IREN

IREN has scaled at a breathtaking pace: FY2025 revenue jumped +167.7% to $501M and the company swung from a -$28.9M loss in FY2024 to $86.9M of net income, its first profitable year after a -$172M loss in FY2023. Operating cash flow of $246M (+370.9%) funded a heavy $411M capex program, and the balance sheet is solid for a capital-intensive miner — $1.82B of equity against $1.12B of liabilities (0.62x) and $565M of cash. EBITDA margin of 56% and Adjusted EBITDA of $269.7M show the underlying mining/AI-cloud economics work at current Bitcoin prices.

The quality of the headline profit is the catch. The filing's EBITDA reconciliation shows much of net income leaned on non-operating items — a $77.5M unrealized gain on financial instruments and a $9.1M gain on partial extinguishment of liabilities — while GAAP operating income was only $17.3M (3.5% operating margin). ROE is just 4.8% and retained earnings remain deeply negative at -$596M. So the 17.4% net margin overstates the durable earning power of the core business.