IREN (IREN) AI Stock Analysis

• Market Cap: $13.07B
• Dividend Yield: N/A
• Average Volume (3M): 38.36M
• Price to Earnings (P/E): 20.4
• Beta (1Y): 2.81
• 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: 34,625,945
• 30 Day Avg. Volume: 38,357,092
• 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: 1.29
• Enterprise Value/Revenue: 24.38
• Enterprise Value/Gross Profit: 37.30
• Enterprise Value/Ebitda: 17.75
• 1Y Price Target: $79.91
• Price Target Upside: 100.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 1.1
• Revenue Forecast (FY): $1.18B

• Rating: 64 Neutral
• Price Target: $48.00 ▲(20.24% 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

Strategic Growth Initiatives

The significant AI cloud contract with Microsoft positions IREN for substantial revenue growth and strengthens its market position in AI cloud services, providing a durable competitive advantage.

Revenue Growth

Consistent and strong revenue growth indicates robust demand for IREN's services and effective business strategies, enhancing its long-term market presence.

Capital Structure Optimization

The convertible notes offering improves financial flexibility and reduces debt burden, strengthening IREN's balance sheet and supporting future strategic investments.

Negative Factors

Profitability Challenges

Moderate profitability metrics suggest potential inefficiencies in operations, which may hinder long-term financial performance if not addressed.

Cash Flow Management

Negative cash flow growth indicates challenges in liquidity management, which could impact IREN's ability to fund operations and growth initiatives sustainably.

Higher Operating Expenses

Rising operating expenses can pressure margins and profitability, potentially limiting IREN's ability to invest in growth and innovation over the long 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

IREN demonstrates strong revenue growth and a solid capital structure, but faces challenges in profitability and cash flow management. The company shows potential for improvement in operational efficiency and cash conversion, which could enhance its financial stability and shareholder value.

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	6.04M	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	28.24M	372.04M	88.04M

IREN Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.92
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 39.92 is below the 20-day moving average (MA) of 43.10, below the 50-day MA of 52.63, and above the 200-day MA of 25.98, indicating a neutral trend. The MACD of -4.02 indicates Positive momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 20.30 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
CLSK	73 Outperform	$3.07B	10.91	18.52%	―	102.21%	―
RIOT	68 Neutral	$5.39B	43.05	5.24%	―	103.62%	49.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IREN	64 Neutral	$13.07B	20.35	30.19%	―	236.14%	―
BTBT	64 Neutral	$721.79M	5.75	22.44%	―	9.52%	496.04%
CIFR	56 Neutral	$6.40B	-85.09	-9.69%	―	35.41%	-38.08%
ABTC	39 Underperform	$1.65B	-2.38	-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.

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.

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.

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.

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.

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.

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.

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.