Iris Energy (IREN) AI Stock Analysis

• Market Cap: $10.07B
• Dividend Yield: N/A
• Average Volume (3M): 28.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.73
• Revenue Growth: 130.86%
• EPS Growth: -22.83%
• Country: US
• Employees: 144
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.65
• Shares Outstanding: 271,980,500
• 10 Day Avg. Volume: 33,795,740
• 30 Day Avg. Volume: 28,869,915
• 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: 0.12
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 3.48
• Enterprise Value/Ebitda: 4.20
• 1Y Price Target: $30.63
• Price Target Upside: -15.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 65 Neutral
• Price Target: $28.00 ▼(-22.91% Downside)

Iris Energy's overall stock score is driven by strong technical momentum and positive earnings call sentiment, indicating growth potential. However, financial performance and valuation concerns, such as profitability and cash flow issues, present risks that temper the score.

Positive Factors

Revenue Growth

The significant EBITDA growth indicates strong financial performance and suggests a robust market demand for IREN's services, supporting long-term revenue expansion.

AI Cloud Expansion

The rapid expansion of the AI cloud business positions IREN as a leader in AI infrastructure, enhancing its market presence and diversifying revenue streams.

Strategic Partnerships

Being an NVIDIA preferred partner strengthens IREN's supply chain and customer pipeline, providing a competitive advantage in the tech infrastructure market.

Negative Factors

Increased Operating Expenses

Rising operating expenses could pressure profitability, requiring careful management to maintain financial health and operational efficiency.

Negative Free Cash Flow

Negative free cash flow suggests challenges in managing capital expenditures, potentially impacting long-term sustainability and investment capacity.

Profitability Challenges

Profitability challenges, indicated by a low net profit margin, could hinder financial stability and require strategic adjustments to improve margins.

Iris Energy Business Overview & Revenue Model

Company Description

IREN Limited operates in the integrated data center business. It owns and operates data centers powered by renewable energy. Its grid-connected facilities are purpose-built for the power-dense computing applications. The company was formerly known as Iris Energy Limited and changed its name to IREN Limited in November 2024. IREN Limited 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.

Iris Energy 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

Iris Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 36.32 is above the 20-day moving average (MA) of 28.66, above the 50-day MA of 22.11, and above the 200-day MA of 12.85, indicating a bullish trend. The MACD of 4.56 indicates Negative momentum. The RSI at 73.18 is Negative, neither overbought nor oversold. The STOCH value of 89.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IREN.

Iris Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MC	80 Outperform	6.09B	29.72	38.39%	3.28%	42.85%	1398.33%
IREN	65 Neutral	$10.07B	―	-3.39%	―	130.86%	-22.83%
BTBT	62 Neutral	973.94M	-9.06	6.11%	―	14.65%	-240.80%
CIFR	54 Neutral	4.87B	-26.76	-20.56%	―	0.11%	-914.42%
RIOT	53 Neutral	6.51B	-37.75	-2.88%	―	93.46%	-166.22%
ABTC	53 Neutral	1.36B	-5.04	0.00%	―	0.00%	0.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Iris Energy Corporate Events

Iris Energy Reaches 50 EH/s Milestone, Eyes AI Expansion

On June 30, 2025, IREN Limited announced it achieved its mid-year target of 50 EH/s installed self-mining capacity, marking a significant milestone in its operations. This achievement positions IREN as a global leader in efficient Bitcoin mining and sets the stage for future expansion into AI infrastructure. The company emphasizes its low-cost production and resilient cash flows, which provide a strong foundation for enduring market volatility and pursuing new growth opportunities.