IREN Stock Surges on Q4 Earnings Beat and NVIDIA Partnership

IREN Limited reported Q4 earnings of 66 cents per share, beating the consensus estimate of 14 cents. Quarterly revenue was $187.3 million, up from $52.76 million in the same period last year. The company achieved NVIDIA Corp.'s Preferred Partner status and expects $1.25 billion in total annualized revenue with further growth ahead. IREN stock was up 7.94% in extended trading.

IREN Limited (IREN) has reported its Q4 fiscal 2025 earnings, beating the consensus estimate and showcasing robust financial performance. The company reported earnings of 66 cents per share, surpassing the consensus estimate of 14 cents. Quarterly revenue reached $187.3 million, marking a significant increase from $52.76 million in the same period last year [1].

IREN's strong performance can be attributed to several key factors. The company's bitcoin mining revenues continued to grow, with a 24% year-over-year increase in the third quarter of fiscal 2025, reaching $141.2 million [1]. Additionally, AI Cloud services revenues jumped 33% year-over-year to $3.6 million, indicating a strong expansion in this segment [1].

IREN's stock price reacted positively to the earnings report, rising by 7.94% in extended trading. The company has also achieved NVIDIA Corp.'s Preferred Partner status, which is expected to drive further growth. IREN anticipates $1.25 billion in total annualized revenue, with significant potential for future expansion [1].

The company's expansion into high-performance computing and AI cloud services is a notable strategic pivot. IREN's announcement of Horizon 1, a 50MW liquid-cooled data center specifically designed for AI and high-performance computing workloads, highlights this commitment. The facility will support direct-to-chip liquid cooling and power redundancy, with 200kW rack density capabilities, designed to support next-generation NVIDIA GPUs [1].

IREN's recent GPU purchases, including 2.4k next-generation NVIDIA Blackwell B200 and B300 GPUs, further bolster its AI Cloud operations. These additions, along with the existing 1.9k Hopper GPUs, increase IREN’s fleet to approximately 4.3k NVIDIA GPUs, supported by 50MW of dedicated power [1].

Despite these positive developments, IREN faces stiff competition in the bitcoin mining market from companies like Strategy and CleanSpark. Strategy benefits from increasing bitcoin yield, while CleanSpark produced 2,012 bitcoins, a 28% increase year over year in the third quarter of fiscal 2025 [1]. Additionally, IREN's stock is trading at a premium, with a forward 12-month price/cash flow ratio of 81.93X, higher than the Zacks Financial-Miscellaneous Services industry's 26.32X [1].

In conclusion, IREN Limited's Q4 earnings report highlights the company's strong financial performance and strategic expansion into AI cloud services. While the stock is trading at a premium and faces competition in the bitcoin mining market, the company's growth prospects and strategic initiatives position it well for future success.

References:
[1] https://finance.yahoo.com/news/buy-sell-hold-iren-stock-170500901.html
[2] https://www.globenewswire.com/news-release/2025/08/25/3138356/0/en/IREN-Purchases-4-2k-NVIDIA-Blackwell-GPUs-Secures-Financing-AI-Cloud-Expanded-to-8-5k-GPUs.html