Iren reported $4 billion in annualized recurring revenue has been delayed to at least January, with potential extension to February, following a customer request. Co-CEO Daniel Roberts identified Microsoft as the customer, saying it requested reconfiguration and upgrades to network infrastructure to enable 200 megawatts of capacity for frontier AI models.
The company's shares rose in extended trading after the announcement, though they had fallen 55% over the prior month and 26% post-election.
Iren reported quarterly revenue of $228 million, up 66% from the prior quarter and beating the $221 million analyst estimate. AI Cloud revenue more than doubled to $200 million. Net loss narrowed to $263 million from $684 million in the prior period.
The revenue backlog grew 22% to $20.3 billion, with approximately two-thirds from investment-grade counterparties. The $4 billion ARR target is fully contracted and funded, the company said.
Roberts told CNBC that capital markets have become more selective recently, with questions shifting from contract size to whether deals can be delivered, financed, and run profitably. He noted a disconnect between public market weakness and customer-level strength.
Iren plans $15 billion in capital expenditures for the rest of the fiscal year, including $9 billion in cash and committed financing. The company expanded an existing contract with a leading frontier AI lab and has contracts with Nvidia, Microsoft, and 13 other customers. Roberts said Nvidia and Microsoft will back some data center construction, while about a third will be funded by customers offering large prepayments.
Investors watching IREN, CoreWeave (down 60% in one month), and Nebius (down 48% in one month) should monitor whether the delayed Microsoft revenue materializes in January and whether customer funding commitments hold amid broader AI sector pullback.