Shares in Iren Limited (IREN), an AI cloud capacity provider, are down about 8% as of Friday morning, compounding an almost 5% loss from the previous day. This comes as analysts expected the Sydney-based company to report a net loss of 10 cents per share in its second-quarter fiscal 2026 results to be released next Thursday (February 5).
This loss marks a drop of more than 200% from 9 cents per share seen during the same period last year.
In the first quarter FY26, which ended in September, the Australian data center operator and Bitcoin miner grew its revenue by a massive 335% to $240.30 million. For the next quarter, Wall Street estimates expect revenue of $230.12 million, which is a 92.4% growth from the prior-year quarter.
The dampened outlook on Iren’s EPS comes as some analysts have expressed worries about the company’s finances.
For instance, H.C. Wainwright analyst Mike Colonnese in November pointed to “quite high” execution and financial risks for Iren after it entered a $5.8 billion deal with Dell Technologies (DELL) to purchase graphics processing units (GPUs) and other key equipment. The purchase is to fulfill its $9.7 billion GPU supply deal with Microsoft (MSFT).
However, B. Riley analysts Nick Giles and Fedor Shabalin have recently pointed out that Iren still has access to about $8.85 billion in accumulated capital to support its growth plans despite its roughly $2.7 billion funding shortfall. This capital includes the $1.94 billion in down payment from Microsoft.
Meanwhile, Iren recently completed a $3.6 billion capital raise. However, the company effectively used the net proceeds to buy back existing convertible notes and fund a capped call transaction designed to avoid diluting shareholdings.
Across Wall Street, Iren Limited’s shares remain a Moderate Buy based on the analyst consensus rating. This breaks down to nine Buys, two Holds, and one Sell issued by 12 analysts over the past three months.
