IREN Shares Jump 26% Despite Q4 Earnings Miss, Revenues Surge Q/Q

Core Insights - IREN Limited's shares surged 9.93% to close at $29.11 on September 2, following a 26.3% rally in the past two trading sessions after the release of its fourth-quarter fiscal 2025 results [1] Financial Performance - IREN reported fourth-quarter fiscal 2025 earnings of $0.08 per share, which fell short of the Zacks Consensus Estimate by 52.94% [2] - The company achieved a net income of $176.9 million, a significant recovery from a loss of $16.3 million in the previous quarter [2] - Total revenues increased by 29.4% sequentially to $187.3 million, although this figure missed the consensus mark by 0.64% [2] Revenue Breakdown - Bitcoin revenues reached $180.3 million, reflecting a sequential increase of 27.7% [4] - AI Cloud Services revenues grew to $7 million, up from $3.6 million in the previous quarter [4] Operational Efficiency - IREN's bitcoin mining operations benefited from a fleet efficiency of 15 joules per terahash and low net power costs of $0.035 per kilowatt hour [4] - The average revenue per bitcoin mined was $98.8, with a total of 1,825 bitcoins mined in the reported quarter [4] Growth in AI Cloud Services - The AI cloud business is rapidly expanding, with over 10,000 GPUs online or set to be commissioned soon [5] - IREN has achieved NVIDIA Preferred Partner status and is set to install next-generation liquid-cooled GB300 NVL72 systems [5] Adjusted EBITDA - Adjusted EBITDA for the quarter was $121.9 million, up from $82.9 million in the previous quarter, with an adjusted EBITDA margin expanding to 65% from 57% [5] Operating Expenses - Operating expenses increased to $114 million due to overheads, depreciation costs, and increased expenses related to bitcoin mining and GPU hardware [6] Balance Sheet Strength - As of June 30, 2025, IREN had $564.5 million in cash and cash equivalents [7] - The company expects to fully fund its expansion to 10.9k GPUs through a combination of existing cash, cash flows from operations, and GPU financing [7] Future Guidance - IREN is on track to achieve $1.25 billion in annualized revenues by December 2025, with approximately $1 billion expected from bitcoin mining and $200-$250 million from AI Cloud [8] - The company plans to scale its GPU count from 1.9k to 10.9k in the coming months [8]