01—Abstract
Summary
Summary of the 10-Q filed August 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Iron Mountain Incorporated reported second-quarter 2025 total revenues of $1.71 billiona, up 11.6% from $1.53 billion a year earlier, with Adjusted EBITDA of $628.4 million, up 15.4%, and an Adjusted EBITDA Margin of 36.7% versus 35.5%.
The company swung to a net loss of $43.3 millionb for the quarter (net loss attributable to Iron Mountain of $44.9 million, or $(0.15) per diluted share), compared with net income of $34.6 million a year earlier. The filing attributes the deterioration mainly to foreign currency transaction losses of $87.2 million in Other expense (income), net, which primarily reflect movements in the British pound sterling and the Euro against the U.S. dollar on intercompany balances. Adjusted EPS rose to $0.48 from $0.42.
For the six months ended June 30, 2025, total revenues were $3.30 billionc, up 9.7%, and Adjusted EBITDA was $1.21 billion, up 13.6%. Growth was led by the Global Data Center Business, where segment revenue rose 24.0% in the quarter, and by the Global RIM Business, where storage rental revenue grew 6.2%. Cash flows from operating activities were $572.4 million, while capital expenditures were $1.23 billion.
Long-term debt, net of current portion, increased to $14.82 billiond from $13.00 billion at December 31, 2024, and total deficit equity was $(568.9) million. Management reports that its disclosure controls were effective as of June 30, 2025, and that it is in compliance with its Credit Agreement and bond covenants.
The Credit Agreement's net total lease adjusted leverage ratio was 5.0 against a maximum of 7.0, and the fixed charge coverage ratio was 2.4 against a minimum of 1.5. The company expects 2025 capital expenditures of approximately $1.95 billion, excluding potential acquisitions, and it declared a quarterly dividend of $0.785 per share on August 6, 2025.
02—Key points
Key Highlights
- Q2 2025 total revenues rose 11.6% to $1.71 billion, with storage rental revenue up 9.8% and service revenue up 14.2%.
- Q2 2025 Adjusted EBITDA grew 15.4% to $628.4 million, and Adjusted EBITDA Margin expanded to 36.7% from 35.5%.
- The company reported a Q2 2025 net loss attributable to Iron Mountain of $44.9 million, or $(0.15) per diluted share, versus net income of $35.8 million a year earlier, driven by $87.2 million of foreign currency transaction losses.
- Global Data Center Business segment revenue rose 24.0% in Q2 2025 to $189.4 million, with Adjusted EBITDA Margin of 50.8% versus 43.2%.
- Long-term debt, net of current portion, increased to $14.82 billion from $13.00 billion at year-end 2024, and the Term Loan A was increased to $500.0 million from $218.8 million.
- Project Matterhorn restructuring and other transformation costs totaled $105.1 million in the first half of 2025, with about $150.0 million expected in 2025 before the program completes.
- The company expects 2025 capital expenditures of approximately $1.95 billion, excluding potential acquisitions, and declared a $0.785 per share dividend on August 6, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 6, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.71B$1.53B | +11.6% |
| SG&A Expenses | $390.46M$344.84M | +13.2% |
| Operating Expenses | $1.45B$1.30B | +11.3% |
| Operating Income | $259.90M$230.29M | +12.9% |
| Net Income | -$44.92M$35.78M | −225.5% |
| EPS (Basic) | $-0.15$0.12 | −225.0% |
| EPS (Diluted) | $-0.15$0.12 | −225.0% |
| Shares Outstanding (Basic) | 295.36M293.34M | +0.7% |
| Shares Outstanding (Diluted) | 295.36M295.84M | −0.2% |
05—Questions
Frequently Asked Questions
Why did Iron Mountain swing to a net loss in the second quarter of 2025 despite higher revenue and Adjusted EBITDA?
The filing attributes the swing mainly to Other expense (income), net of $81.9 million, which includes foreign currency transaction losses of $87.2 million. These losses primarily reflect changes in the British pound sterling and the Euro against the U.S. dollar on intercompany balances between subsidiaries. Interest expense, net also rose to $205.1 million from $176.5 million, and restructuring and other transformation costs were $50.3 million.
How is the company's debt position and covenant compliance described?
Total long-term debt was $15.70 billion before unamortized deferred financing costs at June 30, 2025, and the carrying amount was $15.60 billion. The remaining availability under the Revolving Credit Facility was $1.65 billion. The company states it is in compliance with its leverage and fixed charge coverage ratios, reporting a net total lease adjusted leverage ratio of 5.0 against a maximum of 7.0 and a fixed charge coverage ratio of 2.4 against a minimum of 1.5.
Where is the company investing its capital, and what does it expect to spend in 2025?
Capital expenditures on a cash basis were $1.23 billion in the first six months of 2025, compared with $777.9 million a year earlier. Of the total capital spend, $952.98 million went to Data Center growth investment. For full-year 2025, the company expects total capital expenditures of approximately $1.95 billion, excluding potential acquisitions, including about $1.80 billion for growth investment and about $150.0 million for recurring capital expenditures.
What changes to the debt structure occurred during the period?
On June 18, 2025, the Credit Agreement was amended to increase the Term Loan A from $218.8 million to $500.0 million, with quarterly principal payments of about $6.3 million starting in September 2025. On June 25, 2025, the Australian dollar term loan was extended to September 30, 2030, increased to 400.0 million Australian dollars, and its interest rate was reduced to BBSY plus 3.500%. The UK Bilateral Revolving Credit Facility was extended to September 24, 2028 on July 11, 2025.
06—Continue