IREN Ltd. (IREN) F1Q27 Review: EBITDA beat, favorable pricing trends, and capex flexibility

IREN reported F1Q27 EBITDA of $66 mn, beating Goldman Sachs' estimate of $28 mn and consensus of $64 mn (Visible Alpha), with AI Cloud Services revenue of $200 mn also ahead of GS at $167 mn and consensus at $185 mn. The company announced positive pricing developments, including a contract extension, stronger pricing for shorter and longer term contracts, and contracted 4-year-old H100 GPUs at double the previous pricing. IREN also demonstrated capital investment flexibility, lowering its overall F2027E capex to about $20 bn from $25-30 bn, with prior $12-15 bn expected funding gap reduced to roughly $6 bn. The company has 30,000 acres of land secured globally, underpinning 5 GW of secured grid connection and another 35 GW of prospective grid connections, a land portfolio positioned to provide optionality for future capacity at relatively cheap cost. That said, heightened industry execution risk and financing concerns are expected to remain an overhang, particularly after IREN delayed