Options trading volume for IREN has surged significantly, with 41,000 contracts exchanged, driven predominantly by calls over puts. This results in a put/call ratio of 0.62, an increase from the usual 0.26 level. Meanwhile, the implied volatility (IV30) has decreased by 0.78, bringing it down to 82.61, which places it among the lowest 10% of readings over the past year. This suggests an anticipated daily price movement of $0.45 for IREN. The flattening of the put-call skew hints at a slightly bullish market sentiment for the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for IREN Ltd (IREN, Financial) is $20.88 with a high estimate of $25.00 and a low estimate of $15.00. The average target implies an upside of 140.91% from the current price of $8.67. More detailed estimate data can be found on the IREN Ltd (IREN) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, IREN Ltd's (IREN, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for IREN Ltd (IREN, Financial) in one year is $15.00, suggesting a upside of 73.11% from the current price of $8.665. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the IREN Ltd (IREN) Summary page.
IREN Key Business Developments
Release Date: May 14, 2025
- Net Profit: $24 million, reflecting a 28% growth quarter on quarter.
- Revenue: $148 million for the quarter, a record high.
- EBITDA: Just under $83 million, also a record for the company.
- Operating Mining Capacity: Averaged 29.4 exa hash, a nearly 5x increase year on year.
- Gross Margin per Bitcoin: $52,000, with realized revenue per Bitcoin at $93,000 and all-in cash cost at $41,000.
- Power Costs: Averaged $0.033 per kilowatt hour at Childress.
- Adjusted EBITDA Growth: Increased from $62 million in Q2 to $83 million in Q3.
- Profit After Tax: Increased 28% from $18.9 million in Q2 to $24.2 million in Q3.
- AI Cloud Revenue Growth: 33% quarter-on-quarter growth.
- Cash on Balance Sheet: $160 million as of April 30.
- Cash Flow from Bitcoin Mining: $141.2 million in receipts.
- Total Assets: $2 billion, including $1.6 billion in property, plant, and equipment.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- IREN Ltd (IREN, Financial) reported a second consecutive quarter of profits after tax, with a net profit of $24 million, reflecting a 28% growth quarter on quarter.
- Revenue reached a record $148 million for the quarter, driven by growth in both Bitcoin Mining and AI Cloud segments.
- The company achieved a record EBITDA of just under $83 million, showcasing strong operational performance.
- IREN Ltd (IREN) is on track to reach 50 exa hash of installed Bitcoin mining capacity by June 30, positioning it as one of the largest and lowest-cost Bitcoin producers globally.
- The AI Cloud segment showed a 33% quarter-on-quarter revenue growth with hardware profit margins of 97%, indicating strong profitability and demand.
Negative Points
- The company is pausing further Bitcoin mining expansion beyond 50 exa hash, which may limit growth in this segment.
- There is a net funding requirement of up to $250 million over the remainder of 2025, indicating significant capital needs for expansion.
- The transition to US GAAP reporting from July 1, 2025, may involve reassessment of accounting for convertible notes and other financial instruments.
- The company faces broader market volatility, which could impact its capital allocation and financing strategies.
- Despite strong performance, the company is reliant on securing anchor customers for its AI Data Center projects to catalyze further growth.
