IREN (NASDAQ: IREN) shares fell more than 8% in after-hours trading on Thursday after the AI cloud infrastructure provider reported a wider-than-expected fourth-quarter loss and revenue that missed market estimates.

The company posted fourth-quarter revenue of $137.2 million, a sequential decline that fell short of the $153.2 million analysts had projected. Breaking down the segments, AI cloud services revenue climbed to $70.5 million from $33.6 million in the prior quarter, while bitcoin mining revenue dropped to $66.7 million from $111.2 million, slightly above the $65.6 million consensus estimate.

Net loss ballooned to $684 million from $247.8 million in the previous quarter, versus the $204.3 million average analyst forecast. The widening loss reflects the writedown of bitcoin mining hardware as the company repurposes its facilities to support AI cloud business expansion.

Adjusted EBITDA slid to $19.2 million from $59.5 million, well below the $57.1 million expected, due to higher employee-related costs and broader platform investments made ahead of AI cloud revenue scaling. For fiscal 2026, AI cloud services revenue surged roughly sevenfold year-over-year to $128.8 million.

"We founded IREN with a simple premise: the digital world can scale almost instantly, but the physical world cannot," said co-CEO Daniel Roberts. "This year, that founding vision became reality. The exponential growth of AI consumption has driven demand for compute far beyond what existing infrastructure can supply."

Roberts added: "Our capacity for 2026 is essentially sold out. This includes Horizon 1, the first of four frontier liquid-cooled GPU deployments we successfully delivered to Microsoft this month."