Core Viewpoint - IREN Limited (IREN) shows significant upside potential with a mean price target of $20.55, indicating a 58% increase from the current price of $13.01 [1] Price Targets - The average of 11 short-term price targets ranges from a low of $15 to a high of $26, with a standard deviation of $4.08, suggesting variability in analyst estimates [2] - The lowest estimate indicates a 15.3% increase, while the highest suggests a 99.9% upside [2] - A low standard deviation indicates a high degree of agreement among analysts regarding price movement direction [7] Analyst Sentiment - Analysts have shown increasing optimism about IREN's earnings prospects, with a strong consensus in revising EPS estimates higher [9] - Over the last 30 days, two estimates have increased, leading to a Zacks Consensus Estimate rise of 182.9% [10] - IREN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - Solely relying on price targets for investment decisions may not be wise, as empirical research indicates they often mislead investors [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]

Company Overview - IREN Limited is part of the Oils-Energy group, which consists of 247 companies and is currently ranked 7 in the Zacks Sector Rank [2] - The Zacks Rank system identifies stocks with characteristics likely to outperform the market in the next one to three months, with IREN Limited holding a Zacks Rank of 2 (Buy) [3] Performance Metrics - IREN's full-year earnings estimate has increased by 28.6% in the past quarter, indicating improved analyst sentiment and earnings outlook [4] - Year-to-date, IREN has gained approximately 32.5%, significantly outperforming the average gain of 4.1% in the Oils-Energy group [4] Industry Context - IREN Limited is categorized under the Alternative Energy - Other industry, which includes 47 companies and is currently ranked 85 in the Zacks Industry Rank [6] - The Alternative Energy - Other industry has seen an average gain of 14.9% this year, with IREN performing better than this group [6] - In contrast, NextDecade, another stock in the Oils-Energy sector, belongs to the Oil and Gas - Production Pipeline - MLB industry, which is ranked 18 and has gained 3.1% this year [6] Future Outlook - Investors interested in Oils-Energy stocks should monitor IREN Limited and NextDecade for potential continued strong performance [7]

Q2 FY25 Financial Highlights - Revenues reached $119.6 million[11] - EBITDA was $62.7 million[11] - Net Profit After Tax (NPAT) amounted to $18.9 million[11] - Adjusted EBITDA Margin was 52% compared to 5% in Q1 FY25[53] Operational Growth - Mining capacity increased by approximately 50%, from 21 EH/s to 31 EH/s[11] - Average Operating Hashrate was 22.6 EH/s[11] - Expansion to 50 EH/s is on track for H1 2025, adjusting prior mining expansion plan from 57 EH/s to 52 EH/s due to Horizon 1[11, 39] Strategic Initiatives - Developing a new 600MW Sweetwater 2 site to create a 2GW Sweetwater Data Center Hub[11, 22] - Horizon 1, a new 75MW liquid-cooled data center at Childress for AI/HPC, is under development with a target completion in H2 2025[11, 16] - The company secured 2,310MW of grid-connected power[11, 40] Financial Position - Cash and cash equivalents stood at $427.3 million as of December 31, 2024[55, 61] - Total assets amounted to $1,852 million[61] - A $440 million Convertible Note was issued on December 6, 2024, with a 3.25% annual interest rate[61]

Financial Data and Key Metrics Changes - The company reported a record net profit after tax (NPAT) of $18.9 million for Q2 FY '25, reflecting significant growth driven by low-cost Bitcoin production and operational efficiencies [6][54]. - Adjusted EBITDA increased by $60 million to $62.6 million, with the average operating hashrate rising from 12.2 exahash to 22.6 exahash [55]. - Bitcoin mining revenue reached $113.5 million, with operating cash flows of $53.7 million [54]. Business Line Data and Key Metrics Changes - The company is expanding its Bitcoin mining capacity from 31 exahash to a target of 50 exahash by mid-2025, with a revised target of 52 exahash due to the allocation of resources to the Horizon 1 project [7][17]. - The average net electricity cost per Bitcoin mined decreased from $35.4k to $21.4k, attributed to a transition to a spot pricing strategy [56]. Market Data and Key Metrics Changes - The company noted a significant power shortage in the U.S. data center market, with a 36 gigawatt shortfall, creating opportunities for IREN to leverage its secured grid-connected power [41][42]. - The demand for liquid-cooled data center capacity is increasing, particularly with the upcoming release of NVIDIA's Blackwell GPUs [10][23]. Company Strategy and Development Direction - IREN is focusing on expanding its AI data center capabilities with the Horizon 1 project, a 75-megawatt liquid-cooled facility, to capitalize on the growing market for AI and data center services [10][50]. - The development of Sweetwater 2, a new 600-megawatt site, aims to create a 2-gigawatt data center hub, enhancing the company's strategic position in West Texas [12][28]. - The company is prioritizing multi-tenant colocation at Childress while preserving Sweetwater for single-site opportunities, indicating a strategic approach to maximize asset utilization [51][52]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing increased interest from hyperscalers in large-scale data center campuses and the company's unique position to meet this demand [72][74]. - The management team acknowledged the risks associated with project developments but emphasized the materiality of the Sweetwater 2 project in the context of market dynamics [29][104]. Other Important Information - The company confirmed its transition to U.S. GAAP reporting starting in H2 2025, which will impact the accounting for its convertible notes and other financial instruments [60]. - IREN's balance sheet remains strong, with total assets increasing to approximately $1.9 billion, supporting future growth initiatives [59]. Q&A Session Summary Question: Update on Horizon 1 and CapEx - Management highlighted that existing data center architecture will help deliver liquid-cooled capacity at effective costs, with long lead items already ordered [63][66]. Question: Demand for Sweetwater 2 - Management noted that the demand for large data center campuses is realistic, with many hyperscalers interested in 1 gigawatt plus capacities [72][74]. Question: Challenges in Grid Connection - Management discussed the difficulties in securing grid connections, noting that the process has become more complex due to increased applications and limited utility resources [81][84]. Question: Construction Costs and Tariffs - Management indicated that while construction costs may rise due to tariffs, a diversified supply base mitigates risks [88][90]. Question: ROI Considerations for Horizon 1 - Management stated that the decision to build Horizon 1 was strategic, capitalizing on the growing demand for liquid-cooled data centers [97][99]. Question: Financing Options for Projects - Management confirmed that they are exploring multiple financing avenues, including project-level financing once customer contracts are secured [139].

IREN (IREN) Q2 2025 Earnings Call February 12, 2025 05:00 PM ET Company Participants Lincoln Tan - Director of Investor RelationsDaniel Roberts - Co-Founder, Co-CEO & DirectorBelinda Nucifora - Chief Financial OfficerJoseph Vafi - Managing Director, Equity ResearchKent Draper - Chief Commercial OfficerGregory Lewis - Managing DirectorBrett Knoblauch - Managing DirectorStephen Glagola - Director - Equity Research Conference Call Participants Darren Aftahi - Senior Research Analyst-Internet, Media and Enablin ...

Core Insights - IREN Limited reported record revenue and operating cash flow for Q2 FY25, highlighting the impact of strategic investments on earnings [2][10] - The company is advancing significant growth initiatives, including the development of a 75MW liquid-cooled data center and a new 600MW site [2][4] Financial Performance - Q2 FY25 results showed a 129% increase in Bitcoin mining revenue to $113.5 million, driven by higher operating hashrate and Bitcoin prices [11][10] - Adjusted EBITDA reached $62.6 million, compared to $2.6 million in Q1 FY25, indicating substantial operational improvement [12][11] - Net profit after tax was $18.9 million, a significant recovery from a loss of $51.7 million in Q1 FY25 [11][12] - Operating cash inflow was $53.7 million, a turnaround from a cash outflow of $3.8 million in the previous quarter [11][12] Growth Initiatives - The Horizon 1 project involves a 75MW liquid-cooled data center designed for AI and high-performance computing, with a target completion in H2 2025 [3][6] - The Sweetwater 2 site, a new 600MW development, is expected to create a 2GW data center hub, enhancing the company's capacity [4][6] - Bitcoin mining capacity is set to expand from 31 EH/s to 52 EH/s, with the expansion on track for H1 2025 [5][11] Operational Highlights - The company secured over 500 acres of land for its projects and completed grid network studies, ensuring enhanced delivery certainty for customers [6][11] - The Childress site operates with a power price of 3 cents per kWh, contributing to a hardware profit margin of approximately 75% [11][6] - The Sweetwater 1 energization is on track for April 2026, while Sweetwater 2 is expected to be energized by 2028 [6][11] Market Position - IREN is positioned as a leading data center business focused on Bitcoin and AI, utilizing 100% renewable energy [26][28] - The company has a development portfolio of 2,310MW of grid-connected power secured across North America [28]

Technical Analysis - IREN Limited (IREN) has surpassed resistance at the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average (SMA) is favored by traders for its ability to smooth out price fluctuations and provide trend reversal signals [1][2] Performance Metrics - IREN has moved 5.3% higher over the last four weeks, suggesting potential for further gains [3] - The company currently holds a Zacks Rank 2 (Buy), indicating positive market sentiment [3] Earnings Estimates - There have been no lowered earnings estimates for IREN in the past two months, with two estimates raised for the current fiscal year, leading to an increase in the consensus estimate [3][4] - The positive revisions in earnings estimates, combined with favorable technical indicators, suggest that IREN may experience additional gains in the near future [4]

Core Insights - IREN Limited reported strong performance in its Bitcoin mining operations for January 2025, with an average operating hashrate of 29.0 EH/s, an increase from 28.1 EH/s in December 2024 and 19.7 EH/s in November 2024 [3] - The company mined 521 BTC in January 2025, slightly down from 529 BTC in December 2024, but significantly up from 379 BTC in November 2024 [3] - Revenue per Bitcoin increased to $99,789 in January 2025 from $98,524 in December 2024, while electricity costs per Bitcoin rose to $24,683 from $22,799 [3] - Total revenue for January 2025 was $52.0 million, compared to $52.1 million in December 2024 and $32.6 million in November 2024 [3] - Hardware profit for January 2025 was $39.2 million, with a hardware profit margin of 75%, down from 77% in December 2024 [3] Bitcoin Mining Performance - The average operating hashrate for January 2025 was 29.0 EH/s, reflecting improvements from previous months [3] - The company achieved a hardware profit margin of 75% in January 2025, maintaining robust mining unit economics [3][9] - Revenue per Bitcoin mined increased to $99,789, indicating a positive trend in Bitcoin pricing [3] AI Cloud Services - Revenue from AI Cloud Services remained stable at $0.8 million in January 2025, with a slight increase in electricity costs attributed to new NVIDIA H200 contracts [5] - The hardware profit margin for AI Cloud Services was 96%, showcasing strong profitability in this segment [5] Strategic Developments - IREN is on track to reach a hashrate of 50 EH/s within five months, supported by the installation of direct-to-chip liquid cooling for AI and high-performance computing (HPC) [4] - The company is advancing construction on its 1.4GW Sweetwater Project and progressing a multi-GW development pipeline [4][10] - Management highlighted the strategic value of IREN's 2,310 MW grid-connected power portfolio, with increased demand for cloud and colocation services [7] Management Commentary - Management expressed confidence in the Bitcoin mining business's strong hardware profits and announced a new at-the-market facility to fund growth initiatives [6] - The company is exploring alternative funding options to accelerate its growth trajectory [6]

Core Viewpoint - IREN Limited will release its financial results for the three and six months ended December 31, 2024, on February 12, 2025, and will host a conference call for investors [1]. Group 1: Financial Results Announcement - IREN Limited will announce its financial results on February 12, 2025, at 5:00 p.m. New York time [1]. - A conference call will follow the announcement, allowing participants to engage in a Q&A session [3]. Group 2: Company Overview - IREN is a leading data center business focused on Bitcoin and AI, utilizing 100% renewable energy [4]. - The company operates Bitcoin mining with an expansion to 57 EH/s in 2025 and has been operational since 2019 [5]. - IREN provides AI cloud services with 1,896 NVIDIA H100 & H200 GPUs, having started operations in 2024 [5]. - The company has 510MW of operating data centers, with plans to expand to 910MW in 2025 [5]. - IREN has secured a development portfolio of 2,310MW of grid-connected power across North America and has a multi-gigawatt development pipeline [5]. - The company targets sites with low-cost renewable energy and supports local communities through its operations [5].

Group 1 - IREN Limited (IREN) shares have increased by 1.5% over the past four weeks, closing at $10.09, with a mean price target of $20.55 indicating a potential upside of 103.7% [1] - The mean estimate consists of 11 short-term price targets with a standard deviation of $4.08, where the lowest estimate suggests a 48.7% increase and the highest predicts a 157.7% surge to $26 [2] - Analysts show strong agreement on IREN's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][9] Group 2 - The Zacks Consensus Estimate for IREN's current year has risen by 9.7% over the past month, indicating positive sentiment among analysts [10] - IREN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential upside [11] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a useful guide for potential price movements [12]