Iren Limited Stock (IREN) Great Growth and Good Value in Q3 2025 Earnings

In the rapidly evolving sectors of cryptocurrency mining and high-performance computing (HPC), IREN Limited (NASDAQ: IREN) has emerged as a noteworthy player. The company's Q3 2025 earnings report highlights substantial growth, positioning it as a compelling investment opportunity. With significant year-over-year revenue increases and strategic expansions into AI cloud services, IREN demonstrates both robust performance and promising future prospects. In this article we will dive into IREN Limited recent earnings, stock performance & valuation, growth potential, and the risks investor should consider.

About IREN Limited

Founded in 2019, IREN Limited is a leading provider of sustainable digital infrastructure, specializing in the construction, ownership, and operation of data centers and electrical infrastructure, primarily for Bitcoin mining and high-performance computing (HPC) applications. IREN’s core business are Bitcoin mining, AI cloud services and Next generation data centers. IREN is committed to sustainability, utilizing 100% renewable energy sources for its operations. The company targets sites with low-cost and underutilized renewable energy, supporting electrical grids and local communities.

IREN Financial Performance

In Q3 2025, ending March 2025, IREN reported revenue of $148.1 million, a 172.49% increase from $54.35 million in Q3 2024. Earnings per share (EPS) for the quarter rose to $0.11, up 42.88% from $0.08 in the same period last year. On a trailing twelve months (TTM) basis, revenue reached $377.82 million, marking a 128.24% increase from $165.54 million in Q3 2024. However, EPS (TTM) stood at -$0.18, compared to -$0.12 in the previous year, indicating a 50% increase in loss.

The company's gross profit margin is an impressive 91.66%, while the net profit margin is -9.44%. Return on assets (ROA) is -0.68%, and return on equity (ROE) is -3.39%. IREN maintains a healthy debt-to-equity ratio of 0.23, reflecting prudent financial management.

Over the past five years, IREN has grown its revenue at a 236.6% CAGR. Net income is still negative but is projected to turn positive this year. Free cash flow is a concern, as the negative free cash flow has increased in the trailing twelve months leading up to Q3 2025, in line with rising capital expenditures, which have reached $1.3 billion as the company invests heavily in infrastructure.

IREN 2025 & 2026 Financial Forecast

Looking ahead, analysts are optimistic, projecting 2025 revenue at $494.84 million, a 162.16% increase from 2024’s $188.76 million. EPS for 2025 is expected to be $0.13, a 144.83% improvement from the 2024 EPS of -$0.29. In 2026, revenue is anticipated to reach $844.51 million, a growth of 70.66% from the projected 2025 figure, with EPS projected at $1.03, an increase of 683.74%. Analyst consensus rates IREN as Strong Buy, with a 12-month average price target of $18.45, representing a potential upside of approximately 103% from the current price.

IREN Stock Price Performance and Valuation

At the time this article was written, IREN's stock price stands at $9.12 per share, reflecting a 29% increase over the past year, outperforming the S&P 500's 10.1% gain during the same period. However, since its IPO in November 2021, the stock has declined by 63.2%, underperforming the S&P 500's 23.5% increase. This is likely due to IREN's large net loss during that period.

In terms of valuation, IREN's price-to-sales (P/S) ratio on a TTM basis is 4.66, with a forward P/S of 4.46. The forward price-to-earnings (P/E) ratio is 69.7.

Based on FinChat data, if we look at the forward P/S ratio from 2022 until now, IREN’s current ratio is in line with the average, which is considered fairly valued. However, the company's strong revenue growth and expansion into AI services suggest that the stock may be undervalued relative to its growth prospects.

IREN Growth Potential

IREN's growth trajectory is supported by several factors.

• Strong Profitability Trend
  The company's profitability metrics showcase exceptional operational efficiency and margin expansion. IREN reported record Adjusted EBITDA of $83.3 million compared to $62.6 million in the previous quarter, with an impressive Adjusted EBITDA margin of 56%. Net profit after tax reached $24.2 million, representing a 28% increase from $18.9 million in Q2 FY25. This consistent profitability growth, despite increased operational scale, demonstrates the company's ability to maintain cost discipline while expanding capacity.
  The company's operational metrics further underscore its efficiency improvements and scale advantages. IREN mined 1,514 Bitcoin during Q3 compared to 1,347 Bitcoin in Q2, supported by a 30% increase in average operating hashrate to 29.4 EH/s. Despite higher electricity costs of $36.5 million due to increased capacity, other operational costs remained relatively flat at $25.3 million, indicating effective cost management and operational leverage. The company maintains a strong balance sheet with $184.3 million in cash and cash equivalents, providing substantial financial flexibility for growth investments.
• Strategic Pivot to AI Infrastructure
  IREN Limited is strategically shifting focus from expanding Bitcoin mining beyond 50 EH/s to scaling its AI infrastructure, recognizing the rapid growth in AI data center demand. The company’s AI Cloud Services revenue rose 33% quarter-over-quarter to $3.6 million, with an annualized run-rate of $26 million and a remarkable 97% hardware profit margin, far surpassing traditional data centers.
  IREN operates renewable energy-powered data centers in the U.S. and Canada, meeting sustainability needs of AI hyperscalers. It has secured 2.75 gigawatts of grid capacity in West Texas, plus an additional 600MW recently. The Horizon 1 AI Data Center, a 50MW liquid-cooled facility, remains on track for delivery in the second half of 2025, marking a key milestone in IREN’s AI infrastructure expansion.
• Market Position and Competitive Advantages
  IREN has established a formidable competitive position in both Bitcoin mining and AI infrastructure through its scale, cost efficiency, and strategic asset base. With the company approaching 50 EH/s of mining capacity, IREN is positioned as one of the largest and lowest-cost Bitcoin producers globally. This scale advantage, combined with renewable energy sources, provides significant competitive moats in an increasingly competitive mining landscape.
  The company's integrated approach to data center operations creates unique competitive advantages in the emerging AI infrastructure market. IREN's existing infrastructure, operational expertise, and renewable energy partnerships provide a foundation for rapid AI data center deployment that many competitors lack. The company's focus on large-scale data center sites continues to drive rapid growth and strong margins, as highlighted by management. This operational excellence translates into superior economics and positions IREN to capture outsized market share in the expanding AI infrastructure sector.

Risks to Consider

While IREN presents a compelling investment opportunity, potential investors should be aware of certain risks.

• Cryptocurrency Market Volatility
  IREN’s primary revenue depends on Bitcoin mining, making it highly vulnerable to Bitcoin price volatility. Significant declines in Bitcoin’s value can negatively affect the company’s profitability and stock performance. This volatility is driven by various factors, including financial market shifts, regulatory changes, and political developments. As a result, fluctuations in the cryptocurrency market pose a substantial risk to IREN’s financial stability and investor confidence.
• Share Dilution
  IREN has faced criticism for issuing new shares, raising concerns about potential dilution of existing shareholders’ value. In Q1 2025, the company sold 10.02 million shares at an average price of $11.07, generating $110.9 million in proceeds. Additionally, IREN announced a $1 billion at-the-market (ATM) offering, which triggered negative sentiment among investors. This dilution risk may put downward pressure on the stock price unless the company can demonstrate strong growth to offset the impact.
• Operational and Execution Risks
  IREN’s rapid data center expansion, aiming to reach 50 EH/s Bitcoin mining capacity by mid-2025 after achieving 40 EH/s, carries operational risks. Challenges include deploying new hardware and developing innovative direct-to-chip liquid cooling systems. Any delays or technical failures in these areas could impede the company’s growth targets, potentially affecting its competitive position and financial performance in the highly dynamic cryptocurrency mining industry.

Read More: On Holding Stock (ONON) Strong Growth and Good Value in Q1 2025

Conclusion

IREN Limited's Q3 2025 performance underscores its strong growth trajectory and strategic positioning in the digital infrastructure space. With significant revenue increases, expansion into AI cloud services, and a commitment to renewable energy, IREN offers a compelling investment opportunity. While potential risks exist, the company's diversified operations and prudent financial management provide a solid foundation for sustained growth. Given the positive analyst outlook and substantial upside potential, IREN is a stock worth considering for investors seeking exposure to the rapid bitcoin mining and high-performance computing.