IRM

Real Estate

Iron Mountain

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2016–2025(10yr)

Revenue

Net Income

Free CF

Metric	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$3.5B	$3.8B	$4.2B	$4.3B	$4.1B	$4.5B	$5.1B	$5.5B	$6.1B	$6.9B	+12.2%
Net Income	$107.2M	$185.4M	$364.5M	$268.3M	$343.1M	$452.7M	$562.1M	$187.3M	$183.7M	$152.3M	-17.1%
FFO	$559.6M	$707.8M	$1.0B	$926.5M	$995.2M	$1.1B	$1.3B	$963.4M	$1.1B	$1.2B	+8.5%
FFO Margin	15.9%	18.4%	23.8%	21.7%	24.0%	25.2%	25.3%	17.6%	17.6%	17.0%	-0.6pp
Operating Income	$501.6M	$649.1M	$755.5M	$781.3M	$934.8M	$854.2M	$1.0B	$921.8M	$1.0B	$1.2B	+15.3%
Operating Margin	14.3%	16.9%	17.9%	18.3%	22.5%	19.0%	20.6%	16.8%	16.4%	16.9%	+0.4pp
Net Margin	3.1%	4.8%	8.6%	6.3%	8.3%	10.1%	11.0%	3.4%	3.0%	2.2%	-0.8pp
EPS (Diluted)	$0.42	$0.69	$1.27	$0.93	$1.19	$1.55	$1.90	$0.63	$0.61	$0.49	-19.7%

Total Debt$16.4B

Cash & Equiv.$158.5M

Net Debt$16.3B

4 min read

1. THE BIG PICTURE

Iron Mountain is attempting to outrun the gradual obsolescence of paper by leveraging its "Security-in-Depth" reputation to become a vital provider of data center capacity and AI-driven digital workflows. While it remains a dominant REIT with a presence in 95% of the Fortune 1000, it is currently a business in tension: it is using the cash flows from a legacy storage model to fund a capital-intensive digital future that has yet to produce positive free cash flow.

2. WHERE THE RISKS HIT HARDEST

Iron Mountain’s "synergistic" business model, which relies on using its physical storage relationships to cross-sell digital services, is threatened by declining storage activity as customers increasingly adopt digital alternatives (10-K Item 1A). This shift directly undermines the service revenue growth and profits that Iron Mountain needs to manage its $16,544.5 million in total long-term debt (8-K). Furthermore, the strategic priority of completing construction on 400 megawatts of data center capacity is vulnerable to Iron Mountain’s high leverage, which limits the financial flexibility required to fund these massive infrastructure projects or satisfy debt-related distribution limits necessary to remain a REIT (10-K Item 1A).

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a company growing rapidly but at a significant cost to its bottom line and liquidity. While total revenue rose 16.6% in the fourth quarter of 2025, net income actually fell by 11.9%, and diluted EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric dropped 14.3% (8-K). This divergence is explained by the heavy spending on "Project Matterhorn" and data center construction, which has left Iron Mountain with a negative 16.0% free cash flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin—the lowest among its peer group (XBRL). Despite the decline in physical record activity mentioned in risk disclosures, storage rental revenue still grew 12.7%, suggesting that while customers are retrieving boxes less frequently, they are not yet removing them from Iron Mountain’s 1,340 global locations (8-K). Short interest stands at 3.6% of the float, indicating a moderate level of market skepticism regarding the pace of this transition.

4. IS IT WORTH IT AT THIS PRICE?

At 31.7x P/FFO, Iron Mountain trades at a 56% premium to the peer median of 20.3x. According to the provided analysis, the market is pricing in a 7.7% long-term growth rate (CAPM analysis). While Iron Mountain’s 12.2% trailing revenue growth is the second-highest in its peer group, its 0.4% net margin is the lowest among all comparable firms, trailing Equinix (15.4%) and Public Storage (35.6%) significantly (XBRL). This valuation is difficult to reconcile with Iron Mountain's negative FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin and high debt. If growth were to slow to a base rate of 5.0%, the justified multiple would fall to 17.2x, implying a 46% downside from current levels (CAPM analysis). The current price is only justified if Iron Mountain can successfully convert its 400-megawatt data center pipeline into high-margin FFO without further straining its balance sheet.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if total long-term debt exceeds $16.5 billion without a corresponding increase in net income, or if declining storage activity leads to a contraction in service revenue (10-K Item 1A).
Constructive if the Insight Digital Experience Platform (DXP) 2.0 drives a meaningful shift in FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin toward the positive levels seen at peers like American Tower (35.3%), or if data center leasing exceeds the 400-megawatt target (8-K).

6. BOTTOM LINE

Structural Advantage: A global "Security-in-Depth" infrastructure and a trusted chain of custody across 95% of the Fortune 1000 that creates high switching costs for physical and digital records. Bottom Line: Iron Mountain is a high-growth infrastructure play trapped in a low-margin utility's balance sheet; the current valuation is a bet on a flawless digital transition that its $16.5 billion debt load may not allow.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Strategic Growth Execution: Iron Mountain’s growth plan relies on investments in data centers, digital solutions, and acquisitions. Failure to achieve satisfactory returns, integrate acquired companies, or manage the increased demands on internal controls and financial resources could adversely impact its financial condition.
Declining Storage Activity: As stored records and tapes become less active, service revenue growth and related profits may decline. Customers are increasingly utilizing digital alternatives, reducing the frequency of record retrieval and tape rotation.
Indebtedness: With $16,544.5 million in total long-term debt, Iron Mountain faces risks including the inability to satisfy debt obligations, limits on future borrowings, and potential failure to remain qualified as a REIT if debt-related distribution limits are triggered.
Cybersecurity and IT Infrastructure: Attacks on internal IT systems or failures in implementing new IT platforms could lead to the theft of proprietary information, regulatory penalties, and reputational harm, potentially damaging the trust critical to Iron Mountain’s business.
REIT Qualification: Failure to remain qualified as a REIT would subject Iron Mountain to federal corporate income tax, significantly reducing cash available for distributions and investment.

2. Company-Specific Risks

Data Center Operational Risks: The Global Data Center Business is susceptible to service interruptions from power outages, equipment failure, or natural disasters, which could result in contractual liability and lost profits due to service-level commitment obligations.
ALM Business Concentration: The Asset Lifecycle Management (ALM) business is tied to a limited number of clients and concentrated geographies, particularly China; trade policies or macroeconomic instability in these regions could reduce revenues and earnings.
Real Estate Liabilities: Iron Mountain operates approximately 1,340 facilities and faces risks including environmental cleanup liability for contaminated properties, even if the contamination occurred prior to Iron Mountain’s ownership or lease.
Commodity Price Sensitivity: Secure shredding operations and the ALM business are impacted by commodity prices; significant declines in the cost of paper or scrap metals negatively impact operating revenues.

3. Regulatory/Legal Risks

Data Privacy and Cybersecurity Laws: Iron Mountain is subject to complex, evolving global regulations regarding data privacy and security. Non-compliance can result in civil and criminal liability, fines, and increased costs of compliance.
Government Contracting: Contracts with government entities subject Iron Mountain to specific regulatory requirements; failure to comply can lead to investigations, price reductions, treble damages, civil penalties, and potential debarment from future government work.
REIT Distribution Requirements: To maintain REIT status, Iron Mountain must distribute at least 90% of its REIT taxable income. Failure to do so, or failure to comply with complex asset ownership tests, could result in the loss of REIT status and the imposition of corporate-level taxes.
Anti-Corruption Laws: As a global company operating in 61 countries, Iron Mountain is subject to the Foreign Corrupt Practices Act and the United Kingdom Bribery Act; violations by employees or agents could result in significant legal and reputational consequences.

4. Financial Impact Map

Strategic Growth Execution → Results of Operations → Inability to offset expenses and liabilities associated with new investments. Declining Storage Activity → Service Revenue → Reduced retrieval and rotation activity leads to lower service revenue growth. Indebtedness → Stockholders' Deficit → High debt levels and interest obligations impact financial health and limit distributions to stockholders. Cybersecurity and IT Infrastructure → Results of Operations → Costs associated with cyberattacks, identity theft protection, and potential regulatory penalties. REIT Qualification → Federal Income Tax Expense → Failure to qualify as a REIT would subject Iron Mountain to corporate income tax rates, reducing cash available for distributions.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
8-K	Feb 2026	—
10-K	Feb 2026	Dec 2025
14A	Apr 2025	—