Full Year 2026 IREN Ltd Earnings Call

August 27, 2026

Operator: Good day, and thank you for standing by. Welcome to IREN FY 2026 results call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Mike Power, Vice President, Investor Relations. Please go ahead.

Operator: Good day, and thank you for standing by. Welcome to IREN FY 2026 Results Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Mike Power, Vice President, Investor Relations. Please go ahead.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone.

Speaker #1: You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.

Speaker #1: And I'd like to hand the conference over to your first speaker today, Mike Power, Vice President of Investor Relations. Please go ahead.

Speaker #2: Good afternoon. Welcome to IREN's FY2026 results presentation. I'm Mike Power, VP of Investor Relations, and with me on the call today are Daniel Roberts, co-founder and co-CEO; Anthony Lewis, CFO; and Kent Draper, Chief Commercial Officer.

Mike Power: Operator, good afternoon and welcome to IREN's FY 2026 results presentation. I am Mike Power, VP of Investor Relations, and with me on the call today are Daniel Roberts, Co-Founder and Co-CEO, Anthony Lewis, CFO, and Kent Draper, Chief Commercial Officer. Before we begin, please note that this call is being webcast live with a presentation for those dialed in by phone. You can elect to ask a question through the moderator after our prepared remarks. I would like to remind everyone that certain statements made during this call may constitute forward-looking statements. Those statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to Slide 2 of the accompanying presentation and our SEC filings for more information in that regard. With that, I will turn the call over to Dan Roberts.

Speaker #2: Before we begin, please note that this call is being webcast live with a presentation. For those dialed in by phone, you can elect to ask a question through the moderator after our prepared remarks.

Speaker #2: I would like to remind everyone that certain statements made during this call may constitute forward-looking statements. Those statements are based on current expectations and assumptions, and are subject to risks and uncertainties that could cause actual results to differ materially.

Mike Power: Those statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to slide two of the accompanying presentation and our SEC filings for more information in that regard. With that, I will turn the call over to Dan Roberts.

Speaker #2: Please refer to Slide 2 of the accompanying presentation and our SEC filings for more information in that regard. With that, I will turn the call over to Dan Roberts.

Speaker #3: Thanks, Mike. And thanks, everyone, for joining us. So, Will and I started this business on a pretty simple observation: the digital world scales almost instantly, the physical world does not.

Daniel Roberts: Thanks, Mike, and thanks everyone for joining us. Will and I started this business on a pretty simple observation. The digital world scales almost instantly. The physical world does not. Power, land, data centers, these things take years to permit, finance, and build. This was the year that stopped being a thesis and became the defining constraint of the whole industry. If we look at the chart on screen, across 8 models tracked by OpenRouter, weekly token usage across large language models increased nearly 17 times in 8 months. Every one of those tokens runs on physical infrastructure. It is very difficult to serve demand shaped like that with infrastructure on 3-year lead times. This is the start of the cycle, not the end. Cheaper compute doesn't make existing things more efficient. It makes new things economic. Infrastructure enables applications. Applications create demands for more infrastructure.

Speaker #3: Power, land, data centers—these things take years to permit, finance, and build. And this was the year that stopped being a thesis and became the defining constraint of the whole industry.

Speaker #3: So if we look at the chart on screen, across eight models tracked by OpenRouter, weekly token usage across large language models increased nearly seventeen times.

Speaker #3: In eight months, every one of those tokens runs on physical infrastructure. It is very difficult to serve demand shaped like that with infrastructure on three-year lead times.

Daniel Roberts: It is very difficult to serve demand shaped like that with infrastructure on three-year lead times. This is the start of the cycle, not the end. Cheaper compute doesn't make existing things more efficient. It makes new things economic. Infrastructure enables applications. Applications create demands for more infrastructure.

Speaker #3: And this is the start of the cycle, not the end. Cheaper compute doesn't make existing things more efficient; it makes new things economic. Infrastructure enables applications; applications create demand for more infrastructure.

Speaker #3: Every build-out in history has worked this way, and that's the structural disconnect—and it's only getting wider. So, let me walk through how we're set up against that backdrop.

Daniel Roberts: Every build-out in history has worked this way, and that's the structural disconnect, and it's only getting wider. Let me walk through how we're set up against that backdrop. We operate across 3 layers from the bottom up. First of all, the data centers, the land, the power, the substations, the cooling. Arguably, the hardest layer to build, and that's where the shortage begins. Then the compute, the GPUs, storage, networking that go inside the data centers. Finally, software on top. The managed services and enterprise support. That's where Mirantis lives for us. Just today, Mirantis was named an inaugural NVIDIA-certified hypervisor. We've now got NVIDIA validation at the software layer as well as the hardware. Why own all 3? Because each layer makes the one underneath it worth more. A grid connection is worth more with a data center on it.

Speaker #3: So we operate across three layers, from the bottom up. So, first of all, the data centers: the land, the power, the substations, the cooling.

Speaker #3: Arguably, the hardest layer to build, and that's where the shortage begins. Then the compute—the GPUs, storage, networking—that go inside the data centers.

Speaker #3: And then finally, software on top—the managed services and enterprise support. That's where Mirantis lives for us. And just today, Mirantis was named an inaugural NVIDIA-certified hypervisor.

Daniel Roberts: That's where Mirantis lives for us. Just today, Mirantis was named an inaugural NVIDIA-certified hypervisor. We've now got NVIDIA validation at the software layer as well as the hardware. Why own all 3? Because each layer makes the one underneath it worth more. A grid connection is worth more with a data center on it.

Speaker #3: So we've now got NVIDIA validation at the software layer, as well as the hardware. Why own all three? Because each layer makes the one underneath it worth more.

Speaker #3: A grid connection is worth more with a data center on it. Worth more again with GPUs inside. And more again with services wrapped around the customer.

Daniel Roberts: Worth more again with GPUs inside. More again with services wrapped around the customer. Most of this market rents at least one of those layers. We own the entire stack. Here is how the year went. Just move on to highlights, please, operator. Thank you. Four things to take away from this update, and I will be quick because there is more detail coming a little bit later. Firstly, customers. New multi-cloud contracts including Cohere, Prometheus, Perplexity AI, Figure AI, fal.ai, Higgsfield AI, and separately, a leading frontier AI lab whose name we are not able to disclose just yet. Revenue. $4 billion of ARR is now contracted for our 2026 capacity, and $1 billion of that is operating today. This does not include revenue expected to ramp in 2027, such as the $700 million of ARR associated with our NVIDIA cloud contract. Delivering.

Speaker #3: Most of this market rents at least one of those layers. We own the entire stack. So here's how the year went. Let's move on to highlights, please, operator.

Speaker #3: Thank you. Four things to take away from this update—and I'll be quick because there's more detail coming a little bit later. So, firstly, customers.

Daniel Roberts: Firstly, customers. New multi-cloud contracts including Cohere, Prometheus, Perplexity AI, Figure AI, fal.ai, Higgsfield AI, and separately, a leading frontier AI lab whose name we are not able to disclose just yet. Revenue. $4 billion of ARR is now contracted for our 2026 capacity, and $1 billion of that is operating today. This does not include revenue expected to ramp in 2027, such as the $700 million of ARR associated with our NVIDIA cloud contract. Delivering.

Speaker #3: New multi-year cloud contracts, including Cohere, Prometheus, Perplexity, Figure AI, Foul AI, and Higgsfield AI, and, separately, a leading frontier AI lab whose name we're not able to disclose just yet.

Speaker #3: Revenue: $4 billion of ARR is now contracted for our 2026 capacity, and $1 billion of that is operating today. This does not include revenue expected to ramp in 2027, such as the $700 million of ARR associated with our NVIDIA cloud contract.

Speaker #3: Horizon One was delivered to Microsoft this month—the first of four 50-megawatt deployments. Horizons Two through Four are targeted for the December quarter.

Daniel Roberts: Horizon 1 was delivered to Microsoft this month, the first of four 50MW deployments, with Horizon 2 through 4 targeted for the December quarter. Finally, funding. $6.5 billion of GPU financing now in the past three months. With prepayments, that is more than 100% of the associated GPU CapEx funded, and $2.8 billion of it needed no investment-grade offtake and still priced in the single digits. Let me start with customers, because everything else follows from them. Our 2026 capacity is largely sold out. The questions we get now are all about 2027 and 2028. We are continuing to contract future capacity deliberately. Every contract opportunity gets weighed on three things. Firstly, who and what does this counterparty add to the platform? The strategic merit, not just the revenue. Second, what are the economics? Price, prepayment, term, et cetera.

Speaker #3: And finally, funding: $6.5 billion of GPU financing now in the past three months. With prepayments, that's more than 100% of the associated GPU capex funded.

Speaker #3: And $2.8 billion of it needed no investment-grade offtake, and still priced in the single digits. So let me start with customers, because everything else follows from them.

Speaker #3: Our 2026 capacity is largely sold out. So the questions we get now are all about 2027 and 2028. We're continuing to contract future capacity deliberately.

Speaker #3: Every contract opportunity gets weighed on three things: Firstly, who and what does this counterparty add to the platform? The strategic merit, not just the revenue.

Speaker #3: Second, what are the economics—price, prepayment, term, etc.? And thirdly, what might it open up longer term for managed services and software? We've been saying this for a while now.

Daniel Roberts: Thirdly, what might it open up longer term for managed services and software? We have been saying this for a while now. Signing deals is not the bottleneck in this market. Bringing GPUs online is. We also do not need an investment grade offtake to fund GPUs anymore. We are not chasing headline announcements. We are making long-term decisions about where we want this business to be. When we will sign, we will tell you. We are in late-stage discussions with a range of new customers over a significant portion of 2027 capacity, and 2028 conversations are well underway too, both on customers and financing. Longer term, we want to keep building a deep, diversified base of customers across the AI ecosystem, all who have master service agreements with IREN. Every megawatt we build is scarce. Before every new cluster switches on, we want it in demand from both existing customers and new ones.

Speaker #3: Signing deals is not the bottleneck in this market—bringing GPUs online is. We also don't need an investment-grade offtake to fund GPUs anymore, so we're not chasing headline announcements.

Speaker #3: We're making long-term decisions about where we want this business to be. And when we sign, we'll tell you. We're in late-stage discussions with a range of new customers over a significant portion of 2027 capacity.

Daniel Roberts: We are in late-stage discussions with a range of new customers over a significant portion of 2027 capacity, and 2028 conversations are well underway too, both on customers and financing. Longer term, we want to keep building a deep, diversified base of customers across the AI ecosystem, all who have master service agreements with IREN. Every megawatt we build is scarce. Before every new cluster switches on, we want it in demand from both existing customers and new ones.

Speaker #3: And 2028 conversations are well underway too, both with customers and on financing. Longer term, we want to keep building a deep, diversified base of customers across the AI ecosystem.

Speaker #3: All who have master service agreements with IREN. Every megawatt we build is scarce. Before every new cluster switches on, we want it to be in demand from both existing customers and new ones.

Speaker #3: So, not dependent on any one customer, any one negotiation, or any one point in a pricing cycle. And here's who's on the platform today.

Daniel Roberts: Not dependent on any one customer, any one negotiation, or any one point in a pricing cycle. Here is who is on the platform today. As I mentioned earlier, the headline is the new multi-year contract with a leading frontier AI lab. To be clear, this is a new contract. It is separate from Prometheus, who we can now name as the unnamed AI developer from our July announcement. The most sophisticated buyers of AI infrastructure in the world keep choosing us. It also shows the strategy is working. We started concentrated because big customers with immediate demand were the fastest path to scale. As the platform has grown, we have deliberately broadened. Hyperscalers, enterprises, AI developers, now frontier labs, across both training and inference. Honestly, the part we care about most is the third bullet point. Existing customers keep coming back.

Speaker #3: So, as I mentioned earlier, the headline is the new multi-year contract with a leading frontier AI lab. And to be clear, this is a new contract.

Speaker #3: It's separate from Prometheus, who we can now name as the unnamed AI developer from our July announcement. The most sophisticated buyers of AI infrastructure in the world keep choosing us.

Speaker #3: It also shows the strategy is working. We started concentrated, because of big customers with immediate demand, with the fastest path to scale. As the platform's grown, we've deliberately broadened.

Daniel Roberts: We started concentrated because big customers with immediate demand were the fastest path to scale. As the platform has grown, we have deliberately broadened. Hyperscalers, enterprises, AI developers, now frontier labs, across both training and inference. Honestly, the part we care about most is the third bullet point. Existing customers keep coming back.

Speaker #3: Hyperscalers, enterprises, AI developers, and now frontier labs, across both training and inference. But honestly, the part we care about most is the third bullet point: existing customers keep coming back.

Speaker #3: Together AI and Fireworks AI are both renewed and expanded. New logos are proving demand, whereas renewals continue to prove ongoing delivery and ongoing execution.

Daniel Roberts: Together AI and Fireworks AI have both renewed and expanded. New logos are proving demand, whereas renewals continue to prove ongoing delivery and ongoing execution. Once we have deployed with a customer, we grow with them across sites, GPU generations, and service levels. In terms of who is signing and growing with us, Prometheus and Figure AI are building products for the physical world, robotics, real-world automation, and they are contracting our compute to do it. AI is moving well beyond chat. This is the thing we keep telling people. You cannot size this market off today's usage, and that is exactly why the market keeps getting caught structurally short of compute. Let us move on to pricing. Pricing has moved a lot. Three-year contract pricing is up about 125% since November. Five-year is up about 70%.

Speaker #3: Once we've deployed with a customer, we grow with them—across sites, GPU generations, and service levels. And in terms of who is signing and growing with us, Prometheus and Figure are building products for the physical world: robotics, real-world automation.

Speaker #3: And they're contracting our compute to do it. AI is moving well beyond chat. This is the thing we keep telling people: you cannot size this market off today’s usage.

Speaker #3: And that is exactly why the market keeps getting caught structurally short of compute. Now, let's move on to pricing. Pricing has moved a lot.

Speaker #3: Three-year contract pricing is up about 125% since November. Five-year is up about 70%. Recent three-year contracts are pricing in excess of $20 million per megawatt of IT load.

Daniel Roberts: Recent three-year contracts are pricing in excess of $20 million per megawatt of IT load, paying back the compute investment in around two years. Active discussions are now at around $25 million per megawatt. Recent customer prepayments are funding 45% to 55% of the GPU CapEx. What is behind that? The market has tightened, no question. It is also who we are signing, how the deals are structured, and what we attach on top in managed services, which Mirantis keeps expanding. Shorter duration and on-demand sit above that as further upside in due course. Revenue per megawatt is shorthand, by the way. We look at the whole return, price, term, prepayment, utilization, customer quality, and expansion opportunity. To be clear about what we are not doing, we are not sitting on capacity to time a spot price. We allocate capacity to build the customer base and the platform as we see fit.

Speaker #3: Paying back the compute investment in around two years, while active discussions are now at around $25 million. Recent customer prepayments are funding 45% to 55% of the GPU capex.

Speaker #3: What's behind that? The market's tightened, no question. But it's also who we're signing, how the deals are structured, and what we attach on top in managed services.

Speaker #3: Which Merantis keeps expanding. Shorter duration and on-demand sit above that as further upside in due course. Revenue per megawatt is shorthand, by the way.

Daniel Roberts: Shorter duration and on-demand sit above that as further upside in due course. Revenue per megawatt is shorthand, by the way. We look at the whole return, price, term, prepayment, utilization, customer quality, and expansion opportunity. To be clear about what we are not doing, we are not sitting on capacity to time a spot price. We allocate capacity to build the customer base and the platform as we see fit.

Speaker #3: We look at the whole return: price, term, prepayment, utilization, customer quality, and expansion opportunity. And to be clear about what we're not doing, we're not sitting on capacity to time a spot price.

Speaker #3: We allocate capacity to build the customer base and the platform as we see fit. The pricing follows that. Okay, so from customers to what we're building.

Daniel Roberts: The pricing follows that. From customers to what we are building, the targets. Roughly 300 megawatts of IT load delivered in 2026 and another half a gigawatt in 2027. That will take the platform to around 1.2 gigawatts in 2027 of gross capacity, and we are continuing to build across Texas, British Columbia, Oklahoma, South Australia, and Spain. Right now today, there are more than 4,000 people mobilized across our active sites. The best example of that today is Horizon 1. As we announced earlier, Horizon 1 was delivered to Microsoft. First of four 50-megawatt liquid cooled deployments at Childress, and it achieved NVIDIA Exemplar status on GB300 NVL72, which matters because it proves we can integrate and operate the full platform, hardware, networking, and software, not just build the shell. The delivery matters, but the template matters more.

Speaker #3: The targets: roughly 300 megawatts of IT load delivered in 2026, and another half a gigawatt in 2027. That'll take the platform to around 1.2 to 1.25 gigawatts in 2027 of gross capacity.

Speaker #3: And we're continuing to build across Texas, British Columbia, Oklahoma, South Australia, and Spain. And right now, today, there are more than 4,000 people mobilized across our active sites.

Speaker #3: The best example of that today is Horizon One. So, as we announced earlier, Horizon One was delivered to Microsoft—first of four 50-megawatt, liquid-cooled deployments at Childress.

Speaker #3: And it achieved NVIDIA Exemplar Cloud status on GV300 NVL72, which matters because it proves we can integrate and operate the full platform.

Speaker #3: Hardware, networking, and software—not just building the shell. The delivery matters, but the template matters more. Every Horizon uses the same design, the same supply chain, and the same site team, and each phase carries the lessons of the last.

Daniel Roberts: Every Horizon uses the same design, the same supply chain, the same site team, and each phase carries the lessons of the last. Horizon 2 is in the process of working towards commissioning. Horizon 3 and Horizon 4 are in late construction. All three are targeting delivery in the December quarter. That approach is running at every site. Quickly on 2026. At Childress, retrofit work and GPU installs are running in parallel on the air-cooled calls. At Mackenzie, GPUs are being racked across the first two buildings. At Prince George, the air-cooled fleet is now fully commissioned and liquid-cooled installation is underway. All of that remaining capacity is targeted for the December quarter. In 2027, Sweetwater 1 is in full swing now. The first building is going up. The primary substation is progressing.

Speaker #3: Horizon Two is in the process of working towards commissioning. Three and Four are in late construction. So all three are targeting delivery in the December quarter.

Speaker #3: And that approach is running at every site. So, quickly on 2026, at Childress, retrofit work and GPU installs are running in parallel on the air-cooled halls.

Speaker #3: At McKinsey, GPUs are being racked across the first two buildings. At Prince George, the air-cooled fleet is now fully commissioned, and liquid-cooled installation is underway.

Speaker #3: All of that remaining capacity is targeted for the December quarter. In 2027, Sweetwater One is in full swing now—the first building is going up.

Speaker #3: The primary substation is progressing. At Childress, Horizons Five and Six civils are now moving and underway, and another 250 megawatts of air-cooled conversion is progressing.

Daniel Roberts: At Childress, Horizon 5 and 6 civils are now moving and underway, and another 250 MW of air-cooled conversion progressing. It is also worth mentioning in terms of Canal Flats, we have now decided to convert all of that to liquid cooling for GB300s, and that will deliver more value from power in a site we already own. Beyond that, the pipeline steps up again. 2028, Sweetwater 2 and Keawa in the US, Bundey in South Australia, and Badajoz in Spain. Roughly 300 MW, and the flagship of the Nostrum portfolio of sites we closed during the quarter. All up, more than 5 gigawatts announced with a multi-gigawatt development pipeline behind it, including more Texas power, where a tighter interconnection process should favor real and well-capitalized projects. A quick word on design because it answers a question we are starting to get a lot.

Speaker #3: And it's also worth mentioning, in terms of Canal Flats, we've now decided to convert all of that to liquid cooling for GV300s. That will deliver more value from power and a site we already own.

Speaker #3: But beyond that, the pipeline steps up again. In 2028, Sweetwater Two and Quay are in the US, Bunding in South Australia, and Badajoz in Spain—roughly 300 megawatts.

Daniel Roberts: Roughly 300 MW, and the flagship of the Nostrum portfolio of sites we closed during the quarter. All up, more than 5 gigawatts announced with a multi-gigawatt development pipeline behind it, including more Texas power, where a tighter interconnection process should favor real and well-capitalized projects. A quick word on design because it answers a question we are starting to get a lot.

Speaker #3: And the flagship of the Nostrom portfolio of sites we closed during the quarter. All up, more than 5 gigawatts announced, with a multi-gigawatt development pipeline behind it, including more Texas power, where a tighter interconnection process should favor real and well-capitalized projects.

Speaker #3: And then a quick word on design, because it answers a question we're starting to get a lot. So, the bear case we hear on this industry is that AI data centers get rebuilt in 10 years.

Daniel Roberts: The bear case we hear on this industry is that AI data centers get rebuilt in 10 years. We have spent this year making sure that ours do not. Sweetwater 1 is becoming the reference design for Sweetwater 2, Keawa, Bundey, and what follows after those. Common layouts, common equipment, more modularization and prefab. Each project is inheriting the last one's lessons instead of starting from zero, and the design is built for successive GPU generations. Evolving cooling, including 800-volt DC, all of which is being developed in collaboration with NVIDIA. We know compute changes faster than buildings, and ours have been designed to adapt to that. We are also getting more out of what we already own. Our existing sites have spare power beyond current deployment plans. That headroom can support more GPUs and more revenue without the need for any new grid capacity.

Speaker #3: We've spent this year making sure that ours don't. Sweetwater One is becoming the reference design for Sweetwater Two. Quay are Bundi, and what follows after those.

Speaker #3: Common layouts, common equipment, more modularization and prefab. Each project is inheriting the last one's lessons, instead of starting from zero. And the design is built to support successive GPU generations.

Daniel Roberts: Evolving cooling, including 800-volt DC, all of which is being developed in collaboration with NVIDIA. We know compute changes faster than buildings, and ours have been designed to adapt to that. We are also getting more out of what we already own. Our existing sites have spare power beyond current deployment plans. That headroom can support more GPUs and more revenue without the need for any new grid capacity.

Speaker #3: Evolving cooling, including 800-volt DC, all of which has been developed in collaboration with NVIDIA. So we know compute changes faster than buildings, and ours have been designed to adapt to that.

Speaker #3: But we're also getting more out of what we already own. Our existing sites have spare power beyond current deployment plans. That headroom can support more GPUs and more revenue, without the need for any new grid capacity.

Speaker #3: And new grid capacity is the scarcest input in this entire industry. So revenue that doesn't need it is about the highest quality growth there is.

Daniel Roberts: New grid capacity is the scarcest input in this entire industry, so revenue that does not need it is about the highest quality growth there is. First up, new liquid-cooled installs at Mackenzie, Canal Flats, and Prince George in 2027. Over time, tools like NVIDIA DSX MaxLPS, which smooths GPU power draw, let us safely run more compute inside the same electrical envelope. None of this happens without people. Our head count nearly tripled in FY26, including hundreds of colleagues who joined through Mirantis and Nostrum, and we expect similar growth again in FY27. Five C-suite appointments across development, product, marketing, innovation, and information security. People from NVIDIA, AWS, Oracle, Google, and other leading data center operators. Building our organization ahead of the revenue is obviously deliberate. It costs money before it makes money, but this is where we are going.

Speaker #3: First up, new liquid-cooled installs at McKinsey, Canal Flats, and Prince George in 2027. And over time, tools like NVIDIA Max LPS, which smooths GPU power draw, let us safely run more compute inside the same electrical envelope.

Speaker #3: But none of this happens without people. Our headcount nearly tripled in FY26, including hundreds of colleagues who joined through Mirantis and Nostrom. And we expect similar growth again in FY27.

Daniel Roberts: Our head count nearly tripled in FY26, including hundreds of colleagues who joined through Mirantis and Nostrum, and we expect similar growth again in FY27. Five C-suite appointments across development, product, marketing, innovation, and information security. People from NVIDIA, AWS, Oracle, Google, and other leading data center operators. Building our organization ahead of the revenue is obviously deliberate. It costs money before it makes money, but this is where we are going.

Speaker #3: Five C-suite appointments across development, product, marketing, innovation, and information security. People from NVIDIA, AWS, Oracle, Google, and other leading data center operators. So, building our organization ahead of the revenue is obviously deliberate.

Speaker #3: It costs money before it makes money. But this is where we're going. One last piece before I pass off to Anthony is how we're funding it.

Daniel Roberts: One last piece before I pass off to Anthony Lewis is how we are funding this growth. GPU financing first, because now the model is proven at both ends of the credit spectrum. For the Microsoft contract, we raised $3.6 billion of investment-grade GPU financing at a weighted average of about 6%. With customer prepayments, that funded about 96% of the associated GPU CapEx. Here is where it gets really interesting. For non-investment grade deployments, the rest of the AI ecosystem, we just closed $2.8 billion of equipment financing. That includes $2.4 billion at a 9% fixed rate for Mackenzie, led by Blue Owl and funds managed by PIMCO. A delayed draw term loan alongside senior secured notes funding 90% of that GPU CapEx.

Speaker #3: This growth—so, GPU financing first, because now the model is proven at both ends of the credit spectrum. For the Microsoft contract, we raised $3.6 billion of investment-grade GPU financing at a weighted average of about 6%.

Speaker #3: With customer prepayments, that funded about 96% of the associated GPU capex. Now, here's where it gets really interesting—for non-investment-grade deployments, so the rest of the AI ecosystem, we just closed $2.8 billion of equipment financing.

Speaker #3: That includes $2.4 billion at a 9% fixed rate for McKinsey, led by Blue Owl and funds managed by PIMCO. A delayed draw term loan, alongside senior secured notes, is funding 90% of that GPU capex.

Daniel Roberts: Add prepayments of 45% to 55% on recent deals, and total funding well exceeds the cost of the underlying GPUs, which is good because that excess is now helping to support data center CapEx on those same and future deployments. To date, talking about data center CapEx, we have deliberately kept 100% of our data centers unencumbered, which is a growing asset base we can finance when the timing is right. On that note, Anthony will take you how that funds the plan and the results. Thank you, Anthony.

Speaker #3: Add prepayments of $45 to $55 million on recent deals, and total funding well exceeds the cost of the underlying GPUs, which is good, because that excess is now helping to support data center capex on those same and future deployments.

Speaker #3: And to date, talking about data center capex, we have deliberately kept 100% of our data centers unencumbered, which is a growing asset base we can finance when the timing is right.

Speaker #3: So, on that note, Anthony will take you through how that funds the plan and the results. Thank you, Anthony.

Speaker #1: Thanks, Dan. And good evening, everyone. Over the past 12 months, we have secured approximately $19 billion in funding—nearly $16 billion across customer prepayments, GPU financing, and convertible notes.

Anthony Lewis: Thanks, Dan. Good evening, everyone. Over the past 12 months, we have secured circa USD 19 billion in funding. Nearly USD 16 billion across customer prepayments, GPU financing, and convertible notes, alongside equity of approximately USD 3 billion. The vast majority of this funding is either in cash or yet to be drawn down, giving us significant capacity. For FY27, we are guiding CapEx of approximately USD 25 billion to USD 30 billion. Included in that estimate is delivery of the contracted Microsoft capacity, the other deployments to deliver on 2026 ARR, and GPU and data center CapEx for air-cooled deployments scheduled across calendar year 2027. It will also support new liquid-cooled data center capacity at Childress and Sweetwater One for delivery in the H2 of calendar year 2027, as well as earlier stage investment for 2028 and beyond.

Speaker #1: Alongside equity of approximately $3 billion. The vast majority of this funding is either in cash or yet to be drawn down, giving us significant capacity.

Speaker #1: For FY27, we're guiding capex of approximately $25 to $30 billion. Included in that estimate is delivery of the contracted Microsoft capacity, the other deployments to deliver on 2026 ARR, and GPU and data center capex for air-cooled deployments scheduled across calendar year 2027.

Speaker #1: It will also support new liquid-cooled data center capacity at Childress and Sweetwater One for delivery in the second half of calendar year 2027, as well as earlier-stage investment for 2028 and beyond.

Speaker #1: Of course, the actual capex for the year will depend on a range of factors, including final costings, construction schedules, delivery timelines for GPUs and long-lead items, the overall contracting environment, and the overall fundraising environment.

Anthony Lewis: Of course, the actual CapEx for the year will depend on a range of factors, including final costings, construction schedules, delivery timelines for GPUs and long lead items, the overall contracting environment, and the overall fundraising environment. Within that CapEx estimate, we expect data center and CapEx GPU requirements to be up approximately 15% to 20% for ongoing and new deployments, with revenue increases expected to ultimately outpace those increases. In respect to the funding plan, as noted earlier, we have a strong starting position. Approximately USD 14 billion of existing cash and committed GPU financing and prepayments. That includes USD 7.6 billion of cash on the balance sheet at 30 June, of which USD 1.7 billion is restricted, with most of that USD 1.7 billion set aside to fund Microsoft GPU CapEx.

Speaker #1: Within that CapEx estimate, we expect data center and GPU requirements to be up approximately 15% to 20% for ongoing and new deployments, with revenue increases expected to ultimately outpace those increases.

Speaker #1: With respect to the funding plan, as noted earlier, we have a strong starting position: approximately $14 billion of existing cash and committed GPU financing and prepayments.

Speaker #1: That includes $7.6 billion of cash on the balance sheet at 30 June, of which $1.7 billion is restricted—with most of that $1.7 billion set aside to fund Microsoft GPU capex.

Speaker #1: We're targeting roughly an additional $8 billion of GPU financing and prepayments, in support of GPU capex requirements—noting the healthy prepayments that we are seeing in recent contracting and the growing market for GPU financing that Dan has spoken to.

Anthony Lewis: We are targeting roughly an additional USD 8 billion of GPU financing and prepayments in support of GPU CapEx requirements, noting the healthy prepayments that we are seeing in recent contracting and the growing market for GPU financing that Dan has spoken to. The balance of the requirement we expect to meet through data center financing, operating cash flows, and corporate sources. On data center financing, as Dan has spoken to, our entire data center portfolio is unencumbered today, including Horizons 1 through 4. There is obviously a significant and growing asset base to raise asset finance against. Alongside the growing market for GPU financing, attractive customer prepayments, we feel well-placed to scale our fundraising efforts to support the rapid growth of the platform. Now turning to the Q4 results and outlook. The quarter's results continue to reflect the ongoing transition to AI Cloud.

Speaker #1: The balance of the requirement we expect to meet through data center financing, operating cash flows, and corporate sources. On data center financing, as Dan has spoken to, our entire data center portfolio is unencumbered today.

Speaker #1: Including Horizons 1 through 4, there is obviously a significant and growing asset base to raise asset finance against. Alongside the growing market for GPU financing and attractive customer prepayments, we feel well placed to scale our fundraising efforts to support the rapid growth of the platform.

Anthony Lewis: There is obviously a significant and growing asset base to raise asset finance against. Alongside the growing market for GPU financing, attractive customer prepayments, we feel well-placed to scale our fundraising efforts to support the rapid growth of the platform. Now turning to the Q4 results and outlook. The quarter's results continue to reflect the ongoing transition to AI Cloud.

Speaker #1: Now, turning to the Q4 results and outlook. The quarter’s results continue to reflect the ongoing transition to AI Cloud. For the June quarter, revenue was $137.2 million, including AI Cloud revenue of $70.5 million.

Anthony Lewis: For the June quarter, revenue was $137.2 million, including AI Cloud revenue of $70.5 million. This was down $7.6 million compared to the prior quarter as we decommissioned mining hardware ahead of GPU installations, partially offset by AI Cloud growth. Cost of revenue also fell $6.6 million, mainly as a result of lower electricity usage from reduced mining activities. Net loss was $684 million for the quarter, largely driven by non-cash impairments of $450.4 million, mostly on account of decommissioning mining hardware, plus a $102.1 million decrease in fair value of mining hardware held for sale, both reflecting costs of transitioning our existing sites to AI Cloud. We currently expect mining operations to be effectively decommissioned by the end of December 2026.

Speaker #1: This was down $7.6 million compared to the prior quarter, as we decommissioned mining hardware ahead of GPU installations, partially offset by AI cloud growth.

Speaker #1: Cost of revenue also fell by $6.6 million, mainly as a result of lower electricity usage from reduced mining activities. Net loss was $684 million for the quarter, largely driven by non-cash impairments of $450.4 million, mostly on account of decommissioning mining hardware.

Speaker #1: Plus a $102.1 million decrease in the fair value of mining hardware held for sale, both reflecting costs of transitioning our existing sites to AI cloud.

Speaker #1: We currently expect mining operations to be effectively decommissioned by the end of December 2026. We expect first quarter cash SG&A to increase by approximately $40 to $50 million sequentially, as we continue to invest for growth across sales and marketing, R&D, development, size, and cloud operations, and other functions ahead of significant revenue growth over the coming periods.

Anthony Lewis: We expect first quarter cash SG&A to increase approximately $40 to $50 million sequentially as we continue to invest for growth across sales and marketing, R&D, development, sites and cloud operations, and other functions ahead of significant revenue growth over the coming periods. Which brings me to ARR. We exited Q4 at roughly half a billion of ARR. It is $1 billion today following acceptance of Horizon 1 by Microsoft, and that will carry through to the end of the September quarter. We expect more than $4 billion of ARR by the end of the December quarter, which is already under contract and includes delivery of Horizons 2 through 4. A significant amount of the December capacity is expected to come on late in the quarter, so we will see the reported revenue effect come through predominantly in the March quarter. With that, I will hand back to Daniel.

Speaker #1: Which brings me to ARR. We exited Q4 at roughly half a billion of ARR. It's $1 billion today, following acceptance of Horizon One by Microsoft, and that will carry through to the end of the September quarter.

Speaker #1: And we expect more than $4 billion of ARR by the end of the December quarter, which is already under contract and includes delivery of Horizons 2 through 4.

Anthony Lewis: We expect more than $4 billion of ARR by the end of the December quarter, which is already under contract and includes delivery of Horizons 2 through 4. A significant amount of the December capacity is expected to come on late in the quarter, so we will see the reported revenue effect come through predominantly in the March quarter. With that, I will hand back to Daniel.

Speaker #1: A significant amount of the December capacity is expected to come on late in the quarter, so we will see the reported revenue effect come through predominantly in the March quarter.

Speaker #1: With that, I'll hand back to Dan.

Speaker #2: Thanks, Anthony. So just one slide to close on. 2026 is largely sold out, with $4 billion of ARR now contracted. 2027 and beyond is delivered runway for us.

Daniel Roberts: Thanks, Anthony. Just one slide to close on. 2026 is largely sold out, with the $4 billion of ARR now contracted. 2027 and beyond is deliberate runway for us. So this is capacity we are continuing to convert into a broader customer base and, of course, a richer service mix. Revenue per megawatt is rising, both on structural demand as well as site optimization. That $4 billion comes from less than 10% of our five gigawatt plus portfolio of secured grid connections. So eight years ago, we set out to solve the gap between digital demand and physical supply.

Speaker #2: So, this is capacity we're continuing to convert into a broader customer base and, of course, a richer service mix. Revenue per megawatt is rising.

Speaker #2: Both on structural demand as well as site optimization. And that $4 billion comes from less than 10% of our 5-gigawatt-plus portfolio of secured grid connections.

Speaker #2: So, eight years ago, we set out to solve the gap between digital demand and physical supply. I think it's fair to say the gap is here.

Daniel Roberts: I think it is fair to say the gap is here. We own the power, we own the land, we own the data centers, we own the compute, we own the software, and we have the people to service it. So for Will and I, this is only the beginning. Operator, let us open the line for questions, please.

Speaker #2: We own the power. We own the land. We own the data centers. We own the compute. We own the people, the software, and we have the people to service it.

Speaker #2: So, for Will and me, this is only the beginning. But operator, let's open the line for questions, please.

Speaker #3: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again.

Operator: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. A moment for our first question. Our first question comes from the line of Michael Ng from Goldman Sachs. Please go ahead, Mike. Your line is open.

Speaker #3: We'll take a moment for this question. Our first question comes from the line of Mike Ng from Goldman Sachs. Please go ahead, Mike. Your line is open.

Speaker #4: Hey, good afternoon. I just have two questions. First, I was just wondering if you could talk a little bit more about Mirantis and how it helps facilitate the commercialization of your compute.

Michael Ng: Hey, good afternoon. I just have two questions. First, I was just wondering if you could talk a little bit more about Mirantis and how it helps facilitate the commercialization of your compute. Was Mirantis used or helped to enable any of the signed or in negotiation deals today? Do you think you will eventually use Mirantis to help sell some capacity into market aggregators like OpenRouter? I have a quick follow-up. Thank you.

Mike Ng: Hey, good afternoon. I just have two questions. First, I was just wondering if you could talk a little bit more about Mirantis and how it helps facilitate the commercialization of your compute. Was Mirantis used or helped to enable any of the signed or in negotiation deals today? Do you think you will eventually use Mirantis to help sell some capacity into market aggregators like OpenRouter? I have a quick follow-up. Thank you.

Speaker #4: Was Mirantis used or did it help to enable any of the signed or in-negotiation deals today? Do you think you'll eventually use Mirantis to help sell some capacity into market aggregators like OpenRouter?

Speaker #4: And then I have a quick follow-up. Thank you.

Speaker #2: Yeah, happy to jump in there. Thanks for the question. In terms of the Mirantis service offering, I think there's a few elements to that.

Kent Draper: Yeah, happy to jump in there. Thanks for the question. In terms of the Mirantis service offering, I think there is a few elements to that help with our business today. Firstly, as you identified, it opens up effectively new customer classes to us. As we have spoken about at length previously, very large hyperscaler or frontier AI lab customers generally like to take compute on a bare metal basis. But smaller AI developers, labs, enterprise customers value having an orchestration layer offered over the top of bare metal compute. The Mirantis service offering, as it relates to that orchestration layer, can help open up that part of the market to us. In addition to that, it does give us the ability to provide compute in a different manner.

Speaker #2: That helps with our business today. Firstly, as you identified, it effectively opens up new customer classes to us. As we've spoken about at length previously, very large hyperscaler or frontier AI lab customers generally like to take compute on a bare metal basis.

Speaker #2: But smaller AI developers, labs, and enterprise customers value having an orchestration layer offered over the top of bare metal compute. And so the Mirantis service offering, as it relates to that orchestration layer, can help open up that part of the market to us.

Speaker #2: In addition to that, it does give us the ability to provide compute in a different manner. So, not only can we provide reserved managed services clusters, but it also opens up the potential for us to provide on-demand compute, as an example.

Kent Draper: Not only can we provide reserved managed services clusters, but it also opens up the potential for us to provide on-demand compute, as an example. In addition to the orchestration layer itself, Mirantis has a long track record of servicing enterprise customers in the cloud computing space, and they bring a number of other areas of expertise, including enterprise support, monitoring, and deployment capabilities that can help us monetize our platform more quickly and continue to provide very high levels of customer service. Those are a few of the areas where Mirantis adds to our existing platform.

Speaker #2: In addition to the orchestration layer itself, Mirantis has a long track record of servicing enterprise customers in the cloud computing space, and they bring a number of other areas of expertise, including enterprise support, monitoring, and deployment capabilities that can help us monetize our platform more quickly and continue to provide very high levels of customer service.

Speaker #2: So those are a few of the areas where Mirantis adds to our existing platform. Maybe just—sorry—maybe just to add to that, I think we're now the only NeoCloud-certified hypervisor from Nvidia as a result of today's announcement.

Michael Ng: Great. Thank you, Cam.

Mike Ng: Great. Thank you, Cam.

Daniel Roberts: I think maybe just. Sorry, sorry, maybe just to add to that. I think we are now the only Neocloud certified hypervisor from NVIDIA as a result of today's announcement. So that vertical integration, that full stack, is playing out live time.

Speaker #2: So that vertical integration, that full stack, is playing out in real time.

Speaker #4: Thank you, Daniel. And I just wanted to follow up on the CapEx outlook for next year. $25 to $30 billion—is that all to support the 800 megawatts that you expect to contract next year, or does it extend beyond next year?

Michael Ng: Thank you, Daniel. I just wanted to follow up on the CapEx outlook for next year, $25 billion to $30 billion. Is that all to support the 800 megawatts that you expect to contract next year, or is it beyond next year? Could you maybe just talk about the financing plan beyond the $14 billion of cash GPU prepayments and other debt financing that I think you talked about?

Mike Ng: Thank you, Daniel. I just wanted to follow up on the CapEx outlook for next year, $25 billion to $30 billion. Is that all to support the 800 megawatts that you expect to contract next year, or is it beyond next year? Could you maybe just talk about the financing plan beyond the $14 billion of cash GPU prepayments and other debt financing that I think you talked about?

Speaker #4: And then could you maybe just talk about the financing plan beyond the $14 billion of cash GPU prepayments and other debt financing that I think you talked about?

Speaker #1: Sure. Just in terms of the and thanks for the question. Just in terms of the first question. So the 25 to 30 billion is obviously in the covering the financial year to June 27.

Anthony Lewis: Sure. Just in terms of the, and thanks for the question. Just in terms of the first question. So the $25 billion to $30 billion is obviously covering the financial year to June 2027. So that covers all the CapEx requirements for the 2026 deployments that contribute towards the $4 billion ARR target. It covers expected data center CapEx and GPU CapEx for the balance of the air-cooled deployments expected to come over the course of 2027 calendar year. It also covers a significant portion of CapEx required for the liquid cool deployments in the second half of 2027 calendar year. It does not include CapEx requirements for the GPU compute for those new liquid cool facilities, which will be part of the following year's capital plan. In terms of financing, obviously, we spoke to the $14 billion, so that is secured.

Speaker #1: So that covers all the CapEx requirements for the 2026 deployments that contribute towards the $4 billion ARR target. It covers expected data center CapEx and GPU CapEx for the balance of the air-cooled deployments expected to come over the course of the 2027 calendar year.

Speaker #1: And it also covers a significant portion of the CapEx required for the liquid-cooled deployments in the second half of the 2027 calendar year. It does include CapEx requirements for the GPU compute for those new liquid-cooled facilities, which will be part of the following year's capital plan.

Anthony Lewis: It also covers a significant portion of CapEx required for the liquid cool deployments in the second half of 2027 calendar year. It does not include CapEx requirements for the GPU compute for those new liquid cool facilities, which will be part of the following year's capital plan. In terms of financing, obviously, we spoke to the $14 billion, so that is secured.

Speaker #1: In terms of the financing, obviously we spoke to the $14 billion, so that's secured. I also spoke to $8 billion estimated, additional GPU-related CapEx.

Anthony Lewis: I also spoke to USD 8 billion estimated of additional GPU related CapEx, so that will be supporting the GPU deployments included in that USD 25 billion to USD 30 billion. We have seen a very strong fundraising prepayment environment, which obviously contributes to that USD 8 billion number. We have seen strong conditions, obviously, in GPU financing. Daniel Roberts spoke to the results that we have seen in the recent transactions, but there has obviously also been other transactions in the market, both for investment grade and sub-investment grade clients. We have also had the recent announcement by NVIDIA alongside six of the biggest capital allocators in the world, announcing JVs, partnerships to support further financing of AI compute as an asset class.

Speaker #1: So that will be supporting the GPU deployments included in that $25 to $30 billion. Obviously, we've seen a very strong fundraising and prepayment environment, which also contributes to that $8 billion number.

Speaker #1: And we've seen strong conditions, obviously, in GPU financing. Obviously, Dan spoke to the results that we've seen in the recent transactions, but there's also been other transactions in the market, both for investment-grade and sub-investment-grade clients.

Speaker #1: We've also had the recent announcement by Nvidia, alongside six of the biggest capital allocators in the world, announcing joint ventures and partnerships to support further financing of AI compute as an asset class.

Daniel Roberts: In addition to that, we obviously have Horizon 1 to 4 substantially built and being delivered over the course of the year. That is obviously unencumbered, as well as other opportunities we are looking at, both asset-backed and other group-level initiatives as well.

Anthony Lewis: In addition to that, we obviously have Horizon 1 to 4 substantially built and being delivered over the course of the year. That is obviously unencumbered, as well as other opportunities we are looking at, both asset-backed and other group-level initiatives as well.

Speaker #1: In addition to that, we obviously have one to four, substantially built and being delivered over the course of the year. That's obviously unencumbered, as well as other opportunities we're looking at, both asset-backed and other group-level initiatives as well.

Michael Ng: Great. Thank you for the clarification.

Mike Ng: Great. Thank you for the clarification.

Speaker #4: Great. Great. Thank you for the clarification.

Speaker #5: Thank you. We will now take our next question. Our next question comes from Paul Godin from Macquarie. Please go ahead, Paul, your line is open.

Operator: Thank you. We will now take our next question. Our next question comes from Paul Godding from Macquarie. Please go ahead, Paul. Your line is open.

Speaker #6: Thanks so much for taking the question, and congrats on all the tremendous progress. I wanted to first ask about the British Columbia liquid-cooling pivot and was wondering if you could unpack that decision-making process a bit.

Paul Godding: Thanks so much for taking the question, and congrats on all the tremendous progress. I wanted to first ask about the British Columbia liquid cooling pivot, and wondering if you could unpack that decisioning process a bit. Sounds like there is excess power available and there is obviously a revenue opportunity, but was wondering how you were thinking about the relative return there and if that was organic or from demand that you have seen or speculative. Then I have a follow-up. Thanks so much.

Paul Golding: Thanks so much for taking the question, and congrats on all the tremendous progress. I wanted to first ask about the British Columbia liquid cooling pivot, and wondering if you could unpack that decisioning process a bit. Sounds like there is excess power available and there is obviously a revenue opportunity, but was wondering how you were thinking about the relative return there and if that was organic or from demand that you have seen or speculative. Then I have a follow-up. Thanks so much.

Speaker #6: It sounds like there's excess power available, and there's obviously a revenue opportunity. But I was wondering how you were thinking about the relative return there, and if that was organic or from demand that you've seen, or speculative.

Speaker #6: And then I have a follow-up. Thanks so much.

Kent Draper: Primarily, Paul, it is driven by demand that we are seeing, and we do have a design that is very effective for the conditions that we see in British Columbia for liquid cooling. It is something that increasingly, as customers are looking towards future workloads, we do see the vast majority of customers over time looking towards liquid cooled GPUs. So we are certainly reflecting that in terms of the mix within our portfolio.

Speaker #2: Primarily, Paul, it's driven by demand that we're seeing. And we do have a design that is very effective for the conditions that we've seen in British Columbia for liquid cooling.

Speaker #2: As customers increasingly look toward future workloads, we do see that the vast majority of customers, over time, are looking toward liquid-cooled GPUs.

Speaker #2: And so, we are certainly reflecting that in terms of the mix within our portfolio.

Speaker #6: Great. Thanks so much, Ken. And then Anthony mentioned that the compute costs that are rising are being more than covered by revenue increases. I was wondering if given the continued March upwards of compute cost, what the calculus is and your thought process and strategy around taking some of the excess liquidity from prepayments and the financings that you've done and allocating that towards data center build-out out versus maybe longer dated compute purchasing given and maybe on a speculative basis, given that price trajectory we've seen in compute.

Paul Godding: Great. Thanks so much, Kent. Anthony mentioned that the compute costs that are rising are being more than covered by revenue increases. Was wondering if, given the continued march upwards of compute cost, what the calculus is and your thought process and strategy around taking some of the excess liquidity from prepayments and the financings that you have done and allocating that towards data center build-out versus maybe longer-dated compute purchasing, and maybe on a speculative basis, given that price trajectory we have seen in compute. Thanks.

Paul Golding: Great. Thanks so much, Kent. Anthony mentioned that the compute costs that are rising are being more than covered by revenue increases. Was wondering if, given the continued march upwards of compute cost, what the calculus is and your thought process and strategy around taking some of the excess liquidity from prepayments and the financings that you have done and allocating that towards data center build-out versus maybe longer-dated compute purchasing, and maybe on a speculative basis, given that price trajectory we have seen in compute. Thanks.

Speaker #6: Thanks.

Speaker #2: Yeah, I think in short, we're doing both. So, as Dan mentioned, you need all the layers in the stack in order to be able to sell compute.

Kent Draper: Yeah, I think in short, we are doing both. As Daniel mentioned, you need all the layers in the stack. In order to be able to sell compute, you have to have the data center capacity. We continue to see extremely strong demand within the industry and a lack of capacity available to satisfy that demand. So we will continue to build our data center space. We will continue to make compute purchases over time and continue to add that software layer over the top to be able to expand our addressable market and secure better economics over time. So yeah, we expect to see a mix of purchases on spec as well as some purchases that may be tied to customer contracts. As Daniel said, the contracts are not the driver in this industry. It is getting the compute online.

Speaker #2: You have to have the data center capacity, and we continue to see extremely strong demand within the industry and a lack of capacity available to satisfy that demand.

Speaker #2: And so we will continue to build out data center space. We will continue to make compute purchases over time, and continue to add that software layer over the top to be able to expand our addressable market and secure better economics over time.

Kent Draper: We will continue to make compute purchases over time and continue to add that software layer over the top to be able to expand our addressable market and secure better economics over time. So yeah, we expect to see a mix of purchases on spec as well as some purchases that may be tied to customer contracts. As Daniel said, the contracts are not the driver in this industry. It is getting the compute online.

Speaker #2: So we expect to see a mix of purchases on spec, as well as some purchases that may be tied to customer contracts. But as Dan said, the contracts are not the driver in this industry.

Speaker #2: It's getting the compute online, and so that is what we are heavily focused on, on the execution side of the business.

Kent Draper: That is what we are heavily focused on the execution side of the business.

Daniel Roberts: Ken, Paul, I might also just add to your CapEx question around that revenue, and it adds a little bit more to what Anthony said earlier. If we step back and look at this revenue CapEx trade-off, the contracts that we are announcing now and the pricing per megawatt relates to GPUs that were ordered quite some time ago. Arguably, they are reflective of natural price increases beyond CapEx inflation on those GPUs. Now, future generations of GPUs and costs are going up, but we did not have to pay the cost increases on the revenue per megawatt that we have announced today necessarily because they are the older generations, if that makes sense. There is also a bit more nuance to our CapEx needs.

Speaker #4: And Ken, for Paul, I might also just add to the CapEx question around that revenue, and it adds a little bit more to what Anthony said earlier.

Speaker #4: So if we step back and look at this revenue/CapEx trade-off, the contracts that we're announcing now and the pricing per megawatt relate to GPUs that were ordered quite some time ago.

Speaker #4: So, arguably, they're reflective of natural price increases beyond CapEx inflation on those GPUs. Now, future generations of GPUs and costs are going up, but we didn't have to pay the cost increases on the revenue per megawatt that we've announced today, necessarily, because they're the older generations—if that makes sense.

Speaker #4: But there's also a bit more nuance to our CapEx needs. So yes, we've guided total CapEx of $25 to $30 billion for FY27.

Daniel Roberts: Yes, we have guided total CapEx of USD 25 billion to USD 30 billion for FY27, but that we deliberately do not split it in or attribute that to a specific number of megawatts of IT load coming online, because the reality is that data center CapEx is running a year or two ahead of delivery, but that is the nature of substations and steel. The mix in any given year is really a function of what we are delivering that year versus what we are building for the next one. I think we are working on how we stagger data center CapEx and how we finance data center CapEx. As we mentioned during the presentation, 100% of our data center portfolio today is unencumbered, which creates a future opportunity.

Speaker #4: But we deliberately don't split it or attribute that to a specific number of megawatts of IT load coming online, because the reality is that data center CapEx is running a year or two ahead of delivery. But that's the nature of substations and steel.

Speaker #4: So, the mix in any given year is really a function of what we're delivering that year versus what we're building for the next one.

Speaker #4: So, I think we are working on how we stagger data center CapEx and how we finance data center CapEx. As we mentioned during the presentation, 100% of our data center portfolio today is unencumbered, which creates a future opportunity.

Speaker #4: And when we're receiving prepayments equivalent to 50% of the GPUs, that's roughly equivalent to 100% of the data centers, because GPUs are roughly two-thirds of your fully loaded cost for the data centers plus the GPUs.

Daniel Roberts: When we are receiving prepayments equivalent to 50% of the GPUs, that is roughly equivalent to 100% of the data centers, because GPUs are roughly two-thirds of your fully loaded cost for the data centers plus the GPUs. If you are financing the GPUs at 90% year in already, then you can see how you have got this funding flywheel that is emerging that requires arguably little equity over time to finance it. But we have then got to overlay our ambitions are growing. We are building at a higher cadence to what we have done in the past. Those funding needs continue to grow. But we have got flexibility around growth based on optimizing the funding that is available to us at any point in time.

Speaker #4: And if you're financing the GPUs, at 90% gearing already, then you can see how you've got this funding flywheel that's emerging, that requires arguably little equity over time to finance it.

Speaker #4: But we've then got to overlay that our ambitions are growing. We're building at a higher cadence than what we've done in the past. So those funding needs continue to grow.

Speaker #4: But we've got flexibility around growth, based on optimizing the funding that's available to us at any point in time.

Speaker #6: That's great color, Dan. Thanks so much. Maybe just a quick housekeeping question on the back of that, if I can sneak this one in.

Paul Godding: That's great color, Dan. Thanks so much. Maybe just a quick housekeeping question on the back of that, if I can sneak this one in. Just on the two-thirds compute versus data center CapEx, is that shifting at all with the increased costs of compute? Or is the labor market being tight and other inputs on the data center construction side, keeping that equation relatively stable? Thanks.

Paul Golding: That's great color, Dan. Thanks so much. Maybe just a quick housekeeping question on the back of that, if I can sneak this one in. Just on the two-thirds compute versus data center CapEx, is that shifting at all with the increased costs of compute? Or is the labor market being tight and other inputs on the data center construction side, keeping that equation relatively stable? Thanks.

Speaker #6: Just on the two-thirds—compute versus data center CapEx—is that shifting at all with the increased costs of compute? Or is the labor market being tight and other inputs on the data center construction side keeping that equation relatively stable?

Speaker #6: Thanks.

Speaker #4: No, it's staying pretty stable. I mean, we're seeing inflation and costs across various components continue to tick up. So, at a material level, I would assume that ratio stays relatively consistent.

Daniel Roberts: No, it's staying pretty stable. We're seeing inflation and costs across various components continue to tick up. So at a material level, I would assume that ratio stays relatively consistent.

Speaker #6: Great. Well, thank you both.

Paul Godding: Well, thank you both.

Paul Golding: Well, thank you both.

Speaker #1: Thank you. We will now move to our next question. Our next question comes from Brett Couplock from CantoFixtural. Please go ahead, Brett. Your line is open.

Operator: Thank you. We will now move to our next question. Our next question comes from Brett Knoblauch from Cantor Fitzgerald. Please go ahead, Brett. Your line is open.

Speaker #5: Hey guys. Great to see the graph on the quarter and kind of demand trends around '26 and certainly '27 and '28. I'm curious, kind of following into the Horizon One build-out.

Brett Knoblauch: Hey, guys. Congrats on the quarter. Great to see demand trends around 2026 and certainly 2027 and 2028. I am curious, following into Horizon 1 build-out. We have seen a lot of deals recently with maybe lower PUEs. Are you seeing any design changes that might allow for lower PUEs at other sites that you guys have coming online or other buildings coming online in 2027 and 2028? Or should we think of that PUE with the Microsoft deal being somewhat static?

Speaker #5: We've seen a lot of deals recently with maybe lower PUEs. Are you seeing any design changes that might allow for lower PUEs at other sites that you guys have coming online, or other buildings coming online in '27 and '28?

Speaker #5: Or should we kind of think of that PUE with the Microsoft deal as being somewhat static?

Kent Draper: PUEs are never entirely static, but they are largely driven by the nature of the ambient conditions in which your data centers are operating. We have spoken before that we use a highly efficient closed-loop liquid cooling system, and that means we have very effective PUEs relative to the broader industry. We do see some continued improvements over time, and part of that is driven by items like NVIDIA's DSX reference architecture, where they have looked at how you can operate chips at higher temperatures without giving up any performance on the computing side, but allowing you to direct more of your overall megawatts towards the IT load and away from cooling. But those are around the edges rather than being really material drivers of decreases over time.

Speaker #2: I mean, PUEs are never entirely static, but they are largely driven by the nature of the ambient conditions in which your data centers are operating.

Speaker #2: We've spoken before about how we use a highly efficient closed-loop liquid cooling system. That means we have very effective PUEs compared to the broader industry.

Speaker #2: We do see some continued improvements. Some of that is driven by items like NVIDIA's DSX reference architecture, where they have looked at how you can operate chips at higher temperatures without giving up any performance on the computing side, but allowing you to direct more of your overall megawatts towards the IT load.

Speaker #2: And away from cooling. But those are around the edges, rather than being really material drivers of decreases over time.

Speaker #4: And I think, just to add, we've been deliberately conservative on the headline PUEs that we've advertised. We even had a slide dedicated in the deck to this thematic, which is that we have spare power beyond our current deployment plans.

Daniel Roberts: I think just to add, we have been deliberately conservative on the headline PUEs that we have advertised. We even had a slide dedicated into the deck to this thematic, which is we have spare power beyond our current deployment plans, and some relates to optimizing this PUE over time. The reality is the average PUE for a year is substantially below the maximum PUE that you require. So there is a few little tweaks that you can make that free up quite a lot of power capacity alone. We have then got the NVIDIA DSX MaxLPS opportunity, and we are aware others are using power management tools to oversubscribe megawatts as well. There is a lot of flexibility within that envelope, and to date, we have kept it simple. 200 megawatts of IT load for 300 megawatts of gross capacity.

Speaker #4: And some relates to optimizing this PUE over time. The reality is the average PUE for a year is substantially below the maximum PUE that you require.

Speaker #4: So, there are a few small tweaks you can make that free up quite a lot of power capacity on their own. We've then got the NVIDIA DSX Max LPS opportunity, and we're aware others are using power management tools to oversubscribe megawatts as well.

Daniel Roberts: We have then got the NVIDIA DSX MaxLPS opportunity, and we are aware others are using power management tools to oversubscribe megawatts as well. There is a lot of flexibility within that envelope, and to date, we have kept it simple. 200 megawatts of IT load for 300 megawatts of gross capacity.

Speaker #4: There's a lot of flexibility within that envelope, and to date we've kept it simple: 200 megawatts of IT load for 300 megawatts of gross capacity. But we are also making it clear today that there is a reasonably sized opportunity in the portfolio to free up some of that spare power.

Daniel Roberts: We are also making it clear today that there is a reasonably sized opportunity in the portfolio to free up some of that spare power.

Speaker #5: Awesome. Maybe I could just follow up on some of the pricing commentary that came across quite strong. I think in the prepared remarks and the release, the $20 million deals is what you're seeing or what you've signed now.

Brett Knoblauch: Awesome. If maybe I could just follow up on some of the pricing commentary that came across quite strong, I think, in prepared remarks and the release. USD 20 million deals is what you are seeing or what you have signed. Now it is somewhere around USD 25 million. Over what duration, could you clarify? Is that more one-off, or do you think that is the ballpark of maybe the average you are seeing across all the conversations you are having with customers?

Speaker #5: It's kind of somewhere around $25 million. Is that over what duration? Could you clarify? And is that more of a one-off, or do you think that is kind of like the ballpark of maybe the average you're seeing across all the conversations you're having with customers?

Speaker #6: No, we're seeing

Kent Draper: No, we are seeing that consistently across live conversations with customers at the moment. There are a variety of things that go into it. As Daniel mentioned, we look at term length, prepayments, nature of the customer, likely growth requirements over time. The pricing that we are seeing is relatively consistent at the moment. It continues to show an upward trend, where we are seeing very strong competitive tension for near-term megawatts. We certainly think that those numbers that we put out are indicative of where the market is currently at with upward pressure over time.

Speaker #2: That's consistent across live conversations with customers at the moment. And there are a variety of things that go into it, as Dan mentioned. We look at term length, prepayments, nature of the customer, and likely growth requirements over time.

Speaker #2: But the pricing that we're seeing is relatively consistent at the moment. It continues to show an upward trend. We're seeing very strong competitive tension for near-term megawatts.

Speaker #2: So, we certainly think that those numbers we put out are indicative of where the market is currently at, with upward pressure over time.

Speaker #4: And to be clear, these are three- to five-year deals, not two years, not spot capacity. There is a substantial opportunity, if you wanted to optimize near-term quarterly P&L, to go and sell spot on demand.

Daniel Roberts: To be clear, they are 3 to 5-year deals, not 2 years, not spot capacity. There is a substantial opportunity if you wanted to optimize near-term quarterly P&L to go and sell spot on-demand. That is something that we might entertain as part of the portfolio approach over time. Today, we are loving just building the customer base, diversifying across the AI ecosystem, having longer term contracts, getting really accretive financing back in those contracts. Over time, that will buy us a license to dabble more into on-demand, shorter-term contracts, introduce software, leveraging Mirantis and other capabilities for higher revenue profiles.

Speaker #4: And that is something that we might entertain as part of the portfolio approach over time. But today, we are loving just building the customer base, diversifying across the AI ecosystem, having longer-term contracts, and getting really accretive financing back in those contracts.

Speaker #4: And over time, that'll buy us a license to dabble more into on-demand, shorter-term contracts; introduce software, leveraging Mirantis and other capabilities for higher revenue profiles.

Speaker #5: Thank you, guys. Appreciate it.

Brett Knoblauch: Thank you, guys. Appreciate it.

Speaker #1: Thank you. We will now take our next question from Michael Donovan from Campus Point. Please go ahead, Michael. Your line is open.

Operator: Thank you. We will now take our next question from Michael Donovan from Compass Point. Please go ahead, Michael. Your line is open.

Michael Donovan: Hi. Thanks for taking my question. Just go back to the USD 20 million in revenue per IT megawatt. How do the economics you are seeing in the US compare with what you are seeing with initial conversations in Spain and Australia?

Speaker #7: Hi, thanks for taking my question. Just going back to the $2.5 million in revenue per IT megawatt, how do the economics you're seeing in the US compare with what you're seeing with initial conversations in Spain and Australia?

Kent Draper: I think very consistent. At the end of the day, this is largely a global market for compute. A number of the customers that are accessing compute out of North America are based overseas, so it does drive a genuine global market for compute. There may arguably even be additional scarcity factor in some of those other locations where it relates to things like sovereign AI, for example. I think that pricing that we are seeing in North America is very indicative of global conditions.

Speaker #2: I think it's very consistent. At the end of the day, this is largely a global market for compute. A number of the customers that are accessing compute out of North America are based overseas.

Speaker #2: And so it does drive a genuine global market for compute. And yeah, there may arguably even be an additional scarcity factor in some of those other locations where it relates to things like sovereign AI, for example.

Speaker #2: So, I think that the pricing we're seeing in North America is very indicative of global conditions.

Speaker #7: Thank you. And one more follow-up, if I may. I wanted to get clarification on the Nostrom acquisition. So, it's my understanding it brought roughly 490 megawatts.

Michael Donovan: Thank you. One more follow-up, if I may. I wanted to get clarification on the Nostrum acquisition. It is my understanding it brought roughly 490 megawatts. In your prepared remarks, you mentioned Badajoz accounting for roughly 300 megawatts. For that difference, is the 190 megawatts across a couple of different sites, or how should we think about that?

Speaker #7: In your prepared remarks, you mentioned Idaho accounting for roughly 300 megawatts. For that difference, is the 190 megawatts across a couple of different sites, or how should we think about that?

Speaker #2: Yes, there are a number of other development sites in the Spanish portfolio where we have capacity secured. However, that is the key site that we chose to focus on today, as it has the nearest-term build-out.

Kent Draper: Yeah. There are a number of other development sites in the Spanish portfolio where we have capacity secured. But Badajoz is the key site that we chose to focus on today, as that is the nearest term build-out and the largest site within the portfolio.

Speaker #2: And the largest site within the portfolio.

Speaker #7: Thank you. Congrats on the progress.

Michael Donovan: Thank you. Congrats on the progress.

Speaker #1: Thank you. As a reminder, before we move to our next question, please press star one one if you wish to ask a question now. Next, we have Nick Gels from B.

Operator: Thank you. As a reminder, before we move to our next question, please press star 1 if you wish to ask a question now. Next we have Nick Giles from B. Riley Securities. Please ask your question, Nick. Your line is open.

Speaker #1: Reilly Securities. Please ask your question, Nick. Your line is open.

Speaker #7: Yeah, thanks, operator. Good afternoon, guys. Just wanted to ask one about Texas. I know it's not a fun topic, but was just curious if you could touch on what some of these dynamics have enabled from a commercial perspective, just given that you already have two large-scale, energized sites there.

Nick Giles: Yeah. Thanks, operator. Good afternoon, guys. Just wanted to ask one about Texas. I know it is not a fun topic, but was just curious if you could touch on what some of these dynamics have enabled from a commercial perspective, just given that you already have two large-scale energized sites there. Thank you.

Speaker #7: Thank you.

Kent Draper: Hi, and by the dynamics, you are referring to Governor Abbott's directive or something else specifically, Nick?

Speaker #2: Hi. And by the dynamics, you're referring to Governor Abbott's directive, or something else specifically?

Speaker #7: Yeah, can exactly. Just the directive, and just given the uncertainty around some of the kind of earlier-stage sites there, if that might have pushed some potential deals more towards your corner.

Nick Giles: Yeah, Ken, exactly. Just the directive and just given the uncertainty around some of the kind of earlier-stage sites there, if that might have pushed some potential deals more towards your corner.

Speaker #2: Yeah, I think as it relates to Governor Abbott's directive, if you look at what that is targeting, it looks at things like transparency, grid reliability, water usage, issues in terms of impact on local communities.

Kent Draper: Yeah, I think as it relates to Governor Abbott's directive, if you look at what that is targeting, it looks at things like transparency, grid reliability, water usage, issues in terms of impact on local communities. And these are all things that we have had a specific focus on from day one and have always been important to us. So if you take Childress as an example, we funded all the required grid upgrades for that project. As you know, we are located a number of miles outside of the main town area there, where we do not have residential neighbors, and we are not impacting our neighbors or the local community from an operational perspective. We use a highly efficient closed-loop water cooling system, which has very minimal ongoing water usage over time.

Speaker #2: And these are all things that we've had a specific focus on from day one and have always been important to us. So if you take Childress as an example, we funded all the required grid upgrades for that project.

Speaker #2: As you know, we're located a number of miles outside of the main town area, where we don't have residential neighbors, and we're not impacting neighbors or the local community from an operational perspective.

Speaker #2: We use a highly efficient closed-loop water cooling system, which has very minimal ongoing water usage over time. So, I think everything that we've done in setting up our sites and our portfolio is in line with what Governor Abbott came out with in his directive.

Kent Draper: I think everything that we have done in setting up our sites and our portfolio is in line with what Governor Abbott came out with in his directive. I think in that sense, we actually welcome the additional transparency within the market. As you mentioned, we do have two very large sites already energized in Texas, which I think positions us extremely well outside of just those dynamics that I mentioned as we move forward here.

Speaker #2: So I think, in that sense, we actually welcome the additional transparency within the market. And then, as you mentioned, we do have two very large sites already energized in Texas, which I think positions us extremely well, outside of just those dynamics that I mentioned, as we move forward here.

Nick Giles: Oh, thanks, Kent. That's helpful. Then maybe just as a follow-up, we've seen a lot of deals where there's kind of initial contracted capacity, but then there's an expansion option, maybe with exclusivity for some period. I cannot recall IREN having with any of those expansion options embedded. Is that something that you are considering in future deals, or have you kind of intentionally strayed away from those options?

Speaker #7: Oh, thanks, Kent. That's helpful. And then maybe just as a follow-up, we've seen a lot of deals where there's kind of initial contracted capacity, but then there's an expansion option, maybe with exclusivity for some period.

Speaker #7: And I can't recall Iron having any of those expansion options embedded. Is that something that you're considering in future deals, or have you kind of intentionally strayed away from those options?

Speaker #2: Yeah, we've intentionally strayed away from that historically, but it's obviously part of the bespoke conversation with each customer. As you would guess from our thesis—which Dan outlined again earlier in this call—we see very significant value in infrastructure and compute moving forward.

Kent Draper: Yeah, we have intentionally strayed away from that historically, but it is obviously part of the bespoke conversation with each customer. As you would guess from our thesis, which Dan outlined again earlier in this call, we see very significant value in infrastructure and compute moving forward. So if we are going to give up an option to somebody over that, we need to be compensated for it. So it really just comes down to that dynamic. But yeah, we have generally shied away from it previously because we see more value typically than the counterparty.

Speaker #2: And so, we're going to give up an option to somebody over that. We need to be compensated for it. So it really just comes down to that dynamic, but yeah, we've generally shied away from it previously because we see more value, typically, than the counterparty.

Speaker #7: Understood. Well, thanks, guys, and keep up the good work.

Nick Giles: Understood. Well, thanks, guys, and keep up the good work.

Speaker #1: Thank you. We will now take our next question from Mike Colones from HC Wainwright & Co. Please go ahead, Mike. Your line is open.

Operator: Thank you. We will now take our next question from Mike Colonnese from H.C. Wainwright & Co. Please go ahead, Mike. Your line is open.

Speaker #3: Hi Dan, it's me. Thank you for taking my question, and congrats on all the strong momentum I'm hearing across the AI cloud business. Just one for me.

Mike Colonnese: Hi, Dan and team. Thank you for taking my question and congrats on all the strong momentum here across the AI cloud business. Just one for me. I was hoping to get more color around how you plan to allocate future uncontracted capacity here. Really the specific customer segment you are most interested in pursuing heading into 2027, and how you guys are thinking about balancing pricing with financing costs when evaluating larger versus smaller customer contracts. It feels like you are trying to monetize a little bit higher on the stack with the acquisition here. Just trying to get a sense of how you guys are evaluating these deals.

Speaker #3: I was hoping to get more color around how you plan to allocate future uncontracted capacity here—really, the specific customer segment you're most interested in pursuing heading into 2027.

Speaker #3: And how you guys are thinking about balancing pricing with financing costs when evaluating larger versus smaller customer contracts? It feels like you're trying to monetize a little bit higher on the stack with the acquisition here.

Speaker #3: Just trying to get a sense of how you guys are evaluating these deals.

Speaker #2: Yeah, I think Dan touched on a lot of the elements that we look at earlier in terms of the earnings overview. I mean, we look to the type of customer, the industry they're in, and their planned growth rates over time.

Kent Draper: Yeah, I think Dan touched on a lot of the elements that we looked at earlier in terms of the earnings overview. We look to the type of customer, the industry they are in, their planned growth rates over time. As you would have seen with our customer mix, it has been shifting towards direct end users of compute. We now have added additional names in the AI native space, a large leading frontier AI lab, as well as some of these physical infrastructure related AI developers. We see a lot of very attractive profiles across the sector. For us, as Dan mentioned, we have been aiming to diversify our customer base over time. We have a range of attractive long-term contracts within the portfolio that now set us up for very attractive economics as we move forward here.

Speaker #2: As you would have seen with our customer mix, it has been shifting towards direct end users of compute. We have now added additional names in the AI native space, a large leading frontier AI lab, as well as some of these physical infrastructure-related AI developers.

Speaker #2: So, we see a lot of very attractive profiles across the sector. And for us, as Dan mentioned, we've been aiming to diversify our customer base over time.

Speaker #2: We have a range of attractive long-term contracts within the portfolio that now set us up for very attractive economics as we move forward here.

Speaker #2: And that, in turn, buys us some additional flexibility to be able to look at different monetization methods—whether that is selling on a shorter-term basis in terms of reserve contracts that drive additional economics, or whether it’s looking at true delivery of on-demand compute.

Kent Draper: That in turn buys us some additional flexibility to be able to look at different monetization methods, whether that is selling on a shorter term basis in terms of reserve contracts that drive additional economics, whether it is looking at true delivery of on-demand compute, whether it is managed services offerings versus bare metal. One of the nice things with the position that we are in today is we have optionality over all of those different areas, and particularly with the development of the financing market for sub-investment grade counterparties, which is something that we always expected to develop, and we are now really seeing the proof of that. It means that we can still continue to get very attractive financing for a range of different customer types.

Speaker #2: Whether it's managed services offerings versus bare metal, one of the nice things about the position we're in today is we have optionality across all of those different areas.

Speaker #2: And particularly with the development of the financing market for sub-investment-grade counterparties, which is something that we always expected to develop, we're now really seeing proof of that.

Speaker #2: It means that we can still continue to get very attractive financing for a range of different customer types. So, we're certainly very excited at the prospects as we move forward here—being able to monetize the platform in different ways and get additional economics over time.

Kent Draper: We are certainly very excited at the prospects as we move forward here, being able to monetize the platform in different ways and get additional economics over time.

Speaker #7: Appreciate all the great color, Kent.

Mike Colonnese: Appreciate all the great color, Kent.

Speaker #1: Thank you. We will now take our next question from Ben Summers from BTIG. Please ask your question, Ben. Your line is open.

Operator: Thank you. We will now take our next question from Ben Hearnsberger from BTIG. Please ask your question. Ben, your line is open.

Ben Hearnsberger: Hey. Yeah. Thank you guys for taking my question. I wanted to ask a bit on the conversations we are having for 2027 and 2028. It makes sense that we are maybe not exploring some like the really short duration stuff now, but as you think about what you are hearing from customers in terms of the window from three to five-year contracts, where are you seeing most customers heading from within that time range, and what is the ideal, if there is any time length in your guys' perspective?

Ben Sommers: Hey. Yeah. Thank you guys for taking my question. I wanted to ask a bit on the conversations we are having for 2027 and 2028. It makes sense that we are maybe not exploring some like the really short duration stuff now, but as you think about what you are hearing from customers in terms of the window from three to five-year contracts, where are you seeing most customers heading from within that time range, and what is the ideal, if there is any time length in your guys' perspective?

Speaker #3: Hey, yeah, thank you guys for taking my question. So I wanted to ask a bit about the conversations we're having for 2027 and 2028.

Speaker #3: It makes sense that we're maybe not exploring some of the really short-duration stuff now, but as you think about what you're hearing from customers in terms of the window from three- to five-year contracts, where are you seeing most customers heading within that time range, and what's the ideal, if there's any, time length from your guys' perspective?

Daniel Roberts: I will jump in. Kent. I think we are starting to see longer term conversations. Or, sorry, conversations around longer term than just the three to five years. But this is the balance, right? We are running it essentially as a portfolio. Anchor tenants like Microsoft give you the scale, the duration, and cheap capital with the 6% GPU financing. Whereas AI developers in the broader market give you slightly higher pricing, good prepayments, and a lot of where the growth is. So we want to remain flexible. At the end of the day, the framework for assessing new customer contracts is, as we have outlined on this call, it is who and what does the counterparty add? What are the economics and what does it open up longer term? Yes, there is a trade-off. The investment grade anchor gets us 6% money, non-investment grade gets 9%.

Speaker #8: I'll jump in. Kent, I think we're starting to see longer-term conversations—sorry, conversations around longer-term horizons than just the three to five years. But this is the balance, right?

Speaker #8: We're running it essentially as a portfolio. Anchor tenants, like Microsoft, give you the scale, the duration, and cheap capital with the 6% GPU financing.

Speaker #8: Whereas AI developers and the broader market give you slightly higher pricing, good prepayments, and a lot of where the growth is. So, we want to remain flexible.

Speaker #8: At the end of the day, the framework for assessing new customer contracts is as we have outlined on this call. It's about who does what and what the counterparty adds.

Daniel Roberts: At the end of the day, the framework for assessing new customer contracts is, as we have outlined on this call, it is who and what does the counterparty add? What are the economics and what does it open up longer term? Yes, there is a trade-off. The investment grade anchor gets us 6% money, non-investment grade gets 9%.

Speaker #8: What are the economics? And what does it open up longer-term? And yes, there's a trade-off. The investment-grade anchor gets 6% money. Non-investment-grade gets 9%.

Speaker #8: So it sounds like the investment-grade wins on that, until you start looking at the pricing. And still, you start looking at the prepayments funding around 50% of the GPU capex.

Daniel Roberts: So it sounds like the investment grade wins on that until you start looking at the pricing, until you start looking at the prepayments funding around 50% of the GPU CapEx. I think those prepayments are probably the most exciting part for us. When they are funding half the GPU CapEx up front on top of the 90% financing we are getting already, these guys are sending a pretty clear signal. It is not just about contracting capacity. They are starting to finance our build-out for us, and I think that tells you a lot about demand more than any pricing chart in a presentation.

Speaker #8: And I think those prepayments are probably the most exciting part for us. When they're funding half the GPU CapEx upfront, on top of the 90% financing we're getting already, these guys are sending a pretty clear signal.

Speaker #8: It's not just about contracting capacity. They're starting to finance our build-out for us, and I think that tells you a lot about demand—more than any pricing chart in a presentation.

Speaker #3: Super helpful. And then just one more, if I could. If you could just give any color on preliminary conversations around potential data center financing.

Ben Hearnsberger: Super helpful. Just one more, if I could. If you could just give any color on preliminary conversations around potential data center financing. I know you guys talked about potentially pursuing that down the road, so just wanted to ask around any preliminary conversations you have had there.

Ben Sommers: Super helpful. Just one more, if I could. If you could just give any color on preliminary conversations around potential data center financing. I know you guys talked about potentially pursuing that down the road, so just wanted to ask around any preliminary conversations you have had there.

Speaker #3: I know you guys talked about potentially pursuing that down the road, so I just wanted to ask if you've had any preliminary conversations there.

Speaker #8: Yep, lots of preliminary conversations, and we'll let you know when we close one. But we've been busy. There's lots going on on the customer side, and lots going on with the GPU financing.

Daniel Roberts: Yep. Lots of preliminary conversations, and we will let you know when we close one. We have been busy. There is lots going on on the customer side. Lots has been going on in the GPU financing. That has been the lower hanging fruit. We have previously mentioned we will look at refinancing effectively, Horizons as they are commissioned, as it makes sense to make wait till they are stabilized to get a better financing package. We will look to finance data centers as they are commissioned, but potentially also in advance of commissioning. One of the challenges we have, and the opportunity associated with being vertically integrated, is you have got this staggered GPU CapEx, which starts a couple of years out from commissioning. Sorry, not GPU, data center CapEx.

Speaker #8: That's been the lower-hanging fruit. We've previously mentioned we'll look at refinancing, effectively, horizons as they're commissioned, as it makes sense to wait until they're stabilized to get a better financing package.

Speaker #8: We'll look to finance data centers as they're commissioned, but potentially also in advance of commissioning. One of the challenges we have, and the opportunity associated with being vertically integrated, is you've got this staggered GPU capex, which starts a couple of years out from commissioning.

Speaker #8: Sorry, not GPU—data center capex. Which starts a couple of years out from commissioning, because you need to order. But still, you need to order the transformers.

Daniel Roberts: Which starts a couple of years out from commissioning, because you need to order the steel, you need to order the transformers, you need to order a whole heap of long items. Yes, a lot of those payment milestones are back-ended, but CapEx is incurred in the lead-up to commissioning and find efficient ways of financing that to allow us to scale into that 5 gigawatts really quickly, let alone the multiples of that sitting behind it in our pipeline. That is the big unlock for us. The customers, they are there. I do not think anyone is disputing that anymore. For us, it is all about that capital flywheel and managing it efficiently to get us in a position where we can meet that market demand. Because we are in a really, really unique position because we started 8 years ago, we locked up all the land and power.

Speaker #8: You need to order a whole heap of long items. And yes, a lot of those payment milestones are back-ended. But capex is incurred in the lead-up to commissioning.

Speaker #8: And finding efficient ways of financing that to allow us to scale into that five gigawatts really quickly, let alone the multiples of that sitting behind it in our pipeline.

Speaker #8: That's the big unlock for us. The customers are there—I don't think anyone's disputing that anymore. So, for us, it's all about that capital flywheel and managing it efficiently to get us in a position where we can meet that market demand.

Daniel Roberts: The customers, they are there. I do not think anyone is disputing that anymore. For us, it is all about that capital flywheel and managing it efficiently to get us in a position where we can meet that market demand. Because we are in a really, really unique position because we started 8 years ago, we locked up all the land and power.

Speaker #8: We are in a really, really unique position because we started eight years ago. We locked up all the land and power. We've aggregated the team, the expertise, and the partnership and collaboration with NVIDIA to build and operate these things.

Anthony Lewis: We've aggregated the team, the expertise, the partnership and collaboration with NVIDIA to build and operate these things. Capital efficiency is a really big part of the next unlock. GPU CapEx efficiency is now here. Objectively, the data we've published today, what we've closed, that is efficient, and it will only get better. In terms of the data centers, that's the next frontier, and we're pursuing it, and we're excited about it.

Speaker #8: And capital efficiency is a really big part of the next unlock. GPU capex efficiency is now here. Objectively, the data we've published today—what we've closed—that is efficient.

Speaker #8: And it will only get better. In terms of the data centers, that's the next frontier. And we're pursuing it, and we're excited about it.

Speaker #3: Super helpful. Thank you for taking my questions.

Ben Hearnsberger: Super helpful. Thank you for taking my questions.

Ben Sommers: Super helpful. Thank you for taking my questions.

Speaker #1: Thank you. We will now take our next question from Joseph Varfi from Canaccord Genuity. Please go ahead, Joseph, your line is open.

Operator: Thank you. We will now take our next question from Joseph Vafi from Canaccord Genuity. Please go ahead, Joseph. Your line is open.

Speaker #9: Hey guys, good morning, good afternoon. Congrats on all the progress. I know, Dan, you commented obviously that power remains the major constraint. We're on this call.

Joseph Vafi: Hey, guys. Good morning. Good afternoon. Congrats on all the progress. I know, Dan, you come in at obviously, power remains the major constraint. We're on this call, we're having a lot of discussions on financing. Obviously, you've got a lot of resources available at your disposal, but it's a big industry and a lot of people are doing a lot of financings out there right now as well. Just some high-level thoughts, maybe Anthony or Dan, on the financing environment, sustainability of the industry to continue to finance this broader build-out at this pace. If there's anything that you're worried about there, how IREN may have some advantages, given its different pieces to the business, and then a quick follow-up.

Speaker #9: We're having a lot of discussions on financing. Obviously, you've got a lot of resources available at your disposal, but it's a big industry, and a lot of people are doing a lot of financing out there right now as well.

Speaker #9: Just some high-level thoughts—maybe Anthony or Dan—on the financing environment, sustainability, and the industry’s ability to continue to finance this broader build-out at this pace.

Speaker #9: If there's anything that you're worried about there, how IREN may have some advantages given its different pieces to the business. And then a quick follow-up.

Anthony Lewis: Well, thanks for the question. I guess we have touched on a few of the fundamentals at the moment. I guess we are seeing the evolution of the market has been on the GPU financing. We have seen it started as a private credit-led product at mid-teens returns and investment-grade cost of capital now is in that 6% area. We are obviously seeing the market open up in terms of the pools of capital participating in the GPU financing. Private, public markets, investment grade, sub-investment grade, that is all positive. We have obviously, as I touched on, also had the other considerations, such as the big announcement by NVIDIA with six of the biggest global allocators, which will provide more support to the market. We have also spoken about prepayments, which are obviously a big part of the overall funding position as well.

Speaker #3: Cool, thanks for the question. I guess we've touched on a few of the fundamentals at the moment. I guess we're seeing that the evolution of the market has been on the GPU financing.

Speaker #3: We've seen that it started as a private credit-led product with sort of mid-teens returns, and investment-grade cost of capital now is sort of in that 6% area.

Speaker #3: We've obviously seen the market open up in terms of the pools of capital participating in GPU financing. So private-public markets, investment grade, sub-investment grade—that's all positive.

Speaker #3: We've obviously, as I touched on, also had other considerations, such as the big announcement by NVIDIA with six of the biggest global allocators, which will provide more support to the market.

Anthony Lewis: We have obviously, as I touched on, also had the other considerations, such as the big announcement by NVIDIA with six of the biggest global allocators, which will provide more support to the market. We have also spoken about prepayments, which are obviously a big part of the overall funding position as well.

Speaker #3: We've also spoken about prepayments, which are obviously a big part of the overall funding position as well. We've obviously also seen the data center financing market evolve as well to support the infrastructure to build out both in the high yield and the investment-grade space.

Anthony Lewis: We have obviously also seen the data center financing market evolve as well to support the infrastructure to build out both in the high yield and the investment grade space. There is obviously very strong conviction in capital circles in terms of the sustainability and outlook for, I guess, this fundamental shift that we have had in technology and the investment that needs to be made and also conviction in the returns that will ultimately come. I guess it is really that conviction, which I think will attract capital and continue to attract capital. Obviously, we need to continue to evolve our plans subject to market conditions, and obviously, market conditions can go up and down, and obviously, we need to be nimble and flexible in terms of how we adapt to that environment and adjust our plans accordingly.

Anthony Lewis: We have obviously also seen the data center financing market evolve as well to support the infrastructure to build out both in the high yield and the investment grade space. There is obviously very strong conviction in capital circles in terms of the sustainability and outlook for, I guess, this fundamental shift that we have had in technology and the investment that needs to be made and also conviction in the returns that will ultimately come. I guess it is really that conviction, which I think will attract capital and continue to attract capital.Obviously, we need to continue to evolve our plans subject to market conditions, and obviously, market conditions can go up and down, and obviously, we need to be nimble and flexible in terms of how we adapt to that environment and adjust our plans accordingly.

Speaker #3: And obviously, there's obviously very strong conviction in capital circles in terms of the sustainability and outlook for, I guess, this fundamental shift that we've had in technology and the investment that needs to be made.

Speaker #3: And also conviction in the returns that will ultimately come. So I guess it's really that conviction, which I think will attract capital and continue to attract capital.

Speaker #3: Obviously, we need to continue to evolve our plans, subject to market conditions. And obviously, market conditions can go up and down. And obviously, we need to be nimble and flexible in terms of how we adapt to that environment and adjust our plans accordingly.

Speaker #2: We hear this question a bit, Joe, which is: can the financing keep pace with the asset class? But let's just look at what happened.

Daniel Roberts: We hear this question a bit, Joe, which is, can the financing keep pace with the asset class? Let us just look at what happened. 12 months ago, GPU financing barely existed as an asset class. In the last three months, we have raised $6.5 billion of it at both ends of the credit spectrum. That is not us getting lucky with financing. That is a market forming. Markets, they form the same way every time. Think about real estate financing. No one asks whether an office tower with a signed tenant can get a mortgage. There is a whole capital stack that exists for it. Construction finance, term debt, institutional money, because the cash flow is contracted, the collateral is real. That stack took years, probably a decade, to build for property, and it is building for AI infrastructure in months and quarters because the same ingredients are there.

Speaker #2: Twelve months ago, GP financing barely existed as an asset class. And then, in the last three months, we've raised $6.5 billion of it at both ends of the credit spectrum.

Speaker #2: So that's not us getting lucky with financing. That's a market forming. And markets, they form the same way every time. Think about real estate financing.

Speaker #2: No one asks whether an office tower with a signed tenant can get a mortgage. There's a whole capital stack that exists for it: construction finance, term debt, institutional money—because the cash flow's contracted, the collateral's real.

Daniel Roberts: There is a whole capital stack that exists for it. Construction finance, term debt, institutional money, because the cash flow is contracted, the collateral is real. That stack took years, probably a decade, to build for property, and it is building for AI infrastructure in months and quarters because the same ingredients are there.

Speaker #2: And that stack took years—probably decades—to build for property. And it's building for AI infrastructure in months and quarters because the same ingredients are there.

Speaker #2: The hard assets, the contracted revenue, the institutional counterparties—Blue Owl and PIMCO—they're not bit-part players. They're the largest infrastructure lenders in the world.

Daniel Roberts: The hard assets, the contracted revenue, the institutional counterparty. Blue Owl and PIMCO, they are not bit part players. They are the largest infrastructure lenders in the world, and they have now underwritten us, and we have got a dialogue at the highest levels there. I think the analogy actually undersells it a bit because a building leased for a few decades at a few percent yield, our contracts are paying back this compute investment in around two years, with customers pre-paying half the CapEx upfront. Lenders can see their money back in really short time frames. Probably finance never had economics like that. I think whenever there is a new emerging market, if the demand is real, the financing follows. It always has, whether it is for railway, for telecoms, for property, for power. In terms of whether the demand is real, I think the customers are proving it.

Speaker #2: And they've now underwritten us, and we've got a dialogue at the highest levels there. But I think the analogy actually undersells it a bit, because a building leased for a few decades at a few percent yield—our contracts are paying back this compute investment in around two years, with customers prepaying half the capex upfront.

Speaker #2: So lenders can see their money back in really short timeframes. And property finance never had economics like that. So I think whenever there's a new emerging market, if the demand is real, the financing follows.

Daniel Roberts: Lenders can see their money back in really short time frames. Probably finance never had economics like that. I think whenever there is a new emerging market, if the demand is real, the financing follows. It always has, whether it is for railway, for telecoms, for property, for power. In terms of whether the demand is real, I think the customers are proving it.

Speaker #2: It always has—whether it's for railway, for telecoms, for property, for power. And in terms of whether the demand is real, I think the customers are proving it.

Speaker #2: They're proving it with prepayments. They're proving it with their end markets, their results, their revenue, and their customer market traction. So the layer that hasn't really started and developed as much as the GPUs and the data centers—but in traditional speak, the data centers are actually the easier ones because they're more closely aligned to property and real-world infrastructure.

Daniel Roberts: They are proving it with prepayments. They are proving it with their end markets and their results and their revenue and their customer market traction. The layer that has not really started and developed as much as the GPUs are the data centers. But in traditional speak, the data centers are actually the easier ones because they are more closely aligned to property and real-world infrastructure. And there is cash there. We know that, and it is waiting for us to pull the trigger, and we will look more closely at that over the coming months.

Speaker #2: And there is cash there—we know that—and it's waiting for us to pull the trigger. We'll look more closely at that over the coming months.

Speaker #9: Great. Thanks for that, caller. Dan and Anthony, much appreciated.

Joseph Vafi: Great. Thanks for that color, Dan and Anthony, much appreciated.

Speaker #1: Thank you. That was our last question for today. I would now like to turn the conference back to Dan for his closing comments.

Operator: Thank you. That was our last question for today. I will now like to turn the conference back to Dan for his closing comments.

Speaker #4: Thanks, override. Thank you, everyone, for joining. So the short version for FY26: $4.4 billion of ARR contracted, $1 billion is operating today. Horizon One has been delivered to Microsoft.

Daniel Roberts: Thanks, operator. Thank you everyone for joining. The short version of FY26, $4 billion of ARR contracted, $1 billion is operating today. Horizon 1 has been delivered to Microsoft, and as we have just touched on extensively, a funding model that is working efficiently at both ends of the credit spectrum. All of this achieved on a fraction of the platform that we have got today, and I guess shout out to the IREN team around the world and everyone who has joined us in recent months. There is Mirantis, Nostrum, a variety of broader players in the market. Keep doing what you are doing. The plan does not change. We keep delivering capacity. We will keep converting it into durable customer relationships, and we will keep funding it with discipline. Thanks, everyone. We will see you at the next result.

Speaker #4: And as we've just touched on extensively, a funding model that's working efficiently at both ends of the credit spectrum. So, all of this achieved on a fraction of the platform that we've got today.

Speaker #4: And I guess shout-out to the IREN team around the world, and everyone who has joined us in recent months: Miranda, Nostrom, and a variety of broader players in the market.

Daniel Roberts: There is Mirantis, Nostrum, a variety of broader players in the market. Keep doing what you are doing. The plan does not change. We keep delivering capacity. We will keep converting it into durable customer relationships, and we will keep funding it with discipline. Thanks, everyone. We will see you at the next result.

Speaker #4: Keep doing what you're doing. The plan doesn't change—we keep delivering capacity, we'll keep converting it into durable customer relationships, and we'll keep funding it with discipline.

Speaker #4: Thanks, everyone. We'll see you at the next results.

Operator: For your participation in today's conference, this does conclude the program. You may now disconnect.