Financial Trends -- 2/10
Fails almost every Financial-Trends test simultaneously. Revenue YoY decelerating hard
(+355% → +59% → ~0%), with the most recent quarter flat YoY as Bitcoin mining — still
~77% of revenue — swung lower on price and post-halving economics. Cash-cost gross margin is healthy
(~64-72%), but GAAP operating income flipped from positive to deeply negative (−$76M →
−$116M → −$234M) as buildout D&A ramped. FCF profoundly negative and worsening
(−$38M → −$468M → −$874M) on ~$949M single-quarter capex; funded by a 4x
jump in convertible notes. Share count diluting. Revenue growth here is explicitly NOT financial strength.
Weight: 25%
Free Cash Flow
−$874M
Worsening | ~$949M single-qtr capex
Operating Income
−$234M
Flipped negative | D&A ramp
Convertible Notes
$3.69B
4x jump in one quarter | Debt > revenue
Quarterly Revenue ($M) — Fiscal Label (Calendar Period)
Revenue YoY (Fiscal-Comparable Quarters) — DECELERATING
| Comparison | YoY Growth |
|---|---|
| FY25Q1 → FY26Q1 | +355% |
| FY25Q2 → FY26Q2 | +59% |
| FY25Q3 → FY26Q3 | ~0% (flat) |
Unambiguous deceleration: +355% to roughly flat across three comparable quarters.
FY26Q3 revenue of $144.8M was flat YoY as Bitcoin mining revenue fell from $232.9M (two quarters
earlier) to $111.2M on a lower BTC price and the April-2024 halving cycle. AI cloud is growing fast
off a tiny base ($3M → $34M) but is still only ~23% of revenue and cannot offset the mining
swing. The most valuable segment is shrinking as mining hardware is decommissioned for GPU conversion.
Profitability & Cash ($M)
| Metric | FY25Q4 | FY26Q1 | FY26Q2 | FY26Q3 |
|---|---|---|---|---|
| Gross margin (ex-D&A) | 71.8% | 66.4% | 64.4% | 72.4% |
| Operating profit (loss) | $20.6M | $(76.4)M | $(116.4)M | $(233.5)M |
| Operating margin (GAAP) | +11% | -32% | -63% | -161% |
| Operating cash flow | n/a | $142.4M | $71.6M | $75.3M |
| Capex (PP&E net of HW) | n/a | $(180.3)M | $(539.7)M | $(949.2)M |
| FCF (OCF − capex) | n/a | $(37.9)M | $(468.1)M | $(873.9)M |
| Convertible notes payable | $962.8M | $964.2M | $3,685.3M | $3,687.8M |
| Diluted WA shares (M) | 273.5 | 361.7 | 298.0 | 333.7 |
Operating income flipped from positive to deeply negative; FCF profoundly negative and worsening.
GAAP operating income swung from +$20.6M to −$233.5M as buildout D&A ramped — revenue
growing while operating income declines. OCF turned positive in CY2025 but is dwarfed many times over
by capex (~$949M in a single quarter for the AI/HPC GPU build). Funding came from a ~4x jump in
convertible notes ($963M → $3,686M in one quarter) — debt growing far faster than revenue.
Note: net income (not shown) is uninformative here, distorted by large fair-value/MTM swings.
Annual Financial Summary (FY ends June 30)
| Metric | FY2024 (Jun-24) | FY2025 (Jun-25) |
|---|---|---|
| Total Revenue | $187.2M | $501.0M |
| Bitcoin mining | $184.1M | $484.6M |
| AI cloud | $3.1M | $16.4M |
| Operating profit (loss) | $(26.3)M | $17.3M |
| Diluted EPS | $(0.29) | $0.39 |
| Operating cash flow | $(130.9)M | n/a |
| Free cash flow | ~$(272.8)M | Deeply negative |
| Convertible notes payable | n/a | $962.8M |
Only two years of annual history available. Pre-FY2024 annual
history (FY2021-FY2023) is not populated in Daloopa coverage for company_id 247633 — only FY2024 and
FY2025 annual prints are available. Five full years could not be assembled; this is a coverage
limitation, not a sourcing shortcut. IREN has been public since Nov 2021, so the earlier annuals exist
in SEC 20-F filings.
Key trends
- Revenue YoY decelerating hard: +355% → +59% → ~0% across three comparable quarters; most recent quarter flat YoY on the Bitcoin-mining swing
- Operating income flipped negative: from positive (+$20-36M) to deeply negative (−$76M → −$116M → −$234M) as buildout D&A ramped
- FCF profoundly negative and worsening: −$38M → −$468M → −$874M on ~$949M single-quarter capex for the AI/HPC GPU build
- Debt growing far faster than revenue: convertible notes jumped ~4x ($963M → $3,686M in one quarter); share count also diluting (~273M → ~334M diluted)
Penalty Modifiers Applied
| Modifier | Detail | Penalty |
|---|---|---|
| Negative FCF | FCF deeply negative and worsening (−$38M → −$468M → −$874M); hard cap at 6 | −2 |
| Revenue up, op income down | Revenue growing while GAAP operating income flipped deeply negative on D&A ramp | −1 |
| Share dilution | Diluted share count rising (~273M → ~334M); ~357M shares now implied | −1 |
| Debt > revenue growth | Convertible notes jumped ~4x in one quarter ($963M → $3,686M), far outpacing revenue | −1 |
Score Rationale
Score of 2/10 reflects a heavy-capex, commodity-exposed (Bitcoin) infrastructure story making an unproven pivot to AI/HPC. Revenue growth here is explicitly NOT financial strength.
Why so low:
- Revenue YoY decelerating hard (+355% → +59% → ~0%), most recent quarter flat YoY
- GAAP operating income flipped from positive to deeply negative (−$76M → −$116M → −$234M)
- FCF profoundly negative and accelerating to the downside (−$38M → −$468M → −$874M) on ~$949M single-quarter capex
- Funded by a ~4x jump in convertible notes ($963M → $3,686M) — debt growing far faster than revenue
- Share count diluting; net income uninformative (large fair-value/MTM swings)
What keeps it off the floor:
- Healthy, stable cash-cost gross margin (~64-72%)
- Genuine AI-cloud ramp ($3M → $34M) — small, but the fastest-growing revenue line
Composite quality gate — positiveGrowingFcf: NO. FCF deeply negative and worsening across the last three quarters. Penalty modifiers (negative FCF −2, revenue-up/op-income-down −1, dilution −1, debt > revenue −1) confirm a capped score. Net result: 2/10.
Data sourced from Daloopa (company_id: 247633). Fiscal year ends June 30. Reported under U.S. GAAP from FY2026; cost of revenue presented exclusive of D&A. All financials in USD.