filings.toolsItem 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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Item 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 1 |
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED)
| MARCH 31, 2026 | DECEMBER 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 250,710 | $ | 158,535 | |||||||
| Accounts receivable (less allowances of $109,363 and $107,838 as of March 31, 2026 and December 31, 2025, respectively) | 1,424,635 | 1,443,669 | |||||||||
| Prepaid expenses and other | 367,738 | 332,779 | |||||||||
| Total Current Assets | 2,043,083 | 1,934,983 | |||||||||
| Property, Plant and Equipment: | |||||||||||
| Property, plant and equipment | 14,862,169 | 14,457,335 | |||||||||
| Less—Accumulated depreciation | (5,023,371) | (4,911,010) | |||||||||
| Property, Plant and Equipment, Net | 9,838,798 | 9,546,325 | |||||||||
| Other Assets, Net: | |||||||||||
| Goodwill | 5,274,865 | 5,285,801 | |||||||||
| Customer and supplier relationships and other intangible assets | 1,231,051 | 1,269,607 | |||||||||
| Operating lease right-of-use assets | 2,451,023 | 2,465,196 | |||||||||
| Other | 647,995 | 623,107 | |||||||||
| Total Other Assets, Net | 9,604,934 | 9,643,711 | |||||||||
| Total Assets | $ | 21,486,815 | $ | 21,125,019 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Current portion of long-term debt | $ | 216,965 | $ | 216,074 | |||||||
| Accounts payable | 782,546 | 710,662 | |||||||||
| Accrued expenses and other current liabilities (includes current portion of operating lease liabilities) | 1,271,577 | 1,290,669 | |||||||||
| Deferred revenue | 386,446 | 402,091 | |||||||||
| Total Current Liabilities | 2,657,534 | 2,619,496 | |||||||||
| Long-term Debt, net of current portion | 16,886,016 | 16,215,885 | |||||||||
| Long-term Operating Lease Liabilities, net of current portion | 2,281,743 | 2,300,448 | |||||||||
| Other Long-term Liabilities | 355,734 | 450,083 | |||||||||
| Deferred Income Taxes | 180,436 | 184,015 | |||||||||
| Commitments and Contingencies | |||||||||||
| Redeemable Noncontrolling Interests | 63,746 | 64,423 | |||||||||
| (Deficit) Equity: | |||||||||||
| Iron Mountain Incorporated Stockholders' (Deficit) Equity: | |||||||||||
| Preferred stock (par value $0.01; authorized 10,000,000 shares; none issued and outstanding) | — | — | |||||||||
| Common stock (par value $0.01; authorized 400,000,000 shares; issued and outstanding 297,478,818 and 295,788,645 shares as of March 31, 2026 and December 31, 2025, respectively) | 2,975 | 2,958 | |||||||||
| Additional paid-in capital | 4,717,301 | 4,790,190 | |||||||||
| (Distributions in excess of earnings) Earnings in excess of distributions | (5,532,669) | (5,405,147) | |||||||||
| Accumulated other comprehensive items, net | (402,618) | (369,008) | |||||||||
| Total Iron Mountain Incorporated Stockholders' (Deficit) Equity | (1,215,011) | (981,007) | |||||||||
| Noncontrolling Interests | 276,617 | 271,676 | |||||||||
| Total (Deficit) Equity | (938,394) | (709,331) | |||||||||
| Total Liabilities and (Deficit) Equity | $ | 21,486,815 | $ | 21,125,019 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 2 |
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
| THREE MONTHS ENDED MARCH 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues: | |||||||||||
| Storage rental | $ | 1,094,765 | $ | 948,376 | |||||||
| Service | 841,384 | 644,153 | |||||||||
| Total Revenues | 1,936,149 | 1,592,529 | |||||||||
| Operating Expenses: | |||||||||||
| Cost of sales (excluding depreciation and amortization) | 889,803 | 710,204 | |||||||||
| Selling, general and administrative | 372,764 | 329,737 | |||||||||
| Depreciation and amortization | 267,839 | 232,154 | |||||||||
| Acquisition and Integration Costs | 2,921 | 5,823 | |||||||||
| Restructuring and other transformation | — | 54,746 | |||||||||
| Loss (gain) on disposal/write-down of property, plant and equipment, net | 7,592 | 5,571 | |||||||||
| Total Operating Expenses | 1,540,919 | 1,338,235 | |||||||||
| Operating Income (Loss) | 395,230 | 254,294 | |||||||||
| Interest Expense, Net (includes Interest Income of $1,503 and $3,463 for the three months ended March 31, 2026 and 2025, respectively) | 223,821 | 194,738 | |||||||||
| Other (Income) Expense, Net | (4,708) | 28,488 | |||||||||
| Net Income (Loss) Before Provision (Benefit) for Income Taxes | 176,117 | 31,068 | |||||||||
| Provision (Benefit) for Income Taxes | 27,118 | 14,835 | |||||||||
| Net Income (Loss) | 148,999 | 16,233 | |||||||||
| Less: Net Income (Loss) Attributable to Noncontrolling Interests | 5,334 | 281 | |||||||||
| Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 143,665 | $ | 15,952 | |||||||
| Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: | |||||||||||
| Basic | $ | 0.48 | $ | 0.05 | |||||||
| Diluted | $ | 0.48 | $ | 0.05 | |||||||
| Weighted Average Common Shares Outstanding—Basic | 296,848 | 294,507 | |||||||||
| Weighted Average Common Shares Outstanding—Diluted | 298,834 | 297,260 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 3 |
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(IN THOUSANDS) (UNAUDITED)
| THREE MONTHS ENDED MARCH 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net Income (Loss) | $ | 148,999 | $ | 16,233 | |||||||
| Other Comprehensive (Loss) Income: | |||||||||||
| Foreign Currency Translation Adjustment | (39,468) | 74,916 | |||||||||
| Change in Fair Value of Interest Rate Swaps | 4,436 | (6,993) | |||||||||
| Reclassifications from Accumulated Other Comprehensive Items, net | 1,207 | — | |||||||||
| Total Other Comprehensive (Loss) Income | (33,825) | 67,923 | |||||||||
| Comprehensive Income (Loss) | 115,174 | 84,156 | |||||||||
| Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 5,119 | 621 | |||||||||
| Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated | $ | 110,055 | $ | 83,535 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 4 |
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF (DEFICIT) EQUITY
(IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED)
| THREE MONTHS ENDED MARCH 31, 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 | $ | (709,331) | 295,788,645 | $ | 2,958 | $ | 4,790,190 | $ | (5,405,147) | $ | (369,008) | $ | 271,676 | $ | 64,423 | |||||||||||||||||||||||||||||||||||
| Issuance and net settlement of shares under employee stock purchase and option plans and stock-based compensation | (72,872) | 1,690,173 | 17 | (72,889) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Parent cash dividends declared | (271,187) | — | — | — | (271,187) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive (loss) income | (33,610) | — | — | — | — | (33,610) | — | (215) | ||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | 149,229 | — | — | — | 143,665 | — | 5,564 | (230) | ||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests dividends | (623) | — | — | — | — | — | (623) | (232) | ||||||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2026 | $ | (938,394) | 297,478,818 | $ | 2,975 | $ | 4,717,301 | $ | (5,532,669) | $ | (402,618) | $ | 276,617 | $ | 63,746 | |||||||||||||||||||||||||||||||||||
| THREE MONTHS ENDED MARCH 31, 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 | $ | (304,674) | 293,592,637 | $ | 2,936 | $ | 4,647,330 | $ | (4,583,436) | $ | (569,952) | $ | 198,448 | $ | 78,171 | |||||||||||||||||||||||||||||||||||
| Issuance and net settlement of shares under employee stock purchase and option plans and stock-based compensation | (37,653) | 1,376,103 | 14 | (37,667) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Parent cash dividends declared | (241,280) | — | — | — | (241,280) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | 67,583 | — | — | — | — | 67,583 | — | 340 | ||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | 15,909 | — | — | — | 15,952 | — | (43) | 324 | ||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests dividends | (2,160) | — | — | — | — | — | (2,160) | (598) | ||||||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2025 | $ | (502,275) | 294,968,740 | $ | 2,950 | $ | 4,609,663 | $ | (4,808,764) | $ | (502,369) | $ | 196,245 | $ | 78,237 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 5 |
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS) (UNAUDITED)
| THREE MONTHS ENDED MARCH 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash Flows from Operating Activities: | |||||||||||
| Net income (loss) | $ | 148,999 | $ | 16,233 | |||||||
| Adjustments to reconcile net income (loss) to cash flows from operating activities: | |||||||||||
| Depreciation | 192,125 | 162,441 | |||||||||
| Amortization (includes amortization of deferred financing costs and discounts of $8,048 and $7,856 for the three months ended March 31, 2026 and 2025, respectively) | 83,762 | 77,569 | |||||||||
| Revenue reduction associated with amortization of customer inducements and data center above- and below-market leases | 1,498 | 1,317 | |||||||||
| Stock-based compensation expense | 28,257 | 26,094 | |||||||||
| Provision (benefit) for deferred income taxes | 2,295 | (6,408) | |||||||||
| Loss (gain) on disposal/write-down of property, plant and equipment, net | 7,592 | 5,571 | |||||||||
| Loss (gain) associated with the remeasurement of deferred purchase obligations | 17,837 | — | |||||||||
| Foreign currency transactions and other, net | (8,355) | 20,557 | |||||||||
| (Increase) decrease in assets | (65,908) | (56,083) | |||||||||
| (Decrease) increase in liabilities | (69,552) | (49,992) | |||||||||
| Cash Flows from Operating Activities | 338,550 | 197,299 | |||||||||
| Cash Flows from Investing Activities: | |||||||||||
| Capital expenditures | (518,013) | (674,767) | |||||||||
| Cash paid for acquisitions, net of cash acquired | — | (35,066) | |||||||||
| Acquisition of customer intangibles | (3,207) | (8,925) | |||||||||
| Contract costs | (13,547) | (31,450) | |||||||||
| Investments in joint ventures and other investments, net | (1,021) | (16,748) | |||||||||
| Proceeds from sales of property and equipment and other, net | 4,321 | 190 | |||||||||
| Cash Flows from Investing Activities | (531,467) | (766,766) | |||||||||
| Cash Flows from Financing Activities: | |||||||||||
| Repayment of revolving credit facility, term loan facilities and other debt | (3,917,052) | (2,281,353) | |||||||||
| Proceeds from revolving credit facility, term loan facilities and other debt | 4,575,108 | 3,390,322 | |||||||||
| Equity distribution to noncontrolling interests | (855) | (2,758) | |||||||||
| Parent cash dividends | (275,589) | (223,479) | |||||||||
| Payment of deferred purchase obligations and other deferred payments | (6,384) | (240,217) | |||||||||
| Net (payments) proceeds associated with employee stock-based awards | (101,129) | (63,747) | |||||||||
| Other, net | (2,877) | 64 | |||||||||
| Cash Flows from Financing Activities | 271,222 | 578,832 | |||||||||
| Effect of Exchange Rates on Cash and Cash Equivalents | 13,870 | (9,743) | |||||||||
| Increase (Decrease) in Cash and Cash Equivalents | 92,175 | (378) | |||||||||
| Cash and Cash Equivalents, Beginning of Period | 158,535 | 155,716 | |||||||||
| Cash and Cash Equivalents, End of Period | $ | 250,710 | $ | 155,338 | |||||||
| Supplemental Information: | |||||||||||
| Cash Paid for Interest | $ | 341,794 | $ | 267,214 | |||||||
| Cash Paid for Income Taxes, Net | $ | 26,444 | $ | 27,751 | |||||||
| Non-Cash Investing and Financing Activities: | |||||||||||
| Financing Leases and Other | $ | 38,522 | $ | 52,284 | |||||||
| Accrued Capital Expenditures | $ | 301,901 | $ | 321,234 | |||||||
| Deferred Purchase Obligations and Other Deferred Payments | $ | — | $ | 2,880 | |||||||
| Dividends Payable | $ | 265,161 | $ | 240,450 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 6 |
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").
We have been organized and have operated as a real estate investment trust ("REIT") for United States federal income tax purposes beginning with our taxable year ended December 31, 2014.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. ACCOUNTS RECEIVABLE
We maintain an allowance for doubtful accounts and a credit memo reserve for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. The rollforward of the allowance for doubtful accounts and credit memo reserves for the three months ended March 31, 2026 is as follows:
| Balance as of December 31, 2025 | $ | 107,838 | ||||||||||||
| Credit memos charged to revenue | 25,675 | |||||||||||||
| Allowance for bad debts charged to expense | 16,775 | |||||||||||||
| Deductions and other(1) | (40,925) | |||||||||||||
| Balance as of March 31, 2026 | $ | 109,363 |
(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 MARCH 31, 2026 FORM 10-Q | 7 |
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 March 31, 2026 and December 31, 2025 are as follows:
| DESCRIPTION | MARCH 31, 2026 | DECEMBER 31, 2025 | |||||||||
| Assets: | |||||||||||
| Operating lease right-of-use assets | $ | 2,451,023 | $ | 2,465,196 | |||||||
| Financing lease right-of-use assets, net of accumulated depreciation(1) | 482,621 | 470,803 | |||||||||
| Liabilities: | |||||||||||
| Current | |||||||||||
| Operating lease liabilities | $ | 331,902 | $ | 319,129 | |||||||
| Financing lease liabilities(1) | 61,119 | 56,287 | |||||||||
| Long-term | |||||||||||
| Operating lease liabilities | $ | 2,281,743 | $ | 2,300,448 | |||||||
| Financing lease liabilities(1) | 467,492 | 470,912 |
(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 the lease expense for the three months ended March 31, 2026 and 2025 are as follows:
| THREE MONTHS ENDED MARCH 31, | |||||||||||
| DESCRIPTION | 2026 | 2025 | |||||||||
| Operating lease cost(1) | $ | 184,369 | $ | 173,308 | |||||||
| Financing lease cost: | |||||||||||
| Depreciation of financing lease right-of-use assets | $ | 17,369 | $ | 13,732 | |||||||
| Interest expense for financing lease liabilities | 7,366 | 6,129 |
(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $48,459 and $46,405 for the three months ended March 31, 2026 and 2025, respectively.
Other information: Supplemental cash flow information relating to our leases for the three months ended March 31, 2026 and 2025 is as follows:
| THREE MONTHS ENDED MARCH 31, | |||||||||||
| CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES: | 2026 | 2025 | |||||||||
| Operating cash flows used in operating leases | $ | 128,116 | $ | 119,511 | |||||||
| Operating cash flows used in financing leases (interest) | 7,366 | 6,129 | |||||||||
| Financing cash flows used in financing leases | 17,033 | 13,348 | |||||||||
| NON-CASH ITEMS: | |||||||||||
| Operating lease modifications and reassessments | $ | 13,731 | $ | (85,512) | |||||||
| New operating leases (including acquisitions) | 77,364 | 38,417 |
In February 2026, we entered into a finance lease that is expected to commence in July 2026, with an initial lease term of 31 years. The total undiscounted minimum lease payments for this lease are approximately $223,400.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 8 |
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)
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 three months ended March 31, 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 | $ | 3,973,406 | $ | 482,864 | $ | 829,531 | $ | 5,285,801 | |||||||||||||||||||||
| Fair value and other adjustments | 3,083 | — | (321) | 2,762 | |||||||||||||||||||||||||
| Currency effects | (8,509) | (5,013) | (176) | (13,698) | |||||||||||||||||||||||||
| Goodwill balance, net of accumulated amortization, as of March 31, 2026 | $ | 3,967,980 | $ | 477,851 | $ | 829,034 | $ | 5,274,865 | |||||||||||||||||||||
| Accumulated goodwill impairment balance as of March 31, 2026 | $ | 132,409 | $ | — | $ | 26,011 | $ | 158,420 |
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 9 |
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 March 31, 2026 and December 31, 2025 are as follows:
| FAIR VALUE MEASUREMENTS AT MARCH 31, 2026 USING | |||||||||||||||||||||||
| DESCRIPTION | TOTAL CARRYING VALUE AT MARCH 31, 2026 | QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)****(2) | |||||||||||||||||||
| Money Market Funds | $ | 37,985 | $ | — | $ | 37,985 | $ | — | |||||||||||||||
| Time Deposits | 3,286 | — | 3,286 | — | |||||||||||||||||||
| Trading Securities | 8,552 | 6,716 | 1,836 | — | |||||||||||||||||||
| Derivative Liabilities | 57,292 | — | 57,292 | — | |||||||||||||||||||
| Deferred Purchase Obligations(1) | 152,061 | — | — | 152,061 |
| FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2025 USING | |||||||||||||||||||||||
| DESCRIPTION | TOTAL CARRYING VALUE AT 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 | $ | 7,149 | $ | — | $ | 7,149 | $ | — | |||||||||||||||
| Time Deposits | 3,430 | — | 3,430 | — | |||||||||||||||||||
| Trading Securities | 8,220 | 6,400 | 1,820 | — | |||||||||||||||||||
| Derivative Liabilities | 71,869 | — | 71,869 | — | |||||||||||||||||||
| Deferred Purchase Obligations(1) | 134,142 | — | — | 134,142 |
(1)The balance as of March 31, 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 March 31, 2026:
| Balance as of December 31, 2025 | $ | 134,142 | ||||||||||||||||||
| Additions | — | |||||||||||||||||||
| Payments | — | |||||||||||||||||||
| Other changes, including accretion | 17,919 | |||||||||||||||||||
| Balance as of March 31, 2026 | $ | 152,061 |
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 at March 31, 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 MARCH 31, 2026 FORM 10-Q | 10 |
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 months ended March 31, 2026 and 2025 are as follows:
| THREE MONTHS ENDED MARCH 31, 2026 | THREE MONTHS ENDED MARCH 31, 2025 | ||||||||||||||||||||||||||||||||||
| FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS | DERIVATIVE FINANCIAL INSTRUMENTS | TOTAL | FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS | DERIVATIVE FINANCIAL INSTRUMENTS | TOTAL | ||||||||||||||||||||||||||||||
| Beginning of Period | $ | (358,049) | $ | (10,959) | $ | (369,008) | $ | (568,129) | $ | (1,823) | $ | (569,952) | |||||||||||||||||||||||
| Other comprehensive (loss) income: | |||||||||||||||||||||||||||||||||||
| Foreign currency translation and other adjustments | (39,253) | — | (39,253) | 74,576 | — | 74,576 | |||||||||||||||||||||||||||||
| Change in fair value of interest rate swaps | — | 4,436 | 4,436 | — | (6,993) | (6,993) | |||||||||||||||||||||||||||||
| Reclassifications from accumulated other comprehensive items, net | — | 1,207 | 1,207 | — | — | — | |||||||||||||||||||||||||||||
| Total other comprehensive (loss) income | (39,253) | 5,643 | (33,610) | 74,576 | (6,993) | 67,583 | |||||||||||||||||||||||||||||
| End of Period | $ | (397,302) | $ | (5,316) | $ | (402,618) | $ | (493,553) | $ | (8,816) | $ | (502,369) |
F. REVENUES
Certain costs to fulfill or obtain customer contracts and certain initial direct costs of obtaining leases, including the costs associated with the initial movement of customer records into physical storage and certain commission expenses, are collectively referred to as "Contract Costs". Contract Costs are primarily made up of Intake Costs and Commissions (each as defined in Note 2.s. to Notes to Consolidated Financial Statements included in our Annual Report). Contract Costs as of March 31, 2026 and December 31, 2025 are as follows:
| MARCH 31, 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 | $ | 105,151 | $ | (57,260) | $ | 47,891 | $ | 111,923 | $ | (60,999) | $ | 50,924 | |||||||||||||||||||||||
| Commissions asset | 246,296 | (113,205) | 133,091 | 243,966 | (110,365) | 133,601 |
Deferred revenue liabilities are reflected in our Condensed Consolidated Balance Sheets as follows:
| DESCRIPTION | LOCATION IN BALANCE SHEET | MARCH 31, 2026 | DECEMBER 31, 2025**(1)** | |||||||||||
| Deferred revenue—Current(2) | Deferred revenue | $ | 386,446 | $ | 402,091 | |||||||||
| Deferred revenue—Long-term(3) | Other Long-term Liabilities | 157,013 | 165,804 |
(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 two to 12 months. The current deferred revenue accounted for under Accounting Standards Codification 842, Leases ("ASC 842") is approximately $55,300 and $41,600 as of March 31, 2026 and December 31, 2025, respectively.
(3) The long-term deferred revenue accounted for under ASC 842 is approximately $138,800 and $141,100 as of March 31, 2026 and December 31, 2025, respectively.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 11 |
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)
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 March 31, 2026, approximately $261,000 of remaining performance obligations are expected to be recognized as revenue over periods generally ranging from one to five years, with approximately 25% expected to be recognized within the next 12 months. As permitted under ASC 606, we do not disclose the value of remaining performance obligations for contracts as 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
Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period. Our data center revenue contracts are accounted for in accordance with ASC 842. Storage rental revenue associated with our Global Data Center Business for the three months ended March 31, 2026 and 2025 is as follows:
| THREE MONTHS ENDED MARCH 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Storage rental revenue(1) | $ | 252,505 | $ | 172,945 |
(1) Revenue associated with variable lease payments, primarily related to power and connectivity, included within storage rental revenue was approximately $59,900 and $34,400 for the three months ended March 31, 2026 and 2025, respectively.
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 months ended March 31, 2026 and 2025 is as follows:
| THREE MONTHS ENDED MARCH 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Stock-based compensation expense | $ | 28,257 | $ | 26,094 | |||||||||||||||||||
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 March 31, 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 $175,388.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 12 |
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)
H. OTHER (INCOME) EXPENSE, NET
Other (income) expense, net for the three months ended March 31, 2026 and 2025 consists of the following:
| THREE MONTHS ENDED MARCH 31, | |||||||||||
| DESCRIPTION | 2026 | 2025 | |||||||||
| Foreign currency transaction (gains) losses, net(1) | $ | (24,512) | $ | 29,663 | |||||||
| Other, net(2) | 19,804 | (1,175) | |||||||||
| Other (Income) Expense, Net | $ | (4,708) | $ | 28,488 |
(1)The gains for the three months ended March 31, 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 months ended March 31, 2026 primarily consists of a loss of approximately $17,800 due to the change in value of our deferred purchase obligations and other deferred payments.
I. 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 months ended March 31, 2026 and 2025 are as follows:
| THREE MONTHS ENDED MARCH 31, | |||||||||||||||||||||||
| 2026**(1)** | 2025**(2)** | ||||||||||||||||||||||
| Effective Tax Rate | 15.4 | % | 47.8 | % |
(1)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended March 31, 2026 were the (i) benefits derived from the dividends paid deduction, (ii) income we recorded in Other (income) expense, 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.
(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 March 31, 2025 were the (i) lack of tax benefits recognized for the ordinary losses, (ii) disallowed interest expenses of certain entities and (iii) losses 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 (iv) 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%.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 13 |
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)
J. INCOME (LOSS) PER SHARE—BASIC AND DILUTED
The calculations of basic and diluted income (loss) per share for the three months ended March 31, 2026 and 2025 are as follows:
| THREE MONTHS ENDED MARCH 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net Income (Loss) | $ | 148,999 | $ | 16,233 | |||||||
| Less: Net Income (Loss) Attributable to Noncontrolling Interests | 5,334 | 281 | |||||||||
| Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation) | $ | 143,665 | $ | 15,952 | |||||||
| Weighted-average shares—basic | 296,848,000 | 294,507,000 | |||||||||
| Effect of dilutive potential stock options | 1,704,000 | 2,162,000 | |||||||||
| Effect of dilutive potential RSUs and PUs | 282,000 | 591,000 | |||||||||
| Weighted-average shares—diluted | 298,834,000 | 297,260,000 | |||||||||
| Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: | |||||||||||
| Basic | $ | 0.48 | $ | 0.05 | |||||||
| Diluted | $ | 0.48 | $ | 0.05 | |||||||
| Antidilutive stock options, RSUs and PUs excluded from the calculation | 229,681 | 98,685 |
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 at March 31, 2026 and December 31, 2025 is as follows:
| MARCH 31, 2026 | DECEMBER 31, 2025 | ||||||||||||||||||||||
| CARRYING VALUE | EQUITY INTEREST | CARRYING VALUE | EQUITY INTEREST | ||||||||||||||||||||
| Frankfurt JV | $ | 82,641 | 20 | % | $ | 85,156 | 20 | % |
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, 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.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 14 |
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)
As of March 31, 2026 and December 31, 2025, we have approximately $1,010,000 and $1,349,000, respectively, in notional value outstanding on our interest rate swap agreements. As of March 31, 2026, our interest rate swap agreements have maturity dates ranging from August 2026 through May 2027.
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 and the Canadian dollar. As of March 31, 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 March 31, 2026 and December 31, 2025, are as follows:
| MARCH 31, 2026 | DECEMBER 31, 2025 | ||||||||||
| Euro | $ | 504,559 | $ | 509,187 | |||||||
| Canadian dollar | 350,000 | 350,000 | |||||||||
| $ | 854,559 | $ | 859,187 |
We have designated these cross-currency swap agreements as hedges of net investments in our Euro and Canadian 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.
The fair values of derivative instruments recognized in our Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, by derivative instrument, are as follows:
| MARCH 31, 2026 | DECEMBER 31, 2025 | ||||||||||||||||||||||
| DERIVATIVE INSTRUMENTS**(1)** | ASSETS | LIABILITIES | ASSETS | LIABILITIES | |||||||||||||||||||
| Cash Flow Hedges*(2)* | |||||||||||||||||||||||
| Interest rate swap agreements | $ | — | $ | (5,316) | $ | — | $ | (9,752) | |||||||||||||||
| Net Investment Hedges*(3)* | |||||||||||||||||||||||
| Cross-currency swap agreements | — | (51,976) | — | (62,117) |
(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 March 31, 2026, $4,528 is included within Accrued expenses and other current liabilities and $52,764 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 March 31, 2026, cumulative net losses recorded within Accumulated other comprehensive items, net associated with our interest rate swap agreements are $5,316.
(3)As of March 31, 2026, cumulative net losses recorded within Accumulated other comprehensive items, net associated with our cross-currency swap agreements are $51,976. In addition, we have cumulative net gains of $62,711 related to the excluded component of our cross-currency swap agreements recorded within Accumulated other comprehensive items, net.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 15 |
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)
Unrealized gains (losses) recognized in Accumulated other comprehensive items, net during the three months ended March 31, 2026 and 2025, by derivative instrument, are as follows:
| THREE MONTHS ENDED MARCH 31, | |||||||||||
| DERIVATIVE INSTRUMENTS | 2026 | 2025 | |||||||||
| Cash Flow Hedges | |||||||||||
| Interest rate swap agreements | $ | 4,436 | $ | (6,993) | |||||||
| Net Investment Hedges | |||||||||||
| Cross-currency swap agreements | 10,141 | (25,119) | |||||||||
| Cross-currency swap agreements (excluded component) | (896) | 4,176 |
(Losses) gains recognized in Net income (loss) during the three months ended March 31, 2026 and 2025, by derivative instrument, are as follows:
| THREE MONTHS ENDED MARCH 31, | ||||||||||||||
| DERIVATIVE INSTRUMENTS | LOCATION OF (LOSS) GAIN | 2026 | 2025 | |||||||||||
| Cash Flow Hedges | ||||||||||||||
| Interest rate swap agreements | Interest expense | $ | (1,207) | $ | — | |||||||||
| Net Investment Hedges | ||||||||||||||
| Cross-currency swap agreements (excluded component) | Interest expense | 896 | (4,176) |
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 16 |
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:
| MARCH 31, 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) | $ | 1,285,000 | $ | (7,724) | $ | 1,277,276 | $ | 1,285,000 | $ | 751,500 | $ | (8,207) | $ | 743,293 | $ | 751,500 | |||||||||||||||||||||||||||||||||||||
| Term Loan A(1) | 481,250 | — | 481,250 | 481,250 | 487,500 | — | 487,500 | 487,500 | |||||||||||||||||||||||||||||||||||||||||||||
| Term Loan B(1) | 2,016,319 | (11,885) | 2,004,434 | 2,026,313 | 2,020,957 | (12,465) | 2,008,492 | 2,031,495 | |||||||||||||||||||||||||||||||||||||||||||||
| Virginia 3 Term Loans due 2026 | — | — | — | — | 271,079 | (1,189) | 269,890 | 271,079 | |||||||||||||||||||||||||||||||||||||||||||||
| Virginia 6 Term Loans(2) | 210,000 | (2,140) | 207,860 | 210,000 | 210,000 | (2,633) | 207,367 | 210,000 | |||||||||||||||||||||||||||||||||||||||||||||
| Virginia 7 Term Loans(2) | 293,455 | (3,535) | 289,920 | 293,455 | 275,314 | (4,351) | 270,963 | 275,314 | |||||||||||||||||||||||||||||||||||||||||||||
| Virginia 4/5 Term Loans due 2030(2) | 208,224 | (3,350) | 204,874 | 208,224 | 208,224 | (3,529) | 204,695 | 208,224 | |||||||||||||||||||||||||||||||||||||||||||||
| Virginia 3 Term Loans due 2031(3) | 433,000 | (8,583) | 424,417 | 433,000 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Australian Dollar Term Loan(2) | 267,998 | (1,915) | 266,083 | 269,708 | 262,192 | (1,965) | 260,227 | 263,948 | |||||||||||||||||||||||||||||||||||||||||||||
| UK Revolving Credit Facility(2) | 185,035 | (1,684) | 183,351 | 185,035 | 188,385 | (2,002) | 186,383 | 188,385 | |||||||||||||||||||||||||||||||||||||||||||||
| 47/8% Notes due 2027(2) | 1,000,000 | (2,133) | 997,867 | 993,750 | 1,000,000 | (2,488) | 997,512 | 995,000 | |||||||||||||||||||||||||||||||||||||||||||||
| 51/4% Notes due 2028(2) | 825,000 | (2,362) | 822,638 | 818,813 | 825,000 | (2,657) | 822,343 | 823,969 | |||||||||||||||||||||||||||||||||||||||||||||
| 5% Notes due 2028(2) | 500,000 | (1,688) | 498,312 | 492,500 | 500,000 | (1,869) | 498,131 | 497,500 | |||||||||||||||||||||||||||||||||||||||||||||
| 7% Notes(2) | 1,000,000 | (6,027) | 993,973 | 1,013,750 | 1,000,000 | (6,559) | 993,441 | 1,025,000 | |||||||||||||||||||||||||||||||||||||||||||||
| 47/8% Notes due 2029(2) | 1,000,000 | (5,063) | 994,937 | 966,250 | 1,000,000 | (5,425) | 994,575 | 983,750 | |||||||||||||||||||||||||||||||||||||||||||||
| 51/4% Notes due 2030(2) | 1,300,000 | (6,518) | 1,293,482 | 1,254,500 | 1,300,000 | (6,894) | 1,293,106 | 1,280,500 | |||||||||||||||||||||||||||||||||||||||||||||
| 41/2% Notes(2) | 1,100,000 | (6,119) | 1,093,881 | 1,023,000 | 1,100,000 | (6,430) | 1,093,570 | 1,042,250 | |||||||||||||||||||||||||||||||||||||||||||||
| 5% Notes due 2032(2) | 750,000 | (8,268) | 741,732 | 701,250 | 750,000 | (8,595) | 741,405 | 710,625 | |||||||||||||||||||||||||||||||||||||||||||||
| 55/8% Notes(2) | 600,000 | (3,678) | 596,322 | 577,500 | 600,000 | (3,823) | 596,177 | 586,500 | |||||||||||||||||||||||||||||||||||||||||||||
| 61/4% Notes(2) | 1,200,000 | (12,302) | 1,187,698 | 1,183,500 | 1,200,000 | (12,752) | 1,187,248 | 1,206,000 | |||||||||||||||||||||||||||||||||||||||||||||
| Euro Notes(2) | 1,380,536 | (16,247) | 1,364,289 | 1,276,651 | 1,408,825 | (16,765) | 1,392,060 | 1,370,082 | |||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Mortgages, Financing Lease Liabilities and Other | 780,096 | (1,375) | 778,721 | 780,096 | 785,497 | (1,512) | 783,985 | 785,497 | |||||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable Securitization Program | 400,000 | (336) | 399,664 | 400,000 | 400,000 | (404) | 399,596 | 400,000 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Long-term Debt | 17,215,913 | (112,932) | 17,102,981 | 16,544,473 | (112,514) | 16,431,959 | |||||||||||||||||||||||||||||||||||||||||||||||
| Less Current Portion | (216,965) | — | (216,965) | (216,074) | — | (216,074) | |||||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt, Net of Current Portion | $ | 16,998,948 | $ | (112,932) | $ | 16,886,016 | $ | 16,328,399 | $ | (112,514) | $ | 16,215,885 |
(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 March 31, 2026 was $1,452,564 (which represents the maximum availability as of such date). The weighted average interest rate in effect under the Revolving Credit Facility was 5.4% as of March 31, 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.
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 March 31, 2026).
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 17 |
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)
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, 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"). 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 6.33%. 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.
LETTERS OF CREDIT
As of March 31, 2026, we have outstanding letters of credit totaling $73,609, of which $12,436 reduce our borrowing capacity under the Revolving Credit Facility. The letters of credit expire at various dates between April 2026 and June 2027.
DEBT COVENANTS
The Credit Agreement, 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 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.
The Credit Agreement uses earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR")-based calculations and the bond indentures use earnings before interest, taxes, depreciation and amortization ("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. 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 March 31, 2026. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity.
6. COMMITMENTS AND CONTINGENCIES
We are involved in litigation from time to time in the ordinary course of business, including litigation arising from damage to customer assets in our facilities caused by fires and other natural disasters. While the outcome of litigation is inherently uncertain, we do not believe any current litigation will have a material adverse effect on our consolidated financial condition, results of operations or cash flows.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 18 |
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 three months ended March 31, 2026, our board of directors declared the following dividends:
| DECLARATION DATE | DIVIDEND PER SHARE | RECORD DATE | TOTAL AMOUNT | PAYMENT DATE | |||||||||||||||||||
| February 13, 2025 | $ | 0.785 | March 17, 2025 | $ | 231,549 | April 4, 2025 | |||||||||||||||||
| May 1, 2025 | 0.785 | June 16, 2025 | 231,789 | July 3, 2025 | |||||||||||||||||||
| August 6, 2025 | 0.785 | September 15, 2025 | 231,972 | October 3, 2025 | |||||||||||||||||||
| November 5, 2025 | 0.864 | December 15, 2025 | 255,560 | January 6, 2026 | |||||||||||||||||||
| February 12, 2026 | 0.864 | March 16, 2026 | 257,022 | April 3, 2026 |
On April 30, 2026, we declared a dividend to our stockholders of record as of June 15, 2026 of $0.864 per share, payable on July 3, 2026.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 19 |
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").
An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements for the three months ended March 31, 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 March 31, 2026 | |||||||||||||||||||||||||||||
| Total Revenues | $ | 1,404,086 | $ | 254,725 | $ | 1,658,811 | $ | 277,338 | $ | 1,936,149 | |||||||||||||||||||
| Storage Rental | 823,517 | 252,505 | 1,076,022 | 18,743 | 1,094,765 | ||||||||||||||||||||||||
| Service | 580,569 | 2,220 | 582,789 | 258,595 | 841,384 | ||||||||||||||||||||||||
| Other Segment Items(1) | 786,407 | 121,962 | 908,369 | ||||||||||||||||||||||||||
| Adjusted EBITDA | 617,679 | 132,763 | 750,442 | ||||||||||||||||||||||||||
| Total Assets(2) | 10,941,270 | 8,276,221 | 19,217,491 | 2,269,324 | 21,486,815 | ||||||||||||||||||||||||
| For the Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||
| Total Revenues | $ | 1,255,942 | $ | 173,197 | $ | 1,429,139 | $ | 163,390 | $ | 1,592,529 | |||||||||||||||||||
| Storage Rental | 757,508 | 172,945 | 930,453 | 17,923 | 948,376 | ||||||||||||||||||||||||
| Service | 498,434 | 252 | 498,686 | 145,467 | 644,153 | ||||||||||||||||||||||||
| Other Segment Items(1) | 699,628 | 82,381 | 782,009 | ||||||||||||||||||||||||||
| Adjusted EBITDA | 556,314 | 90,816 | 647,130 | ||||||||||||||||||||||||||
| Total Assets(2) | 10,263,140 | 6,641,688 | 16,904,828 | 2,457,259 | 19,362,087 | ||||||||||||||||||||||||
(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 MARCH 31, 2026 FORM 10-Q | 20 |
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 months ended March 31, 2026 and 2025 is as follows:
| THREE MONTHS ENDED MARCH 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Total Adjusted EBITDA for Reportable Segments | $ | 750,442 | $ | 647,130 | |||||||||||||||||||
| Add/(Deduct): | |||||||||||||||||||||||
| Corporate and other | (42,503) | (67,224) | |||||||||||||||||||||
| Interest expense, net | (223,821) | (194,738) | |||||||||||||||||||||
| Depreciation and amortization | (267,839) | (232,154) | |||||||||||||||||||||
| Acquisition and Integration Costs(1) | (2,921) | (5,823) | |||||||||||||||||||||
| Restructuring and other transformation | — | (54,746) | |||||||||||||||||||||
| (Loss) gain on disposal/write-down of property, plant and equipment, net (including real estate) | (7,592) | (5,571) | |||||||||||||||||||||
| Other income (expense), net, excluding our share of (losses) gains from our unconsolidated joint ventures | 1,196 | (27,382) | |||||||||||||||||||||
| Stock-based compensation expense | (28,257) | (26,094) | |||||||||||||||||||||
| Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures | (2,588) | (2,330) | |||||||||||||||||||||
| Total Net Income (Loss) Before Provision (Benefit) for Income Taxes | $ | 176,117 | $ | 31,068 |
(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 MARCH 31, 2026 FORM 10-Q | 21 |
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 months ended March 31, 2026 and 2025 is as follows:
| THREE MONTHS ENDED MARCH 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Global RIM Business | |||||||||||||||||||||||
| Records Management(1) | $ | 1,130,101 | $ | 991,827 | |||||||||||||||||||
| Data Management(1) | 122,957 | 122,087 | |||||||||||||||||||||
| Information Destruction(1)(2) | 151,028 | 142,028 | |||||||||||||||||||||
| Data Center(1) | — | — | |||||||||||||||||||||
| Global Data Center Business | |||||||||||||||||||||||
| Records Management(1) | $ | — | $ | — | |||||||||||||||||||
| Data Management(1) | — | — | |||||||||||||||||||||
| Information Destruction(1) | — | — | |||||||||||||||||||||
| Data Center(1) | 254,725 | 173,197 | |||||||||||||||||||||
| Corporate and Other | |||||||||||||||||||||||
| Records Management(1) | $ | 45,489 | $ | 42,787 | |||||||||||||||||||
| Data Management(1) | — | — | |||||||||||||||||||||
| Information Destruction(1)(3) | 231,849 | 120,603 | |||||||||||||||||||||
| Data Center(1) | — | — | |||||||||||||||||||||
| Total Consolidated | |||||||||||||||||||||||
| Records Management(1) | $ | 1,175,590 | $ | 1,034,614 | |||||||||||||||||||
| Data Management(1) | 122,957 | 122,087 | |||||||||||||||||||||
| Information Destruction(1)(2)(3) | 382,877 | 262,631 | |||||||||||||||||||||
| Data Center(1) | 254,725 | 173,197 |
(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.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 22 |
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
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 months ended March 31, 2026 and 2025 is as follows (approximately):
| THREE MONTHS ENDED MARCH 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Frankfurt JV Agreements(1) | $ | 436 | $ | — |
(1)Revenue associated with the Frankfurt JV Agreements is presented as a component of our Global Data Center Business segment.
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 Restructuring and other transformation costs for the three months ended March 31, 2026. Total Restructuring and other transformation costs for the three months ended March 31, 2025 was $54,746 and consisted of (i) restructuring costs of $21,856 and (ii) other transformation costs of $32,890.
| IRON MOUNTAIN MARCH 31, 2026 FORM 10-Q | 23 |
Part I. Financial Information
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