Financial Performance - Total revenue for the three months ended September 30, 2025, was $240.3 million, a significant increase from $52.8 million for the same period in 2024, representing a growth of approximately 354%[146] - Net income for the quarter was $384.6 million, compared to a net loss of $51.7 million in the prior year, indicating a turnaround in profitability[146] - The company generated EBITDA of $662.7 million for the quarter, compared to $(18.8) million in the same quarter of 2024[146] - Adjusted EBITDA for Q3 2025 was $91.7 million, with an adjusted EBITDA margin of 38%, compared to $2.5 million and 5% in Q3 2024[189] - Total revenue increased to $240.3 million in Q3 2025 from $52.8 million in Q3 2024, driven by a significant rise in Bitcoin mining revenue[202] - Bitcoin mining revenue rose to $232.9 million in Q3 2025, up from $49.6 million in Q3 2024, attributed to an increase in average Bitcoin price and operating hashrate[204] - Selling, general and administrative expenses surged to $138.4 million in Q3 2025 from $25.2 million in Q3 2024, largely due to increased stock-based compensation and payroll taxes[208] - Impairment of assets for Q3 2025 was $16.3 million, compared to $6.9 million in Q3 2024, indicating increased asset write-downs[191] - Depreciation expense for Q3 2025 was $85.2 million, up from $33.9 million in Q3 2024, primarily due to hardware expansion[209] - Income tax expense for Q3 2025 was $(190.7) million, significantly higher than $(1.3) million in Q3 2024, driven by deferred tax expenses[220] Operational Capacity - As of September 30, 2025, the company had approximately 2,100 GPUs operating in its data centers, contributing to its AI Cloud Services revenue[143] - The installed hashrate capacity for Bitcoin mining operations was approximately 50 EH/s as of September 30, 2025[144] - The company procured approximately 21,200 GPUs during the quarter, increasing its total GPU fleet to approximately 23,300 GPUs[156] - The company has three data center sites in Texas, with the Childress site having approximately 650MW of operating capacity and an installed hashrate capacity of approximately 40.1 EH/s[149] - Average operating hashrate increased to 45.3 EH/s in Q3 2025 from 12.1 EH/s in Q3 2024, enhancing mining efficiency[204] Contracts and Agreements - The company signed multi-year cloud services contracts for approximately 5,000 GPUs during the quarter, with additional contracts signed in October 2025 for 4,000 GPUs and 1,100 GPUs[154] - A significant agreement with Microsoft was established to provide dedicated GPU services valued at approximately $9.7 billion through 2031[155] - The company entered into GPU purchase agreements totaling approximately $1.1 billion for over 20,000 GPUs, expected to be delivered by early 2026[231][235] Cash and Liquidity - As of September 30, 2025, cash and cash equivalents were $1,032.3 million, providing a strong liquidity position for future investments[146] - Cash and cash equivalents as of September 30, 2025, totaled $1,032.3 million, with a net operating cash inflow of $142.4 million for the quarter[222] - Net cash from operating activities was $142.4 million for the three months ended September 30, 2025, compared to a net cash used of $(3.9) million for the same period in 2024[243] - Net cash from financing activities was $606.1 million for the three months ended September 30, 2025, compared to $84.7 million in 2024, mainly from the issuance of 23,041,102 shares[249] Market and Economic Factors - Bitcoin mining rewards are subject to "halving" adjustments, with the next halving expected to reduce the reward to 3.125 Bitcoins on April 20, 2024, and further reductions to 1.5625 Bitcoins in 2028 and 0.78125 Bitcoins in 2032[168] - The company faces potential disruptions in the global supply chain, which could lead to shortages of advanced mining machines, impacting operational efficiency[171] - Access to low-cost electricity, particularly renewable power, is critical for the company's Bitcoin mining and HPC services, as energy consumption is extensive[172] - Regulatory scrutiny on the energy and environmental impact of Bitcoin mining may lead to new measures that could restrict operations or increase power costs[173] - The company competes with various global Bitcoin miners and HPC service providers, which may increase competition and reduce its share of Bitcoin network rewards[175] - Inflation and macroeconomic risks have led to increased operating expenses, which could adversely affect the company's financial condition and results of operations[176] - Tariffs imposed by the United States on imported miners and equipment could result in higher costs and impact the company's operational timelines[182] Performance Metrics - Key performance indicators include EBITDA and Adjusted EBITDA, which are used to assess the company's financial condition and operational performance[183] - Net electricity costs per Bitcoin mined remained stable at $35.4 in Q3 2025, compared to $35.3 in Q3 2024, showing consistent operational efficiency[200] - Interest income rose to $7.1 million in Q3 2025 from $2.3 million in Q3 2024, attributed to an increase in cash balances[215] - Unrealized gain on financial instruments for Q3 2025 was $665.0 million, compared to nil in Q3 2024, related to changes in fair value of financial transactions[218] Investments and Future Plans - The company is focusing on power cost optimization initiatives at its Childress site to enhance profitability through energy trading[254] - Research and development efforts are ongoing to optimize operational environments and efficiencies in proprietary data centers[253] - The company has issued $1 billion in convertible notes, maturing in 2031, with an initial conversion price of approximately $85.63 per share[228]

News Release IREN Reports Q1 FY26 Results Secured $9.7bn AI Cloud Contract with Microsoft Targeting $3.4bn AI Cloud ARR by End of 2026, Expansion to 140k GPUs1 NEW YORK, November 6, 2025 (GLOBE NEWSWIRE) - IREN Limited (NASDAQ: IREN) ("IREN" or "the Company") today reported its financial results for the three months ended September 30, 2025. Highlights Q1 FY26 Financial Results * Includes unrealized gains, primarily on prepaid forwards and capped calls in connection with convertible notes Project Update Bri ...

Core Insights - IREN Limited has entered a significant $9.7 billion partnership with Microsoft, marking a strategic shift towards artificial intelligence [1] - The company has also signed a $5.8 billion procurement deal with Dell Technologies to source GPUs and related equipment [2] - Following the Microsoft announcement, IREN's stock experienced a notable surge, reflecting investor optimism [3] - Analysts have varied opinions on the partnership, with some expressing confidence in IREN's growth prospects while others raise concerns about potential risks [5][6] Group 1: Partnership and Strategy - The five-year agreement with Microsoft involves IREN supplying access to NVIDIA GB300 GPUs through its AI Cloud platform, indicating a major strategic pivot [1] - The partnership includes a 20% prepayment, which underscores the commitment to scaling AI infrastructure [1] - IREN's transition from a Bitcoin mining company to a vertically integrated AI Cloud provider is aimed at capturing the increasing demand for compute power [2] Group 2: Market Reaction - IREN shares surged 20.03% in pre-market trading following the announcement, closing up more than 5% at $71.35 [3] - Analysts from Cantor Fitzgerald and Bernstein have raised their price targets significantly, reflecting strong confidence in IREN's future growth [3][4] Group 3: Analyst Opinions - While some analysts view the Microsoft partnership as "game-changing," others, like Jim Chanos, criticize it as a "high-risk financing arrangement" that may negatively impact shareholder value [5] - Concerns have been raised about potential decreases in earnings per share (EPS) and increased balance sheet risk due to the partnership [5] - Despite the bullish sentiment, IREN's stock fell 8.91% ahead of its earnings report, indicating some market volatility [6]

Core Viewpoint - IREN stock price has experienced a strong rally, reaching a record high as traders anticipate its earnings, supported by the growing momentum in the artificial intelligence industry [1] Group 1 - IREN stock price surged to a high of $76, indicating significant investor interest and confidence [1]

Core Viewpoint - IREN Limited is experiencing a significant increase in its consensus price target, driven by its strategic initiatives and strong financial performance in the data center and Bitcoin mining sectors, particularly with a focus on renewable energy [1][6]. Price Target and Market Sentiment - Analysts have set an average price target of $78.50 for IREN, reflecting positive sentiment and expectations for strong stock performance [2][6]. - The average price target has risen from $57.17 three months ago, marking a 37.3% increase, and from $51.86 a year ago, representing a 51.3% increase [3][4]. Strategic Partnerships and Growth Prospects - IREN's recent $9.7 billion AI Cloud contract with Microsoft, which includes a 200MW capacity and a 20% upfront payment, is expected to significantly enhance its growth prospects in the AI industry [2][6]. - The company manages nearly 3GW of power, with 810MW operational in British Columbia and Texas, positioning it well for future growth [3]. Financial Performance Expectations - IREN is projected to achieve revenue of $231 million for the first fiscal quarter of FY26, which is a 325% increase from the previous year [4]. - The anticipated earnings per share (EPS) for this period is $0.13, indicating strong financial performance [4].

Core Insights - IREN Limited has signed a significant $9.7 billion AI cloud services agreement with Microsoft to deploy NVIDIA GB300 GPUs at its Texas campus [1][2] - The company also entered into a $5.8 billion agreement with Dell Technologies for the purchase of GPUs and related equipment [3] - IREN's stock price increased by 14.68%, closing at $76.41 following the announcements [4] Group 1: Agreements and Financials - The multi-year GPU cloud services contract with Microsoft spans five years and includes a 20% prepayment [2] - The agreement with Dell Technologies involves phased deployment of GPUs through 2026, supporting 200MW of critical IT load [3] - IREN plans to finance these capital expenditures through existing cash, customer prepayments, operating cash flows, and additional financing initiatives [3] Group 2: Strategic Implications - The partnership with Microsoft is seen as a demonstration of IREN's vertically integrated AI Cloud platform's strength and scalability [4] - The collaboration is expected to unlock new growth opportunities for both IREN and Microsoft, as well as their customers [4]

Core Insights - The AI revolution has significantly benefited chip designers and cloud computing service providers, with a new focus emerging on infrastructure [1] - Neocloud services, which allow businesses to rent GPU access through cloud infrastructure, have gained traction, with Iren (NASDAQ: IREN) emerging as a notable player [2] Company Overview - Iren initially focused on cryptocurrency, particularly Bitcoin mining, and built extensive data centers with specialized hardware [3] - The company has pivoted to a neocloud model, offering GPU rental services to businesses, allowing them to avoid the complexities of building their own infrastructure [4] Market Activity - Microsoft has invested tens of billions into AI infrastructure, primarily enhancing its Azure cloud platform and forming strategic partnerships [6] - Recently, Microsoft signed a $17.4 billion deal with Nebius for neocloud services and has now entered a $9.7 billion contract with Iren for Nvidia GB300 GPUs, effective from 2026 to 2031 [7][8]

Core Insights - IREN has shifted focus from Bitcoin mining to AI cloud services, highlighted by a $9.7 billion multi-year contract with Microsoft for high-performance GPU cloud computing [1][4] - The partnership is expected to generate approximately $1.94 billion in annual revenue for IREN over five years, with significant initial funding from Microsoft [4][5] - The deal involves deploying Nvidia Blackwell chips at IREN's facility in Texas, with phased rollouts planned through 2026 [2][4] Financial Impact - IREN's stock surged over 30% following the announcement, closing just under $68 per share [2] - Analysts have raised price targets significantly, with Bernstein increasing its target to $125 from $75, and Roth Capital raising its target to $94 from $82 [3][6] - The company plans to invest $5.8 billion in GPUs and related equipment, enhancing its capabilities in AI infrastructure [4][5] Strategic Positioning - The Microsoft agreement positions IREN as a key player in the AI infrastructure market, leveraging its existing power portfolio of 3 gigawatts across North America [4][5] - The deal reflects a broader trend of tech companies outsourcing AI compute needs to specialized firms to avoid supply chain issues [5] - Co-CEO Daniel Roberts emphasized the milestone as a gateway to new growth opportunities, showcasing IREN's integrated approach to data centers and GPU management [5][6]

Core Viewpoint - Bitcoin experienced a short-term surge, rising over 2% and surpassing $103,000, positively impacting cryptocurrency-related stocks in the U.S. market [1] Group 1: Bitcoin Performance - Bitcoin's price increased by more than 2%, returning to above $103,000 [1] Group 2: Cryptocurrency Stocks Performance - Bitmine Immersion Technologies (BMNR.US) rose over 6% - Iren Ltd (IREN.US) increased by over 8% - Mara Holdings (MARA.US) gained over 4% - Coinbase (COIN.US) saw an increase of over 2.7% - Robinhood (HOOD.US) rose over 2% - Circle (CRCL.US) increased by over 1.8% - Strategy (MSTR.US) gained over 1.6% [1]

Core Insights - IREN Ltd. is positioned as a key player in the AI supercycle by operating data centers specifically designed for high-performance computing workloads [2][4] - The company differentiates itself by utilizing 100% renewable energy to power its data centers, which enhances its cost efficiency and profit margins [3][5] - IREN's transition from crypto mining to data center operations has provided it with a competitive advantage in scale and energy solutions [6] Industry Overview - The data center industry is experiencing significant growth, with operating capacity tripling to 810 MW in FY25, indicating a robust demand for data processing capabilities [4] - Companies that provide essential infrastructure and services for AI, like IREN, are expected to thrive as the AI revolution continues [4] Company Performance - IREN shares are currently exhibiting a bullish trend, breaking out of a high tight flag pattern, which historically suggests further upside potential [7] - The company is projected to achieve explosive triple-digit growth in both revenue and earnings, according to Zacks Consensus Analyst Estimates [8] Upcoming Events - IREN is scheduled to report its earnings on November 6th, with an implied post-earnings move of +/- 12.2%, indicating market anticipation for significant results [9] Conclusion - The combination of a booming data center industry, IREN's strategic positioning, and positive market indicators suggest a bullish outlook for the company in the coming months [10]