TLDR
- IREN posted $384.6 million net income in Q1 2025, reversing a $51.7 million loss from last year
- Revenue soared 355% to $240.3 million with bitcoin mining generating $232.9 million
- Earnings of $1.08 per share crushed Wall Street’s 16 cent estimate by 575%
- Microsoft signed a $9.7 billion five-year AI cloud contract with 20% upfront payment
- Company plans to expand to 140,000 GPUs and reach $3.4 billion AI cloud revenue by end of 2026
IREN delivered a knockout first quarter for fiscal 2025. The company reported net income of $384.6 million for the period ended September 30, swinging from a $51.7 million loss in the same quarter last year.
Revenue jumped 355% to $240.3 million. Bitcoin mining operations contributed $232.9 million, representing a 50-fold increase year over year.
The earnings per share figure of $1.08 demolished analyst expectations. Wall Street had predicted just 16 cents per share. The actual result came in 575% higher than the consensus estimate.
Despite the strong results, shares fell more than 12% on Thursday. The stock traded down 3% in pre-market Friday after an initial 6% gain.
Microsoft Partnership Reshapes Revenue Outlook
The game-changer for IREN is the newly announced Microsoft contract. The five-year deal is valued at $9.7 billion and covers phased GPU deployments at the company’s Childress facility.
Microsoft will prepay 20% of the contract value. IREN expects this partnership alone to generate $1.9 billion in annualized run-rate revenue once operations reach full capacity.
Three other multiyear agreements were signed with Together AI, Fluidstack, and Fireworks AI. These contracts help support IREN’s goal of hitting $3.4 billion in AI cloud annual revenue by December 2026.
The company is racing to expand its GPU infrastructure to 140,000 units. This expansion represents a massive scale-up in computing power dedicated to AI workloads.
Facility Conversions and Infrastructure Build-Out
IREN is converting its 160MW British Columbia facilities from ASIC mining hardware to GPU systems. The company expects to complete this transition by the end of 2026.
At the Childress site, which has 750MW of total power capacity, IREN is building liquid-cooled Horizon data centers. These facilities will consume 200MW of the available power.
The Sweetwater Hub boasts 2GW of power capacity. Key substations at this location are scheduled to come online over the next two years, providing the electrical infrastructure needed for expanded operations.
Co-founder and co-CEO Daniel Roberts highlighted the company’s execution in a statement. The record results demonstrate IREN’s ability to repurpose crypto mining assets for the AI computing market.
Analyst Outlook and Stock Performance
IREN shares have climbed 581.9% year-to-date and rose 42.7% in the most recent quarter. The median analyst price target of $75.00 represents 10.7% upside from the $66.96 closing price.
Nine analysts rate the stock as strong buy or buy. Two analysts have hold ratings while two recommend selling.
Analyst earnings estimates dropped 42.1% over the past three months. Four analysts lowered their forecasts in the last 30 days.
The company’s reported earnings ranged from analyst predictions of 5 cents to 25 cents per share. The actual result of $1.08 came in at the high end of even the most optimistic projections.
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