Iris Energy (IREN) AI Stock Analysis

• Market Cap: $7.18B
• Dividend Yield: N/A
• Average Volume (3M): 26.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.65
• Revenue Growth: 130.86%
• EPS Growth: -22.83%
• Country: US
• Employees: 144
• Sector: Financial
• Sector Strength: 76
• Industry: Financial - Capital Markets
• EPS (TTM): 0.65
• Shares Outstanding: 271,980,500
• 10 Day Avg. Volume: 32,277,482
• 30 Day Avg. Volume: 26,134,346
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.17
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 3.51
• Enterprise Value/Ebitda: 9.06
• 1Y Price Target: $29.25
• Price Target Upside: 3.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 67 Neutral
• Price Target: $32.00 ▲(13.43% Upside)

IREN's strong earnings call and positive corporate events are significant strengths, indicating robust growth and strategic positioning. However, challenges in valuation and cash flow management temper the overall score.

Positive Factors

Financial Performance

Shares are surging ~16% after IREN reported record quarterly and annual results and announced significant expansion of its AI Cloud Services business.

Partnerships

IREN has secured NVIDIA Preferred Partner status, enhancing access to new GPUs and attracting more customers to its HPC/AI verticals.

Negative Factors

Operational Metrics

Adjusted EBITDA estimates for FY2025 and FY2026 are lowered, reflecting anticipated changes in the company's operational metrics.

Revenue Forecast

Revenue estimates for FY2025 and FY2026 have been adjusted downwards due to changes in estimated utilization and forecasts for BTC and global hash rates.

Iris Energy Business Overview & Revenue Model

Company Description

Iris Energy (IREN) is a renewable energy company focused on the development and operation of sustainable data center facilities for cryptocurrency mining. The company primarily operates in the cryptocurrency and energy sectors, leveraging its expertise in green energy solutions to provide efficient and environmentally-friendly mining operations. Iris Energy is committed to using renewable energy sources, particularly hydroelectric power, to minimize the carbon footprint associated with cryptocurrency mining.

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 exhibits strong revenue growth and a robust gross profit margin. However, it faces profitability challenges due to negative net income and high operating expenses. The balance sheet is solid with low leverage, but cash flow generation is weak due to high capital expenditures.

Income Statement

Iris Energy shows significant revenue growth from $2.17M in 2020 to $282.69M in TTM (Trailing-Twelve-Months) 2024, indicating strong top-line expansion. However, the company faces challenges with profitability, as evidenced by a negative EBIT and net income margins. The gross profit margin remains robust at 77.07% TTM, but high operating expenses are impacting net profitability.

Balance Sheet

The company maintains a solid equity base, with a high equity ratio of 69.45% in TTM 2024, indicating financial stability. The debt-to-equity ratio of 0.25 suggests a conservative use of leverage. However, the company needs to address its net losses to improve return on equity, which currently is negative due to consistent net losses.

Cash Flow

Iris Energy's free cash flow remains negative despite a positive operating cash flow of $31.65M TTM, due to substantial capital expenditures. The operating cash flow to net income ratio is positive, indicating cash from operations is better than accounting profits. However, the free cash flow to net income ratio remains negative, necessitating better capital management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	373.56M	501.02M	188.76M	75.51M	59.04M	7.84M
Gross Profit	342.03M	342.03M	166.56M	57.61M	51.59M	5.18M
EBITDA	132.56M	285.68M	25.40M	-122.26M	-377.12M	-43.38M
Net Income	-35.67M	86.94M	-28.95M	-171.87M	-419.77M	―
Balance Sheet
Total Assets	1.99B	2.94B	1.15B	332.07M	570.46M	134.88M
Cash, Cash Equivalents and Short-Term Investments	196.03M	564.53M	411.13M	68.89M	109.97M	39.08M
Total Debt	324.07M	964.23M	1.66M	1.45M	108.21M	84.03M
Total Liabilities	564.19M	1.12B	55.68M	26.71M	133.10M	184.36M
Stockholders Equity	1.43B	1.82B	1.10B	305.36M	437.36M	―
Cash Flow
Free Cash Flow	-1.42B	-1.13B	-427.19M	-110.02M	-272.69M	―
Operating Cash Flow	-156.38M	245.89M	52.72M	6.04M	21.56M	1.64M
Investing Cash Flow	-1.07B	-1.38B	-498.47M	-71.47M	-318.12M	―
Financing Cash Flow	1.10B	1.29B	782.13M	28.24M	372.04M	116.57M

Iris Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.21
• 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 28.21 is above the 20-day moving average (MA) of 21.16, above the 50-day MA of 18.24, and above the 200-day MA of 11.65, indicating a bullish trend. The MACD of 2.65 indicates Negative momentum. The RSI at 76.35 is Negative, neither overbought nor oversold. The STOCH value of 84.45 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
Sector *	68 Neutral	$17.88B	11.66	10.24%	3.76%	9.66%	1.70%
FUFU	68 Neutral	$632.85M	13.57	29.72%	―	39.84%	-10.81%
IREN	67 Neutral	$7.18B	―	-3.39%	―	130.86%	-22.83%
BTBT	63 Neutral	$826.08M	8.82	-11.34%	―	14.65%	-240.80%
WULF	58 Neutral	$3.70B	―	-46.99%	―	19.82%	-77.95%
CIFR	54 Neutral	$3.27B	―	-21.39%	―	0.11%	-914.42%
ARBK	37 Underperform	$17.83M	―	242.25%	―	-13.86%	-32.19%

Iris Energy Corporate Events

Iris Energy Achieves Record Revenues and AI Expansion

In June 2025, IREN Limited achieved several milestones, including record monthly revenues and meeting its self-mining target of 50 EH/s. The company also expanded its AI Cloud business by procuring next-generation NVIDIA GPUs, and completed an oversubscribed $550 million convertible notes offering. These developments position IREN as a leader in both Bitcoin and AI technologies, enhancing its infrastructure capabilities and market presence.

Iris Energy Transitions to U.S. Domestic Issuer

Iris Energy will transition from filing as a foreign private issuer to a U.S. domestic issuer with the SEC starting July 1, 2025. This change will require the company to adhere to more detailed and prompt reporting standards, impacting its regulatory compliance processes.

Iris Energy Expands AI Cloud with NVIDIA GPUs

On July 3, 2025, IREN Limited announced an expansion of its AI Cloud business with the purchase of 2.4k NVIDIA Blackwell GPUs, bringing its total to 4.3k GPUs. This expansion, fully funded from existing cash, positions IREN as a leading provider of next-generation compute in a supply-constrained market, supporting its growth in AI infrastructure and offering attractive risk-adjusted returns.

Iris Energy Appoints New Chief Capital Officer

On July 1, 2025, IREN Limited announced the appointment of Anthony Lewis as Chief Capital Officer, a new role aimed at enhancing the company’s capital markets strategy. Lewis, with over two decades of experience at Macquarie Group, is expected to drive IREN’s financial strategy as it explores AI infrastructure investments, potentially impacting its growth and market positioning.