IREN (IREN) AI Stock Analysis

• Market Cap: $18.94B
• Dividend Yield: N/A
• Average Volume (3M): 31.33M
• Price to Earnings (P/E): 29.5
• 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): 1.07
• Shares Outstanding: 328,341,700
• 10 Day Avg. Volume: 41,044,806
• 30 Day Avg. Volume: 31,334,231
• 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: 0.53
• Enterprise Value/Revenue: 14.56
• Enterprise Value/Gross Profit: 22.28
• Enterprise Value/Ebitda: 10.60
• 1Y Price Target: $82.80
• Price Target Upside: 43.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.03
• Revenue Forecast (FY): $1.16B

• Rating: 64 Neutral
• Price Target: $62.00 ▲(7.23% Upside)

IREN's overall stock score reflects strong strategic growth initiatives and a solid capital structure, offset by challenges in profitability and cash flow management. The significant AI cloud contract with Microsoft and recent corporate events provide a positive outlook, although technical indicators suggest caution in the short term.

Positive Factors

Strong revenue growth trajectory

Sustained, multi-quarter revenue acceleration demonstrates scalable demand and strong product-market fit. Over 2-6 months this supports continued reinvestment in capacity and market expansion, helping absorb fixed costs and improving long-run operating leverage as the business scales.

Large, multi-year Microsoft AI contract

A long-term, high-margin contract with a hyperscaler provides durable recurring revenue visibility and demand commitment. This underpins multi-year capital planning, improves bargaining power with suppliers, and materially de-risks revenue predictability during the GPU fleet scale-up period.

Healthy capital structure and moderate leverage

A strong equity ratio and moderate leverage create financial flexibility to fund capex and expansion without over-reliance on high-cost debt. This buffer reduces refinancing risk, enabling sustainable investment in data centers and GPUs while preserving balance sheet resilience over the medium term.

Negative Factors

Weak free cash flow conversion

Significantly negative FCF growth and poor cash conversion undermine the firm's ability to self-fund rapid capex for GPU expansion. Over months this raises reliance on external financing, increasing refinancing and liquidity risk and potentially raising the long-term cost of capital.

Rising operating expenses pressuring margins

Persistent increases in depreciation and SG&A, including elevated share-based comp, can structurally compress operating margins as scale-up costs normalize. Without sustained efficiency gains, higher fixed and variable opex may erode the profitability benefits of revenue growth over the medium term.

Modest returns and operating profitability

Low ROE and suboptimal operating margins indicate limited capital efficiency. Even with rapid top-line growth, modest returns risk disappointing long-term shareholders and constrain internal funding capacity, requiring sustained operational improvements to translate scale into durable shareholder value.

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

IREN shows strong revenue growth and a solid capital structure, but faces challenges in profitability and cash flow management. The company has potential for improvement in operational efficiency and cash conversion.

Income Statement

IREN's income statement shows strong revenue growth with a 37.1% increase in TTM, indicating a positive trajectory. The gross profit margin is robust at 68.3%, reflecting efficient cost management. However, the net profit margin is moderate at 17.4%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are relatively low, indicating potential challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.53, indicating moderate leverage. The return on equity is modest at 6.1%, suggesting average profitability for shareholders. The equity ratio of 67.4% demonstrates a strong capital structure, providing a buffer against financial risks.

Cash Flow

Cash flow analysis indicates challenges, with negative free cash flow growth of -49.2% in TTM, highlighting potential liquidity issues. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. However, the free cash flow to net income ratio is high, indicating that despite negative cash flow, the company is generating significant income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	693.58M	501.02M	187.19M	75.51M	59.04M	7.90M
Gross Profit	453.27M	342.03M	100.13M	36.09M	51.59M	5.68M
EBITDA	952.49M	201.69M	31.21M	-9.83M	8.14M	729.00K
Net Income	523.26M	86.94M	-28.92M	-171.83M	-419.77M	-60.39M
Balance Sheet
Total Assets	4.27B	2.94B	1.15B	332.07M	392.28M	100.95M
Cash, Cash Equivalents and Short-Term Investments	1.03B	564.53M	411.13M	68.89M	75.62M	29.27M
Total Debt	965.63M	964.23M	1.66M	1.45M	74.46M	62.93M
Total Liabilities	1.39B	1.12B	55.68M	26.71M	91.52M	138.08M
Stockholders Equity	2.88B	1.82B	1.10B	305.36M	300.75M	-37.13M
Cash Flow
Free Cash Flow	-859.19M	-1.13B	-427.19M	-110.02M	-272.69M	-4.13M
Operating Cash Flow	433.35M	245.89M	52.72M	5.73M	21.56M	1.31M
Investing Cash Flow	-1.34B	-1.38B	-498.47M	-71.47M	-318.12M	-60.69M
Financing Cash Flow	1.83B	1.29B	782.13M	28.56M	372.04M	88.04M

IREN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 57.82 is above the 20-day moving average (MA) of 44.78, above the 50-day MA of 46.83, and above the 200-day MA of 29.45, indicating a bullish trend. The MACD of 2.49 indicates Negative momentum. The RSI at 67.71 is Neutral, neither overbought nor oversold. The STOCH value of 88.84 is Negative, 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
CLSK	73 Outperform	$3.42B	12.12	18.52%	―	102.21%	―
RIOT	70 Outperform	$7.15B	57.13	5.24%	―	103.62%	49.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IREN	64 Neutral	$18.94B	29.48	30.19%	―	236.14%	―
BTBT	64 Neutral	$767.11M	6.11	22.44%	―	9.52%	496.04%
CIFR	56 Neutral	$7.43B	-98.69	-9.69%	―	35.41%	-38.08%
ABTC	42 Neutral	$1.52B	-2.19	-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.

IREN Secures Major GPU Infrastructure Deal with Microsoft

On November 2, 2025, IREN Limited’s subsidiary, IE US Hardware 3 Inc., entered into a significant agreement with Microsoft to provide dedicated GPU infrastructure at the Horizon data center facilities in Texas, valued at approximately $9.7 billion through 2031. This partnership marks a major step for IREN, reinforcing its position as a leading AI Cloud Service Provider and opening new customer segments among global hyperscalers. Concurrently, IREN secured a $5.8 billion agreement with Dell for the supply of GPUs and ancillary products, which will support the Microsoft contract’s execution. These strategic agreements are expected to enhance IREN’s market positioning and operational capabilities.

The most recent analyst rating on (IREN) stock is a Sell with a $45.00 price target. To see the full list of analyst forecasts on IREN stock, see the IREN Stock Forecast page.