Iron Mountain Q3 profit rises 47.3% to $124M
Nine-month operating cash flow was $1,203.6 million, alongside $1,724.2 million in capital expenditures.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
10-Q
Rhea-AI Filing Summary
Iron Mountain Incorporated (IRM) reported third-quarter 2026 revenue of $1,990.6 million, up 13.5% year over year. Net income attributable to Iron Mountain was $124.1 million, up 47.3%, and diluted earnings per share were $0.41 versus $0.28. Adjusted EBITDA, a non-GAAP measure, was $748.0 million, compared with $660.4 million.
For the first nine months of 2026, revenue was $5,955.8 million, up 17.7%, and net income attributable to Iron Mountain was $369.2 million versus $55.3 million. Operating cash flow was $1,203.6 million, while capital expenditures were $1,724.2 million.
Iron Mountain declared a $0.993-per-share dividend on November 5, 2026, for holders of record December 15, payable January 6, 2027. Its June 26, 2026 private offering issued $1,500 million of 6.25% senior notes due January 15, 2035. Approximately $1,481.8 million of net proceeds were used to repay a portion of outstanding Revolving Credit Facility borrowings and for general corporate purposes.
4 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue grew 13.5% year over year.
- Moderate pointThird-quarter attributable net income rose 47.3% year over year.
- Moderate pointThird-quarter Adjusted EBITDA increased 13.3% year over year.
- Moderate pointThe declared dividend per share rose from $0.864 to $0.993.
Negative
- None.
Filing Explained
Common shares outstanding reached 297,793,337 on September 30 after employee-plan issuance and net settlement.
This Form 10-Q is Iron Mountain's unaudited quarterly report, with a balance sheet dated
Separately,
Issued and outstanding common shares rose from 295,788,645 at December 31, 2025 to 297,793,337 at September 30, 2026; the equity statement reports 2,004,692 shares from issuance and net settlement under employee stock purchase and option plans and stock-based compensation. The higher share count reduces an existing holder's percentage ownership absent offsetting changes.
The company reports that it was in compliance with the leverage and fixed-charge coverage ratios under its debt agreements as of September 30, 2026.
Key Figures
Third-quarter revenue: $1,990.6 million
Net income attributable to Iron Mountain: $124.1 million
Adjusted EBITDA: $748.0 million
+5 more
8 metrics
Third-quarter revenue
$1,990.6 million
Three months ended September 30, 2026; up 13.5% year over year.
Net income attributable to Iron Mountain
$124.1 million
Three months ended September 30, 2026; up 47.3% year over year.
Adjusted EBITDA
$748.0 million
Non-GAAP measure for the three months ended September 30, 2026; up 13.3% year over year.
Nine-month revenue
$5,955.8 million
Nine months ended September 30, 2026; up 17.7% year over year.
Operating cash flow
$1,203.6 million
Nine months ended September 30, 2026.
Capital expenditures
$1,724.2 million
Nine months ended September 30, 2026.
Dividend per share
$0.993
Declared November 5, 2026; payable January 6, 2027, to stockholders of record December 15, 2026.
6.25% Senior Notes due 2035
$1,500 million aggregate principal
Private offering completed June 26, 2026; contractual interest rate 6.25%; due January 15, 2035.
Key Terms
Adjusted EBITDA, FFO (Nareit), remaining performance obligations, net investment hedges
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
FFO (Nareit) financial
"FFO (Nareit) does not give effect to real estate depreciation"
FFO (Nareit) is a standardized measure used by real estate investment trusts to show recurring cash generated from property operations by starting with net income then removing gains or losses on property sales and adding back property depreciation and certain adjustments. Investors use it like a company’s operating scorecard—comparable to checking the cash a rental property actually produces after ignoring accounting write‑downs—and it helps assess dividend sustainability and operating performance across REITs.
remaining performance obligations financial
"remaining performance obligations related to certain customer contracts"
Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.
net investment hedges financial
"designated as net investment hedges"
A net investment hedge is a financial step a company takes to protect the reported value of its ownership in foreign subsidiaries from swings in exchange rates. By using derivatives or foreign‑currency borrowings to offset translation gains or losses, the company reduces how much its balance sheet and reported equity jump around when currencies move — like locking a price tag on a foreign store so its value in the home currency stays steadier for investors.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue and net income did IRM report in Q3 2026?
IRM reported total revenue of $1,990.6 million and net income attributable to Iron Mountain of $124.1 million for the three months ended September 30, 2026. Revenue was up 13.5% and attributable net income was up 47.3% from the corresponding 2025 quarter.
What dividend did IRM declare in November 2026?
Iron Mountain declared a dividend of $0.993 per share on November 5, 2026. It is payable January 6, 2027, to stockholders of record as of December 15, 2026.
What are the terms of IRM's 2035 senior notes?
Iron Mountain completed a private offering on June 26, 2026, of $1,500 million of 6.25% senior notes due January 15, 2035. Approximately $1,481.8 million of net proceeds were used to repay a portion of Revolving Credit Facility borrowings and for general corporate purposes.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
| (Mark One) | |||||
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the Quarterly Period Ended September 30, 2026
| OR | |||||
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
| For the Transition Period from to | |||||
Commission file number 1-13045
(Exact Name of Registrant as Specified in Its Charter)
| (State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||
(Address of Principal Executive Offices, Including Zip Code)
(617 ) 535-4766
(Registrant's Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
☒ | Accelerated filer | ☐ | |||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of October 30, 2026, the registrant had 297,833,786 outstanding shares of common stock, $.01 par value.
Table of Contents
IRON MOUNTAIN INCORPORATED
2026 FORM 10-Q QUARTERLY REPORT
TABLE OF CONTENTS
PART I—FINANCIAL INFORMATION | |||||||||||
1 | ITEM 1. | Unaudited Condensed Consolidated Financial Statements | |||||||||
2 | Condensed Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025 | ||||||||||
3 | Condensed Consolidated Statements of Operations for the Three Months Ended September 30, 2026 and 2025 | ||||||||||
4 | Condensed Consolidated Statements of Operations for the Nine Months Ended September 30, 2026 and 2025 | ||||||||||
5 | Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2026 and 2025 | ||||||||||
6 | Condensed Consolidated Statements of (Deficit) Equity for the Three and Nine Months Ended September 30, 2026 | ||||||||||
7 | Condensed Consolidated Statements of (Deficit) Equity for the Three and Nine Months Ended September 30, 2025 | ||||||||||
8 | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2026 and 2025 | ||||||||||
9 | Notes to Condensed Consolidated Financial Statements | ||||||||||
27 | ITEM 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |||||||||
47 | ITEM 4. | Controls and Procedures | |||||||||
PART II—OTHER INFORMATION | |||||||||||
49 | ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||||
49 | ITEM 5. | Other Information | |||||||||
49 | ITEM 6. | Exhibits | |||||||||
50 | Signatures | ||||||||||
Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 1 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED)
| SEPTEMBER 30, 2026 | DECEMBER 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable (less allowances of $ | |||||||||||
| Prepaid expenses and other | |||||||||||
| Total Current Assets | |||||||||||
| Property, Plant and Equipment: | |||||||||||
| Property, plant and equipment | |||||||||||
| Less—Accumulated depreciation | ( | ( | |||||||||
| Property, Plant and Equipment, Net | |||||||||||
| Other Assets, Net: | |||||||||||
| Goodwill | |||||||||||
| Customer and supplier relationships and other intangible assets | |||||||||||
| Operating lease right-of-use assets | |||||||||||
| Other | |||||||||||
| Total Other Assets, Net | |||||||||||
| Total Assets | $ | $ | |||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Current portion of long-term debt | $ | $ | |||||||||
| Accounts payable | |||||||||||
| Accrued expenses and other current liabilities (includes current portion of operating lease liabilities) | |||||||||||
| Deferred revenue | |||||||||||
| Total Current Liabilities | |||||||||||
| Long-term Debt, net of current portion | |||||||||||
| Long-term Operating Lease Liabilities, net of current portion | |||||||||||
| Other Long-term Liabilities | |||||||||||
| Deferred Income Taxes | |||||||||||
| Commitments and Contingencies | |||||||||||
| Redeemable Noncontrolling Interests | |||||||||||
| (Deficit) Equity: | |||||||||||
| Iron Mountain Incorporated Stockholders' (Deficit) Equity: | |||||||||||
Preferred stock (par value $ | |||||||||||
Common stock (par value $ | |||||||||||
| Additional paid-in capital | |||||||||||
| (Distributions in excess of earnings) Earnings in excess of distributions | ( | ( | |||||||||
| Accumulated other comprehensive items, net | ( | ( | |||||||||
| Total Iron Mountain Incorporated Stockholders' (Deficit) Equity | ( | ( | |||||||||
| Noncontrolling Interests | |||||||||||
| Total (Deficit) Equity | ( | ( | |||||||||
| Total Liabilities and (Deficit) Equity | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 2 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues: | |||||||||||
| Storage rental | $ | $ | |||||||||
| Service | |||||||||||
| Total Revenues | |||||||||||
| Operating Expenses: | |||||||||||
| Cost of sales (excluding depreciation and amortization) | |||||||||||
| Selling, general and administrative | |||||||||||
| Depreciation and amortization | |||||||||||
| Acquisition and Integration Costs | |||||||||||
| Restructuring and other transformation | |||||||||||
Loss (gain) on disposal/write-down of property, plant and equipment, net | |||||||||||
| Total Operating Expenses | |||||||||||
| Operating Income (Loss) | |||||||||||
Interest Expense, Net (includes Interest Income of $ September 30, 2026 and 2025, respectively) | |||||||||||
| Other Expense (Income), Net | ( | ||||||||||
Net Income (Loss) Before Provision (Benefit) for Income Taxes | |||||||||||
| Provision (Benefit) for Income Taxes | |||||||||||
| Net Income (Loss) | |||||||||||
| Less: Net Income (Loss) Attributable to Noncontrolling Interests | |||||||||||
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | $ | |||||||||
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: | |||||||||||
| Basic | $ | $ | |||||||||
| Diluted | $ | $ | |||||||||
| Weighted Average Common Shares Outstanding—Basic | |||||||||||
| Weighted Average Common Shares Outstanding—Diluted | |||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 3 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
| NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues: | |||||||||||
| Storage rental | $ | $ | |||||||||
| Service | |||||||||||
| Total Revenues | |||||||||||
| Operating Expenses: | |||||||||||
| Cost of sales (excluding depreciation and amortization) | |||||||||||
| Selling, general and administrative | |||||||||||
| Depreciation and amortization | |||||||||||
| Acquisition and Integration Costs | |||||||||||
| Restructuring and other transformation | |||||||||||
Loss (gain) on disposal/write-down of property, plant and equipment, net | |||||||||||
| Total Operating Expenses | |||||||||||
| Operating Income (Loss) | |||||||||||
Interest Expense, Net (includes Interest Income of $ September 30, 2026 and 2025, respectively) | |||||||||||
| Other Expense (Income), Net | |||||||||||
Net Income (Loss) Before Provision (Benefit) for Income Taxes | |||||||||||
| Provision (Benefit) for Income Taxes | |||||||||||
Net Income (Loss) | |||||||||||
| Less: Net Income (Loss) Attributable to Noncontrolling Interests | |||||||||||
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | $ | |||||||||
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: | |||||||||||
| Basic | $ | $ | |||||||||
| Diluted | $ | $ | |||||||||
| Weighted Average Common Shares Outstanding—Basic | |||||||||||
| Weighted Average Common Shares Outstanding—Diluted | |||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 4 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(IN THOUSANDS) (UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net Income (Loss) | $ | $ | |||||||||
| Other Comprehensive (Loss) Income: | |||||||||||
| Foreign Currency Translation Adjustment | ( | ( | |||||||||
| Change in Fair Value of Interest Rate Swaps | ( | ||||||||||
| Total Other Comprehensive (Loss) Income | ( | ( | |||||||||
| Comprehensive Income (Loss) | |||||||||||
| Comprehensive Income (Loss) Attributable to Noncontrolling Interests | |||||||||||
| Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated | $ | $ | |||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net Income (Loss) | $ | $ | |||||||||
| Other Comprehensive (Loss) Income: | |||||||||||
| Foreign Currency Translation Adjustment | ( | ||||||||||
| Change in Fair Value of Interest Rate Swaps | ( | ||||||||||
| Reclassifications from Accumulated Other Comprehensive Items, net | |||||||||||
| Total Other Comprehensive (Loss) Income | ( | ||||||||||
| Comprehensive Income (Loss) | |||||||||||
| Comprehensive Income (Loss) Attributable to Noncontrolling Interests | |||||||||||
| Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 5 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF (DEFICIT) EQUITY
(IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| IRON MOUNTAIN INCORPORATED STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | (DISTRIBUTIONS IN EXCESS OF EARNINGS) EARNINGS IN EXCESS OF DISTRIBUTIONS | ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET | NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS | |||||||||||||||||||||||||||||||||||||||||||||
| TOTAL | SHARES | AMOUNTS | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2026 | $ | ( | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Issuance and net settlement of shares under employee stock purchase and option plans and stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Parent cash dividends declared | ( | — | — | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive (loss) income | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests equity contributions and other | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests dividends | ( | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2026 | $ | ( | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| IRON MOUNTAIN INCORPORATED STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | (DISTRIBUTIONS IN EXCESS OF EARNINGS) EARNINGS IN EXCESS OF DISTRIBUTIONS | ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET | NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS | |||||||||||||||||||||||||||||||||||||||||||||
| TOTAL | SHARES | AMOUNTS | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2025 | $ | ( | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Issuance and net settlement of shares under employee stock purchase and option plans and stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Parent cash dividends declared | ( | — | — | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive (loss) income | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests equity contributions and other | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests dividends | ( | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2026 | $ | ( | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 6 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF (DEFICIT) EQUITY
(IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| IRON MOUNTAIN INCORPORATED STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | (DISTRIBUTIONS IN EXCESS OF EARNINGS) EARNINGS IN EXCESS OF DISTRIBUTIONS | ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET | NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS | |||||||||||||||||||||||||||||||||||||||||||||
| TOTAL | SHARES | AMOUNTS | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2025 | $ | ( | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Issuance and net settlement of shares under employee stock purchase and option plans and stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Parent cash dividends declared | ( | — | — | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive (loss) income | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests dividends | ( | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2025 | $ | ( | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| IRON MOUNTAIN INCORPORATED STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | (DISTRIBUTIONS IN EXCESS OF EARNINGS) EARNINGS IN EXCESS OF DISTRIBUTIONS | ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET | NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS | |||||||||||||||||||||||||||||||||||||||||||||
| TOTAL | SHARES | AMOUNTS | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2024 | $ | ( | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Issuance and net settlement of shares under employee stock purchase and option plans and stock-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Parent cash dividends declared | ( | — | — | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests equity contributions | ( | — | — | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests dividends | ( | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2025 | $ | ( | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 7 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS) (UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash Flows from Operating Activities: | |||||||||||
| Net income (loss) | $ | $ | |||||||||
Adjustments to reconcile net income (loss) to cash flows from operating activities: | |||||||||||
| Depreciation | |||||||||||
Amortization (includes amortization of deferred financing costs and discounts of $ | |||||||||||
| Revenue reduction associated with amortization of customer inducements and above- and below-market leases | |||||||||||
| Stock-based compensation expense | |||||||||||
| Provision (benefit) for deferred income taxes | ( | ||||||||||
| Loss (gain) on disposal/write-down of property, plant and equipment, net | |||||||||||
| Loss (gain) associated with the remeasurements of deferred purchase obligations | |||||||||||
| Foreign currency transactions and other, net | ( | ||||||||||
| (Increase) decrease in assets | ( | ( | |||||||||
| (Decrease) increase in liabilities | ( | ( | |||||||||
| Cash Flows from Operating Activities | |||||||||||
| Cash Flows from Investing Activities: | |||||||||||
| Capital expenditures | ( | ( | |||||||||
| Cash paid for acquisitions, net of cash acquired | ( | ( | |||||||||
| Acquisition of customer intangibles | ( | ( | |||||||||
| Contract costs | ( | ( | |||||||||
| Investments in joint ventures and other investments, net | ( | ||||||||||
| Proceeds from sales of property and equipment and other, net | |||||||||||
| Cash Flows from Investing Activities | ( | ( | |||||||||
| Cash Flows from Financing Activities: | |||||||||||
| Repayment of revolving credit facility, term loan facilities and other debt | ( | ( | |||||||||
| Proceeds from revolving credit facility, term loan facilities and other debt | |||||||||||
| Net proceeds from sale of senior note | |||||||||||
| Equity contributions from noncontrolling interests | |||||||||||
| Equity distributions to noncontrolling interests | ( | ( | |||||||||
| Parent cash dividends | ( | ( | |||||||||
| Payment of deferred purchase obligations and other deferred payments | ( | ( | |||||||||
| Net (payments) proceeds associated with employee stock-based awards | ( | ( | |||||||||
| Other, net | ( | ( | |||||||||
| Cash Flows from Financing Activities | |||||||||||
| Effect of Exchange Rates on Cash and Cash Equivalents | ( | ||||||||||
| Increase (Decrease) in Cash and Cash Equivalents | |||||||||||
| Cash and Cash Equivalents, Beginning of Period | |||||||||||
| Cash and Cash Equivalents, End of Period | $ | $ | |||||||||
| Supplemental Information: | |||||||||||
| Cash Paid for Interest | $ | $ | |||||||||
| Cash Paid for Income Taxes, Net | $ | $ | |||||||||
| Non-Cash Investing and Financing Activities: | |||||||||||
| Financing Leases and Other | $ | $ | |||||||||
| Accrued Capital Expenditures | $ | $ | |||||||||
| Deferred Purchase Obligations and Other Deferred Payments | $ | $ | |||||||||
| Dividends Payable | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 8 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share data) (Unaudited)
1. GENERAL
The unaudited condensed consolidated financial statements of Iron Mountain Incorporated, a Delaware corporation, and its subsidiaries ("we" or "us"), have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to those rules and regulations, but we believe that the disclosures included herein are adequate to make the information presented not misleading. The interim condensed consolidated financial statements are presented herein and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair presentation. Interim results are not necessarily indicative of results for a full year.
The Condensed Consolidated Financial Statements and Notes thereto, which are included herein, should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended December 31, 2025 included in our Annual Report on Form 10-K filed with the SEC on February 12, 2026 (our "Annual Report").
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. ACCOUNTS RECEIVABLE
Balance as of December 31, 2025 | $ | |||||||
| Credit memos charged to revenue | ||||||||
| Allowance for bad debts charged to expense | ||||||||
Deductions and other(1) | ( | |||||||
Balance as of September 30, 2026 | $ | |||||||
(1)Primarily consists of the issuance of credit memos, the write-off of accounts receivable and the impact associated with currency translation adjustments.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 9 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. LEASES
We lease facilities for certain warehouses, data centers and office spaces. We also have land leases, including those on which certain facilities are located.
Operating and financing lease right-of-use assets and lease liabilities as of September 30, 2026 and December 31, 2025 are as follows:
| DESCRIPTION | SEPTEMBER 30, 2026 | DECEMBER 31, 2025 | |||||||||
| Assets: | |||||||||||
| Operating lease right-of-use assets | $ | $ | |||||||||
| Liabilities: | |||||||||||
| Current | |||||||||||
| $ | $ | ||||||||||
| Long-term | |||||||||||
| Operating lease liabilities | $ | $ | |||||||||
(1)Financing lease right-of-use assets, current financing lease liabilities and long-term financing lease liabilities are included within Property, Plant and Equipment, Net, Current portion of long-term debt and Long-term Debt, net of current portion, respectively, within our Condensed Consolidated Balance Sheets.
The components of lease expense for the three and nine months ended September 30, 2026 and 2025 are as follows:
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| DESCRIPTION | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Operating lease cost(1) | $ | $ | $ | $ | |||||||||||||||||||
| Financing lease cost: | |||||||||||||||||||||||
| Depreciation of financing lease right-of-use assets | $ | $ | $ | $ | |||||||||||||||||||
| Interest expense for financing lease liabilities | |||||||||||||||||||||||
(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $47,968 and $145,102 for the three and nine months ended September 30, 2026, respectively, and $46,221 and $139,887 for the three and nine months ended September 30, 2025, respectively.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 10 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Other information: Supplemental cash flow information relating to our leases for the nine months ended September 30, 2026 and 2025 is as follows:
| NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||
| CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES: | 2026 | 2025 | |||||||||
| Operating cash flows used in operating leases | $ | $ | |||||||||
| Operating cash flows used in financing leases (interest) | |||||||||||
| Financing cash flows used in financing leases | |||||||||||
| NON-CASH ITEMS: | |||||||||||
| Operating lease modifications and reassessments | $ | $ | ( | ||||||||
| New operating leases (including acquisitions) | |||||||||||
In February 2026, we entered into a finance lease that is expected to commence in the fourth quarter of 2026, with an initial lease term of 31 years. The total undiscounted minimum lease payments for this lease are approximately $223,400 .
C. GOODWILL
Our reporting units as of December 31, 2025 are described in detail in Note 2.l. to Notes to Consolidated Financial Statements included in our Annual Report.
The changes in the carrying value of goodwill attributable to each reportable segment and Corporate and Other (as defined in Note 8) for the nine months ended September 30, 2026 are as follows:
| GLOBAL RIM BUSINESS | GLOBAL DATA CENTER BUSINESS | CORPORATE AND OTHER | TOTAL CONSOLIDATED | ||||||||||||||||||||
Goodwill balance, net of accumulated amortization, as of December 31, 2025 | $ | $ | $ | $ | |||||||||||||||||||
| Non-tax deductible goodwill acquired during the period | |||||||||||||||||||||||
| Fair value and other adjustments | ( | ||||||||||||||||||||||
| Currency effects | ( | ( | ( | ( | |||||||||||||||||||
Goodwill balance, net of accumulated amortization, as of September 30, 2026 | $ | $ | $ | $ | |||||||||||||||||||
Accumulated goodwill impairment balance as of September 30, 2026 | $ | $ | $ | $ | |||||||||||||||||||
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 11 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. FAIR VALUE MEASUREMENTS
The assets and liabilities carried at fair value and measured on a recurring basis as of September 30, 2026 and December 31, 2025 are as follows:
FAIR VALUE MEASUREMENTS AS OF SEPTEMBER 30, 2026 USING | |||||||||||||||||||||||
| DESCRIPTION | TOTAL CARRYING VALUE AS OF SEPTEMBER 30, 2026 | QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)(2) | |||||||||||||||||||
| Money Market Funds | $ | $ | $ | $ | |||||||||||||||||||
| Time Deposits | |||||||||||||||||||||||
| Trading Securities | |||||||||||||||||||||||
| Derivative Assets | |||||||||||||||||||||||
| Derivative Liabilities | |||||||||||||||||||||||
Deferred Purchase Obligations(1) | |||||||||||||||||||||||
FAIR VALUE MEASUREMENTS AS OF DECEMBER 31, 2025 USING | |||||||||||||||||||||||
| DESCRIPTION | TOTAL CARRYING VALUE AS OF DECEMBER 31, 2025 | QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)(2) | |||||||||||||||||||
| Money Market Funds | $ | $ | $ | $ | |||||||||||||||||||
| Time Deposits | |||||||||||||||||||||||
| Trading Securities | |||||||||||||||||||||||
| Derivative Liabilities | |||||||||||||||||||||||
Deferred Purchase Obligations(1) | |||||||||||||||||||||||
(1)The balance as of September 30, 2026 and December 31, 2025 primarily relates to the fair value of the deferred purchase obligation associated with the Regency Transaction (as defined in Note 3 to Notes to Consolidated Financial Statements included in our Annual Report).
(2)The following is a rollforward of the Level 3 liabilities presented above for December 31, 2025 through September 30, 2026:
Balance as of December 31, 2025 | $ | |||||||
| Additions | ||||||||
| Payments | ( | |||||||
| Other changes, including accretion | ||||||||
Balance as of September 30, 2026 | $ | |||||||
The level 3 valuations of the deferred purchase obligations were determined utilizing a discounted cash flow model and take into account our forecasted projections as they relate to the underlying performance of the business. The discounted cash flow model incorporates assumptions as to expected results over the achievement period, including adjustments for volatility and timing, as well as discount rates that account for the risk of the arrangement and overall market risks. Any material change to these assumptions may result in a significantly higher or lower fair value of the deferred purchase obligations.
There were no material items that were measured at fair value on a non-recurring basis as of September 30, 2026 and December 31, 2025 other than those disclosed in Note 2.p. to Notes to Consolidated Financial Statements included in our Annual Report.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 12 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET
The changes in Accumulated other comprehensive items, net for the three and nine months ended September 30, 2026 and 2025 are as follows:
| THREE MONTHS ENDED SEPTEMBER 30, 2026 | THREE MONTHS ENDED SEPTEMBER 30, 2025 | ||||||||||||||||||||||||||||||||||
| FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS | DERIVATIVE FINANCIAL INSTRUMENTS | TOTAL | FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS | DERIVATIVE FINANCIAL INSTRUMENTS | TOTAL | ||||||||||||||||||||||||||||||
| Beginning of Period | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||
| Other comprehensive (loss) income: | |||||||||||||||||||||||||||||||||||
| Foreign currency translation and other adjustments | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Change in fair value of interest rate swaps | ( | ( | |||||||||||||||||||||||||||||||||
| Total other comprehensive (loss) income | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
| End of Period | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2026 | NINE MONTHS ENDED SEPTEMBER 30, 2025 | ||||||||||||||||||||||||||||||||||
| FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS | DERIVATIVE FINANCIAL INSTRUMENTS | TOTAL | FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS | DERIVATIVE FINANCIAL INSTRUMENTS | TOTAL | ||||||||||||||||||||||||||||||
| Beginning of Period | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||
| Other comprehensive (loss) income: | |||||||||||||||||||||||||||||||||||
| Foreign currency translation and other adjustments | ( | ( | |||||||||||||||||||||||||||||||||
| Change in fair value of interest rate swaps | ( | ( | |||||||||||||||||||||||||||||||||
| Reclassifications from accumulated other comprehensive items, net | |||||||||||||||||||||||||||||||||||
| Total other comprehensive (loss) income | ( | ( | ( | ||||||||||||||||||||||||||||||||
| End of Period | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 13 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F. REVENUES
| SEPTEMBER 30, 2026 | DECEMBER 31, 2025 | ||||||||||||||||||||||||||||||||||
| DESCRIPTION | GROSS CARRYING AMOUNT | ACCUMULATED AMORTIZATION | NET CARRYING AMOUNT | GROSS CARRYING AMOUNT | ACCUMULATED AMORTIZATION | NET CARRYING AMOUNT | |||||||||||||||||||||||||||||
| Intake Costs and other fulfillment costs asset | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Commissions asset | ( | ( | |||||||||||||||||||||||||||||||||
Deferred revenue liabilities are reflected in our Condensed Consolidated Balance Sheets as follows:
| DESCRIPTION | LOCATION IN BALANCE SHEET | SEPTEMBER 30, 2026 | DECEMBER 31, 2025(1) | |||||||||||
Deferred revenue—Current(2) | Deferred revenue | $ | $ | |||||||||||
Deferred revenue—Long-term(3) | Other Long-term Liabilities | |||||||||||||
(1) The beginning balance of current and long-term deferred revenue for the year ended December 31, 2025 was $326,882 and $110,601 , respectively.
(2) Approximately half of this revenue is expected to be recognized over the next month, with the remainder expected to be recognized over the next to 12 months. The current deferred revenue accounted for under Accounting Standards Codification 842, Leases ("ASC 842") is approximately $67,600 and $41,600 as of September 30, 2026 and December 31, 2025, respectively.
(3) The long-term deferred revenue accounted for under ASC 842 is approximately $189,600 and $141,100 as of September 30, 2026 and December 31, 2025, respectively.
In addition to our deferred revenue, we have remaining performance obligations related to certain customer contracts that have annual or monthly fixed fees with noncancelable terms. As of September 30, 2026, approximately $254,600 of remaining performance obligations are expected to be recognized as revenue over periods generally ranging from to five years , with approximately 25 % expected to be recognized within the next 12 months. As permitted under Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606"), we do not disclose the value of remaining performance obligations for contracts to which we have applied the "right to invoice" practical expedient (as described in Note 2.s. to Notes to Consolidated Financial Statements included in our Annual Report).
DATA CENTER LESSOR CONSIDERATIONS
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Storage rental revenue(1) | $ | $ | $ | $ | |||||||||||||||||||
(1) Revenue associated with variable lease payments, primarily related to power and connectivity, included within storage rental revenue was approximately $70,800 and $187,600 for the three and nine months ended September 30, 2026, respectively, and $44,800 and $118,300 for the three and nine months ended September 30, 2025, respectively.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 14 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. STOCK-BASED COMPENSATION
Our stock-based compensation expense includes the cost of stock options, restricted stock units ("RSUs") and performance units ("PUs") (together, "Employee Stock-Based Awards").
STOCK-BASED COMPENSATION EXPENSE
Stock-based compensation expense for Employee Stock-Based Awards for the three and nine months ended September 30, 2026 and 2025 is as follows:
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Stock-based compensation expense | $ | $ | $ | $ | |||||||||||||||||||
On March 1, 2026, we granted approximately 74,000 stock options, 552,000 RSUs and 441,000 PUs under the 2014 Plan (as defined in Note 2.t. to Notes to Consolidated Financial Statements included in our Annual Report).
As of September 30, 2026, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards, inclusive of our estimated achievement of the performance metrics, is $121,888 .
H. OTHER EXPENSE (INCOME), NET
Other expense (income), net for the three and nine months ended September 30, 2026 and 2025 consists of the following:
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| DESCRIPTION | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Foreign currency transaction (gains) losses, net(1) | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||
Other, net(2) | ( | ||||||||||||||||||||||
Other Expense (Income), Net | $ | $ | ( | $ | $ | ||||||||||||||||||
(1)The gains for the nine months ended September 30, 2026 primarily consist of the impact of changes in the exchange rate of the Euro against the United States dollar on our intercompany balances with and between certain of our subsidiaries. The losses for the nine months ended September 30, 2025 primarily consist of the impact of changes in the exchange rate of the British pound sterling and the Euro against the United States dollar on our intercompany balances with and between certain of our subsidiaries.
(2)Other, net for the three and nine months ended September 30, 2026 primarily consists of a loss of approximately $10,200 and $69,900 , respectively, due to the change in value of our deferred purchase obligations and other deferred payments.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 15 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. INCOME TAXES
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
2026(1) | 2025(2) | 2026(1) | 2025(2) | ||||||||||||||||||||
| Effective Tax Rate | % | % | % | % | |||||||||||||||||||
(1)The primary reconciling items between the federal statutory tax rate of 21.0 21.0
(2)The primary reconciling items between the federal statutory tax rate of 21.0 % and our overall effective tax rate for the three months ended September 30, 2025 were the (i) benefits derived from the dividends paid deduction and (ii) the differences in the tax rates to which our foreign earnings are subject. The primary reconciling items between the federal statutory tax rate of 21.0 % and our overall effective tax for the nine months ended September 30, 2025 were the (i) lack of tax benefits recognized for the foreign exchange losses we recorded in Other expense (income), net, during the period, (ii) lack of tax benefits recognized for the year to date ordinary losses of certain entities, (iii) disallowed interest expenses of certain entities and (iv) differences in the tax rates to which our foreign earnings are subject, partially offset by (v) benefits derived from the dividends paid deduction.
Effective on January 1, 2026, the One Big Beautiful Bill Act increased the maximum allowable value of a REIT’s total assets held in one or more taxable REIT subsidiaries at the end of any quarter from 20% to 25%.
J. INCOME (LOSS) PER SHARE—BASIC AND DILUTED
The calculations of basic and diluted income (loss) per share for the three and nine months ended September 30, 2026 and 2025 are as follows:
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net Income (Loss) | $ | $ | $ | $ | |||||||||||||||||||
| Less: Net Income (Loss) Attributable to Noncontrolling Interests | |||||||||||||||||||||||
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | $ | $ | $ | |||||||||||||||||||
| Weighted-average shares—basic | |||||||||||||||||||||||
| Effect of potentially dilutive stock options | |||||||||||||||||||||||
| Effect of potentially dilutive RSUs and PUs | |||||||||||||||||||||||
| Weighted-average shares—diluted | |||||||||||||||||||||||
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: | |||||||||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||||||||
| Antidilutive stock options, RSUs and PUs excluded from the calculation | |||||||||||||||||||||||
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 16 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
3. INVESTMENTS
Our joint venture with AGC Equity Partners (the "Frankfurt JV") is accounted for as an equity method investment and is presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying value and equity interest in the unconsolidated Frankfurt JV as of September 30, 2026 and December 31, 2025 is as follows:
SEPTEMBER 30, 2026 | DECEMBER 31, 2025 | ||||||||||||||||||||||
| CARRYING VALUE | EQUITY INTEREST | CARRYING VALUE | EQUITY INTEREST | ||||||||||||||||||||
Frankfurt JV | $ | % | $ | % | |||||||||||||||||||
4. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Derivative instruments we are party to include: (i) interest rate swap agreements (which are designated as cash flow hedges) and (ii) cross-currency swap agreements (which are designated as net investment hedges).
INTEREST RATE SWAP AGREEMENTS DESIGNATED AS CASH FLOW HEDGES
We utilize interest rate swap agreements designated as cash flow hedges to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. Certain of our interest rate swap agreements have notional amounts that will increase with the underlying hedged transaction. Under our interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon the one-month Secured Overnight Financing Rate ("SOFR"), in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements. Our interest rate swap agreements are marked to market at the end of each reporting period, representing the fair values of the interest rate swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities.
As of September 30, 2026 and December 31, 2025, we have approximately $770,000 and $1,349,000 , respectively, in notional value outstanding on our interest rate swap agreements. As of September 30, 2026, our interest rate swap agreements have maturity dates ranging from February 2027 through June 2029.
CROSS-CURRENCY SWAP AGREEMENTS DESIGNATED AS NET INVESTMENT HEDGES
We utilize cross-currency swaps to hedge the variability of exchange rate impacts between the United States dollar and certain of our foreign functional currencies, including the Euro, the Canadian dollar and the Singapore dollar. As of September 30, 2026, our cross-currency swap agreements have maturity dates ranging from November 2026 through February 2029.
The notional values of our cross-currency swaps, by hedged currency, as of September 30, 2026 and December 31, 2025, are as follows:
| SEPTEMBER 30, 2026 | DECEMBER 31, 2025 | ||||||||||
| Euro | $ | $ | |||||||||
| Canadian dollar | |||||||||||
| Singapore dollar | |||||||||||
| $ | $ | ||||||||||
We have designated these cross-currency swap agreements as hedges of net investments in our Euro, Canadian dollar and Singapore dollar denominated subsidiaries and they require an exchange of the notional amounts at maturity. These cross-currency swap agreements are marked to market at the end of each reporting period, representing the fair values of the cross-currency swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities. The excluded component of our cross-currency swap agreements is recorded in Accumulated other comprehensive items, net and amortized to interest expense on a straight-line basis.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 17 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
4. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (CONTINUED)
The fair values of derivative instruments recognized in our Condensed Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025, by derivative instrument, are as follows:
| SEPTEMBER 30, 2026 | DECEMBER 31, 2025 | ||||||||||||||||||||||
DERIVATIVE INSTRUMENTS(1) | ASSETS | LIABILITIES | ASSETS | LIABILITIES | |||||||||||||||||||
| Interest rate swap agreements | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Net Investment Hedges(3) | |||||||||||||||||||||||
| Cross-currency swap agreements | ( | ( | |||||||||||||||||||||
(1)Our derivative assets are included as a component of (i) Prepaid expenses and other or (ii) Other within Other assets, net and our derivative liabilities are included as a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Condensed Consolidated Balance Sheets. As of September 30, 2026, $4,738 is included within Prepaid expenses and other, $4,259 is included within Other assets, $554 is included within Accrued expenses and other current liabilities and $49,355 is included within Other long-term liabilities. As of December 31, 2025, $63,634 is included within Accrued expenses and other current liabilities and $8,235 is included within Other long-term liabilities.
(2)As of September 30, 2026, cumulative net gains recorded within Accumulated other comprehensive items, net associated with our interest rate swap agreements are $3,361 .
(3)As of September 30, 2026, cumulative net losses recorded within Accumulated other comprehensive items, net associated with our cross-currency swap agreements are $44,273 . In addition, we have cumulative net gains of $50,889 related to the excluded component of our cross-currency swap agreements recorded within Accumulated other comprehensive items, net.
Unrealized gains (losses) recognized in Accumulated other comprehensive items, net during the three and nine months ended September 30, 2026 and 2025, by derivative instrument, are as follows:
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| DERIVATIVE INSTRUMENTS | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Cash Flow Hedges | |||||||||||||||||||||||
| Interest rate swap agreements | $ | $ | ( | $ | $ | ( | |||||||||||||||||
| Net Investment Hedges | |||||||||||||||||||||||
| Cross-currency swap agreements | ( | ||||||||||||||||||||||
| Cross-currency swap agreements (excluded component) | ( | ( | |||||||||||||||||||||
(Losses) gains recognized in Net income (loss) during the three and nine months ended September 30, 2026 and 2025, by derivative instrument, are as follows:
| LOCATION OF (LOSS) GAIN | THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||||
| DERIVATIVE INSTRUMENTS | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Cash Flow Hedges | ||||||||||||||||||||||||||
| Interest rate swap agreements | Interest expense | $ | $ | $ | ( | $ | ||||||||||||||||||||
| Net Investment Hedges | ||||||||||||||||||||||||||
| Cross-currency swap agreements (excluded component) | Interest expense | ( | ( | |||||||||||||||||||||||
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 18 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
5. DEBT
Long-term debt is as follows:
| SEPTEMBER 30, 2026 | DECEMBER 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT (INCLUSIVE OF DISCOUNT) | UNAMORTIZED DEFERRED FINANCING COSTS | CARRYING AMOUNT | FAIR VALUE | DEBT (INCLUSIVE OF DISCOUNT) | UNAMORTIZED DEFERRED FINANCING COSTS | CARRYING AMOUNT | FAIR VALUE | ||||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility(1) | $ | $ | ( | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Term Loan A(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loan B(1) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Virginia 3 Term Loans due 2026 | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Virginia 6 Term Loans(2) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Virginia 7 Term Loans(2) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Virginia 9 Term Loans(3) | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Virginia 4/5 Term Loans due 2030(2) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Virginia 3 Term Loans due 2031(3) | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Australian Dollar Term Loan(2) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
UK Revolving Credit Facility(2) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
47/8% Notes due 2027(2)(4) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
51/4% Notes due 2028(2)(4) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
5% Notes due 2028(2)(4) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
7% Notes(2)(4) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
47/8% Notes due 2029(2)(4) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
51/4% Notes due 2030(2)(4) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
41/2% Notes(2)(4) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
5% Notes due 2032(2) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
55/8% Notes(2)(4) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
61/4% Notes(2)(4) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Euro Notes(2)(4) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
61/4% Senior Notes due 2035 (the "61/4% Notes due 2035")(4)(5) | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Mortgages, Financing Lease Liabilities and Other | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable Securitization Program | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Long-term Debt | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Current Portion | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt, Net of Current Portion | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
(1)Collectively, the “Credit Agreement”. The Credit Agreement consists of a revolving credit facility (the “Revolving Credit Facility”), a term loan A facility (the “Term Loan A”) and a term loan B facility (the "Term Loan B"). The remaining amount available for borrowing under the Revolving Credit Facility as of September 30, 2026 was $2,218,218 (which represents the maximum availability as of such date). The weighted average interest rate in effect under the Revolving Credit Facility was 5.7 % as of September 30, 2026.
(2)Each as defined in Note 6 to Notes to Consolidated Financial Statements included in our Annual Report.
(3)We believe the fair value (Level 2 of the fair value hierarchy described in Note 2.p. to Notes to Consolidated Financial Statements included in our Annual Report) of this debt instrument approximates its carrying value as these borrowings are based on current market interest rates.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 19 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
5. DEBT (CONTINUED)
(4)Collectively, the "Parent Notes". Iron Mountain Incorporated ("IMI") is the direct obligor on the Parent Notes, which are fully and unconditionally guaranteed, on a senior basis, by the Note Guarantors. These guarantees are joint and several obligations of the Note Guarantors. The remainder of our subsidiaries do not guarantee the Parent Notes.
(5)The fair value (Level 2 of the fair value hierarchy described in Note 2.p. to Notes to Consolidated Financial Statements included in our Annual Report) of this debt instrument is based on a quoted market price for comparable notes on September 30, 2026.
See Note 6 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding our long-term debt, including the direct obligors of each of our debt instruments as well as information regarding the fair value of our debt instruments (including the levels of the fair value hierarchy used to determine the fair value of our debt instruments, which are consistent with the levels of the fair value hierarchy used to determine the fair value of our debt as of September 30, 2026).
DATA CENTER DEBT AGREEMENTS
On January 9, 2026, Iron Mountain Data Centers Virginia 3, LLC and Iron Mountain Data Centers Virginia 3 Intermediate II, LLC, both wholly-owned subsidiaries of IMI, entered into a mortgage loan agreement and a mezzanine loan agreement with a total original principal balance of $433,000 (the "Virginia 3 Term Loans due 2031"). The Virginia 3 Term Loans due 2031 are secured by the property of Iron Mountain Data Centers Virginia 3, LLC and are scheduled to mature on January 9, 2031, at which point all obligations will become due. The Virginia 3 Term Loans due 2031 bear interest at a weighted average rate of 6.3 %. Total net proceeds from the Virginia 3 Term Loans due 2031 were used to repay the Virginia 3 Term Loans due 2026 (defined as the Virginia 3 Term Loans in Note 6 to Notes to Consolidated Financial Statements included in our Annual Report) and a portion of the outstanding borrowings under the Revolving Credit Facility.
On June 9, 2026, Iron Mountain Data Centers Virginia 9, LLC, an indirect subsidiary of IMI, entered into a credit agreement that includes a term loan facility (the "Virginia 9 Term Loans") and a letter of credit facility (collectively, the "Virginia 9 Credit Agreement"), under which we have the option to borrow, in the form of term loans, an aggregate outstanding amount not to exceed $298,000 . The Virginia 9 Term Loans bear interest at SOFR plus 3.00 %. The Virginia 9 Credit Agreement requires the payment of a commitment fee on any unused commitments at a rate of 0.90 %. The Virginia 9 Credit Agreement is secured by the equity interests and assets of Iron Mountain Data Centers Virginia 9, LLC and is scheduled to mature on June 9, 2029, at which point all obligations will become due. We have two one-year options that allow us to extend the maturity date, subject to the conditions specified in the Virginia 9 Credit Agreement. As of September 30, 2026, we had $138,627 outstanding on the Virginia 9 Term Loans and the interest rate in effect under the Virginia 9 Credit Agreement was 6.9 %.
ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM On May 28, 2026, we amended the Accounts Receivable Securitization Program (as defined in Note 6 to Notes to Consolidated Financial Statements included in our Annual Report) to (i) include the sale of accounts receivable from certain of our wholly-owned Canadian entities, (ii) increase the maximum borrowing capacity from $ | MAXIMUM AMOUNT $ OUTSTANDING BORROWING $ INTEREST RATE As of September 30, 2026 | |||||||||||||
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 20 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
5. DEBT (CONTINUED)
JUNE 2026 OFFERING
On June 26, 2026, IMI completed a private offering of:
| SERIES OF NOTES | AGGREGATE PRINCIPAL AMOUNT | MATURITY DATE | INTEREST PAYMENT DUE | PAR CALL DATE(1) | ||||||||||
61/4% Notes due 2035 | $ | January 15, 2035 | January 15 and July 15 | July 15, 2031 | ||||||||||
(1)We may redeem the 61/4% Notes due 2035 at any time, at our option, in whole or in part. Prior to the par call date, we may redeem the 61/4% Notes due 2035 at the redemption price or make-whole premium specified in the indenture governing the 61/4% Notes due 2035, together with accrued and unpaid interest to, but excluding, the redemption date. On or after the par call date, we may redeem the 61/4% Notes due 2035 at a price equal to 100 % of the principal amount being redeemed, together with accrued and unpaid interest to, but excluding, the redemption date.
The 61/4% Notes due 2035 were issued at par and have a contractual interest rate of 6.25 %. The total net proceeds from the issuance, after deducting the initial purchasers' commissions and third-party fees, of approximately $1,481,800 were used to repay a portion of the outstanding borrowings under the Revolving Credit Facility and for general corporate purposes. As of September 30, 2026, we had $1,500,000 outstanding on the 61/4% Notes due 2035.
LETTERS OF CREDIT
As of September 30, 2026, we have outstanding letters of credit totaling $61,252 , of which $12,282 reduces our borrowing capacity under the Revolving Credit Facility. The letters of credit expire at various dates between December 2026 and December 2027.
DEBT COVENANTS
The Credit Agreement, certain of our bond indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take other specified corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our bond indentures or other agreements governing our indebtedness. The Credit Agreement requires that we satisfy a net total lease adjusted leverage ratio and a fixed charge coverage ratio on a quarterly basis, and certain of our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted) as a condition to taking actions such as paying dividends and incurring indebtedness.
6. COMMITMENTS AND CONTINGENCIES
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 21 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
7. STOCKHOLDERS' EQUITY MATTERS
DIVIDENDS
In fiscal year 2025 and the nine months ended September 30, 2026, our board of directors declared the following dividends:
| DECLARATION DATE | DIVIDEND PER SHARE | RECORD DATE | TOTAL AMOUNT | PAYMENT DATE | |||||||||||||||||||
| February 13, 2025 | $ | March 17, 2025 | $ | April 4, 2025 | |||||||||||||||||||
| May 1, 2025 | June 16, 2025 | July 3, 2025 | |||||||||||||||||||||
| August 6, 2025 | September 15, 2025 | October 3, 2025 | |||||||||||||||||||||
| November 5, 2025 | December 15, 2025 | January 6, 2026 | |||||||||||||||||||||
| February 12, 2026 | March 16, 2026 | April 3, 2026 | |||||||||||||||||||||
| April 30, 2026 | June 15, 2026 | July 6, 2026 | |||||||||||||||||||||
| August 5, 2026 | September 15, 2026 | October 2, 2026 | |||||||||||||||||||||
On November 5, 2026, we declared a dividend to our stockholders of record as of December 15, 2026 of $0.993 per share, payable on January 6, 2027.
NONCONTROLLING INTERESTS
During the quarter ended June 30, 2026, we entered into an agreement with a partner to form our Iron Mountain Data Centers Virginia 9 JV, LP joint venture, which resulted in initial Noncontrolling interests of approximately $49,900 recorded in our Condensed Consolidated Balance Sheet.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 22 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
8. SEGMENT INFORMATION
Our Chief Operating Decision Maker (“CODM”), our President and CEO, uses Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments . The CODM uses Adjusted EBITDA to ensure that resources, including capital, are allocated strategically to support our strategy.
Our reportable segments as of December 31, 2025 are described in Note 10 to Notes to Consolidated Financial Statements included in our Annual Report. Our reportable segments are as follows:
•Global RIM Business
•Global Data Center Business
The remaining activities of our business consist primarily of our asset lifecycle management ("ALM") and Fine Arts businesses and other corporate items ("Corporate and Other").
The operations associated with acquisitions completed during the first nine months of 2026 have been incorporated into Corporate and Other.
An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2026 and 2025 is as follows:
| GLOBAL RIM BUSINESS | GLOBAL DATA CENTER BUSINESS | TOTAL REPORTABLE SEGMENTS | CORPORATE AND OTHER | TOTAL CONSOLIDATED | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2026 | |||||||||||||||||||||||||||||
| Total Revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Storage Rental | |||||||||||||||||||||||||||||
| Service | |||||||||||||||||||||||||||||
Other Segment Items(1) | |||||||||||||||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||
| Total Revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Storage Rental | |||||||||||||||||||||||||||||
| Service | |||||||||||||||||||||||||||||
Other Segment Items(1) | |||||||||||||||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||||||||
As of and for the Nine Months Ended September 30, 2026 | |||||||||||||||||||||||||||||
| Total Revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Storage Rental | |||||||||||||||||||||||||||||
| Service | |||||||||||||||||||||||||||||
Other Segments Items(1) | |||||||||||||||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||||||||
Total Assets(2) | |||||||||||||||||||||||||||||
As of and for the Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||
| Total Revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Storage Rental | |||||||||||||||||||||||||||||
| Service | |||||||||||||||||||||||||||||
Other Segment Items(1) | |||||||||||||||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||||||||
Total Assets(2) | |||||||||||||||||||||||||||||
(1)Relates to Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the respective reportable segment. The CODM does not regularly review disaggregated expense information included within “Other Segment Items” for any individual segments but may review consolidated Cost of sales (excluding depreciation and amortization) and consolidated Selling, general and administrative expense information to manage the business.
(2)Excludes all intercompany receivables or payables and investment in subsidiary balances.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 23 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
8. SEGMENT INFORMATION (CONTINUED)
A reconciliation of Adjusted EBITDA for our reportable segments to total Net Income (Loss) Before Provision (Benefit) for Income Taxes for the three and nine months ended September 30, 2026 and 2025 is as follows:
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Total Adjusted EBITDA for Reportable Segments | $ | $ | $ | $ | |||||||||||||||||||
| Add/(Deduct): | |||||||||||||||||||||||
| Corporate and other | ( | ( | ( | ( | |||||||||||||||||||
| Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
| Depreciation and amortization | ( | ( | ( | ( | |||||||||||||||||||
Acquisition and Integration Costs(1) | ( | ( | ( | ( | |||||||||||||||||||
| Restructuring and other transformation | ( | ( | |||||||||||||||||||||
| (Loss) gain on disposal/write-down of property, plant and equipment, net (including real estate) | ( | ( | ( | ( | |||||||||||||||||||
| Other (expense) income, net, excluding our share of (losses) gains from our unconsolidated joint ventures | ( | ( | ( | ||||||||||||||||||||
| Stock-based compensation expense | ( | ( | ( | ( | |||||||||||||||||||
| Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures | ( | ( | ( | ( | |||||||||||||||||||
Total Net Income (Loss) Before Provision (Benefit) for Income Taxes | $ | $ | $ | $ | |||||||||||||||||||
(1)Represents operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance and system integration costs (collectively, "Acquisition and Integration Costs").
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 24 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
8. SEGMENT INFORMATION (CONTINUED)
Segment revenue by product and service lines for the three and nine months ended September 30, 2026 and 2025 is as follows:
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Global RIM Business | |||||||||||||||||||||||
Records Management(1) | $ | $ | $ | $ | |||||||||||||||||||
Data Management(1) | |||||||||||||||||||||||
Information Destruction(1)(2) | |||||||||||||||||||||||
Data Center(1) | |||||||||||||||||||||||
| Global Data Center Business | |||||||||||||||||||||||
Records Management(1) | $ | $ | $ | $ | |||||||||||||||||||
Data Management(1) | |||||||||||||||||||||||
Information Destruction(1) | |||||||||||||||||||||||
Data Center(1) | |||||||||||||||||||||||
| Corporate and Other | |||||||||||||||||||||||
Records Management(1) | $ | $ | $ | $ | |||||||||||||||||||
Data Management(1) | |||||||||||||||||||||||
Information Destruction(1)(3) | |||||||||||||||||||||||
Data Center(1) | |||||||||||||||||||||||
| Total Consolidated | |||||||||||||||||||||||
Records Management(1) | $ | $ | $ | $ | |||||||||||||||||||
Data Management(1) | |||||||||||||||||||||||
Information Destruction(1)(2)(3) | |||||||||||||||||||||||
Data Center(1) | |||||||||||||||||||||||
(1)Each of these offerings has a component of revenue that is storage rental related and a component that is service related, except for information destruction, which does not have a storage rental component.
(2)Information destruction revenue for our Global RIM Business includes secure shredding services.
(3)Information destruction revenue for Corporate and Other includes product revenue from our ALM business.
9. RELATED PARTIES
We have agreements with the Frankfurt JV whereby we earn various fees, including (i) special project revenue and (ii) property management and construction and development fees for services we are providing to the Frankfurt JV (the "Frankfurt JV Agreements").
Revenue recognized in the accompanying Condensed Consolidated Statements of Operations under these agreements for the three and nine months ended September 30, 2026 and 2025 is as follows (approximately):
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Frankfurt JV Agreements(1) | $ | $ | $ | $ | |||||||||||||||||||
(1)Revenue associated with the Frankfurt JV Agreements is presented as a component of our Global Data Center Business segment.
IRON MOUNTAIN SEPTEMBER 30, 2026 FORM 10-Q | 25 | ||||||||||
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
10. RESTRUCTURING AND OTHER TRANSFORMATION
PROJECT MATTERHORN
In 2025, we completed our investments in Project Matterhorn, a global program designed to accelerate the growth of our business ("Project Matterhorn"), which we announced in September 2022. The implementation of Project Matterhorn resulted in Restructuring and other transformation costs which were comprised of: (1) restructuring costs, which included (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities, and (2) other transformation costs, which included professional fees such as project management costs and costs for third party consultants who assisted in the enablement of our growth initiatives.
As Project Matterhorn was completed as of December 31, 2025, there were no 47,346 and $152,432 , respectively, and consisted of (i) restructuring costs of $21,502 and $61,604 , respectively, and (ii) other transformation costs of $25,844 and $90,828 , respectively.
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Part I. Financial Information
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations for the three and nine months ended September 30, 2026 should be read in conjunction with our Condensed Consolidated Financial Statements and Notes thereto for the three and nine months ended September 30, 2026, included herein, and our Consolidated Financial Statements and Notes thereto for the year ended December 31, 2025, included in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission ("SEC") on February 12, 2026 (our "Annual Report").
FORWARD-LOOKING STATEMENTS
We have made statements in this Quarterly Report that constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our current expectations regarding our future results from operations, economic performance, financial condition, goals, strategies, investment objectives, plans and achievements. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as "believes", "expects", "anticipates", "estimates", "plans", "intends", "pursue", "commits", "will" or similar expressions, we are making forward-looking statements. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. In addition, important factors that could cause actual results to differ from expectations include, among others:
•our ability or inability to execute our strategic growth plan, including our ability to invest according to plan, grow our businesses (including through joint ventures or other co-investment vehicles), incorporate alternative technologies (including artificial intelligence) into our business, achieve satisfactory returns on new product offerings, continue our revenue management, expand and manage our global operations, complete acquisitions on satisfactory terms, integrate acquired companies efficiently and transition to more sustainable sources of energy;
•changes in customer preferences and demand for our storage and information management services, including as a result of the shift from paper and tape storage to alternative technologies that require less physical space or services activity;
•the costs of complying with and our ability to comply with laws, regulations and customer requirements, including those relating to data privacy and cybersecurity issues, as well as fire and safety and environmental standards, and regulatory and contractual requirements under government contracts;
•the impact of attacks on our internal information technology ("IT") systems, including the impact of such incidents on our reputation and ability to compete and any litigation or disputes that may arise in connection with such incidents;
•our ability to fund capital expenditures;
•the impact of our distribution requirements on our ability to execute our business plan;
•our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes ("REIT");
•changes in the political and economic environments in the countries in which we operate and changes in the global political climate;
•our ability to raise debt or equity capital and changes in the cost of our debt;
•our ability to comply with our existing debt obligations and restrictions in our debt instruments;
•the impact of service interruptions or equipment damage and the cost of power on our data center operations;
•the cost or potential liabilities associated with real estate necessary for our business;
•unexpected events, including those resulting from climate change or geopolitical events, could disrupt our operations and adversely affect our reputation and results of operations;
•fluctuations in commodity prices;
•competition for customers;
•our ability to attract, develop, and retain key personnel;
•deficiencies in our disclosure controls and procedures or internal control over financial reporting;
•other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated; and
•the other risks described in our periodic reports filed with the SEC, including under the caption "Risk Factors" in Part I, Item 1A of our Annual Report.
Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this report.
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Part I. Financial Information
OVERVIEW
The following discussions set forth, for the periods indicated, management's discussion and analysis of financial condition and results of operations. Significant trends and changes are discussed for the three and nine months ended September 30, 2026 within each section. Trends and changes that are consistent for both the three and nine month periods are not repeated and are discussed on a year to date basis only.
GENERAL
RESULTS OF OPERATIONS—KEY TRENDS
•Our organic storage rental revenue growth is primarily driven by revenue management in our Global RIM Business segment, where we expect volume to be relatively stable in the near term, as well as by growth in our Global Data Center Business segment, primarily driven by lease commencements.
•Our organic service revenue growth is primarily driven by new and existing digital offerings, traditional records management services and services in our asset lifecycle management ("ALM") business, all of which we expect to grow in the near term and benefit our organic service revenue growth in 2026.
•We expect continued total revenue and Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") growth in 2026 as a result of our focus on new product and service offerings, cross-selling opportunities, innovation, customer solutions and market expansion in line with our growth strategies.
Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the nine months ended September 30, 2026 consists of the following:
| COST OF SALES | SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | |||||||
 |  | |||||||
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Part I. Financial Information
NON-GAAP MEASURES
ADJUSTED EBITDA
We define Adjusted EBITDA as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically:
| EXCLUDED | ||||||||
•Acquisition and Integration Costs (as defined below) •Restructuring and other transformation •Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate) | •Other expense (income), net •Stock-based compensation expense •Intangible impairments | |||||||
Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues. We also show Adjusted EBITDA and Adjusted EBITDA Margin for each of our reportable segments under "Results of Operations – Segment Analysis" below.
Adjusted EBITDA excludes both interest expense, net and the provision (benefit) for income taxes. These expenses are associated with our capitalization and tax structures, which we do not consider when evaluating the operating profitability of our core operations. Adjusted EBITDA does not include depreciation and amortization expenses, in order to eliminate the impact of capital investments, which we evaluate by comparing capital expenditures to incremental revenue generated and as a percentage of total revenues. Adjusted EBITDA and Adjusted EBITDA Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with accounting principles generally accepted in the United States of America ("GAAP"), such as operating income (loss), net income (loss) or cash flows from operating activities.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (IN THOUSANDS):
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net Income (Loss) | $ | 128,878 | $ | 86,241 | $ | 383,979 | $ | 59,134 | |||||||||||||||
| Add/(Deduct): | |||||||||||||||||||||||
| Interest expense, net | 216,521 | 209,740 | 663,788 | 609,541 | |||||||||||||||||||
| Provision (Benefit) for Income Taxes | 56,734 | 16,594 | 98,654 | 47,725 | |||||||||||||||||||
| Depreciation and amortization | 291,796 | 262,203 | 841,030 | 746,923 | |||||||||||||||||||
Acquisition and Integration Costs(1) | 4,547 | 5,402 | 9,152 | 16,040 | |||||||||||||||||||
| Restructuring and other transformation | — | 47,346 | — | 152,432 | |||||||||||||||||||
Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate) | 8,288 | 3,366 | 27,387 | 7,975 | |||||||||||||||||||
Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures | 7,827 | (5,329) | 35,488 | 102,751 | |||||||||||||||||||
| Stock-based compensation expense | 30,867 | 32,147 | 115,911 | 118,595 | |||||||||||||||||||
| Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures | 2,500 | 2,669 | 7,526 | 7,557 | |||||||||||||||||||
| Adjusted EBITDA | $ | 747,958 | $ | 660,379 | $ | 2,182,915 | $ | 1,868,673 | |||||||||||||||
(1)Represents operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance and system integration costs (collectively, "Acquisition and Integration Costs").
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Part I. Financial Information
ADJUSTED EPS
We define Adjusted EPS as reported earnings per share fully diluted from net income (loss) attributable to Iron Mountain Incorporated (inclusive of our share of adjusted losses (gains) from our unconsolidated joint ventures) and excluding certain items, specifically:
| EXCLUDED | ||||||||
•Acquisition and Integration Costs •Restructuring and other transformation •Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate) •Other expense (income), net | •Stock-based compensation expense •Non-cash amortization related to derivative instruments •Tax impact of reconciling items and discrete tax items •Amortization related to the write-off of certain customer relationship intangible assets | |||||||
We do not believe these excluded items to be indicative of our ongoing operating results, and they are not considered when we are forecasting our future results. We believe Adjusted EPS is of value to our current and potential investors when comparing our results from past, present and future periods.
RECONCILIATION OF REPORTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED TO ADJUSTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED:
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Reported EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 0.41 | $ | 0.28 | $ | 1.23 | $ | 0.19 | |||||||||||||||
| Add/(Deduct): | |||||||||||||||||||||||
| Acquisition and Integration Costs | 0.02 | 0.02 | 0.03 | 0.05 | |||||||||||||||||||
| Restructuring and other transformation | — | 0.16 | — | 0.51 | |||||||||||||||||||
Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate) | 0.03 | 0.01 | 0.09 | 0.03 | |||||||||||||||||||
Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures | 0.03 | (0.02) | 0.12 | 0.35 | |||||||||||||||||||
| Stock-based compensation expense | 0.10 | 0.11 | 0.39 | 0.40 | |||||||||||||||||||
| Non-cash amortization related to derivative instruments | (0.02) | 0.01 | (0.04) | 0.04 | |||||||||||||||||||
Tax impact of reconciling items and discrete tax items(1) | 0.06 | (0.04) | (0.05) | (0.10) | |||||||||||||||||||
| Income (Loss) Attributable to Noncontrolling Interests | 0.02 | 0.01 | 0.05 | 0.01 | |||||||||||||||||||
Adjusted EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated(2) | $ | 0.64 | $ | 0.54 | $ | 1.82 | $ | 1.48 | |||||||||||||||
(1)The differences between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the three and nine months ended September 30, 2026 and 2025 are primarily due to (i) the reconciling items above, which impact our reported Net Income (Loss) Before Provision (Benefit) for Income Taxes but have an insignificant impact on our reported Provision (Benefit) for Income Taxes and (ii) other discrete tax items. Our structural tax rate for purposes of the calculation of Adjusted EPS for the three and nine months ended September 30, 2026 and 2025 was 17.1% and 14.8%, respectively. The Tax impact of reconciling items and discrete tax items is calculated using the current quarter's estimate of the annual structural tax rate. This may result in the current period adjustment plus prior period reported quarterly adjustments not summing to the full year adjustment.
(2)Columns may not foot due to rounding.
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Part I. Financial Information
FFO (NAREIT) AND FFO (NORMALIZED)
Funds from operations ("FFO") is defined by the National Association of Real Estate Investment Trusts as net income (loss) excluding depreciation on real estate assets, losses and gains on sale of real estate, net of tax, and amortization of data center leased-based intangibles ("FFO (Nareit)"). We calculate our FFO measures, including FFO (Nareit), adjusting for our share of reconciling items from our unconsolidated joint ventures. FFO (Nareit) does not give effect to real estate depreciation because these amounts are computed, under GAAP, to allocate the cost of a property over its useful life. Because values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, we believe that FFO (Nareit) provides investors with a clearer view of our operating performance. Our most directly comparable GAAP measure to FFO (Nareit) is net income (loss).
We modify FFO (Nareit), as is common among REITs seeking to provide financial measures that most meaningfully reflect their particular business ("FFO (Normalized)"). Our definition of FFO (Normalized) excludes certain items included in FFO (Nareit) that we believe are not indicative of our core operating results, specifically:
EXCLUDED | ||||||||
•Acquisition and Integration Costs •Restructuring and other transformation •Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate) •Other expense (income), net •Stock-based compensation expense | •Non-cash amortization related to derivative instruments •Real estate financing lease depreciation •Tax impact of reconciling items and discrete tax items •Intangible impairments •(Income) loss from discontinued operations, net of tax | |||||||
RECONCILIATION OF NET INCOME (LOSS) TO FFO (NAREIT) AND FFO (NORMALIZED) (IN THOUSANDS):
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net Income (Loss) | $ | 128,878 | $ | 86,241 | $ | 383,979 | $ | 59,134 | |||||||||||||||
| Add/(Deduct): | |||||||||||||||||||||||
| Real estate depreciation | 116,808 | 108,405 | 345,001 | 309,738 | |||||||||||||||||||
| Loss (gain) on sale of real estate, net of tax | 1,084 | 194 | 2,332 | (4,475) | |||||||||||||||||||
| Data center lease-based intangible assets amortization | 1,774 | 1,858 | 5,441 | 5,560 | |||||||||||||||||||
| Our share of FFO (Nareit) reconciling items from our unconsolidated joint ventures | 1,743 | 1,612 | 4,825 | 4,675 | |||||||||||||||||||
| FFO (Nareit) | 250,287 | 198,310 | 741,578 | 374,632 | |||||||||||||||||||
| Add/(Deduct): | |||||||||||||||||||||||
| Acquisition and Integration Costs | 4,547 | 5,402 | 9,152 | 16,040 | |||||||||||||||||||
| Restructuring and other transformation | — | 47,346 | — | 152,432 | |||||||||||||||||||
Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate) | 7,204 | 3,168 | 25,055 | 12,269 | |||||||||||||||||||
Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures(1) | 7,827 | (5,329) | 35,488 | 102,751 | |||||||||||||||||||
| Stock-based compensation expense | 30,867 | 32,147 | 115,911 | 118,595 | |||||||||||||||||||
| Non-cash amortization related to derivative instruments | (5,911) | 4,176 | (12,718) | 12,529 | |||||||||||||||||||
| Real estate financing lease depreciation | 4,603 | 3,276 | 12,523 | 9,850 | |||||||||||||||||||
Tax impact of reconciling items and discrete tax items(2) | 16,758 | (11,547) | (19,676) | (28,719) | |||||||||||||||||||
| Our share of FFO (Normalized) reconciling items from our unconsolidated joint ventures | (61) | (58) | (172) | (241) | |||||||||||||||||||
| FFO (Normalized) | $ | 316,121 | $ | 276,891 | $ | 907,141 | $ | 770,138 | |||||||||||||||
(1)Includes foreign currency transaction (gains) losses, net and other, net. See Note 2.h. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding the components of Other expense (income), net.
(2)Represents the tax impact of (i) the reconciling items above, which impact our reported Net Income (Loss) Before Provision (Benefit) for Income Taxes but have an insignificant impact on our reported Provision (Benefit) for Income Taxes and (ii) other discrete tax items. Discrete tax items resulted in a (benefit) provision for income taxes of $15.8 million and $7.8 million for the three and nine months ended September 30, 2026, respectively, and $(1.6) million and $1.0 million for the three and nine months ended September 30, 2025, respectively.
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Part I. Financial Information
CRITICAL ACCOUNTING ESTIMATES
Our discussion and analysis of our financial condition and results of operations are based upon our Condensed Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. On an ongoing basis, we evaluate the estimates used. We base our estimates on historical experience, actuarial estimates, current conditions and various other assumptions that we believe to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates. Our critical accounting estimates include the following, which are listed in no particular order:
•Revenue Recognition
•Accounting for Acquisitions
•Impairment of Tangible and Intangible Assets
•Income Taxes
Further detail regarding our critical accounting estimates can be found in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report, and the Consolidated Financial Statements and the Notes included therein. We have determined that no material changes concerning our critical accounting estimates have occurred since December 31, 2025.
RESULTS OF OPERATIONS
COMPARISON OF THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 TO THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 (IN THOUSANDS):
| THREE MONTHS ENDED SEPTEMBER 30, | DOLLAR CHANGE | PERCENTAGE CHANGE | |||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Revenues | $ | 1,990,617 | $ | 1,754,093 | $ | 236,524 | 13.5 | % | |||||||||||||||
| Operating Expenses | 1,580,044 | 1,445,504 | 134,540 | 9.3 | % | ||||||||||||||||||
| Operating Income | 410,573 | 308,589 | 101,984 | 33.0 | % | ||||||||||||||||||
| Other Expenses, Net | 281,695 | 222,348 | 59,347 | 26.7 | % | ||||||||||||||||||
| Net Income (Loss) | 128,878 | 86,241 | 42,637 | 49.4 | % | ||||||||||||||||||
| Net Income (Loss) Attributable to Noncontrolling Interests | 4,738 | 1,951 | 2,787 | 142.8 | % | ||||||||||||||||||
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 124,140 | $ | 84,290 | $ | 39,850 | 47.3 | % | |||||||||||||||
Adjusted EBITDA(1) | $ | 747,958 | $ | 660,379 | $ | 87,579 | 13.3 | % | |||||||||||||||
Adjusted EBITDA Margin(1) | 37.6 | % | 37.6 | % | |||||||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | DOLLAR CHANGE | PERCENTAGE CHANGE | |||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Revenues | $ | 5,955,828 | $ | 5,058,570 | $ | 897,258 | 17.7 | % | |||||||||||||||
| Operating Expenses | 4,776,497 | 4,235,791 | 540,706 | 12.8 | % | ||||||||||||||||||
| Operating Income | 1,179,331 | 822,779 | 356,552 | 43.3 | % | ||||||||||||||||||
| Other Expenses, Net | 795,352 | 763,645 | 31,707 | 4.2 | % | ||||||||||||||||||
| Net Income (Loss) | 383,979 | 59,134 | 324,845 | 549.3 | % | ||||||||||||||||||
| Net Income (Loss) Attributable to Noncontrolling Interests | 14,744 | 3,813 | 10,931 | 286.7 | % | ||||||||||||||||||
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 369,235 | $ | 55,321 | $ | 313,914 | 567.4 | % | |||||||||||||||
Adjusted EBITDA(1) | $ | 2,182,915 | $ | 1,868,673 | $ | 314,242 | 16.8 | % | |||||||||||||||
Adjusted EBITDA Margin(1) | 36.7 | % | 36.9 | % | |||||||||||||||||||
(1)See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, reconciliation of Net Income (Loss) to Adjusted EBITDA and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors.
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Part I. Financial Information
REVENUES
Total revenues consist of the following (in thousands):
| THREE MONTHS ENDED SEPTEMBER 30, | PERCENTAGE CHANGE | ||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | DOLLAR CHANGE | ACTUAL | CONSTANT CURRENCY(1) | ORGANIC GROWTH(2) | IMPACT OF ACQUISITIONS | |||||||||||||||||||||||||||||||||||
| Storage Rental | $ | 1,149,508 | $ | 1,032,897 | $ | 116,611 | 11.3 | % | 11.2 | % | 11.1 | % | 0.1 | % | |||||||||||||||||||||||||||
| Service | 841,109 | 721,196 | 119,913 | 16.6 | % | 16.3 | % | 15.1 | % | 1.2 | % | ||||||||||||||||||||||||||||||
| Total Revenues | $ | 1,990,617 | $ | 1,754,093 | $ | 236,524 | 13.5 | % | 13.3 | % | 12.8 | % | 0.5 | % | |||||||||||||||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | PERCENTAGE CHANGE | ||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | DOLLAR CHANGE | ACTUAL | CONSTANT CURRENCY(1) | ORGANIC GROWTH(2) | IMPACT OF ACQUISITIONS | |||||||||||||||||||||||||||||||||||
| Storage Rental | $ | 3,378,884 | $ | 2,991,262 | $ | 387,622 | 13.0 | % | 11.8 | % | 11.6 | % | 0.2 | % | |||||||||||||||||||||||||||
| Service | 2,576,944 | 2,067,308 | 509,636 | 24.7 | % | 23.3 | % | 21.3 | % | 2.0 | % | ||||||||||||||||||||||||||||||
| Total Revenues | $ | 5,955,828 | $ | 5,058,570 | $ | 897,258 | 17.7 | % | 16.5 | % | 15.6 | % | 0.9 | % | |||||||||||||||||||||||||||
(1)Constant currency growth rate, which is a non-GAAP measure, is calculated by translating the 2025 results at the 2026 average exchange rates.
(2)Our organic revenue growth rate, which is a non-GAAP measure, represents the year-over-year growth rate of our revenues excluding the impact of business acquisitions, divestitures and foreign currency exchange rate fluctuations. Our organic revenue growth rate includes the impact of acquisitions of customer relationships.
TOTAL REVENUES
Primary factors influencing the change in reported storage rental revenue and reported service revenue for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 include the following:
| STORAGE RENTAL REVENUE | •organic storage rental revenue growth driven by revenue management in our Global RIM Business segment and lease commencements and improved pricing in our Global Data Center Business segment. | |||||||
| SERVICE REVENUE | •organic service revenue growth driven by increases in Global Digital Solutions and traditional service activity levels in our Global RIM Business segment and growth from new and existing customers in our ALM business; and •an increase of $31.7 million due to recent acquisitions in our ALM business. | |||||||
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Part I. Financial Information
OPERATING EXPENSES
COST OF SALES
Cost of sales (excluding depreciation and amortization) consists of the following expenses (in thousands):
| THREE MONTHS ENDED SEPTEMBER 30, | PERCENTAGE CHANGE | % OF TOTAL REVENUES | PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | DOLLAR CHANGE | ACTUAL | CONSTANT CURRENCY | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||
| Labor | $ | 320,972 | $ | 302,986 | $ | 17,986 | 5.9 | % | 5.7 | % | 16.1 | % | 17.3 | % | (1.2) | % | |||||||||||||||||||||||||||||||
| Facilities | 332,882 | 298,811 | 34,071 | 11.4 | % | 11.3 | % | 16.7 | % | 17.0 | % | (0.3) | % | ||||||||||||||||||||||||||||||||||
| Transportation | 52,523 | 41,473 | 11,050 | 26.6 | % | 26.3 | % | 2.6 | % | 2.4 | % | 0.2 | % | ||||||||||||||||||||||||||||||||||
| Product Cost of Sales and Other | 220,271 | 148,669 | 71,602 | 48.2 | % | 48.2 | % | 11.1 | % | 8.5 | % | 2.6 | % | ||||||||||||||||||||||||||||||||||
| Total Cost of sales | $ | 926,648 | $ | 791,939 | $ | 134,709 | 17.0 | % | 16.8 | % | 46.6 | % | 45.1 | % | 1.5 | % | |||||||||||||||||||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | PERCENTAGE CHANGE | % OF TOTAL REVENUES | PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | DOLLAR CHANGE | ACTUAL | CONSTANT CURRENCY | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||
| Labor | $ | 965,074 | $ | 869,311 | $ | 95,763 | 11.0 | % | 9.4 | % | 16.2 | % | 17.2 | % | (1.0) | % | |||||||||||||||||||||||||||||||
| Facilities | 991,389 | 879,751 | 111,638 | 12.7 | % | 11.3 | % | 16.6 | % | 17.4 | % | (0.8) | % | ||||||||||||||||||||||||||||||||||
| Transportation | 148,487 | 130,548 | 17,939 | 13.7 | % | 12.3 | % | 2.5 | % | 2.6 | % | (0.1) | % | ||||||||||||||||||||||||||||||||||
| Product Cost of Sales and Other | 670,110 | 377,370 | 292,740 | 77.6 | % | 76.5 | % | 11.3 | % | 7.5 | % | 3.8 | % | ||||||||||||||||||||||||||||||||||
| Total Cost of sales | $ | 2,775,060 | $ | 2,256,980 | $ | 518,080 | 23.0 | % | 21.5 | % | 46.6 | % | 44.6 | % | 2.0 | % | |||||||||||||||||||||||||||||||
Primary factors influencing the change in reported Cost of sales for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 include the following:
•an increase in labor costs driven by an increase in service activity, primarily within our Global RIM Business segment;
•an increase in facilities expenses, primarily driven by higher utilities cost in our Global Data Center Business segment, and increases in rent and real estate tax expense; and
•an increase in product cost of sales and other in our ALM business in line with product sales increases from new and existing customers.
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Part I. Financial Information
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses consists of the following expenses (in thousands):
| THREE MONTHS ENDED SEPTEMBER 30, | PERCENTAGE CHANGE | % OF TOTAL REVENUES | PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | DOLLAR CHANGE | ACTUAL | CONSTANT CURRENCY | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||
| General, Administrative and Other | $ | 244,185 | $ | 237,505 | $ | 6,680 | 2.8 | % | 2.9 | % | 12.3 | % | 13.5 | % | (1.2) | % | |||||||||||||||||||||||||||||||
| Sales, Marketing and Account Management | 104,580 | 97,743 | 6,837 | 7.0 | % | 6.7 | % | 5.3 | % | 5.6 | % | (0.3) | % | ||||||||||||||||||||||||||||||||||
| Total Selling, general and administrative expenses | $ | 348,765 | $ | 335,248 | $ | 13,517 | 4.0 | % | 4.0 | % | 17.5 | % | 19.1 | % | (1.6) | % | |||||||||||||||||||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | PERCENTAGE CHANGE | % OF TOTAL REVENUES | PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | DOLLAR CHANGE | ACTUAL | CONSTANT CURRENCY | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||
| General, Administrative and Other | $ | 808,753 | $ | 767,430 | $ | 41,323 | 5.4 | % | 4.7 | % | 13.6 | % | 15.2 | % | (1.6) | % | |||||||||||||||||||||||||||||||
| Sales, Marketing and Account Management | 315,115 | 288,011 | 27,104 | 9.4 | % | 7.9 | % | 5.3 | % | 5.7 | % | (0.4) | % | ||||||||||||||||||||||||||||||||||
| Total Selling, general and administrative expenses | $ | 1,123,868 | $ | 1,055,441 | $ | 68,427 | 6.5 | % | 5.6 | % | 18.9 | % | 20.9 | % | (2.0) | % | |||||||||||||||||||||||||||||||
Primary factors influencing the change in reported Selling, general and administrative expenses for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 include the following:
•an increase in general, administrative and other expenses, primarily driven by higher compensation expense and professional fees; and
•an increase in sales, marketing and account management expenses, primarily driven by higher compensation expense and increased marketing costs.
DEPRECIATION AND AMORTIZATION
Depreciation expense increased $73.5 million, or 13.8%, for the nine months ended September 30, 2026 compared to the prior year period. See Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated.
Amortization expense increased $20.6 million, or 9.6%, for the nine months ended September 30, 2026 compared to the prior year period.
ACQUISITION AND INTEGRATION COSTS
Acquisition and Integration Costs for the nine months ended September 30, 2026 and 2025 were approximately $9.2 million and $16.0 million, respectively.
LOSS (GAIN) ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET
Loss (gain) on disposal/write-down of property, plant and equipment, net for the nine months ended September 30, 2026 and 2025 was approximately $27.4 million and $8.0 million, respectively.
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OTHER EXPENSES, NET
INTEREST EXPENSE, NET
Interest expense, net increased $54.2 million to $663.8 million in the nine months ended September 30, 2026 from $609.5 million in the prior year period. The increase is primarily due to higher average debt outstanding during the nine months ended September 30, 2026 compared to the prior year period. Our weighted average interest rate, inclusive of the fees associated with our outstanding letters of credit, was 5.7% and 5.6% as of September 30, 2026 and 2025, respectively. See Note 5 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our indebtedness.
OTHER EXPENSE (INCOME), NET
Other expense (income), net for the three and nine months ended September 30, 2026 and 2025 consists of the following (in thousands):
| THREE MONTHS ENDED SEPTEMBER 30, | DOLLAR CHANGE | NINE MONTHS ENDED SEPTEMBER 30, | DOLLAR CHANGE | ||||||||||||||||||||||||||||||||
| DESCRIPTION | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
Foreign currency transaction (gains) losses, net(1) | $ | (3,261) | $ | (7,203) | $ | 3,942 | $ | (41,674) | $ | 109,615 | $ | (151,289) | |||||||||||||||||||||||
Other, net(2) | 11,701 | 3,217 | 8,484 | 74,584 | (3,236) | 77,820 | |||||||||||||||||||||||||||||
| Other Expense (Income), Net | $ | 8,440 | $ | (3,986) | $ | 12,426 | $ | 32,910 | $ | 106,379 | $ | (73,469) | |||||||||||||||||||||||
(1)The gains for the nine months ended September 30, 2026 primarily consist of the impact of changes in the exchange rate of the Euro against the United States dollar on our intercompany balances with and between certain of our subsidiaries.
(2)Other, net for the three and nine months ended September 30, 2026 primarily consists of a loss of approximately $10.2 million and $69.9 million, respectively, due to the change in value of our deferred purchase obligations and other deferred payments.
PROVISION (BENEFIT) FOR INCOME TAXES
We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our effective tax rates for the three and nine months ended September 30, 2026 and 2025 are as follows:
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Effective Tax Rate | 30.6 | % | 16.1 | % | 20.4 | % | 44.7 | % | |||||||||||||||
The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended September 30, 2026 were the (i) disallowed interest expenses of certain entities, (ii) valuation allowances established against the deferred tax assets in certain foreign jurisdictions, partially offset by (iii) benefits derived from the dividends paid deduction and (iv) non-taxable income we recorded in Other expense (income), net during the period, as well as the differences in the tax rates to which our foreign earnings are subject. The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the nine months ended September 30, 2026 were the (i) benefits derived from the dividends paid deduction, (ii) non-taxable income we recorded in Other expense (income), net during the period, as well as the differences in the tax rates to which our foreign earnings are subject, partially offset by (iii) disallowed interest expenses of certain entities and (iv) valuation allowances established against the deferred tax assets in certain foreign jurisdictions.
Effective on January 1, 2026, the One Big Beautiful Bill Act increased the maximum allowable value of a REIT’s total assets held in one or more taxable REIT subsidiaries at the end of any quarter from 20% to 25%.
Beginning in 2024, we became subject to the Organization for Economic Cooperation and Development (the “OECD”) Global Anti-Base Erosion Model Rules (“Pillar Two”). Pillar Two may impose additional taxes (“Top-Up Taxes”) if the effective tax rate (as defined by the OECD) in a jurisdiction is below 15%. Pillar Two does not apply to “Excluded Entities” and certain subsidiaries of Excluded Entities. We continue to believe that we qualify as an Excluded Entity as a “Real Estate Investment Vehicle.” In the event certain subsidiaries do not qualify as Excluded Entities, available safe harbor rules could apply that would exempt the entities from any Top-Up Taxes. Substantially all of our non-excluded, non-U.S. jurisdictions qualify for one or more of the safe harbor rules.
On January 5, 2026, the OECD announced a comprehensive Side-by-Side safe harbor package (the “SbS Safe Harbor”) that, if enacted, would exempt U.S.-parented multinational companies from certain Top-Up Taxes under Pillar Two beginning January 1, 2026. During 2026, several jurisdictions where we operate enacted domestic legislation aligning with the SbS Safe Harbor. The enactment of these safe harbor rules did not have a material impact on our consolidated financial statements.
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Part I. Financial Information
We do not expect the Top-Up Taxes of the remaining non-U.S. jurisdictions that may not qualify for the safe harbor rules, or the Top-Up Taxes from our U.S. income that may be subject to Pillar Two, to have a material impact on our consolidated financial statements.
NET INCOME (LOSS) AND ADJUSTED EBITDA
The following table reflects the effect of the foregoing factors on our net income (loss) and Adjusted EBITDA (in thousands):
| THREE MONTHS ENDED SEPTEMBER 30, | DOLLAR CHANGE | PERCENTAGE CHANGE | |||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net Income (Loss) | $ | 128,878 | $ | 86,241 | $ | 42,637 | 49.4 | % | |||||||||||||||
Net Income (Loss) as a percentage of Revenue | 6.5 | % | 4.9 | % | |||||||||||||||||||
| Adjusted EBITDA | $ | 747,958 | $ | 660,379 | $ | 87,579 | 13.3 | % | |||||||||||||||
| Adjusted EBITDA Margin | 37.6 | % | 37.6 | % | |||||||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | DOLLAR CHANGE | PERCENTAGE CHANGE | |||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net Income (Loss) | $ | 383,979 | $ | 59,134 | $ | 324,845 | 549.3 | % | |||||||||||||||
Net Income (Loss) as a percentage of Revenue | 6.4 | % | 1.2 | % | |||||||||||||||||||
| Adjusted EBITDA | $ | 2,182,915 | $ | 1,868,673 | $ | 314,242 | 16.8 | % | |||||||||||||||
| Adjusted EBITDA Margin | 36.7 | % | 36.9 | % | |||||||||||||||||||
Adjusted EBITDA Margin for the nine months ended September 30, 2026 decreased 20 basis points from the same prior year period driven by changes in our revenue mix, offset by favorable overhead management. | ↑ INCREASED BY $314.2 MILLION OR 16.8% Adjusted EBITDA | ||||
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Part I. Financial Information
SEGMENT ANALYSIS
See Note 8 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for a description of our reportable segments.
GLOBAL RIM BUSINESS (IN THOUSANDS)
| THREE MONTHS ENDED SEPTEMBER 30, | PERCENTAGE CHANGE | ||||||||||||||||||||||||||||||||||||||||
| DOLLAR CHANGE | ACTUAL | CONSTANT CURRENCY | ORGANIC GROWTH | IMPACT OF ACQUISITIONS | |||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Storage Rental | $ | 858,192 | $ | 814,118 | $ | 44,074 | 5.4 | % | 5.3 | % | 5.2 | % | 0.1 | % | |||||||||||||||||||||||||||
| Service | 574,891 | 524,682 | 50,209 | 9.6 | % | 9.2 | % | 9.0 | % | 0.2 | % | ||||||||||||||||||||||||||||||
| Segment Revenue | $ | 1,433,083 | $ | 1,338,800 | $ | 94,283 | 7.0 | % | 6.8 | % | 6.7 | % | 0.1 | % | |||||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 630,006 | $ | 598,467 | $ | 31,539 | |||||||||||||||||||||||||||||||||||
| Segment Adjusted EBITDA Margin | 44.0 | % | 44.7 | % | |||||||||||||||||||||||||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | PERCENTAGE CHANGE | ||||||||||||||||||||||||||||||||||||||||
| DOLLAR CHANGE | ACTUAL | CONSTANT CURRENCY | ORGANIC GROWTH | IMPACT OF ACQUISITIONS | |||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Storage Rental | $ | 2,538,460 | $ | 2,375,206 | $ | 163,254 | 6.9 | % | 5.6 | % | 5.4 | % | 0.2 | % | |||||||||||||||||||||||||||
| Service | 1,732,271 | 1,543,334 | 188,937 | 12.2 | % | 10.8 | % | 10.2 | % | 0.6 | % | ||||||||||||||||||||||||||||||
| Segment Revenue | $ | 4,270,731 | $ | 3,918,540 | $ | 352,191 | 9.0 | % | 7.6 | % | 7.3 | % | 0.3 | % | |||||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 1,868,436 | $ | 1,741,084 | $ | 127,352 | |||||||||||||||||||||||||||||||||||
| Segment Adjusted EBITDA Margin | 43.7 | % | 44.4 | % | |||||||||||||||||||||||||||||||||||||
NINE MONTHS ENDED YEAR OVER YEAR SEGMENT ANALYSIS: GLOBAL RIM BUSINESS (IN MILLIONS)
| Storage Rental Revenue | Service Revenue | Segment Revenue | Segment Adjusted EBITDA | |||||||||||||||||
Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global RIM Business segment for the nine months ended September 30, 2026 compared to the prior year period include the following:
•organic storage rental revenue growth driven by revenue management;
•organic service revenue growth primarily driven by increases in our Global Digital Solutions business (as defined in our Annual Report) and growth in our traditional service activity levels; and
•a 70 basis point decrease in Adjusted EBITDA Margin primarily driven by changes in revenue mix, partially offset by favorable overhead management.
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Part I. Financial Information
GLOBAL DATA CENTER BUSINESS (IN THOUSANDS)
| THREE MONTHS ENDED SEPTEMBER 30, | PERCENTAGE CHANGE | ||||||||||||||||||||||||||||||||||||||||
| DOLLAR CHANGE | ACTUAL | CONSTANT CURRENCY | ORGANIC GROWTH | IMPACT OF ACQUISITIONS | |||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Storage Rental | $ | 272,102 | $ | 201,383 | $ | 70,719 | 35.1 | % | 35.3 | % | 35.3 | % | — | % | |||||||||||||||||||||||||||
| Service | 1,496 | 2,747 | (1,251) | (45.5) | % | 45.4 | % | 45.4 | % | — | % | ||||||||||||||||||||||||||||||
| Segment Revenue | $ | 273,598 | $ | 204,130 | $ | 69,468 | 34.0 | % | 34.3 | % | 34.3 | % | — | % | |||||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 153,984 | $ | 107,377 | $ | 46,607 | |||||||||||||||||||||||||||||||||||
| Segment Adjusted EBITDA Margin | 56.3 | % | 52.6 | % | |||||||||||||||||||||||||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | PERCENTAGE CHANGE | ||||||||||||||||||||||||||||||||||||||||
| DOLLAR CHANGE | ACTUAL | CONSTANT CURRENCY | ORGANIC GROWTH | IMPACT OF ACQUISITIONS | |||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Storage Rental | $ | 783,499 | $ | 562,607 | $ | 220,892 | 39.3 | % | 38.4 | % | 38.4 | % | — | % | |||||||||||||||||||||||||||
| Service | 7,695 | 4,121 | 3,574 | 86.7 | % | 96.6 | % | 96.6 | % | — | % | ||||||||||||||||||||||||||||||
| Segment Revenue | $ | 791,194 | $ | 566,728 | $ | 224,466 | 39.6 | % | 38.8 | % | 38.8 | % | — | % | |||||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 424,090 | $ | 294,459 | $ | 129,631 | |||||||||||||||||||||||||||||||||||
| Segment Adjusted EBITDA Margin | 53.6 | % | 52.0 | % | |||||||||||||||||||||||||||||||||||||
NINE MONTHS ENDED YEAR OVER YEAR SEGMENT ANALYSIS: GLOBAL DATA CENTER BUSINESS (IN MILLIONS)
| Storage Rental Revenue | Service Revenue | Segment Revenue | Segment Adjusted EBITDA | |||||||||||||||||
Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global Data Center Business segment for the nine months ended September 30, 2026 compared to the prior year period include the following:
•organic storage rental revenue growth from leases that commenced during the first nine months of 2026 and in prior periods, improved pricing and increased customer usage of power;
•an increase in Adjusted EBITDA primarily driven by organic storage rental revenue growth; and
•a 160 basis point increase in Adjusted EBITDA Margin reflecting lease commencements, improved pricing and cost containment, partially offset by higher pass-through power costs.
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CORPORATE AND OTHER (IN THOUSANDS)
| THREE MONTHS ENDED SEPTEMBER 30, | PERCENTAGE CHANGE | ||||||||||||||||||||||||||||||||||||||||
| DOLLAR CHANGE | ACTUAL | CONSTANT CURRENCY | ORGANIC GROWTH | IMPACT OF ACQUISITIONS | |||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Storage Rental | $ | 19,214 | $ | 17,396 | $ | 1,818 | 10.5 | % | 10.5 | % | 9.1 | % | 1.4 | % | |||||||||||||||||||||||||||
| Service | 264,722 | 193,767 | 70,955 | 36.6 | % | 36.4 | % | 32.6 | % | 3.8 | % | ||||||||||||||||||||||||||||||
| Revenue | $ | 283,936 | $ | 211,163 | $ | 72,773 | 34.5 | % | 34.2 | % | 30.7 | % | 3.5 | % | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (36,032) | $ | (45,465) | $ | 9,433 | |||||||||||||||||||||||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | PERCENTAGE CHANGE | ||||||||||||||||||||||||||||||||||||||||
| DOLLAR CHANGE | ACTUAL | CONSTANT CURRENCY | ORGANIC GROWTH | IMPACT OF ACQUISITIONS | |||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Storage Rental | $ | 56,925 | $ | 53,449 | $ | 3,476 | 6.5 | % | 6.0 | % | 5.5 | % | 0.5 | % | |||||||||||||||||||||||||||
| Service | 836,978 | 519,853 | 317,125 | 61.0 | % | 60.1 | % | 54.0 | % | 6.1 | % | ||||||||||||||||||||||||||||||
| Revenue | $ | 893,903 | $ | 573,302 | $ | 320,601 | 55.9 | % | 55.1 | % | 49.5 | % | 5.6 | % | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (109,611) | $ | (166,870) | $ | 57,259 | |||||||||||||||||||||||||||||||||||
Primary factors influencing the change in revenue and Adjusted EBITDA in Corporate and Other (as defined in Note 8 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report) for the nine months ended September 30, 2026 compared to the prior year period include the following:
•an increase in service revenue of $31.7 million due to acquisitions in our ALM business;
•organic service revenue growth in our ALM business driven by growth from new and existing customers and improved component pricing trends; and
•an improvement in Adjusted EBITDA driven by service revenue improvement in our ALM business.
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Table of Contents
Part I. Financial Information
LIQUIDITY AND CAPITAL RESOURCES
GENERAL
We expect to meet our short-term and long-term cash flow requirements through cash generated from operations, cash on hand, borrowings under the Credit Agreement (as defined below), as well as other potential financings (such as the issuance of debt). Our cash flow requirements, both in the near and long term, include, but are not limited to, capital expenditures, the repayment of outstanding debt, shareholder dividends, potential business acquisitions and normal business operation needs.
CASH FLOWS
The following is a summary of our cash balances and cash flows (in thousands) as of and for the nine months ended September 30,
| 2026 | 2025 | ||||||||||
| Cash Flows from Operating Activities | $ | 1,203,634 | $ | 840,001 | |||||||
| Cash Flows from Investing Activities | (1,808,301) | (1,968,259) | |||||||||
| Cash Flows from Financing Activities | 611,490 | 1,201,195 | |||||||||
| Cash and Cash Equivalents, End of Period | 188,160 | 195,210 | |||||||||
A. CASH FLOWS FROM OPERATING ACTIVITIES
For the nine months ended September 30, 2026, net cash flows provided by operating activities increased by $363.6 million compared to the prior year period, primarily due to an increase in net income (loss) (excluding non-cash charges) of $471.0 million, partially offset by a decrease in cash from working capital of $107.4 million.
B. CASH FLOWS FROM INVESTING ACTIVITIES
Our significant investing activity during the nine months ended September 30, 2026 included cash paid for capital expenditures of $1,724.2 million. Additional details of our capital spending are included in the "Capital Expenditures" section below.
C. CASH FLOWS FROM FINANCING ACTIVITIES
Our significant financing activities during the nine months ended September 30, 2026 included:
•Net proceeds of approximately $1,485.0 million associated with the issuance of the 61/4% Notes due 2035 (as defined below).
•Net payments of approximately $51.0 million primarily associated with repayments under the Revolving Credit Facility, partially offset by borrowings under our data center credit facilities, which were used to partially finance the construction of our data centers.
•Payment of dividends in the amount of $790.0 million on our common stock.
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Part I. Financial Information
CAPITAL EXPENDITURES
The following table presents our capital spend for the nine months ended September 30, 2026 and 2025, organized by the type of the spending as described in our Annual Report (in thousands):
| NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||
| NATURE OF CAPITAL SPEND | 2026 | 2025 | |||||||||
| Growth Investment Capital Expenditures: | |||||||||||
| Data Center | $ | 1,344,097 | $ | 1,329,821 | |||||||
| Real Estate | 139,079 | 108,083 | |||||||||
| Innovation and Other | 106,398 | 104,512 | |||||||||
| Total Growth Investment Capital Expenditures | 1,589,574 | 1,542,416 | |||||||||
| Recurring Capital Expenditures: | |||||||||||
| Data Center | $ | 13,439 | $ | 14,455 | |||||||
| Real Estate | 39,310 | 37,929 | |||||||||
| Non-Real Estate | 65,545 | 52,097 | |||||||||
| Total Recurring Capital Expenditures | 118,294 | 104,481 | |||||||||
| Total Capital Spend (on accrual basis) | $ | 1,707,868 | $ | 1,646,897 | |||||||
| Net increase (decrease) in prepaid capital expenditures | 64,830 | 13,958 | |||||||||
| Net (increase) decrease in accrued capital expenditures | (48,493) | 94,528 | |||||||||
| Total Capital Spend (on cash basis) | $ | 1,724,205 | $ | 1,755,383 | |||||||
Excluding capital expenditures associated with potential future acquisitions, we expect total capital expenditures of approximately $2,200.0 million for the year ending December 31, 2026. Of this, we expect capital expenditures for growth investment of approximately $2,050.0 million and recurring capital expenditures of approximately $150.0 million.
DIVIDENDS
See Note 7 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for a listing of dividends that we declared during the first nine months of 2026 and fiscal year 2025.
On November 5, 2026, we declared a dividend to our stockholders of record as of December 15, 2026 of $0.993 per share, payable on January 6, 2027.
NONCONTROLLING INTERESTS
During the quarter ended June 30, 2026, we entered into an agreement with a partner to form our Iron Mountain Data Centers Virginia 9 JV, LP joint venture, which resulted in initial Noncontrolling interests of approximately $49.9 million recorded in our Condensed Consolidated Balance Sheet.
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Part I. Financial Information
FINANCIAL INSTRUMENTS AND DEBT
Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents (including money market funds and time deposits) and accounts receivable. The only significant concentrations of liquid investments as of September 30, 2026 are related to cash and cash equivalents held in money market funds. See Note 2.d. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for information on our money market funds and time deposits.
Long-term debt as of September 30, 2026 is as follows (in thousands):
| SEPTEMBER 30, 2026 | |||||||||||||||||
| DEBT (INCLUSIVE OF DISCOUNT) | UNAMORTIZED DEFERRED FINANCING COSTS | CARRYING AMOUNT | |||||||||||||||
Revolving Credit Facility(1) | $ | 519,500 | $ | (6,758) | $ | 512,742 | |||||||||||
Term Loan A(1) | 468,750 | — | 468,750 | ||||||||||||||
Term Loan B(1) | 2,006,988 | (10,809) | 1,996,179 | ||||||||||||||
Virginia 6 Term Loans(2) | 210,000 | (1,152) | 208,848 | ||||||||||||||
Virginia 7 Term Loans(2) | 293,455 | (1,903) | 291,552 | ||||||||||||||
| Virginia 9 Term Loans | 138,627 | (6,451) | 132,176 | ||||||||||||||
Virginia 4/5 Term Loans due 2030(2) | 208,224 | (2,988) | 205,236 | ||||||||||||||
Virginia 3 Term Loans due 2031 | 433,000 | (7,693) | 425,307 | ||||||||||||||
AUD Term Loan(2) | 268,280 | (1,752) | 266,528 | ||||||||||||||
UK Revolving Credit Facility(2) | 185,656 | (1,124) | 184,532 | ||||||||||||||
47/8% Notes due 2027(2)(3) | 1,000,000 | (1,422) | 998,578 | ||||||||||||||
51/4% Notes due 2028(2)(3) | 825,000 | (1,771) | 823,229 | ||||||||||||||
5% Notes due 2028(2)(3) | 500,000 | (1,326) | 498,674 | ||||||||||||||
7% Notes(2)(3) | 1,000,000 | (4,963) | 995,037 | ||||||||||||||
47/8% Notes due 2029(2)(3) | 1,000,000 | (4,340) | 995,660 | ||||||||||||||
51/4% Notes due 2030(2)(3) | 1,300,000 | (5,766) | 1,294,234 | ||||||||||||||
41/2% Notes(2)(3) | 1,100,000 | (5,498) | 1,094,502 | ||||||||||||||
5% Notes due 2032(2) | 750,000 | (7,616) | 742,384 | ||||||||||||||
55/8% Notes(2)(3) | 600,000 | (3,388) | 596,612 | ||||||||||||||
61/4% Notes(2)(3) | 1,200,000 | (11,402) | 1,188,598 | ||||||||||||||
Euro Notes(2)(3) | 1,361,166 | (15,210) | 1,345,956 | ||||||||||||||
61/4% Senior Notes due 2035 (the "61/4% Notes due 2035")(3) | 1,500,000 | (17,724) | 1,482,276 | ||||||||||||||
| Real Estate Mortgages, Financing Lease Liabilities and Other | 819,780 | (1,539) | 818,241 | ||||||||||||||
| Accounts Receivable Securitization Program | 408,000 | (1,629) | 406,371 | ||||||||||||||
| Total Long-term Debt | 18,096,426 | (124,224) | 17,972,202 | ||||||||||||||
| Less: Current Portion | (1,232,903) | — | (1,232,903) | ||||||||||||||
| Long-term Debt, Net of Current Portion | $ | 16,863,523 | $ | (124,224) | $ | 16,739,299 | |||||||||||
(1)Collectively, the “Credit Agreement”. The Credit Agreement consists of a revolving credit facility (the “Revolving Credit Facility”), a term loan A facility (the “Term Loan A”) and a term loan B facility (the "Term Loan B").
(2)Each as defined in Note 6 to Notes to Consolidated Financial Statements included in our Annual Report.
(3)Collectively, the "Parent Notes".
See Note 6 to Notes to Consolidated Financial Statements included in our Annual Report and Note 5 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our long-term debt.
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Part I. Financial Information
DATA CENTER DEBT AGREEMENTS
On January 9, 2026, Iron Mountain Data Centers Virginia 3, LLC and Iron Mountain Data Centers Virginia 3 Intermediate II, LLC, both wholly-owned subsidiaries of Iron Mountain Incorporated ("IMI"), entered into a mortgage loan agreement and a mezzanine loan agreement with a total original principal balance of $433.0 million (the "Virginia 3 Term Loans due 2031"). The Virginia 3 Term Loans due 2031 are secured by the property of Iron Mountain Data Centers Virginia 3, LLC and are scheduled to mature on January 9, 2031, at which point all obligations will become due. The Virginia 3 Term Loans due 2031 bear interest at a weighted average rate of 6.3%. Total net proceeds from the Virginia 3 Term Loans due 2031 were used to repay the Virginia 3 Term Loans due 2026 (defined as the Virginia 3 Term Loans in Note 6 to Notes to Consolidated Financial Statements included in our Annual Report) and a portion of the outstanding borrowings under the Revolving Credit Facility.
On June 9, 2026, Iron Mountain Data Centers Virginia 9, LLC, an indirect subsidiary of IMI, entered into a credit agreement that includes a term loan facility (the "Virginia 9 Term Loans") and a letter of credit facility (collectively, the "Virginia 9 Credit Agreement"), under which we have the option to borrow, in the form of term loans, an aggregate outstanding amount not to exceed $298.0 million. The Virginia 9 Term Loans bear interest at SOFR plus 3.00%. The Virginia 9 Credit Agreement requires the payment of a commitment fee on any unused commitments at a rate of 0.90%. The Virginia 9 Credit Agreement is secured by the equity interests and assets of Iron Mountain Data Centers Virginia 9, LLC and is scheduled to mature on June 9, 2029, at which point all obligations will become due. We have two one-year options that allow us to extend the maturity date, subject to the conditions specified in the Virginia 9 Credit Agreement. As of September 30, 2026, we had $138.6 million outstanding on the Virginia 9 Term Loans and the interest rate in effect under the Virginia 9 Credit Agreement was 6.9%.
ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM
On May 28, 2026, we amended the Accounts Receivable Securitization Program (as defined in Note 6 to Notes to Consolidated Financial Statements included in our Annual Report) to (i) include the sale of accounts receivable from certain of our wholly-owned Canadian entities, (ii) increase the maximum borrowing capacity from $400.0 million to $450.0 million and (iii) extend the maturity date from July 1, 2027 to July 1, 2029, at which point all obligations become due. All other material terms of the Accounts Receivable Securitization Program remain the same as disclosed in Note 6 to Notes to Consolidated Financial Statements included in our Annual Report.
JUNE 2026 OFFERING
On June 26, 2026, IMI completed a private offering of (in thousands):
| SERIES OF NOTES | AGGREGATE PRINCIPAL AMOUNT | MATURITY DATE | INTEREST PAYMENT DUE | PAR CALL DATE(1) | ||||||||||
61/4% Notes due 2035 | $ | 1,500,000 | January 15, 2035 | January 15 and July 15 | July 15, 2031 | |||||||||
(1)We may redeem the 61/4% Notes due 2035 at any time, at our option, in whole or in part. Prior to the par call date, we may redeem the 61/4% Notes due 2035 at the redemption price or make-whole premium specified in the indenture governing the 61/4% Notes due 2035, together with accrued and unpaid interest to, but excluding, the redemption date. On or after the par call date, we may redeem the 61/4% Notes due 2035 at a price equal to 100% of the principal amount being redeemed, together with accrued and unpaid interest to, but excluding, the redemption date.
The 61/4% Notes due 2035 were issued at par and have a contractual interest rate of 6.25%. The total net proceeds from the issuance, after deducting the initial purchasers' commissions and third-party fees, of approximately $1,481.8 million, were used to repay a portion of the outstanding borrowings under the Revolving Credit Facility, and for general corporate purposes. As of September 30, 2026, we had $1,500.0 million outstanding on the 61/4% Notes due 2035.
DEBT COVENANTS
The Credit Agreement, certain of our bond indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take other specified corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our bond indentures or other agreements governing our indebtedness. The Credit Agreement requires that we satisfy a net total lease adjusted leverage ratio and a fixed charge coverage ratio on a quarterly basis, and certain of our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted) as a condition to taking actions such as paying dividends and incurring indebtedness.
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The Credit Agreement uses earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR")-based calculations and the bond indentures use EBITDA-based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. The EBITDAR- and EBITDA-based leverage calculations include our consolidated subsidiaries, other than those we have designated as "Unrestricted Subsidiaries" as defined in the Credit Agreement and bond indentures. Generally, the Credit Agreement and the bond indentures use a trailing four fiscal quarter basis for purposes of the relevant calculations and require certain adjustments and exclusions for purposes of those calculations, which make the calculation of financial performance under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein. These adjustments can be significant. For example, the calculation of financial performance under the Credit Agreement and certain of our bond indentures includes (subject to specified exceptions and caps) adjustments for non-cash charges and for expected benefits associated with (i) completed acquisitions, (ii) certain executed lease agreements associated with our data center business that have yet to commence and (iii) restructuring and other strategic initiatives. The calculation of financial performance under our other bond indentures includes, for example, adjustments for non-cash charges and for expected benefits associated with (i) completed acquisitions and (ii) events that are extraordinary, unusual or non-recurring.
Our leverage and fixed charge coverage ratios under the Credit Agreement as of September 30, 2026 are as follows:
| SEPTEMBER 30, 2026 | MAXIMUM/MINIMUM ALLOWABLE | ||||||||||
| Net total lease adjusted leverage ratio | 4.8 | Maximum allowable of 7.0 | |||||||||
| Fixed charge coverage ratio | 2.5 | Minimum allowable of 1.5 | |||||||||
We are in compliance with our leverage and fixed charge coverage ratios under the Credit Agreement, our bond indentures and other agreements governing our indebtedness as of September 30, 2026. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity.
Our ability to pay interest on or to refinance our indebtedness depends on our future performance, working capital levels and capital structure, which are subject to general economic, financial, competitive, legislative, regulatory and other factors which may be beyond our control. There can be no assurance that we will generate sufficient cash flow from our operations or that future financings will be available on acceptable terms or in amounts sufficient to enable us to service or refinance our indebtedness or to make necessary capital expenditures.
DERIVATIVE INSTRUMENTS
INTEREST RATE SWAP AGREEMENTS
We utilize interest rate swap agreements designated as cash flow hedges to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. Certain of our interest rate swap agreements have notional amounts that will increase with the underlying hedged transaction. Under our interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon the one-month Secured Overnight Financing Rate ("SOFR"), in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements. Our interest rate swap agreements are marked to market at the end of each reporting period, representing the fair values of the interest rate swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities.
As of September 30, 2026 and December 31, 2025, we have approximately $770.0 million and $1,349.0 million, respectively, in notional value outstanding on our interest rate swap agreements. As of September 30, 2026, our interest rate swap agreements have maturity dates ranging from February 2027 through June 2029.
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Part I. Financial Information
CROSS-CURRENCY SWAP AGREEMENTS
We utilize cross-currency swaps to hedge the variability of exchange rate impacts between the United States dollar and certain of our foreign functional currencies, including the Euro, the Canadian dollar and the Singapore dollar. As of September 30, 2026, our cross-currency swap agreements have maturity dates ranging from November 2026 through February 2029.
The notional values of our cross-currency swaps, by hedged currency, as of September 30, 2026 and December 31, 2025, are as follows (in thousands):
| SEPTEMBER 30, 2026 | DECEMBER 31, 2025 | ||||||||||
| Euro | $ | 504,559 | $ | 509,187 | |||||||
| Canadian dollar | 350,000 | 350,000 | |||||||||
| Singapore dollar | 200,000 | — | |||||||||
| $ | 1,054,559 | $ | 859,187 | ||||||||
We have designated these cross-currency swap agreements as hedges of net investments in our Euro, Canadian dollar and Singapore dollar denominated subsidiaries and they require an exchange of the notional amounts at maturity. These cross-currency swap agreements are marked to market at the end of each reporting period, representing the fair values of the cross-currency swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities. The excluded component of our cross-currency swap agreements is recorded in Accumulated other comprehensive items, net and amortized to interest expense on a straight-line basis.
INVESTMENTS
Our joint venture with AGC Equity Partners (the "Frankfurt JV") is accounted for as an equity method investment and is presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying value and equity interest in the unconsolidated Frankfurt JV as of September 30, 2026 is as follows (in thousands):
| SEPTEMBER 30, 2026 | |||||||||||
| CARRYING VALUE | EQUITY INTEREST | ||||||||||
Frankfurt JV | $ | 74,323 | 20 | % | |||||||
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ITEM 4. CONTROLS AND PROCEDURES
DISCLOSURE CONTROLS AND PROCEDURES
The term "disclosure controls and procedures" is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These rules refer to the controls and other procedures of a company that are designed to ensure that information is recorded, processed, accumulated, summarized, communicated and reported to management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding what is required to be disclosed by a company in the reports that it files under the Exchange Act.
As of September 30, 2026 (the "Evaluation Date"), we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures. Based upon that evaluation, our chief executive officer and chief financial officer concluded that, as of the Evaluation Date, our disclosure controls and procedures are effective.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
Our management, with the participation of our principal executive officer and principal financial officer, is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control system is designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements.
There were no changes in our internal control over financial reporting that occurred during the quarter ended September 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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Part II. Other Information
PART II. OTHER INFORMATION
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
We did not sell any unregistered equity securities during the three months ended September 30, 2026, nor did we repurchase any shares of our common stock during the three months ended September 30, 2026.
ITEM 5. OTHER INFORMATION
On September 2, 2026 , Mr. Mark Kidd , our Executive Vice President and General Manager, Data Centers and ALM , adopted a Rule 10b5-1 trading plan to (i) exercise options to purchase up to 6,839 shares of our common stock between December 1, 2026 and February 12, 2027 and (ii) sell up to 86,839 shares of our common stock between December 1, 2026 and July 1, 2027. Mr. Kidd’s plan will terminate on the earlier of August 26, 2027 and the date that all trades under the plan are completed.
This arrangement was entered into during an open trading
ITEM 6. EXHIBITS
Certain exhibits indicated below are incorporated by reference to documents we have filed with the SEC.
| EXHIBIT NO. | DESCRIPTION | |||||||
| 3.1 | Certificate of Incorporation of the Company, as filed with the Secretary of State of the State of Delaware on June 26, 2014, as corrected by the Certificate of Correction of the Company filed with the Secretary of State of the State of Delaware on June 30, 2014. (Incorporated by reference to Annex B-1 to the Company’s Proxy Statement for a Special Meeting of Stockholders, filed with the SEC on December 23, 2014.) | |||||||
| 3.2 | Certificate of Merger, amending the Certificate of Incorporation, effective January 20, 2015. (Incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K filed with the SEC on January 21, 2015.) | |||||||
| 3.3 | Certificate of Amendment of the Certificate of Incorporation, effective May 31, 2024. (Incorporated by reference to Annex A to the Company's Proxy Statement for the Annual Meeting of Stockholders, filed with the SEC on April 19, 2024.) | |||||||
| 3.4 | Bylaws of the Company, effective May 9, 2023. (Incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed with the SEC on May 12, 2023.) | |||||||
| 31.1 | Rule 13a-14(a) Certification of Chief Executive Officer. (Filed herewith.) | |||||||
| 31.2 | Rule 13a-14(a) Certification of Chief Financial Officer. (Filed herewith.) | |||||||
| 32.1 | Section 1350 Certification of Chief Executive Officer. (Furnished herewith.) | |||||||
| 32.2 | Section 1350 Certification of Chief Financial Officer. (Furnished herewith.) | |||||||
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
| 101.LAB | Inline XBRL Taxonomy Label Linkbase Document. | |||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
| 104 | Cover Page Interactive Data File. (Formatted as Inline XBRL and contained in Exhibit 101.) | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| IRON MOUNTAIN INCORPORATED | ||||||||
| By: | /s/ DANIEL BORGES | |||||||
Daniel Borges Senior Vice President, Chief Accounting Officer | ||||||||
Dated: November 5, 2026
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