IREN (IREN) AI Stock Analysis

• Market Cap: $15.15B
• Dividend Yield: N/A
• Average Volume (3M): 44.16M
• Price to Earnings (P/E): 103.8
• Beta (1Y): 2.55
• Revenue Growth: 168.32%
• EPS Growth: N/A
• Country: US
• Employees: 257
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.65
• Shares Outstanding: 271,980,500
• 10 Day Avg. Volume: 46,537,765
• 30 Day Avg. Volume: 44,156,590
• PEG Ratio: -0.15
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 6.24
• P/FCF Ratio: -2.77
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 8.23
• Enterprise Value/Gross Profit: 12.02
• Enterprise Value/Ebitda: 14.52
• 1Y Price Target: $70.55
• Price Target Upside: 12.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 67 Neutral
• Price Target: $68.00 ▲(8.11% Upside)

Iris Energy's strong technical indicators and positive earnings call sentiment are the most significant factors driving the score. However, the high P/E ratio and challenges in cash flow management and profitability weigh down the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and effective expansion strategies, positioning the company well for future profitability.

AI Cloud Business Expansion

The expansion into AI cloud services with NVIDIA GPUs enhances diversification and provides a stable revenue stream, supporting long-term growth.

Sustainable Energy Focus

A focus on renewable energy reduces carbon footprint and attracts environmentally conscious investors, aligning with global sustainability trends.

Negative Factors

Negative Free Cash Flow

Negative free cash flow may hinder the company's ability to fund operations and growth initiatives, potentially impacting financial stability.

Increased Operating Expenses

Rising operating expenses can pressure margins and profitability, necessitating effective cost management to sustain long-term growth.

Convertible Senior Notes Offering

Issuing convertible notes increases financial obligations and potential dilution, which could impact shareholder value and financial flexibility.

IREN Business Overview & Revenue Model

Company Description

IREN Limited operates in the vertically integrated data center business in Australia and Canada. The company owns and operates computing hardware, as well as electrical infrastructure and data centers. It also mines Bitcoin, a scarce digital asset that is created and transmitted through the operation of a peer-to-peer network of computers running the Bitcoin software. The company was formerly known as Iris Energy Limited and changed its name to IREN Limited in November 2024. The company was incorporated in 2018 and is based in Sydney, Australia.

How the Company Makes Money

Iris Energy generates revenue primarily through its cryptocurrency mining operations, which involve the acquisition and utilization of specialized mining hardware to validate transactions on blockchain networks and earn cryptocurrency rewards. The company's revenue model is driven by the mining of Bitcoin and other cryptocurrencies, where it earns income based on the amount of cryptocurrency mined and the prevailing market prices. Key revenue streams include the production of mined cryptocurrencies, potential transaction fees from the networks, and partnerships with energy providers that enable them to secure low-cost renewable energy, which is crucial for maintaining profitability in the competitive mining industry. Additionally, Iris Energy's strategic focus on sustainable energy solutions positions it favorably in the market, attracting environmentally conscious investors and partners.

IREN Financial Statement Overview

Summary

Iris Energy shows strong revenue growth and operational efficiency with a robust gross profit margin. However, challenges in profitability and cash flow management, such as a low net profit margin and negative free cash flow, need addressing for long-term financial health.

Income Statement

Iris Energy has shown impressive revenue growth with a 34.12% increase in the latest year, indicating strong market demand and expansion. The gross profit margin is robust at 68.27%, reflecting efficient cost management. However, the net profit margin is relatively lower at 17.35%, suggesting room for improvement in controlling expenses and enhancing profitability. The EBIT and EBITDA margins are healthy, indicating good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.53 indicates moderate leverage, which is manageable but should be monitored. The equity ratio is strong, suggesting a solid capital structure. However, the return on equity is negative in previous years, highlighting past profitability challenges. The recent improvements in net income are promising for future ROE enhancement.

Cash Flow

The operating cash flow is positive and covers net income well, indicating good cash generation from operations. However, the free cash flow is negative, which could be a concern for long-term sustainability if not addressed. The negative free cash flow growth rate suggests challenges in managing capital expenditures or investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	504.05M	501.02M	188.76M	75.51M	59.04M	7.84M
Gross Profit	345.06M	342.03M	166.56M	57.61M	51.59M	5.18M
EBITDA	285.68M	285.68M	25.40M	-122.26M	-377.12M	-43.38M
Net Income	86.94M	86.94M	-28.95M	-171.87M	-419.77M	―
Balance Sheet
Total Assets	2.94B	2.94B	1.15B	332.07M	570.46M	134.88M
Cash, Cash Equivalents and Short-Term Investments	564.53M	564.53M	411.13M	68.89M	109.97M	39.08M
Total Debt	964.23M	964.23M	1.66M	1.45M	108.21M	84.03M
Total Liabilities	1.12B	1.12B	55.68M	26.71M	133.10M	184.36M
Stockholders Equity	1.82B	1.82B	1.10B	305.36M	437.36M	―
Cash Flow
Free Cash Flow	-1.08B	-1.13B	-427.19M	-110.02M	-272.69M	―
Operating Cash Flow	-161.21M	245.89M	52.72M	6.04M	21.56M	1.64M
Investing Cash Flow	-1.43B	-1.38B	-498.47M	-71.47M	-318.12M	―
Financing Cash Flow	1.29B	1.29B	782.13M	28.24M	372.04M	116.57M

IREN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IREN, the sentiment is Positive. The current price of 62.9 is above the 20-day moving average (MA) of 57.49, above the 50-day MA of 41.19, and above the 200-day MA of 18.27, indicating a bullish trend. The MACD of 5.05 indicates Positive momentum. The RSI at 61.78 is Neutral, neither overbought nor oversold. The STOCH value of 33.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IREN.

IREN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MC	79 Outperform	$5.72B	27.95	45.36%	3.60%	42.85%	1398.33%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IREN	67 Neutral	$15.15B	103.85	11.55%	―	168.32%	―
BTBT	66 Neutral	$1.26B	―	-11.34%	―	14.65%	-240.80%
CIFR	58 Neutral	$8.13B	―	-21.39%	―	0.11%	-914.42%
RIOT	57 Neutral	$7.57B	―	-3.23%	―	93.46%	-166.22%
ABTC	41 Neutral	$5.11B	-3.78	―	―	―	―

IREN Corporate Events

IREN Closes $1 Billion Convertible Notes Offering

On October 14, 2025, IREN Limited announced the closing of its $1.0 billion offering of 0.00% convertible senior notes due 2031, which was oversubscribed due to strong investor demand. The net proceeds of approximately $979.0 million will be used for general corporate purposes and working capital, with $56.7 million allocated to fund capped call transactions aimed at reducing potential dilution of ordinary shares upon conversion of the notes.

The most recent analyst rating on (IREN) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on IREN stock, see the IREN Stock Forecast page.

IREN Announces $875M Convertible Notes Offering

On October 9, 2025, IREN Limited announced the pricing of its $875 million offering of 0.00% Convertible Senior Notes due 2031, aimed at qualified institutional buyers under Rule 144A of the Securities Act. The offering, expected to close on October 14, 2025, includes an option for initial purchasers to buy an additional $125 million in notes. Net proceeds are estimated at $856.5 million, with plans to use $49.6 million for capped call transactions and the rest for corporate purposes. This move is expected to impact IREN’s market positioning by potentially reducing share dilution and providing financial flexibility.

The most recent analyst rating on (IREN) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on IREN stock, see the IREN Stock Forecast page.

IREN Launches $875 Million Convertible Notes Offering

On October 7, 2025, IREN Limited announced the launch of an offering of $875 million in senior convertible notes due 2031, aimed at qualified institutional buyers under Rule 144A of the Securities Act of 1933. The company plans to use the proceeds to fund capped call transactions and for general corporate purposes. Additionally, IREN has issued over 66 million shares through an at-the-market offering, raising approximately $1 billion, and reported a cash balance of $1 billion as of September 30, 2025.

The most recent analyst rating on (IREN) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on IREN stock, see the IREN Stock Forecast page.

Iris Energy Appoints Anthony Lewis as New CFO

On September 8, 2025, IREN Limited announced the appointment of Anthony Lewis as Chief Financial Officer, succeeding Belinda Nucifora. Lewis, who joined IREN as Chief Capital Officer in July 2025, brings extensive experience from his previous roles at Macquarie Group, enhancing IREN’s financial operations and capital markets strategy. This leadership change is expected to support the company’s growth trajectory in its AI cloud business and capital structure evolution.

The most recent analyst rating on (IREN) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Iris Energy stock, see the IREN Stock Forecast page.

Iris Energy Ltd. Reports Strong FY 2025 Earnings

Iris Energy Ltd. (IREN) recently held its FY 2025 earnings call, which was marked by a generally positive sentiment. The company reported significant growth in EBITDA and data center capacity, alongside a robust expansion in its AI cloud business. Despite challenges such as increased operating expenses and potential risks related to power costs, the overall sentiment was optimistic, with the highlights of the call significantly outweighing the lowlights.

Iris Energy Ltd. Expands Data Centers and AI Services

Iris Energy Ltd. is a leading owner and operator of next-generation data centers powered by 100% renewable energy, focusing on Bitcoin mining and high-performance computing (HPC) and AI services. The company has been mining Bitcoin since 2019 and is expanding its operations to include AI Cloud Services, leveraging its data centers in the United States and Canada.