HC Wainwright & Co. has reiterated its Buy recommendation on IREN (NASDAQ: IREN), maintaining a price target of $90. Analyst Mike Colonnese issued the note, signaling continued confidence in the company's valuation.

Analyst Action

The firm did not disclose any changes to its financial estimates or key metrics in this update. The maintenance of the current price target suggests that HC Wainwright views the stock’s current trajectory as aligned with its previous valuation model.

What the Numbers Show

With no new financial data disclosed in this specific action, the primary signal is stability in the analyst’s outlook. The unchanged target implies that recent market movements or operational updates have not materially altered the firm’s long-term revenue or margin assumptions for IREN.

IREN Limited (NASDAQ: IREN) secured $6.5 billion in GPU financing over the past three months, funding more than 100% of associated compute capital expenditure when combined with customer prepayments. The company also disclosed that three-year contract pricing has increased approximately 125% since November, with active discussions now around $25 million per megawatt.

The data center operator reported fourth-quarter revenue of $137.2 million, missing consensus estimates of $142.32 million. This figure declined from $187.3 million in the same period last year and fell slightly from $144.8 million in the prior quarter. The company posted a net loss of $684.0 million for the quarter ended June 30, 2026, widening from a $247.8 million loss in Q3. This deterioration was primarily driven by non-cash impairments of $450.4 million related to decommissioning Bitcoin mining hardware as the firm transitions infrastructure to support AI Cloud growth.

Financial Performance

Total revenue fell slightly to $137.2 million from $144.8 million in the previous quarter. However, this masks a significant shift in the revenue mix. AI Cloud Services revenue more than doubled to $70.5 million from $33.6 million, while Bitcoin Mining revenue declined to $66.7 million from $111.2 million.

Adjusted EBITDA contracted to $19.2 million from $59.5 million in the prior quarter, reflecting increased employee-related costs and broader platform investments ahead of the AI Cloud revenue ramp. The Adjusted EBITDA margin compressed to 14% from 41%.

What the Numbers Show

A critical divergence exists between GAAP profitability and operational cash generation. While the company reported a massive net loss, it generated $1,811.1 million in operating cash flow for the quarter. This surge was driven largely by a $1,722.2 million increase in deferred revenue, indicating substantial customer prepayments for future services. This suggests that despite heavy capital expenditures and non-cash charges, the new AI Cloud contracts are providing immediate liquidity to fund expansion. Furthermore, recent customer prepayments are funding 45% to 55% of GPU CapEx, creating a funding flywheel that reduces reliance on equity financing.

Strategic Developments

IREN highlighted several key developments in its transition:

• Signed multi-year AI Cloud contracts with Cohere, Prometheus, Perplexity, Figure AI, Fowl AI, Higgsfield AI, and a leading frontier AI lab.
• Achieved NVIDIA Exemplar Cloud status on GB300 NVL72 deployments.
• Delivered Horizon 1, the first of four 50MW liquid-cooled deployments at Childress, to Microsoft.
• Secured $3.6 billion in investment-grade GPU financing for the Microsoft contract at a 6.0% rate, alongside $2.8 billion in sub-investment-grade financing led by Blue Owl and PIMCO at a 9% fixed rate.

The company ended the period with $7,619.5 million in cash, cash equivalents, and restricted cash, up significantly from $2,213.3 million at the end of the prior quarter. Management noted that 2026 capacity is largely sold out, with late-stage discussions underway for a significant portion of 2027 capacity. The company reported $4 billion of contracted ARR for 2026 capacity with $1 billion ARR operating today.

Daniel Roberts, co-CEO of IREN, said, "We started IREN with a simple observation: the digital world can scale almost instantly, but the physical world cannot. This year, that founding thesis became tangible. Exponential AI consumption growth has fueled demand for compute capacity well beyond the available supply of infrastructure. IREN was built for this moment."

IREN stock was down 0.27% to $40.42 in Thursday’s extended trading.