01—Abstract
Summary
Summary of the 10-Q filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Iron Mountain Incorporated reported third-quarter 2025 total revenues of $1,754.1 milliona, up 12.6% from $1,557.4 million in the prior-year quarter, and operating income of $308.6 million, up 22.9%.
Net income attributable to Iron Mountain Incorporated was $84.3 millionb, or $0.28 per diluted share, compared with a net loss of $33.6 million, or $(0.11) per share, a year earlier. Adjusted EBITDA rose 16.2% to $660.4 million, with an Adjusted EBITDA Margin of 37.6%, and Adjusted EPS was $0.54 versus $0.44. For the nine months, revenues were $5,058.6 million (up 10.7%) and Adjusted EBITDA was $1,868.7 million (up 14.5%), but net income attributable to the company fell 27.4% to $55.3 million, largely reflecting higher interest expense of $609.5 million and other expense of $106.4 million.
The balance sheet shows continued heavy investment and leverage. Total long-term debt was $16.31 billionc at September 30, 2025, up from $13.84 billion at December 31, 2024, and total stockholders' deficit was $(881.96) million attributable to the company. Cash used in investing activities was $1.97 billion for the nine months, driven by cash capital expenditures of $1.76 billion, and the company expects 2025 capital expenditures of approximately $1.95 billion.
The company issued EUR 1.2 billion of 4.75% Euro Senior Notes due 2034 in September, with net proceeds of $1.39 billiond. 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 2.5 against a minimum of 1.5. Segment results show the data center business as a key growth driver.
Global Data Center Business revenue was $204.1 million in the third quarter, up 33.2%, with a segment Adjusted EBITDA Margin of 52.6%. Global RIM Business revenue rose 6.2% to $1,338.8 million.
Restructuring and other transformation costs for Project Matterhorn totaled $152.4 million for the nine months and $530.9 million since inception, and the company expects the program to be completed by December 31, 2025. On November 5, 2025, the board declared a dividend of $0.864 per share payable January 6, 2026.
02—Key points
Key Highlights
- Third-quarter revenue of $1,754.1 million, up 12.6%, with storage rental up 10.4% and service revenue up 16.0%
- Third-quarter net income attributable to Iron Mountain of $84.3 million ($0.28 per diluted share) versus a net loss of $33.6 million a year earlier
- Adjusted EBITDA of $660.4 million in the third quarter, up 16.2%, with an Adjusted EBITDA Margin of 37.6%; nine-month Adjusted EBITDA margin increased 120 basis points to 36.9%
- Global Data Center Business third-quarter revenue of $204.1 million, up 33.2%, with a segment Adjusted EBITDA Margin of 52.6%
- Total long-term debt of $16.31 billion at September 30, 2025, including EUR 1.2 billion of 4.75% Euro Senior Notes due 2034 issued in September
- Nine-month cash capital expenditures of $1.76 billion; full-year 2025 capital expenditures expected at approximately $1.95 billion
- Quarterly dividend of $0.864 per share declared November 5, 2025, payable January 6, 2026
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 5, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.75B$1.56B | +12.6% |
| SG&A Expenses | $335.25M$341.93M | −2.0% |
| Operating Expenses | $1.45B$1.31B | +10.7% |
| Operating Income | $308.59M$251.16M | +22.9% |
| Net Income | $84.29M-$33.62M | +350.7% |
| EPS (Basic) | $0.28$-0.11 | +354.5% |
| EPS (Diluted) | $0.28$-0.11 | +354.5% |
| Shares Outstanding (Basic) | 295.77M293.60M | +0.7% |
| Shares Outstanding (Diluted) | 297.98M293.60M | +1.5% |
05—Questions
Frequently Asked Questions
How did Iron Mountain perform in the third quarter of 2025?
Total revenues were $1,754.1 million, up 12.6% from $1,557.4 million. Operating income rose 22.9% to $308.6 million, and net income attributable to Iron Mountain was $84.3 million, compared with a net loss of $33.6 million in the prior-year quarter. Adjusted EBITDA increased 16.2% to $660.4 million.
Why did net income decline for the nine months ended September 30, 2025?
Net income attributable to Iron Mountain for the nine months fell 27.4% to $55.3 million from $76.2 million. Interest expense, net rose to $609.5 million from $527.1 million, primarily due to higher average debt outstanding, and other expense, net was $106.4 million, driven mainly by foreign currency transaction losses of $109.6 million. Depreciation and amortization also increased to $746.9 million.
How is the company funding its growth and what is its debt position?
The company completed a private offering of EUR 1.2 billion of 4.75% Euro Senior Notes due 2034 on September 10, 2025, with net proceeds of $1,390.7 million used to repay revolving credit borrowings and to be used to repay the GBP Notes in the fourth quarter of 2025. Total long-term debt was $16.31 billion at September 30, 2025. The Credit Agreement's net total lease adjusted leverage ratio was 5.0 against a maximum allowable of 7.0, and the company stated it was in compliance with its covenants.
What is driving the company's capital spending and what are its expectations?
Nine-month cash capital expenditures were $1,755.4 million, including $1,329.8 million for data centers in growth investment. The company expects total capital expenditures of approximately $1,950.0 million for 2025, excluding capital expenditures for potential future acquisitions, with about $1,800.0 million for growth investment and $150.0 million for recurring capital expenditures.
What is Project Matterhorn and what has it cost?
Project Matterhorn is a global program announced in September 2022 to transform the company's operating model and accelerate growth. Restructuring and other transformation costs related to the program were $152.4 million for the nine months ended September 30, 2025 and approximately $530.9 million from inception through September 30, 2025. The company expects the program to be completed by December 31, 2025.
06—Continue