IREN Ltd (IREN.US) Reports 355% YoY Revenue Surge in Q1, Beats Estimates with $384.6M Net Profit

Stock News
Nov 07

IREN Ltd (IREN.US) announced its financial results for the three months ended September 30, 2025, after market close on November 6. The company reported total revenue of $240.3 million, a 355% year-over-year increase from $52.8 million in Q1 FY2025, surpassing analyst expectations of $235.5 million by 2.04%. Net profit swung to $384.6 million, compared to a net loss of $51.7 million in the same period last year. Adjusted EBITDA surged 3,568% to $91.7 million (up from $2.5 million YoY), while EBITDA reached a record $662.7 million (versus -$18.8 million YoY).

Revenue breakdown showed significant divergence: Bitcoin mining contributed $232.9 million, while AI cloud services generated $7.3 million. The company mined 2,039 Bitcoin during the quarter, up 150% from 813 Bitcoin in the prior-year period, driven by increased average operational hashrate scaling to 45.3 EH/s.

Operating expenses rose to $236 million, primarily due to higher depreciation, stock-based compensation, and impairment charges. The quarter also included $665 million in unrealized gains from financial instruments tied to convertible note transactions.

As of October 31, 2025, IREN held $1.8 billion in cash and equivalents, maintaining strong liquidity. The company successfully issued $1 billion in zero-coupon convertible bonds on October 14, 2025, and secured an additional $200 million in GPU financing, bringing total financing to $400 million.

Looking ahead, IREN is expanding its AI cloud services, including a recent $9.7 billion contract with Microsoft for GPU services at its Childress, Texas facility. The company has secured multiple AI cloud contracts covering approximately 5,000 GPUs and maintains $1.03 billion in cash and equivalents.

For 2026, IREN targets $3.4 billion in annualized recurring revenue (ARR) from AI cloud services by year-end, with GPU capacity scaling to 140,000 units. Through multi-year contracts with partners like Together AI, Fluidstack, and Fireworks AI, the company aims to exceed $500 million in AI cloud ARR by Q1 2026, establishing sustainable growth momentum.

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