Core Viewpoint - Iron Mountain Incorporated (NYSE: IRM) is rated as a hold for real estate investment trust (REIT) investors seeking long-term buy-and-hold investments, despite its strong performance in recent years [1]. Group 1 - The company has experienced significant growth over the past few years, indicating a positive trend in its performance [1]. - The valuation of Iron Mountain is a key consideration for investors, suggesting that while the company has performed well, its current valuation may warrant caution [1].

[PART I—FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [ITEM 1. Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=ITEM%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Unaudited condensed consolidated financial statements for Q2 2025 reflect revenue growth but a net loss, driven by increased operating expenses and foreign currency losses, with accompanying notes detailing key accounting policies and segment performance [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,897,248 | $1,691,222 | | Total Assets | $20,176,789 | $18,717,115 | | Total Current Liabilities | $2,998,772 | $3,087,275 | | Long-term Debt, net | $14,818,175 | $13,003,977 | | Total Liabilities | $20,747,654 (Calculated) | $19,043,618 (Calculated) | | Total (Deficit) Equity | $(568,867) | $(304,674) | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,711,948 | $1,534,409 | $3,304,477 | $3,011,272 | | Operating Income | $259,896 | $230,294 | $514,190 | $475,917 | | Net (Loss) Income Attributable to Iron Mountain | $(44,921) | $35,783 | $(28,969) | $109,844 | | Diluted (Loss) Income Per Share | $(0.15) | $0.12 | $(0.10) | $0.37 | Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Cash Flows from Operating Activities | $572,425 | $512,215 | | Cash Flows from Investing Activities | $(1,350,810) | $(959,748) | | Cash Flows from Financing Activities | $882,868 | $369,291 | | Increase (Decrease) in Cash | $62,276 | $(78,533) | | Cash and Cash Equivalents, End of Period | $217,992 | $144,256 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - Goodwill increased from **$5.08 billion** at year-end 2024 to **$5.23 billion** as of June 30, 2025, primarily due to currency effects of **$129.8 million**[34](index=34&type=chunk) - Foreign currency transaction losses were a significant component of Other Expense (Income), Net, totaling **$87.2 million** for Q2 2025 and **$116.8 million** for the six months ended June 30, 2025, primarily due to the impact of changes in the British pound sterling and Euro exchange rates on intercompany balances[49](index=49&type=chunk) Segment Revenue (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Global RIM Business | $2,579,740 | $2,460,734 | | Global Data Center Business | $362,598 | $296,639 | | Corporate and Other | $362,139 | $253,899 | | **Total Consolidated** | **$3,304,477** | **$3,011,272** | - Under its "Project Matterhorn" transformation program, the company incurred **$105.1 million** in restructuring and other transformation costs in the first six months of 2025, with total costs reaching approximately **$483.6 million** since inception in September 2022, and the program is expected to be completed by the end of 2025[83](index=83&type=chunk)[84](index=84&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=30&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 9.7% revenue increase for H1 2025, noting a net loss due to foreign currency, but strong Adjusted EBITDA growth of 13.6% and margin expansion, alongside segment performance, liquidity, and debt modifications [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Revenue Growth Analysis (Six Months Ended June 30, 2025 vs 2024) | Revenue Type | Actual Growth | Constant Currency Growth | Organic Growth | | :--- | :--- | :--- | :--- | | Storage Rental | 8.5% | 9.0% | 9.0% | | Service | 11.6% | 12.0% | 8.4% | | **Total Revenues** | **9.7%** | **10.2%** | **8.8%** | - For the six months ended June 30, 2025, the company reported a **Net Loss of $27.1 million**, a significant decrease from a **Net Income of $111.6 million** in the prior-year period, largely driven by a **$117.1 million** negative swing in 'Other Expense (Income), Net', primarily from foreign currency losses[108](index=108&type=chunk)[121](index=121&type=chunk) - Despite the net loss, Adjusted EBITDA for the first six months of 2025 increased by **13.6%** to **$1.21 billion**, and the Adjusted EBITDA Margin improved by **130 basis points** to **36.6%**, driven by favorable overhead management[126](index=126&type=chunk)[127](index=127&type=chunk) [Segment Analysis](index=41&type=section&id=Segment%20Analysis) - **Global RIM Business:** For the first six months of 2025, segment revenue grew **4.8%** to **$2.58 billion**, driven by revenue management, and Segment Adjusted EBITDA Margin increased by **60 basis points** to **44.3%**[129](index=129&type=chunk)[132](index=132&type=chunk) - **Global Data Center Business:** For the first six months of 2025, segment revenue grew **22.2%** to **$362.6 million**, driven by new lease commencements and improved pricing, with Segment Adjusted EBITDA Margin expanding significantly by **860 basis points** to **51.6%**[133](index=133&type=chunk)[136](index=136&type=chunk) - **Corporate and Other:** For the first six months of 2025, revenue grew **42.6%** to **$362.1 million**, primarily driven by a **$43.5 million** contribution from recent acquisitions in the ALM business and organic growth from increased volume[137](index=137&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) - Cash flow from operating activities increased by **$60.2 million** to **$572.4 million** for the first six months of 2025 compared to the prior year, mainly due to favorable working capital changes[141](index=141&type=chunk)[142](index=142&type=chunk) Capital Expenditures (Six Months Ended June 30, in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Growth Investment Capital | $1,070,567 | $699,046 | | Recurring Capital | $62,877 | $65,713 | | **Total Capital Spend (accrual)** | **$1,133,444** | **$764,759** | - The company expects total capital expenditures of approximately **$1.95 billion** for the full year 2025, with **$1.8 billion** allocated for growth investments[145](index=145&type=chunk) - The company amended its Credit Agreement to increase its Term Loan A principal to **$500 million** and amended its AUD Term Loan to increase its principal to **400 million Australian dollars** and extend its maturity to 2030[151](index=151&type=chunk)[152](index=152&type=chunk) [ITEM 4. Controls and Procedures](index=49&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures are effective[164](index=164&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected or are reasonably likely to materially affect these controls[166](index=166&type=chunk) [PART II—OTHER INFORMATION](index=51&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Iron Mountain did not sell any unregistered equity securities or repurchase common stock during the three months ended June 30, 2025 - No unregistered equity securities were sold during Q2 2025[169](index=169&type=chunk) - No shares of common stock were repurchased during Q2 2025[169](index=169&type=chunk) [ITEM 5. Other Information](index=51&type=section&id=ITEM%205.%20Other%20Information) No director or officer adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025 - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement in Q2 2025[170](index=170&type=chunk) [ITEM 6. Exhibits](index=51&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, amendments to the stock incentive plan and credit agreement, and CEO/CFO certifications - Key exhibits filed include the Fourth Amendment to the 2014 Stock and Cash Incentive Plan and Amendment No. 6 to the Credit Agreement, dated June 18, 2025[172](index=172&type=chunk)

Core Viewpoint - Iron Mountain (IRM) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Iron Mountain's Earnings Outlook - The recent upgrade for Iron Mountain reflects an improvement in its underlying business, which is expected to drive the stock price higher as investors respond positively to this trend [5][10]. - The Zacks Consensus Estimate for Iron Mountain indicates an expected earnings per share of $5.01 for the fiscal year ending December 2025, with a 1.5% increase in estimates over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - The upgrade of Iron Mountain to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - Iron Mountain Incorporated (IRM) reported second-quarter adjusted funds from operations (AFFO) per share of $1.24, exceeding the Zacks Consensus Estimate of $1.19, marking a year-over-year increase of 14.8% [1][9] - The company's total revenues for the quarter reached $1.71 billion, surpassing the Zacks Consensus Estimate of $1.68 billion, and reflecting an 11.6% year-over-year growth [3][9] - IRM raised its full-year 2025 guidance for AFFO per share to a range of $5.04 to $5.13, up from the previous range of $4.95 to $5.05 [10] Financial Performance - Storage rental revenues amounted to $1,010 million, a 9.8% increase year over year, while service revenues rose 14.2% to $702 million [5] - The Global RIM business reported revenues of $1,323.8 million, growing 5.9% year over year, and the Global Data Center business saw revenues of $189.4 million, up 24% year over year [5][6] - Adjusted EBITDA increased by 15.4% year over year to $628.4 million, with an adjusted EBITDA margin expansion of 120 basis points to 36.7% [6] Balance Sheet and Cash Flow - As of June 30, 2025, IRM had cash and cash equivalents of $218 million, an increase from $155.3 million as of March 31, 2025 [7] - The company reported net debt of $15.48 billion, up from $14.87 billion as of March 31, 2025, with a weighted average interest rate of 5.7% [7] Dividend Announcement - Concurrently with the earnings release, IRM announced a cash dividend of 78.5 cents per share for the third quarter of 2025, payable on October 3 to shareholders on record as of September 15, 2025 [8] Guidance Revision - The revenue outlook for 2025 has been revised to a range of $6.79 billion to $6.94 billion, up from the previous range of $6.74 billion to $6.89 billion [11] - Adjusted EBITDA for 2025 is now anticipated to be between $2.52 billion and $2.57 billion, an increase from the prior range of $2.51 billion to $2.56 billion [11]

Core Insights - Iron Mountain (IRM) reported $1.71 billion in revenue for Q2 2025, marking an 11.6% year-over-year increase and exceeding the Zacks Consensus Estimate of $1.68 billion by 2.1% [1] - The company's EPS for the same quarter was $1.24, a significant increase from $0.42 a year ago, and also surpassed the consensus estimate of $1.19 by 4.2% [1] Revenue Breakdown - Storage Rental Revenue reached $1.01 billion, exceeding the six-analyst average estimate of $990.44 million, with a year-over-year change of +9.8% [4] - Service Revenue was reported at $701.96 million, compared to the average estimate of $685.41 million, reflecting a +14.2% year-over-year change [4] - Global Data Center Business Total Revenues were $189.4 million, slightly below the four-analyst average estimate of $189.73 million, but still showing a +24% year-over-year increase [4] - Global Data Center Business Storage Rental was $188.28 million, surpassing the estimate of $187.35 million, with a +27.7% change year over year [4] - Corporate and Other Total Revenues were $198.75 million, exceeding the average estimate of $174.64 million, representing a +51.6% year-over-year change [4] Performance Metrics - Iron Mountain's shares have returned -4.1% over the past month, while the Zacks S&P 500 composite has seen a +0.5% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3] Additional Revenue Insights - Global RIM Business Total Revenue was $1.32 billion, matching the average estimate, with a +5.9% year-over-year change [4] - Corporate and Other Service Revenue was reported at $180.62 million, exceeding the average estimate of $159.3 million, reflecting a +56.9% year-over-year change [4] - Global RIM Business Storage Rental was $803.58 million, slightly above the average estimate of $798.52 million, with a +6.2% year-over-year change [4]

Financial Performance - The company achieved record financial performance with revenue increasing 12% to $1.7 billion, adjusted EBITDA growing 15% to $628 million, and AFFO increasing 15% to $370 million [6][21][22] - Adjusted EBITDA margin improved to 36.7%, up 120 basis points year on year, reflecting operational strength across the business [23] Business Line Performance - The Global Records and Information Management (RIM) business achieved record revenue of $1.32 billion, driven by revenue management and digital solutions, with organic storage revenue up 6% year on year [24] - The data center business reported total revenue of $189 million, a 24% increase, with organic storage rental growth of 26% [26][27] - The Asset Lifecycle Management (ALM) business saw total revenue of $153 million, a 70% year-on-year increase, with 42% organic growth [29] Market Performance - The data center market remains strong, with pricing trends favorable and a leasing backlog in key markets such as Northern Virginia and Richmond [14][17] - The company is positioned to capitalize on significant growth opportunities in India through the acquisition of CRC India, enhancing its digital product portfolio [12][13] Company Strategy and Industry Competition - The company is focused on driving double-digit revenue growth supported by cross-selling opportunities in fragmented markets [35] - The strategic emphasis on AI-powered digital solutions is positioning the company as a leader recognized by customers and industry analysts [6][12] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit revenue and profit growth, supported by strong customer relationships and operational execution [20] - The company increased its financial guidance for the year, expecting total revenue between $6.79 billion and $6.94 billion, reflecting strong second-quarter results [32][34] Other Important Information - The company invested $477 million in the second quarter, with $442 million allocated to growth CapEx [30] - The quarterly dividend was declared at $0.0785 per share, maintaining a payout ratio of 63% [30] Q&A Session Summary Question: Data center signings came in lighter than expected; can you elaborate on the slowdown? - Management noted that while the market remains strong, customers have prioritized large campuses for AI, which has shifted focus back to the company's offerings [37][38] Question: Is the slowdown in data center leasing just timing? - Management confirmed that the focus on large language models has impacted leasing but expressed confidence in future growth due to available power and upcoming projects [40][42] Question: Can you break down the ALM growth in the quarter? - Management indicated that growth was balanced across enterprise and data center channels, with volume being the primary driver [50][51] Question: What are the dynamics in the hyperscale decommissioning sector? - Management highlighted the company's competitive advantages in secure chain of custody and global presence, which are appealing to customers [56][59] Question: Can you discuss the growth in the digital business? - Management emphasized the unique capabilities of the DXP platform in managing unstructured data, driving strong growth in the digital segment [86][88]

Financial Data and Key Metrics Changes - Revenue increased by 12% to $1.7 billion, adjusted EBITDA grew by 15% to $628 million, and AFFO increased by 15% to $370 million [5][20][21] - Adjusted EBITDA margin was 36.7%, up 120 basis points year on year, reflecting improved margins across all business segments [21][22] Business Line Data and Key Metrics Changes - Global Records and Information Management (RIM) business achieved record revenue of $1.32 billion, up $73 million year on year, with organic storage revenue up 6% [23][24] - Data center revenue was $189 million, an increase of $37 million year on year, with organic storage rental growth of 26% [25][26] - Asset Lifecycle Management (ALM) revenue was $153 million, a 70% increase year on year, with 42% organic growth [28] Market Data and Key Metrics Changes - The data center market remains strong, with pricing trends showing renewal pricing spreads of 13-20% on cash and GAAP basis [26] - The company expects data center revenue growth in excess of 25% in 2026, driven by a strong leasing backlog [27][31] Company Strategy and Development Direction - The company is focused on driving double-digit revenue growth supported by strong cross-selling opportunities in fragmented markets [31][33] - The acquisition of CRC India is expected to enhance the company's digital product portfolio and capitalize on growth opportunities in India [12][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit revenue and profit growth, supported by strong customer relationships and operational execution [18][31] - The company is increasing its financial guidance for the year based on strong second-quarter performance and positive outlook [31][32] Other Important Information - The company invested $477 million in the second quarter, with $442 million allocated to growth CapEx [29] - The quarterly dividend declared is $0.785 per share, with a payout ratio of 63% [29] Q&A Session Summary Question: Data center signings came in lighter than expected; can you elaborate on the slowdown? - Management noted that while the market remains strong, customers have been prioritizing large campuses for AI, which has affected leasing activity [35][36] Question: Is the slowdown in data center leasing just timing? - Management indicated that the focus on large language models has shifted back to their core markets, which should improve leasing activity going forward [38][40] Question: Can you break down the ALM growth in the quarter? - ALM growth was balanced between enterprise and data center, with volume being the primary driver of growth [45][48] Question: What are the dynamics in the hyperscale decommissioning sector? - Management highlighted their competitive advantage in providing secure and flexible decommissioning services, which has led to recent wins [52][54] Question: Can you discuss the margin trajectory and flow-through? - Management confirmed a 47% flow-through margin, driven by strong performance in the global RIM and data center businesses [60][62] Question: Can you clarify the revenue from the treasury contract? - Management stated that only $1 million of revenue was recognized in Q2, with expectations for more significant revenue in 2026 [64][69] Question: What are the targets for megawatts this year? - The expected range for new lease signings is 30 to 80 megawatts, with year-to-date signings at about 6 megawatts [72][74] Question: How is the company positioned in the data center ecosystem? - Management emphasized their focus on AI inference and cloud infrastructure, highlighting strong demand in key markets [78][82] Question: Can you elaborate on the growth in the digital business? - The digital business is experiencing strong growth due to unique capabilities in managing unstructured data, with a projected run rate of over $540 million [87][88]

Core Viewpoint - Iron Mountain (IRM) reported quarterly earnings of $1.24 per share, exceeding the Zacks Consensus Estimate of $1.19 per share, and showing significant growth from $0.42 per share a year ago, indicating a positive earnings surprise of +4.20% [1] Financial Performance - The company achieved revenues of $1.71 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.10%, compared to $1.53 billion in the same quarter last year [2] - Over the last four quarters, Iron Mountain has exceeded consensus EPS estimates only once, and it has topped consensus revenue estimates two times [2] Stock Performance and Outlook - Iron Mountain shares have declined approximately 9.1% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $1.28, with expected revenues of $1.74 billion, and for the current fiscal year, the estimate is $5.01 on revenues of $6.79 billion [7] Industry Context - The Business - Information Services industry, to which Iron Mountain belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable industry outlook that can positively influence stock performance [8]

Financial Performance & Growth - Iron Mountain achieved record Q2 2025 results, exceeding expectations, with total revenues of $1.712 billion, a 12% year-over-year increase[39] - Adjusted EBITDA for Q2 2025 was $628 million, a 15% year-over-year increase, with an Adjusted EBITDA margin of 36.7%[39] - Adjusted Funds From Operations (AFFO) for Q2 2025 was $370 million, a 15% year-over-year increase, with AFFO per share at $1.24, also a 15% increase[39] - The company is increasing its full year 2025 revenue guidance to $6.79 billion - $6.94 billion, representing approximately 12% year-over-year growth[41] - Adjusted EBITDA for full year 2025 is guided to $2.52 billion - $2.57 billion, approximately 14% year-over-year growth[41] - AFFO for full year 2025 is guided to $1.505 billion - $1.530 billion, approximately 13% year-over-year growth, with AFFO per share of $5.04 - $5.13, a 12% increase[41] Business Segments - Global RIM (Records Management) segment is expected to generate ~$5.3 billion in revenue in 2025[28] - Data Center organic storage revenue increased by 26% year-over-year[39] - Asset Lifecycle Management (ALM) organic revenue growth was 42%, with reported growth of 70% year-over-year[39] Strategic Initiatives - Growth businesses (Data Center, Digital Solutions, ALM) are expected to account for 28% of total revenue in 2025, up from 15% in 2021[15, 45] - The company has a total addressable market of $165 billion[8, 45] - The company is expanding its data center capacity to approximately 1.3 GW from the current operating portfolio of 450 MW[9, 32]

Section I - Q2 Earnings Press Release [Q2 2025 Earnings Press Release](index=3&type=section&id=Q2%202025%20Earnings%20Press%20Release) Iron Mountain reported record Q2 2025 revenue ($1.7B) and Adjusted EBITDA ($628M), increasing full-year guidance despite a net loss Financial Performance Summary | Financial Metric | Three Months Ended 6/30/25 (in millions) | Y/Y % Change (Reported) | Year to Date 6/30/25 (in millions) | Y/Y % Change (Reported) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,712 million | 12% | $3,304 million | 10% | | **Net (Loss) Income** | $(43) million | n/a | $(27) million | (124)% | | **Adjusted EPS** | $0.48 | 14% | $0.92 | 8% | | **Adjusted EBITDA** | $628 million | 15% | $1,208 million | 14% | | **AFFO** | $370 million | 15% | $718 million | 11% | | **AFFO per share** | $1.24 | 15% | $2.41 | 11% | - Achieved **record quarterly revenue of $1.7 billion**, an increase of **11.6%** on a reported basis and **11.0%** on a constant currency basis[8](index=8&type=chunk) - **Net loss for Q2 was $(43.3) million**, compared to a **net income of $34.6 million** in Q2 2024, primarily driven by the impact of foreign exchange rate changes on intercompany balances[12](index=12&type=chunk) - The Board of Directors declared a **quarterly cash dividend of $0.785 per share** for the third quarter of 2025[14](index=14&type=chunk) Full-Year Financial Guidance | 2025 Guidance | New Guidance (in millions) | Previous Guidance (in millions) | Approximate Y/Y % Change (New) | | :--- | :--- | :--- | :--- | | **Total Revenue** | $6,790 - $6,940 M | $6,740 - $6,890 M | ~12% | | **Adjusted EBITDA** | $2,520 - $2,570 M | $2,505 - $2,555 M | ~14% | | **AFFO** | $1,505 - $1,530 M | $1,480 - $1,510 M | ~13% | | **AFFO Per Share** | $5.04 - $5.13 | $4.95 - $5.05 | ~12% | Section II - Financial Highlights and Organic Growth [Financial and Operating Highlights](index=6&type=section&id=Financial%20and%20Operating%20Highlights) Q2 2025 saw strong performance with $1.71B revenue, $628.4M Adjusted EBITDA, 9.2% organic storage rental growth, and high data center occupancy Financial Performance Summary | Financial Metric | Q2 2025 (in thousands) | Q1 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,711,948 | $1,592,529 | $1,534,409 | | **Adjusted EBITDA** | $628,388 | $579,906 | $544,361 | | **Adjusted EBITDA Margin** | 36.7% | 36.4% | 35.5% | | **Adjusted EPS** | $0.48 (per share) | $0.43 (per share) | $0.42 (per share) | | **AFFO per Share** | $1.24 (per share) | $1.17 (per share) | $1.08 (per share) | Operating Metrics Overview | Operating Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Organic Storage Rental Revenue Growth** | 9.2% | 8.8% | 10.1% | | **Total Volume - Storage (in 000s cubic feet)** | 735,807 | 734,166 | 732,607 | | **Records Management Retention Rate** | 93.0% | 92.9% | 92.8% | | **Data Center Leased % - Total** | 96.3% | 96.1% | 93.5% | | **Data Center Kilowatts Leased - New/Expansion** | 2,325 (kW/MW) | 3,700 (kW/MW) | 66,493 (kW/MW) | [Organic Revenue Growth](index=7&type=section&id=Organic%20Revenue%20Growth) Q2 2025 total organic revenue grew 9.4%, driven by 9.2% storage rental and 9.7% service growth, with YTD growth at 8.8% Organic Revenue Growth Rates | Revenue Growth (Y/Y) | Q2 2025 | YTD 2025 | | :--- | :--- | :--- | | **Total Organic Revenue Growth** | 9.4% | 8.8% | | **Organic Storage Rental Growth** | 9.2% | 9.0% | | **Organic Service Growth** | 9.7% | 8.4% | Section III - Operational Metrics [Global Storage Volume](index=8&type=section&id=Global%20Storage%20Volume) Global storage volume grew to 735.8 million cubic feet in Q2 2025, up from 734.2 million in Q1 and 732.6 million in Q2 2024 Global Storage Volume Breakdown | Volume (in 000s cubic feet) | Q2 2025 (in thousands) | Q1 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | :--- | | **Global RIM** | 728,740 | 727,496 | 726,712 | | **Corporate and Other** | 7,067 | 6,671 | 5,895 | | **Total Volume - Storage** | 735,807 | 734,166 | 732,607 | [Quarterly Operating Performance](index=9&type=section&id=Quarterly%20Operating%20Performance) Q2 2025 consolidated revenue grew 11.6% YoY, led by Global Data Center (24.0%), Global RIM (5.9%), and Corporate/Other (51.6%) Quarterly Segment Performance | Segment Performance (Q2 2025) | Total Revenues (in 000s) | Y/Y % Change (Reported) | Adjusted EBITDA (in 000s) | Adjusted EBITDA Margin | | :--- | :--- | :--- | :--- | :--- | | **Global RIM Business** | $1,323,798 | 5.9% | $586,303 | 44.3% | | **Global Data Center Business** | $189,401 | 24.0% | $96,266 | 50.8% | | **Corporate and Other** | $198,749 | 51.6% | $(54,181) | n/a | | **Total Consolidated** | $1,711,948 | 11.6% | $628,388 | 36.7% | [Year to Date Operating Performance](index=10&type=section&id=Year%20to%20Date%20Operating%20Performance) YTD 2025 consolidated revenue grew 9.7% to $3.3B, driven by Corporate/Other (42.6%) and Data Center (22.2%), with Adjusted EBITDA at $1.21B Year-to-Date Segment Performance | Segment Performance (YTD 2025) | Total Revenues (in 000s) | Y/Y % Change (Reported) | Adjusted EBITDA (in 000s) | Adjusted EBITDA Margin | | :--- | :--- | :--- | :--- | :--- | | **Global RIM Business** | $2,579,740 | 4.8% | $1,142,617 | 44.3% | | **Global Data Center Business** | $362,598 | 22.2% | $187,082 | 51.6% | | **Corporate and Other** | $362,139 | 42.6% | $(121,405) | n/a | | **Total Consolidated** | $3,304,477 | 9.7% | $1,208,294 | 36.6% | Section IV - Balance Sheets, Statements of Operations and Reconciliations [Financial Statements and Reconciliations](index=11&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents core financial statements and GAAP to non-GAAP reconciliations, showing $20.2B assets, $14.8B long-term debt, Q2 net loss of $43.3M, and $628.4M Adjusted EBITDA Condensed Consolidated Balance Sheet Highlights | Balance Sheet Item (in 000s) | 6/30/2025 (in thousands) | 12/31/2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $1,897,248 | $1,691,222 | | **Property, Plant and Equipment, Net** | $8,774,723 | $7,631,599 | | **Total Assets** | $20,176,789 | $18,717,115 | | **Total Current Liabilities** | $2,998,772 | $3,087,275 | | **Long-term Debt, Net of Current Portion** | $14,818,175 | $13,003,977 | | **Total Liabilities** | $20,745,656 | $19,021,789 | Quarterly Condensed Consolidated Statements of Operations | Income Statement Item (in 000s) | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Y/Y % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,711,948 | $1,534,409 | 11.6% | | **Operating Income (Loss)** | $259,896 | $230,294 | 12.9% | | **Interest Expense, Net** | $205,063 | $176,521 | 16.2% | | **Other Expense (Income), Net** | $81,877 | $5,833 | n/a | | **Net (Loss) Income** | $(43,340) | $34,621 | n/a | | **Net (Loss) Income Attributable to Iron Mountain** | $(44,921) | $35,783 | n/a | Year-to-Date Condensed Consolidated Statements of Operations | Income Statement Item (in 000s) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $3,304,477 | $3,011,272 | 9.7% | | **Operating Income (Loss)** | $514,190 | $475,917 | 8.0% | | **Net (Loss) Income** | $(27,107) | $111,646 | (124.3)% | | **Net (Loss) Income Attributable to Iron Mountain** | $(28,969) | $109,844 | (126.4)% | Reconciliation of Net Income to Adjusted EBITDA | Reconciliation (in 000s) | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Net (Loss) Income** | $(43,340) | $34,621 | $(27,107) | $111,646 | | **Add: Interest, Taxes, D&A** | $473,925 | $414,341 | $915,652 | $805,024 | | **Other Adjustments** | $197,803 | $83,399 | $219,749 | $146,546 | | **Adjusted EBITDA** | $628,388 | $544,361 | $1,208,294 | $1,063,216 | Adjusted Earnings Per Share Reconciliation | EPS Reconciliation | Q2 2025 (per share) | Q2 2024 (per share) | YTD 2025 (per share) | YTD 2024 (per share) | | :--- | :--- | :--- | :--- | :--- | | **Reported EPS - Fully Diluted** | $(0.15) | $0.12 | $(0.10) | $0.37 | | **Adjustments (per share)** | $0.63 | $0.30 | $1.02 | $0.48 | | **Adjusted EPS - Fully Diluted** | $0.48 | $0.42 | $0.92 | $0.85 | Reconciliation of Net Income to FFO and AFFO | Reconciliation (in 000s) | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Y/Y % Change | | :--- | :--- | :--- | :--- | | **Net (Loss) Income** | $(43,340) | $34,621 | n/a | | **FFO (Nareit)** | $62,115 | $139,654 | (55.5)% | | **FFO (Normalized)** | $258,005 | $231,021 | 11.7% | | **AFFO** | $369,744 | $320,901 | 15.2% | FFO and AFFO Per Share Data | Per Share Data | Q2 2025 (per share) | Q2 2024 (per share) | Y/Y % Change | | :--- | :--- | :--- | :--- | | **FFO (Normalized) per Share** | $0.87 | $0.78 | 11.5% | | **AFFO Per Share** | $1.24 | $1.08 | 14.8% | Section V - Storage and Service Reconciliation [Quarterly Storage Rental and Service Business Detail](index=18&type=section&id=Quarterly%20Storage%20Rental%20and%20Service%20Business%20Detail) Q2 2025 Storage Rental gross margin expanded 140 bps to 71.4%, while Service gross margin contracted 120 bps to 33.1% due to rising costs Quarterly Storage Rental and Service Business Performance | Business Detail (Q2 2025) | Storage Rental (in thousands) | Service (in thousands) | | :--- | :--- | :--- | | **Total Revenue (in 000s)** | $1,009,989 | $701,959 | | **Gross Profit (in 000s)** | $727,960 | $229,151 | | **Gross Margin** | 71.4% | 33.1% | | **Y/Y Margin Change** | +140 bps | -120 bps | [Year to Date Storage and Service Business Detail](index=19&type=section&id=Year%20to%20Date%20Storage%20and%20Service%20Business%20Detail) YTD 2025 Storage Rental gross margin expanded 110 bps to 71.0%, while Service gross margin declined 150 bps to 32.8% YoY Year-to-Date Storage Rental and Service Business Performance | Business Detail (YTD 2025) | Storage Rental (in thousands) | Service (in thousands) | | :--- | :--- | :--- | | **Total Revenue (in 000s)** | $1,958,365 | $1,346,112 | | **Gross Profit (in 000s)** | $1,403,245 | $436,191 | | **Gross Margin** | 71.0% | 32.8% | | **Y/Y Margin Change** | +110 bps | -150 bps | Section VI - Real Estate Metrics [Global Real Estate Portfolio and Lease Obligations](index=20&type=section&id=Global%20Real%20Estate%20Portfolio%20and%20Lease%20Obligations) As of June 30, 2025, Iron Mountain's global real estate portfolio included 1,325 facilities (97.8M sq ft), 24.9% owned and 75.1% leased Global Real Estate Portfolio Summary | Portfolio Metric | As of 06/30/2025 | | :--- | :--- | | **Total Facilities** | 1,325 | | **Total Square Feet (in 000s)** | 97,811 | | **Owned Facilities (% of total)** | 17.9% | | **Owned Sq. Ft. (% of total)** | 24.9% | | **Leased Facilities (% of total)** | 82.1% | | **Leased Sq. Ft. (% of total)** | 75.1% | [Facility Lease Expirations](index=20&type=section&id=Facility%20Lease%20Expirations) The company maintains a long-term, staggered lease expiration profile with a 10.2-year WALE and 58.5% of leases expiring after 2033 - The weighted-average remaining operating lease obligation is **10.2 years**[72](index=72&type=chunk) - The lease expiration schedule is long-dated, with **58.5%** of total leased square footage expiring in 2034 and thereafter[71](index=71&type=chunk) Section VII - Data Center Customer and Portfolio Metrics [Data Center Customer Lease Expiration and Leasing Activity Summary](index=21&type=section&id=Data%20Center%20Customer%20Lease%20Expiration%20and%20Leasing%20Activity%20Summary) Data center business shows a strong 10.0-year WALE, with Q2 2025 seeing 2,325 kW new/expansion leases, 19.5% GAAP mark-to-market, and low 0.5% churn - The data center portfolio has a weighted average lease expiry (WALE) of **10.0 years**, with **58.0%** of total MW expiring after 2031[75](index=75&type=chunk) Data Center Leasing Activity Summary | Leasing Activity | Q2 2025 | YTD 2025 | | :--- | :--- | :--- | | **New/expansion leases signed (kW)** | 2,325 (kW/MW) | 6,025 (kW/MW) | | **Churn** | 0.5% | 0.8% | | **Cash Mark to Market** | 13.1% | 15.0% | | **GAAP Mark to Market** | 19.5% | 22.0% | [Data Center Operating Portfolio and Total Potential Capacity](index=22&type=section&id=Data%20Center%20Operating%20Portfolio%20and%20Total%20Potential%20Capacity) Q2 2025 operating data center portfolio reached 450.2 MW (96.3% leased), with total potential capacity expanding to 1,279.9 MW, signaling robust growth Data Center Operating Portfolio Status | Portfolio Status | Leasable MW (kW/MW) | Leased % by MW | | :--- | :--- | :--- | | **Stabilized** | 435.8 | 97.9% | | **Pre-Stabilized** | 14.4 | 50.1% | | **Total Data Center Properties** | 450.2 | 96.3% | Total Data Center Potential Capacity | Potential Capacity (MW) | Q2 2025 (kW/MW) | Q2 2024 (kW/MW) | | :--- | :--- | :--- | | **Operating Portfolio** | 450.2 | 265.7 | | **Under Construction** | 201.5 | 305.5 | | **Held for Development** | 628.2 | 346.6 | | **Total Data Center Portfolio** | 1,279.9 | 917.8 | [Data Center Expansion and Development Activity](index=23&type=section&id=Data%20Center%20Expansion%20and%20Development%20Activity) The company has a substantial data center development pipeline: 201.5 MW under construction (60.2% pre-leased) and 628.2 MW for future development Data Center Development Pipeline | Development Status | MW (kW/MW) | % Pre-Leased | | :--- | :--- | :--- | | **Total Expansion** | 15.5 | 8.3% | | **Total New Development** | 186.0 | 64.5% | | **Total Under Construction** | 201.5 | 60.2% | | **Held for Development** | 628.2 | n/a | Section VIII - Capitalization and Debt Maturity Profile [Capitalization](index=24&type=section&id=Capitalization) As of June 30, 2025, the company maintained a stable 5.0x Net Total Lease-Adjusted Leverage Ratio, $45.8B total enterprise value, 77% fixed-rate debt, and stable credit ratings Capitalization Details | Capitalization Metric | Value | | :--- | :--- | | **Net Total Lease-Adjusted Leverage Ratio** | 5.0x | | **Total Enterprise Value** | $45,769,848 (in thousands) | | **Net Debt to Total Enterprise Value** | 33.8% | | **Fixed Rate Debt** | 77% | | **Weighted Average Interest Rate** | 5.7% | | **Weighted Average Maturity** | 4.5 Years | - Credit ratings are stable, with S&P at **BB-** and Moody's at **Ba3**[90](index=90&type=chunk) [Debt Maturity Profile](index=24&type=section&id=Debt%20Maturity%20Profile) The company maintains a well-laddered debt maturity profile with a 4.5-year weighted average maturity and no significant near-term maturities - The debt maturity schedule is staggered, with the **largest maturities occurring in 2029 ($2.8B), 2030 ($3.0B), and 2031 ($1.9B)**[94](index=94&type=chunk) - The weighted average maturity of total long-term debt is **4.5 years**[90](index=90&type=chunk) Section IX - Capital Expenditures [Quarterly and Year to Date Capital Expenditures and Investments](index=25&type=section&id=Quarterly%20and%20Year%20to%20Date%20Capital%20Expenditures%20and%20Investments) YTD 2025 capital expenditures rose 48.2% to $1.13B, driven by a 53.1% surge in growth capex, with data center investments up 66.8% to $953M Year-to-Date Capital Expenditures | Capital Expenditures (in 000s) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | **Growth: Data Center** | $952,982 | $571,388 | 66.8% | | **Total Growth Capital Expenditures** | $1,070,567 | $699,046 | 53.1% | | **Total Recurring Capital Expenditures** | $62,877 | $65,713 | (4.3)% | | **Total Growth and Recurring Capital Expenditures** | $1,133,444 | $764,759 | 48.2% | Quarterly Capital Expenditures | Capital Expenditures (in 000s) | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Y/Y % Change | | :--- | :--- | :--- | :--- | | **Total Growth Capital Expenditures** | $442,050 | $361,931 | 22.1% | | **Total Recurring Capital Expenditures** | $34,794 | $36,976 | (5.9)% | | **Total Growth and Recurring Capital Expenditures** | $476,844 | $398,906 | 19.5% | Section X - Appendix and Definitions [Appendix and Definitions](index=26&type=section&id=Appendix%20and%20Definitions) This section defines non-GAAP financial measures and key operational terms, including Adjusted EBITDA, FFO, AFFO, organic revenue growth, and outlines the company's business segments - **Adjusted EBITDA** is defined as net income adjusted for interest, taxes, depreciation, amortization, and other specific items like acquisition costs, restructuring, and stock-based compensation[103](index=103&type=chunk) - **AFFO** is defined as FFO (Normalized) adjusted for non-real estate depreciation, amortization of intangibles, non-cash rent, and other items, less recurring capital expenditures[107](index=107&type=chunk) - The company's business is organized into three segments: **Global Records and Information Management (Global RIM)**, **Global Data Center Business**, and **Corporate and Other** (which includes Fine Arts and asset lifecycle management)[110](index=110&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)