Iris Energy (IREN) AI Stock Analysis

• Market Cap: $4.17B
• Dividend Yield: N/A
• Average Volume (3M): 25.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.71
• Revenue Growth: 130.86%
• EPS Growth: -22.83%
• Country: US
• Employees: 144
• Sector: Financial
• Sector Strength: 75
• Industry: Financial - Capital Markets
• EPS (TTM): 0.11
• Shares Outstanding: 241,866,820
• 10 Day Avg. Volume: 27,690,485
• 30 Day Avg. Volume: 25,374,948
• PEG Ratio: 3.59
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.84
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 3.99
• Enterprise Value/Gross Profit: 12.30
• Enterprise Value/Ebitda: 18.23
• 1Y Price Target: $19.71
• Price Target Upside: 9.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 63 Neutral
• Price Target: $18.00 ▼(-0.28%Downside)

The overall score is driven by strong operational performance and growth outlook highlighted in the earnings call. This is offset by concerns about valuation and profitability. The technical analysis shows bullish momentum, but the stock is overbought, indicating potential volatility.

Positive Factors

Company Performance

IREN reported record quarterly revenue and adjusted EBITDA for F3Q25, and provided important updates on its BTC mining expansion plans and HPC/AI verticals.

Efficient Operations

IREN is one of the strongest miners with low power costs and the most efficient mining fleet, resulting in impressive EBITDA margins.

Valuation

IREN is trading at a lower multiple compared to the consensus EBITDA estimate for FY2026, indicating potential undervaluation.

Negative Factors

Cloud Services

Cloud Services revenue was down modestly, below company guidance.

HPC Revenue

There is no signed commercial partner contract yet for the Horizon 1 AI data center, which affects forecasted HPC revenues.

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 Limited owns and operates bitcoin mining data centers. It also provides high performance computing solutions, including Al cloud services. The company was incorporated in 2018 and is headquartered in Sydney, Australia.

How the Company Makes Money

Iris Energy makes money primarily through the mining of Bitcoin, which involves solving complex mathematical problems to validate transactions on the Bitcoin network. The company earns revenue by receiving Bitcoin as a reward for successfully mining new blocks, as well as transaction fees associated with the validated transactions. A key factor in its revenue model is the cost-efficiency of its operations, achieved by using renewable energy sources, which helps reduce electricity costs, a major expense in Bitcoin mining. Additionally, Iris Energy may engage in partnerships with energy providers or technology firms to enhance its operational efficiency and sustainability. The value of the mined Bitcoin directly influences the company's earnings, as market conditions and Bitcoin prices fluctuate.

Iris Energy Financial Statement Overview

Summary

Iris Energy shows strong revenue growth but struggles with profitability and cash flow. The balance sheet is solid with low leverage, but improving free cash flow and net income remains crucial for sustainable growth.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	188.76M	75.51M	59.04M	7.84M	2.17M
Gross Profit	166.56M	57.61M	51.59M	5.18M	868.00K
EBITDA	25.40M	-122.26M	-377.12M	-43.38M	-1.25M
Net Income	-28.95M	-171.87M	-419.77M	―	-2.13M
Balance Sheet
Total Assets	1.15B	332.07M	570.46M	134.88M	11.57M
Cash, Cash Equivalents and Short-Term Investments	411.13M	68.89M	109.97M	39.08M	1.96M
Total Debt	1.66M	1.45M	108.21M	84.03M	1.96M
Total Liabilities	55.68M	26.71M	133.10M	184.36M	2.75M
Stockholders Equity	1.10B	305.36M	437.36M	―	8.82M
Cash Flow
Free Cash Flow	-427.19M	-110.02M	-272.69M	―	-5.32M
Operating Cash Flow	52.72M	6.04M	21.56M	1.64M	-987.00K
Investing Cash Flow	-498.47M	-71.47M	-318.12M	―	-4.49M
Financing Cash Flow	782.13M	28.24M	372.04M	116.57M	7.31M

Iris Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 18.05 is above the 20-day moving average (MA) of 15.27, above the 50-day MA of 11.44, and above the 200-day MA of 9.99, indicating a bullish trend. The MACD of 1.96 indicates Negative momentum. The RSI at 77.89 is Negative, neither overbought nor oversold. The STOCH value of 69.96 is Neutral, 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	$16.73B	11.75	9.79%	3.76%	11.87%	-7.97%
BTBT	67 Neutral	$979.02M	8.82	-23.29%	―	53.68%	-265.12%
IREN	63 Neutral	$4.17B	―	-3.39%	―	130.86%	-22.83%
FUFU	63 Neutral	$600.23M	355.96	1.33%	―	174.88%	-97.01%
CIFR	59 Neutral	$2.10B	―	-18.49%	―	-0.65%	-808.88%
WULF	54 Neutral	$2.02B	―	-56.12%	―	31.85%	-34.27%
ARBK	37 Underperform	$21.97M	―	242.25%	―	―	―

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.

The most recent analyst rating on (IREN) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Iris Energy stock, see the IREN Stock Forecast page.

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.

The most recent analyst rating on (IREN) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Iris Energy stock, see the IREN Stock Forecast page.

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.

The most recent analyst rating on (IREN) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Iris Energy stock, see the IREN Stock Forecast page.

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.

The most recent analyst rating on (IREN) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Iris Energy stock, see the IREN Stock Forecast page.