IREN Limited

CFO, and Kent Draper, Chief Commercial Officer. Before we begin, please note this call is being webcast live with a presentation. For those that have dialed in via phone, you can elect to ask a question via the moderator after our prepared remarks. Before we begin, I'd like to remind you that certain statements that we make during the conference call may constitute forward-looking statements and iron cautions listeners that forward-looking information and statements are based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of the company. Listeners should not place undue reliance on forward-looking information or statements, and I'd encourage you to refer to the disclaimer on slide two of the accompanying presentation for more information. With that, I'll now turn over the call to Dan Roberts.

Thanks, Mike, and thank you all for joining us for IRN's Q1 2026 earnings call. Today we'll provide an overview of our financial results for the first fiscal quarter ending September 30, 2025, highlighting key operational milestones and importantly discuss how our AI cloud strategy is driving strong growth. We'll then open the call for questions at the end. So Q1 FY26 results, fiscal year 2026 is off to a really good start. We delivered a fifth consecutive quarterly increase in revenues and a strong bottom line. Revenue reached $240 million and adjusted EBITDA was 92. Noting, of course, that net income and EBITDA, importantly, reflected an unrealised financial gain on financial instruments. This performance reflects our continued and the team's disengagement the team's disciplined execution, along with the benefits of having a resilient vertically integrated platform. Microsoft and the cloud contract. So earlier this week, we announced a $9.7 billion AI cloud contract with Microsoft, which was a defining milestone for our business that underscores the strength and scalability of our vertically integrated AI cloud platform. The agreement not only validates our position as a trusted provider of AI cloud service, but also opens up access to a new customer segment among the global hyperscalers. Under this five-year contract, Iron will deploy NVIDIA GB300 GPUs across 200 megawatts of data centers at our Childress campus. The agreement includes a 20% upfront prepayment, which help support capital expenditures as they become due through 2026. The contract's expected to generate approximately $1.94 billion in annual recurring revenue. Beyond the obvious positive financial impact, the contract carries strategic value of significance for us. It not only positions Iron as a contributor towards Microsoft's AI roadmap, but also demonstrates to the market our ability to serve an expanded customer base, which includes a range of model developers, AI enterprises, and now one of the largest technology companies on the planet. As enterprises and other hyperscalers accelerate their AI build-out, we expect that our combination of power, AI cloud experience, and execution capability will continue to position us as a partner of choice. Looking ahead, we're executing now on a plan that will see our GPU fleet scale from 23,000 GPUs today up to 140,000 GPUs by the end of 2026. When fully deployed, this expansion is expected to support in the order of $3.4 billion in annualized run rate revenue. Importantly, this expansion leverages just 16% of our three gigawatts in secured power, leaving ample capacity for future expansion. With that overview in mind, let's turn to the next section, a closer look at our AI cloud platform and how we're positioned to scale in the years ahead. So as I alluded to earlier, a key driver of IRON's competitive advantage in AI cloud services is our vertical integration. We develop our own greenfield sites, engineer our own high voltage infrastructure, build and operate our own data centers, and deploy our own GPUs. Simply put, we control the entire stack from the substation all the way down to the GPU. We believe strongly that this end-to-end integration and control is a key differentiator that positions us for significant growth. This model of vertical integration eliminates dependence on third party co-location providers, and most importantly, removes all counterparty risk associated. This allows us to commission GPU deployments faster with full control over execution and uptime. For our customers, this translates into scalability, cost efficiency, and a superior customer service with tighter control over performance reliability and delivery milestones, driving tangible value and certainty. For those reasons, our customers, including Microsoft, view Iron as a strategic partner in delivering cutting edge AI compute, recognizing our deep expertise in designing, building, and operating a fully integrated AI cloud platform. On that note, we're excited to announce a further expansion of our AI cloud service, targeting a total of 140,000 GPUs by the end of 2026. This next phase includes the deployment of an additional 40,000 GPUs across our McKenzie and Canal Flats campuses, which are expected to generate in the order of $1 billion in additional ARR. When combined with the $1.9 billion expected from the Microsoft contract, and 500 million from our existing 23,000 GPU deployment. This expansion provides a clear pathway to approximately $3.4 billion in total annualized run rate revenue once fully ramped. Importantly, this incremental 40,000 GPU build out will be executed in a highly capital efficient manner through leveraging existing data centers. While we have not yet purchased GPUs for the deployment, we continue to see strong demand for air cooled variants of NVIDIA's Blackwell GPUs, including both the B200 and the B300. And given their efficient deployment profile, we expect these to form the basis of this expansion. 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 three 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 5 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, 2000 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 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 a 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 unrealized 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, 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 centers, which will deliver returns for many years into the future. The transaction is 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 and 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 centres 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.