Iron Mountain (IRM -5.77%), a global leader in information storage and services, released its results for Q2 2025 on August 6, 2025. The main headlines: revenue grew 11.6% year over year to $1.71 billion (GAAP), beating GAAP revenue estimates by $28.7 million, while adjusted earnings per share (EPS) of $0.48 rose 14.3% from the prior year, but came in slightly below analyst forecasts by $0.02 on a non-GAAP basis. Despite robust revenue growth and strong performance in data center, digital, and asset lifecycle management (ALM) segments, higher operating costs and foreign exchange movements led to a net loss. However, Iron Mountain raised its full-year 2025 outlook, pointing to continued momentum in its strategy to expand growth-oriented businesses.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.48 | $0.50 | $0.42 | 14.3 % |
| Revenue (GAAP) | $1.71 billion | N/A | $1.53 billion | 11.6 % |
| AFFO per share | $1.24 | $1.08 | 14.8 % | |
| Adjusted EBITDA | $628 million | $544 million | 15.4 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Strategic Focus
Iron Mountain operates in over 60 countries, serving more than 240,000 customers with solutions spanning physical records storage, secure shredding, digitization, data centers, and lifecycle management of information assets. It is especially known for protecting physical and digital information for clients like law firms, banks, health organizations, and government agencies around the world.
Recently, Iron Mountain has focused on expanding its data center footprint and digital services to meet growing demands for data storage and business transformation. The company highlights five core areas: expanding data center operations, cross-selling through its extensive global reach, leading sustainability initiatives, ongoing company-wide transformation called Project Matterhorn, and comprehensive information management solutions that enable customers to securely manage both physical and digital information.
Quarter Highlights: Financial, Segment, and Operational Trends
Revenue (GAAP) rose to $1.71 billion, up 11.6%, driven by growth across key segments in Q2 2025. This figure was ahead of analyst expectations for GAAP revenue, with storage rental revenue reaching $1.01 billion (up 9.8%). Service revenue reached $702 million, up 14.2% year over year. Growth in newer business lines reinforced Iron Mountain’s push into high-growth sectors.
Growth businesses such as data center, digital, and asset lifecycle management (ALM) were standout performers, collectively growing more than 30% year over year. Management noted, “Data center, digital, and asset lifecycle management (ALM) businesses collectively grew more than 30%,” reflecting continued success with cross-selling and meeting increased market demand for secure, scalable digital solutions.
Adjusted EBITDA rose to $628.4 million, an increase of 15.4%. Adjusted EBITDA margin improved from 35.5% to 36.7%, showing improved efficiency and operating leverage as revenue scaled. Adjusted Funds From Operations (AFFO) per share, a cash-flow measure critical for real estate and infrastructure businesses, rose 14.8% to $1.24 (non-GAAP).
Despite these gains, Iron Mountain recorded a net loss attributable to the company of $44.9 million (GAAP), compared to net income of $35.8 million (GAAP) in Q2 2024. The net loss was driven by foreign exchange fluctuations affecting intercompany balances, as well as rising interest and operating expenses. Interest expense rose 16.2% year over year to $205.1 million, while selling, general, and administrative (SG&A) costs increased 13.2%.
The company maintained its quarterly dividend, announcing a payout of $0.785 per share for Q3 2025,—consistent with the previous quarter. This maintains payout stability and underscores management’s intent to provide dependable shareholder returns.
Business and Operational Momentum: Key Developments
The data center product line, which houses and manages physical infrastructure supporting cloud computing and data storage, reported revenue growth of over 20% year over year in Q1 2025. Lease rates exceeded 95% as of December 31, 2024, with ongoing new development in high-demand markets such as Northern Virginia, Chicago, Amsterdam, and India. The company continues to expand capacity, targeting 1.3 gigawatts (GW) across its portfolio.
Segment profitability improved, supported by acquisition synergies and increased scale from recent deals.
Records and information management (RIM), Iron Mountain’s foundational product line, delivered stable performance with modest volume growth. Recurring, high-margin cash flow from this segment continues.
On the digital side, Iron Mountain’s InSight Digital Experience Platform (DXP)—a software-as-a-service (SaaS) product that helps organizations digitize, index, and access information—scored new government contracts, indicating growing traction as customers embrace digital transformation.
Cost increases reflected both higher SG&A and elevated transformation charges, with $50.3 million in restructuring and transformation expenses. These ongoing investments feed into Project Matterhorn, which aims to further streamline Iron Mountain’s operations and accelerate company-wide digital transformation. The quarter also saw a notable increase in long-term debt, rising to $14.8 billion from $13.0 billion at the end of 2024, as the company funds growth initiatives, as reported on a GAAP basis.
Sustainability continues to be a focus: in 2023, 87% of Iron Mountain’s global electricity use was sourced from renewables, reinforcing its appeal to corporate customers with environmental, social, and governance (ESG) mandates.
Looking Ahead: Guidance and Watch Points
Following its Q2 2025 performance, Iron Mountain raised its full-year 2025 guidance. For the full year 2025, the company now expects total revenue in the range of $6.79 billion to $6.94 billion (implying ~12% growth at the midpoint), adjusted EBITDA of $2.52 billion to $2.57 billion (~14% growth) for FY2025, and AFFO (non-GAAP) of $1.505 billion to $1.53 billion for FY2025. Guidance raises for FY2025 were attributed primarily to favorable foreign exchange, the Premier Surplus acquisition, and improved operating expectations. Management continues to highlight robust pipelines in data center and ALM businesses.
No further changes to the dividend were announced beyond maintaining the quarterly rate at $0.785 per share. Investors are cautioned to watch the pace of high-margin growth service expansion, cost discipline as both SG&A and interest expenses climb, as well as any further effects from currency volatility. As debt and capital investments increase, returns on new capacity and leverage trends will be critical data points in quarters to come.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
