IREN (IREN) AI Stock Analysis

• Market Cap: $15.08B
• Dividend Yield: N/A
• Average Volume (3M): 40.75M
• Price to Earnings (P/E): 50.4
• Beta (1Y): 2.74
• Revenue Growth: 236.14%
• EPS Growth: N/A
• Country: US
• Employees: 257
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.52
• Shares Outstanding: 332,280,400
• 10 Day Avg. Volume: 28,294,739
• 30 Day Avg. Volume: 40,748,872
• 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: 0.94
• Enterprise Value/Revenue: 20.33
• Enterprise Value/Gross Profit: 39.87
• Enterprise Value/Ebitda: 18.93
• 1Y Price Target: $79.78
• Price Target Upside: 80.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.42
• Revenue Forecast (FY): $1.04B

• Rating: 53 Neutral
• Price Target: $47.00 ▲(6.24% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back primarily by mixed financial quality (inconsistent profitability, negative free cash flow, and higher leverage) and weak technicals (trading below key moving averages with low RSI/Stoch). These are partially offset by a constructive earnings call focused on funded growth plans and contracted demand, plus a mid-range valuation (P/E ~20) without dividend support.

Positive Factors

Secured GPU Financing & Microsoft Prepayments

Large, structured financing plus customer prepayments materially reduces funding and refinancing risk for multi-year GPU buildout. This durable capital coverage lowers execution risk, reduces effective funding cost, and materially supports the company’s ability to hit multi-year ARR and deployment targets even if markets tighten.

Secured Grid-Connected Power Portfolio

Having >4.5 GW of secured power (including a large 1.6 GW site) removes a common capacity bottleneck for hyperscale AI deployments. This structural asset position enables predictable site buildouts, supports long-term contracted ARR growth, and gives a sustainable operational edge versus peers lacking ready power capacity.

Vertical Integration & Operational Execution

A vertically integrated platform and established EPC/supply relationships increase execution predictability and control over timelines and margins. This persistent capability supports faster site energization, tighter cost management and more reliable delivery of contracted capacity over the 2–6 month horizon and beyond.

Negative Factors

Rapid Increase in Absolute Debt Load

A sharp step-up in absolute debt materially raises refinancing and interest-rate exposure. If operating cash conversion stalls, servicing and rolling this larger debt stock could pressure liquidity and strategic flexibility, making execution of growth plans more dependent on continued external capital access.

Deeply Negative Free Cash Flow

Persistent negative FCF reflects high capital intensity of GPU and site builds, meaning the business is not yet self-funding. Continued FCF deficits require ongoing external financing, which amplifies execution and refinancing risk and can compress returns if capital costs or deployment schedules slip.

Inconsistent Profitability and Earnings Volatility

Volatile profitability—oscillating between losses and narrow gains—signals earnings quality is still unsettled. This instability complicates forecasting, weakens internal cash buffers to absorb shocks, and increases reliance on external funding to support growth and debt obligations over the medium term.

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

IREN generates revenue through multiple streams, primarily by selling electricity and natural gas to both residential and commercial customers. The company also earns income from its water supply and wastewater treatment services, which are essential for maintaining public health and environmental standards. Additionally, IREN is involved in waste management, providing collection and disposal services that contribute to its revenue. Strategic partnerships with local governments and investments in renewable energy projects further enhance its earnings. The company benefits from regulatory frameworks that promote sustainable practices and incentivize investments in clean energy, positioning it favorably in the evolving energy market.

IREN Financial Statement Overview

Summary

Revenue growth and gross margins are strong and operating cash flow improved materially, but profitability remains inconsistent (TTM net loss, negative EBIT). Free cash flow is still deeply negative due to heavy reinvestment, and total debt increased sharply, raising funding/refinancing and execution risk.

Income Statement

Top-line momentum is strong, with revenue scaling materially from $501.0M (FY2025) to $760.4M in TTM (Trailing-Twelve-Months), and gross margin holding solidly in the mid-60% range in recent periods. However, profitability is volatile: TTM (Trailing-Twelve-Months) net income is slightly negative (-$16.1M) and EBIT is negative, suggesting earnings are not yet consistently durable despite the high gross profit profile. The multi-year trend shows a sharp recovery from heavy losses in FY2022–FY2024 to profitability in FY2025, but the recent slip back to a small loss keeps overall quality of earnings mixed.

Balance Sheet

Equity has strengthened substantially versus earlier years (moving from negative equity in FY2021 to $2.51B in TTM (Trailing-Twelve-Months)), which is a clear positive. The key concern is leverage and balance sheet expansion: total debt rises to $3.84B in TTM (Trailing-Twelve-Months) (up from $964.2M in FY2025), alongside a much larger asset base. While leverage relative to equity appears moderate based on the provided debt-to-equity figure, the absolute debt load and rapid step-up in financing increase refinancing and execution risk if cash generation does not keep pace.

Cash Flow

Operating cash flow is a strength (TTM (Trailing-Twelve-Months) at $564.8M, up from $245.9M in FY2025), indicating the core business is producing cash. The weakness is heavy reinvestment: free cash flow is deeply negative in both FY2025 (-$1.13B) and TTM (Trailing-Twelve-Months) (-$259.6M), and free cash flow growth is sharply negative, implying capital intensity remains high. In short, cash generation is improving, but the company is still not self-funding on a free-cash-flow basis.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	696.93M	501.02M	187.19M	75.51M	59.04M	7.90M
Gross Profit	355.33M	342.03M	100.13M	36.09M	51.59M	5.68M
EBITDA	748.55M	201.69M	31.21M	-9.83M	8.14M	729.00K
Net Income	402.37M	86.94M	-28.92M	-171.83M	-419.77M	-60.39M
Balance Sheet
Total Assets	7.03B	2.94B	1.15B	332.07M	392.28M	100.95M
Cash, Cash Equivalents and Short-Term Investments	3.26B	564.53M	411.13M	68.89M	75.62M	29.27M
Total Debt	3.84B	964.23M	1.32M	1.45M	108.29M	62.93M
Total Liabilities	4.52B	1.12B	55.35M	26.71M	133.10M	138.09M
Stockholders Equity	2.51B	1.82B	1.10B	305.36M	437.36M	-37.13M
Cash Flow
Free Cash Flow	-259.56M	-1.13B	-427.19M	-110.02M	-272.69M	-4.13M
Operating Cash Flow	564.80M	245.89M	52.22M	5.73M	21.56M	1.31M
Investing Cash Flow	-2.11B	-1.38B	-498.47M	-71.47M	-318.12M	-60.69M
Financing Cash Flow	4.37B	1.29B	782.13M	28.56M	372.04M	88.04M

IREN Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 44.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IREN, the sentiment is Neutral. The current price of 44.24 is below the 20-day moving average (MA) of 45.20, below the 50-day MA of 45.95, and above the 200-day MA of 35.11, indicating a neutral trend. The MACD of -1.62 indicates Negative momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 73.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IREN.

IREN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIOT	70 Outperform	$6.13B	50.71	5.24%	―	103.62%	49.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BTBT	61 Neutral	$543.77M	4.66	22.44%	―	9.52%	496.04%
CLSK	54 Neutral	$2.65B	-9.76	-15.34%	―	102.21%	―
CIFR	54 Neutral	$6.76B	-8.10	-110.55%	―	35.41%	-38.08%
IREN	53 Neutral	$15.08B	50.45	22.51%	―	236.14%	―
ABTC	43 Neutral	$946.16M	-1.40	-2.75%	―	―	―

IREN Corporate Events

IREN Closes $2.3 Billion Convertible Notes Offering

On December 8, 2025, IREN Limited closed its offering of $2.3 billion convertible senior notes, comprising $1.15 billion of 0.25% notes due 2032 and $1.15 billion of 1.00% notes due 2033. The proceeds, totaling approximately $2.27 billion after expenses, will be used to repurchase existing convertible notes, fund capped call transactions, and for general corporate purposes. The company also completed a registered direct placement of 39.7 million ordinary shares to fund the repurchase of existing notes, reducing outstanding debt and extending maturities. These transactions are expected to lower cash coupons and provide a hedge against share dilution upon note conversion.

The most recent analyst rating on (IREN) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on IREN stock, see the IREN Stock Forecast page.

IREN Announces $2 Billion Convertible Notes Offering

On December 3, 2025, IREN Limited announced the pricing of its $2 billion convertible notes offering, consisting of $1 billion in 0.25% convertible senior notes due 2032 and $1 billion in 1.00% convertible senior notes due 2033. The notes are intended to fund the repurchase of existing convertible notes and for general corporate purposes. Additionally, IREN priced a registered direct offering of its ordinary shares to further support the repurchase of these notes. This strategic financial maneuver aims to optimize IREN’s capital structure and potentially impact the trading price of its ordinary shares and 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 $1 Billion Convertible Notes Offering

On December 1, 2025, IREN Limited announced plans for a $1 billion offering of convertible senior notes due in 2032 and 2033, alongside a registered direct offering of ordinary shares to fund the repurchase of existing convertible notes. This strategic move aims to manage debt and potentially reduce dilution of shares, with implications for market activities that could affect the trading prices of IREN’s shares and 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 Shareholders Approve Key Proposals at AGM

On November 19, 2025, IREN held its Annual General Meeting where shareholders approved several key proposals, including the 2025 Omnibus Incentive Plan and amendments to the company’s constitution. These amendments align quorum requirements with Nasdaq rules, provide for director elections at each annual meeting, add a forum selection provision, update advance notice provisions for universal proxies, and implement miscellaneous changes. Additionally, shareholders approved the repurchase of ordinary shares through Prepaid Forward and Capped Call Transactions, and supported executive compensation measures and annual advisory votes on executive compensation.

The most recent analyst rating on (IREN) stock is a Sell with a $39.00 price target. To see the full list of analyst forecasts on IREN stock, see the IREN Stock Forecast page.