Buy, Sell or Hold IREN Stock? Key Tips Ahead of Q4 Earnings

IREN Limited (IREN) is set to release fourth-quarter fiscal 2025 results on Aug. 28.

The Zacks Consensus Estimate for earnings has remained steady at 17 cents per share over the past 30 days. The consensus mark for revenues is pegged at $193.8 million. 

IREN has been benefiting from growing bitcoin mining revenues, which jumped 24% year over year to $141.2 million in the third quarter of fiscal 2025. The company mined 1,514 bitcoins in the third quarter of fiscal 2025 compared with 1,347 in the previous quarter. AI Cloud services revenues jumped 33% year over year to $3.6 million. The company is supplying white labelled compute to leading US AI cloud providers.
 

IREN Limited Price and EPS Surprise

IREN Limited price-eps-surprise | IREN Limited Quote

Let’s see how things have shaped up for IREN prior to this announcement:

Factors to Note for IREN’s Q4

IREN’s fiscal fourth-quarter performance is expected to have benefited from higher bitcoin revenues. In April, May and June, IREN reported monthly revenues of $50.1 million, $64.7 million and $65.5 million, respectively, from bitcoin mining. Realizations through bitcoin pricing have jumped in the to be reported quarter. Revenues from each Bitcoin mined were $86,522 in April, $103,345 in May and $105,730 in June. 

IREN Limited is one of the world’s largest and lowest-cost bitcoin miners, achieving 326% year-over-year hashrate growth in the third quarter of fiscal 2025. IREN achieved its 50 EH/s installed hashrate target in June. 50 EH/s generates roughly $830 million annualized hardware profit. 

Lower electricity costs are expected to have driven margin in the to-be-reported quarter. Net electricity cost per bitcoin mined was $26,259 in June, lower than $27,033 reported in May and $24,381 in April. 

Strong top-line growth as well as margin expansion for the to-be-reported fourth-quarter fiscal 2025 are expected to boost profitability. Hardware profit was $49.2 million in June, up from $47.8 million in May and $36 million in April.

AI Cloud services revenues were $2 million in April, $2.2 million in May and $2.2 million in June. Expansion of AI Cloud operations bodes well for IREN, which operates 660MW of data centers and is expected to expand up to 910 MW in 2025.

IREN Shares Outperform Sector

IREN Limited shares have appreciated 134.1% in the year-to-date period compared with the Zacks Finance sector’s return of 11.8%. Its shares have outperformed close peers, such as Strategy MSTR and CleanSpark CLSK, shares of which have appreciated 21.3% and 5.1%, respectively.

IREN Stock’s Performance

IREN Limited stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.

In terms of forward 12-month price/cash flow, IREN is trading at 81.93X, higher than the Zacks Financial-Miscellaneous Services industry’s 26.32X.

Valuation: IREN is Trading at a Premium

IREN’s Expanding GPU Fleet Aids Prospect

IREN has solidified its position as an infrastructure powerhouse with a binding 600MW grid connection agreement for its Sweetwater 2 project. This development brings the company's total secured power in West Texas to an impressive 2.75 gigawatts. The company’s upcoming milestones include Sweetwater 1’s energization in April 2026 and Sweetwater 2 in late 2027, representing significant catalysts for future growth.

IREN operates 660MW of data centers and is expected to expand up to 910 MW in 2025. 
The announcement of Horizon 1, a 50MW liquid-cooled data center specifically designed for AI and high-performance computing workloads, represents IREN’s strategic pivot toward higher-value services. This facility will support direct-to-chip liquid cooling and power redundancy with 200kW rack density capabilities, specifically designed to support next-generation NVIDIA NVDA Blackwell GPUs. Horizon 1 remains on track for fourth-quarter 2025 delivery.

The company bought 2.4k next-generation NVIDIA Blackwell B200 and B300 GPUs that will be installed over the coming months at IREN’s Prince George, BC campus. Combined with the existing 1.9k Hopper GPUs, this expansion increases IREN’s fleet to approximately 4.3k NVIDIA GPUs. Supported by 50MW of dedicated power, Prince George can host more than 20,000 Blackwell GPUs.

IREN is expanding its GPU fleet with the purchase of an additional 4.2k Blackwell B200 GPUs from NVIDIA to be installed at IREN’s Prince George campus. This doubles down IREN Limited’s total fleet to approximately 8.5k NVIDIA GPUs comprising 0.8k NVIDIA H100s, 1.1k NVIDIA H100s, 5.4k NVIDIA H100s and 1.2k NVIDIA B300s.

Here’s Why IREN is a Hold Now

IREN Limited’s long-term prospects ride on an expanding GPU fleet and partnership with NVIDIA. However, the company is facing stiff competition from Strategy and CleanSpark in the bitcoin mining market.

Strategy benefits from increasing bitcoin yield, which hit 19.7% at the end of the second quarter of 2025 and 25% year to date. Strategy now expects to achieve a bitcoin yield of 30% and $20 billion in gains, assuming the bitcoin price hits $150,000 at the end of the year. CleanSpark produced 2,012 bitcoin, a 28% increase year over year in the third quarter of fiscal 2025.

Hence, stiff competition and stretched valuation make the IREN stock risky right now.

IREN Limited currently carries a Zacks Rank #3 (Hold), which implies that investors should wait for a favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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