IREN LtdIREN

IREN Ltd Leases Disclosure

10-KFiled Aug 28, 20252 min read
Note 17. Leases
As of June 30, 2025 the Group had operating leases primarily for office space and land. Specifically, the Group’s operating leases included a 5-year lease of a rental yard used for storage in Prince George, B.C., Canada, a 3-year lease and a 5-year lease of corporate offices in Sydney, Australia and a 5-year corporate office lease in Vancouver, B.C., Canada.
The following table shows the right-of-use assets and lease liabilities as of June 30, 2025 and June 30, 2024:
(in USD thousands)June 30, 2025June 30, 2024
Right-of-use assets:
Operating leases$1,463 $1,336 
Total right-of-use assets$1,463 $1,336 
Lease liabilities:
Operating leases - Current$404 $289 
Operating leases - Non current1,063 1,032 
Total lease liabilities$1,467 $1,321 
The Company’s lease costs are comprised of the following:
Years ended June 30,
(in USD thousands)202520242023
Operating lease cost$543 $303 $296 
Short-term lease expense317 207 162 
Total lease expense$860 $510 $458 
The following table presents supplemental lease information:
Years ended June 30,
(in USD thousands)202520242023
Operating cash outflows – operating leases$545 $309 $300 
Years ended June 30,
202520242023
Weighted-average remaining lease term – operating leases4.0321.5322.08
Weighted-average discount rate – operating leases6.4 %10.0 %10.5 %

The weighted-average remaining lease term - operating leases decreased from 21.53 years as at the year ended June 30, 2024 to 4.03 years as at the year ended June 30, 2025 due to the purchases of land leased in Prince George, B.C., Canada.
The following table presents the Company’s future minimum operating lease payments as of June 30, 2025:
(in USD thousands)
Operating
Leases
2026$450 
2027437 
2028402 
2029415 
203079 
Thereafter
— 
Total undiscounted lease payments
$1,783 
Less present value discount
(316)
Present value of operating lease liabilities
$1,467 

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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