracted ARR with Only $1B Operating; Uncertainty Over Future GAAP Revenue
IREN Limited (NASDAQ:IREN) reported having $4 billion of contracted annualized run-rate revenue (ARR) for calendar year 2026, but only $1 billion was operating as of August 26. The remaining capacity is expected to ramp up in the coming months after deployments are delivered and accepted by customers. Fiscal 2026 GAAP revenue totaled $707 million, with AI Cloud Services contributing $128.8 million—up nearly eightfold from fiscal 2025. The company's Horizon data center projects for Microsoft have advanced significantly, though most are still in construction or commissioning phases. Despite strong contracted demand and prepayment structures reducing capital pressure, the path to GAAP revenue remains uncertain due to factors like service commencement timing, utilization rates, pricing models, and accounting rules.
Tickers: $IREN
Topics: AI Cloud Services ARR contracted capacity GAAP revenue