IREN’s AI expansion hinges on Horizon 2–4 delivery as $4 billion ARR is tied to 2026 capacity
IREN Limited has contracted $4 billion of annual recurring revenue tied to 2026 capacity, though only $1 billion was operational by late August. Horizon 1 acceptance has validated execution, while Horizons 2 through 4 are the key test for the company’s December commissioning targets. Customer prepayments cover 45% to 55% of GPU capex, and equipment financing can fund approximately 90% of GPU costs. IREN trades around 5.8 times FY2027 consensus sales, falling to 2.2 times FY2028 revenue as capacity scales.