IREN Earnings: $240M Revenue vs. $385M Net Income – What We Know

IREN, the Australian-based Bitcoin miner turned "AI-factory," just dropped its Q1 FY2026 (that's Q3 2025 for those of us on a normal calendar) earnings. The headline numbers look impressive: $240.3 million in revenue and a whopping $384.6 million in net income. But as any seasoned analyst knows, the devil's in the details—and in this case, the details are screaming for attention. IREN reports $240 million revenue, $385 million net income: Earnings - Yahoo Finance

The EBITDA Discrepancy

Let's start with the EBITDA. We see a reported Adjusted EBITDA of $91.7 million, which sounds reasonable. But then there's the regular EBITDA figure: a staggering $662.7 million. The difference? Unrealized gains. Now, I'm not saying unrealized gains are inherently bad, but they're not exactly cash in the bank. They represent potential future profit, and relying on them to paint a rosy picture of current operational performance is, shall we say, optimistic.

This is where I start to raise an eyebrow. Are we valuing IREN as a Bitcoin miner or as an AI play? Because if it's the latter, those unrealized gains from crypto holdings are a distraction. They muddy the waters and make it harder to assess the core business. It's like judging a steakhouse by the price of its wine cellar.

The AI Pivot: Promises and Timelines

The company's transition to GPU operations at its British Columbia locations by the end of 2026 is another key point. That's a long runway. The Childress site is undergoing "acceleration," according to the report. Acceleration of what, exactly? Construction? Deployment of GPUs? The lack of specificity is frustrating.

Then we have the Sweetwater substations. Energization of Sweetwater 1 is targeted for Q2 2026, and Sweetwater 2 for Q4 2027. These are critical infrastructure projects, and any delays could significantly impact IREN's ability to power its AI operations. What contingencies are in place if these timelines slip? Are there alternative power sources lined up? These are questions that investors should be asking.

I've looked at hundreds of these filings, and this particular timeline feels... ambitious. Building and energizing substations isn't like plugging in a new server. It's a complex process involving regulatory approvals, supply chain logistics, and a whole host of potential roadblocks.

The Bitcoin Hangover

IREN is trying to rebrand itself as an AI company, but its roots are firmly planted in Bitcoin mining. This presents a challenge. Investors who are bullish on AI may be wary of a company with significant exposure to the volatile crypto market. Conversely, crypto enthusiasts may not be convinced that IREN can successfully transition to AI.

It's a bit like trying to turn a battleship into a speedboat. Both are boats, but they require very different skill sets and infrastructure. Can IREN truly shed its Bitcoin skin and emerge as a pure-play AI powerhouse? Or will it be forever caught between two worlds?

Show Me the Data

IREN's Q1 results are a mixed bag. The headline numbers are impressive, but a closer look reveals some potential red flags. The reliance on unrealized gains, the ambitious timelines for infrastructure projects, and the challenge of transitioning from Bitcoin mining to AI all warrant careful scrutiny. The company is trying to sell a vision of the future, but investors need to see more concrete evidence that it can deliver.

So, Where's the AI, Really?

IREN's story is compelling, but the numbers suggest a company still heavily reliant on its Bitcoin past while making promises about an AI future. Until we see more data supporting the AI transformation, I'm remaining cautiously skeptical.