IREN Limited

That said, we will continue to monitor customer demand closely and pursue growth in a disciplined, measured way. This full expansion to 140,000 GPUs will only require about 460 megawatts of power, representing roughly 16% of our total secured power portfolio. This leaves substantial optionality for future growth and importantly, continued scalability across our portfolio. The key takeaway here is that we have substantial near-term growth being actively executed upon, but also have significant and additional organic growth ahead of us. Turning now to slide eight, which highlight the British Columbia data centres supporting our expansion to 140,000 GPUs. At Prince George, our ASIC to GPU swap-out program is progressing well. The same process will soon extend to our McKenzie and Canal Flats campuses, where we expect to migrate ASICs to GPUs with similar efficiency and speed. Together, these sites are allowing us to fast track our growth in supporting high performance AI workloads, scaling it into what is becoming one of the largest GPU fleets in North America. Turning to Childress. where we are now accelerating the construction of Horizons 1 to 4 to accommodate the phase delivery of NVIDIA GB300 NVL72 systems for Microsoft. We've significantly enhanced our original design specifications to meet hyperscale requirements and also further ensure durable long-term returns from our data center assets. The facilities have been engineered to Tier 3 equivalent standards for concurrent maintainability, ensuring continuous operations even during maintenance windows. A key feature of this next phase is the establishment of a network core architecture capable of supporting single 100 megawatt superclusters. A unique configuration that enables high performance AI training for both current and next generation GPUs. We're also incorporating flexible rack densities ranging from 130 to 200 kilowatts per rack, which allows us to accommodate future chip generations and the evolving power and density requirements without major structural upgrades. While these design enhancements have resulted in incremental cost increases, they provide long-term value protection, enabling our data centers to support multiple generations and reduce recontracting risk typically associated with lower spec builds. In short, we're building Childress not just for today's GPUs and the Microsoft contract in front of us, but also for the next generations of AI compute. Beyond the accelerated development of Horizons 1 through to 4, the remaining 450 megawatts, as you can see in the image on screen, of secured power at Childress provides substantial expansion potential for future Horizons, numbered five through to 10. Design works underway to enable liquid cooled GPU deployments across the entire site, positioning us to scale seamlessly alongside customer demand. Finally, turning to Sweetwater, our flagship data center hub in West Texas, which has been somewhat overshadowed in recent months by the activity in Childress and Canada. At full build out, Sweetwater will support up to two gigawatts, 2,000 megawatts of gross capacity, all of which has been secured from the grid. As shown in the chart, this single hub rivals and in most cases exceeds the entire scale of total data center markets today. While the recent headlines have naturally been dominated more about our AI cloud expansion at other sites, Sweetwater is a pretty exciting platform asset. giving us the capability to continue servicing the wave of AI compute demand. Sweetwater One energization continues to remain on schedule with more than 100 people mobilized on site to support construction of what is becoming one of the largest high voltage data center substations in the United States. All exciting stuff. With that, I'll now hand over to Anthony, who will walk through our Q1 FY26 results in more detail.

Thanks, Dan, and thanks, everyone, for your attendance today. Continued operational execution was reflected in another quarter of strong financial performance. Q1F1-26 marked our fifth consecutive quarter of record revenues, with total revenue reaching $240 million, up 20%, 28% quarter over quarter, and 355% year over year. Operating expenses increased primarily on account of higher depreciation, reflecting ongoing growth in our platform and our higher SG&A. The latter, primarily driven by materially higher share price, resulting in acceleration of share-based payment expense and a higher payroll tax expense associated with employees. 63 million. were both significantly up, largely on account of unrealised gains on prepaid forward and cap call transactions entered into in connection with our convertible note financings. Adjusted EBITDA was 92 million, reflecting continued margin strength, partially offset by that higher payroll tax of 33 million accrued in the quarter on account of strong share price performance. Turning now to our recently announced AI cloud partnership with Microsoft. As Dan mentioned, this is a very significant milestone for Iron. It not only delivers strong financial returns, but also creates a significant long-term strategic partnership for the business. Focusing on the financials, the $9.7 billion contract is expected to deliver approximately $1.9 billion in annual revenue once the four phases come online. with an estimated 85% project EBITDA margin. This strong margin, which reflects our vertically integrated model, incorporates all direct operating expenses across both our cloud and data center operations, supporting the transaction, including power, salary and wages, maintenance, insurance, and other direct costs. These cash flows deliver an attractive return on the cloud investment i.e. the 5.8 billion capex for the GPUs and ancillaries, after deducting an appropriate internal co-location charge, ensuring that the project delivers robust cloud returns, as well as an attractive return on our long-term investment in the Horizon data centres, which will deliver returns for many years into the future. The transaction has also a number of features that allow us to undertake the transaction in a capital-efficient way, Firstly, the payments for the CAPEX are aligned with the phase delivery of the GPUs across the calendar year 26, as we deliver those four phases. Secondly, the $1.9 billion in customer prepayments, being 20% of total contract revenue, paid in advance of each tranche, provides funding for circa one-third of the funding requirement at the outset. Thirdly, the combination of the latest generation of GPUs and the very strong credit profile of Microsoft should allow us to raise significant additional funding secured against the GPUs and the contracted cash flows on attractive terms. While the final outcome will be subject to a range of considerations and factors, we are targeting circa $2.5 billion through such an initiative, and depending on final terms and pricing, there is meaningful upside to that. noting again the very high quality of our counterparty. We also have a range of options available to fund the remaining $1.4 billion, including existing cash balances, operating cash flows and a mix of equity, convertible notes and corporate instruments. On that note, turning more generally to CapEx and funding. We continue to focus on deepening our access to capital markets and diversifying our sources of funding. We issued $1 million in zero coupon convertible notes during October, which was extremely well supported. And we also secured an additional $200 million in GPU financing to support our AI cloud expansion in Prince George, bringing total GPU-related financings to $400 million to date at attractive rates. Taking into account recent fundraising initiatives, our cash at the end of October stood at $1.8 billion. Our upcoming CapEx program, which includes the construction of the Verizon data centers for the Microsoft transaction, will be met from a combination of this strong starting cash position, operating cash flows, the Microsoft prepayments as just noted, and other financing streams that are underway. These include the GP financing facilities that we discussed, as well as a range of other options under consideration from other forms of secured lending against our fleet of GPUs and data centers, through to corporate level issuance whilst maintaining an appropriate balance between debt and equity to maintain a strong balance sheet. With that, we'll now turn the call over to Q&A.

Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then 2. If you're using a speakerphone, please pick up the handset to ask your question. The first question today comes from Nick Giles from B Reilly Securities. Please go ahead.