John Todaro's questions to IREN (IREN) leadership • FY 2025
Question
John Todaro asked about the average duration of AI cloud contracts relative to the GPU payback period. He also questioned if the success in cloud would lead IREN to de-emphasize HPC colocation deals and inquired about the company's target leverage ratio.
Answer
Chief Commercial Officer Kent Draper stated that contract lengths range from one month to three years, with newer Blackwell GPUs attracting longer, multi-year terms. He affirmed the cloud opportunity is 'extremely compelling' due to higher margins and shorter paybacks (2-4 years) compared to colocation, but the company continues to evaluate both models to maximize risk-adjusted returns. Chief Capital Officer Anthony Lewis added that the company's leverage will evolve as it scales, with a focus on maintaining a resilient balance sheet.