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Iron Mountain

Iron MountainIRMEarnings & Financial Report

NYSE · Real Estate · Other Specialized REITs

Iron Mountain Inc. is an American enterprise information management services company founded in 1951 and headquartered in Portsmouth, New Hampshire. Its records management, information destruction, and data backup and recovery services are supplied to more than 220,000 customers in 58 countries throughout North America, Europe, Latin America, Africa, Asia, and Oceania.

What changed in Iron Mountain's 10-K — 2024 vs 2025

Top changes in Iron Mountain's 2025 10-K

274 paragraphs added · 276 removed · 218 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Consumer Storage, provides on-demand, valet storage for consumers ("Consumer Storage") utilizing data analytics and machine learning to provide effective customer acquisition and a convenient and seamless consumer storage experience. 2 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I GLOBAL DATA CENTER BUSINESS The Global Data Center Business segment provides enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure with secure, reliable and flexible data center options.
Consumer Storage, provides on-demand, valet storage for consumers ("Consumer Storage") utilizing data analytics and machine learning to provide effective customer acquisition and a convenient and seamless consumer storage experience. 2 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part I GLOBAL DATA CENTER BUSINESS The Global Data Center Business segment provides enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure with secure, reliable and flexible data center options.
As of December 31, 2024, our data center portfolio has achieved numerous certifications and received third party assurance reports, making it one of the most comprehensive compliance programs in the industry.
As of December 31, 2025, our data center portfolio has achieved numerous certifications and received third party assurance reports, making it one of the most comprehensive compliance programs in the industry.
With a total potential capacity of 1,280 MW in land and buildings currently owned or operated by us, we are among the largest global data center operators.
With a total potential capacity of 1,340 MW in land and buildings currently owned or operated by us, we are among the largest global data center operators.
BUSINESS SEGMENTS The amount of revenues derived from our business segments and other relevant data, including financial information about geographic areas and product and service lines, for the years ended December 31, 2024, 2023 and 2022, are set forth in Note 11 to Notes to Consolidated Financial Statements included in this Annual Report.
BUSINESS SEGMENTS The amount of revenues derived from our business segments and other relevant data, including financial information about geographic areas and product and service lines, for the years ended December 31, 2025, 2024 and 2023, are set forth in Note 10 to Notes to Consolidated Financial Statements included in this Annual Report.
Copies of our corporate governance guidelines, code of ethics and the charters of our audit, compensation, finance, nominating and governance and risk and safety committees are available on the "Investors" section of our website, www.ironmountain.com , under the heading "Corporate Governance". 8 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I
Copies of our corporate governance guidelines, code of ethics and the charters of our audit, compensation, finance, nominating and governance and risk and safety committees are available on the "Investors" section of our website, www.ironmountain.com , under the heading "Corporate Governance". IRON MOUNTAIN 2025 FORM 10-K 7 Table of Contents Part I
We are listed on the New York Stock Exchange (the "NYSE") and are a constituent of the Standard & Poor’s 500 Index, the Morgan Stanley Capital International ("MSCI") REIT index and the FTSE EPRA Nareit Global Real Estate Index. As of December 31, 2024, we were number 604 on the Fortune 1000.
We are listed on the New York Stock Exchange (the "NYSE") and are a constituent of the Standard & Poor’s 500 Index, the Morgan Stanley Capital International ("MSCI") REIT index and the FTSE EPRA Nareit Global Real Estate Index. As of December 31, 2025, we were number 567 on the Fortune 1000.
Recurring, Durable Revenue Stream A majority of our revenue is recurring in nature. In our Records Management business, our contracted storage rental fee agreements generally range from one to five years in length. As of December 31, 2024, we stored more than 730 million cubic feet of physical volume and we have consistently experienced strong customer retention levels.
Recurring, Durable Revenue Stream A majority of our revenue is recurring in nature. Our contracted storage rental agreements in our Records Management business generally range from one to five years in length. As of December 31, 2025, we stored more than 740 million cubic feet of physical volume and we have consistently experienced strong customer retention levels.
Total costs related to Project Matterhorn during the years ended December 31, 2024 and 2023 were approximately $161.4 million and $175.2 million, respectively.
Total costs related to Project Matterhorn during the years ended December 31, 2025, 2024 and 2023 were approximately $195.9 million, $161.4 million, and $175.2 million, respectively.
Costs are comprised of (1) restructuring costs, which include (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 include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement of our growth initiatives.
Costs 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 of 2024, Iron Mountain has over 190 locations globally with the ability to track and match renewable energy usage on an hourly basis. • 87% of our global electricity use was covered by renewable sources in 2023. • Iron Mountain has near and long-term science-based emissions reduction targets that have been validated by SBTi. • Reduced Scope 1 and 2 greenhouse gas (GHG) emissions by 10% from 2022 to 2023. • Achieved a landfill diversion rate of 81% in 2023, reducing waste to landfill and lowering emissions associated with waste processing.
As of 2025, Iron Mountain has over 200 locations globally with the ability to track and match renewable energy usage on an hourly basis. • 91% of our global electricity use was covered by renewable sources in 2024. • Iron Mountain has near and long-term science-based emissions reduction targets that have been validated by SBTi. • Reduced Scope 1 and 2 greenhouse gas (GHG) emissions by 16% from 2022 to 2024. • Achieved a landfill diversion rate of 82% in 2024, reducing waste to landfill and lowering emissions associated with waste processing.
HUMAN CAPITAL MANAGEMENT EMPLOYEES As of December 31, 2024, we employed approximately 11,150 employees in the United States and approximately 17,700 employees outside of the United States. As of December 31, 2024, approximately 375 employees were represented by unions in North America and approximately 1,375 employees were represented by unions in Latin America.
HUMAN CAPITAL MANAGEMENT EMPLOYEES As of December 31, 2025, we employed approximately 11,700 employees in the United States and approximately 17,700 employees outside of the United States. As of December 31, 2025, approximately 400 employees were represented by unions in North America and approximately 1,100 employees were represented by unions in Latin America.
PROJECT MATTERHORN In September 2022, we announced a global program designed to accelerate the growth of our business ("Project Matterhorn"). Project Matterhorn investments focus on transforming our operating model to a global operating model.
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. Project Matterhorn investments focused on transforming our operating model to a global operating model.
We transfer a portion of our risk of financial loss due to currently undetected environmental matters by purchasing an environmental impairment liability insurance policy, which covers all owned and leased locations. Coverage is provided for both liability and remediation costs.
We transfer a portion of our risk of financial loss due to currently undetected environmental matters by purchasing an environmental impairment liability insurance policy, which covers all owned and leased locations.
IRON MOUNTAIN 2024 FORM 10-K 7 Table of Contents Part I STRONG ENVIRONMENTAL FOCUS • Iron Mountain provides a Green Power Pass solution in the data center market to help customers manage their carbon footprint. • Founding signatory of the UN Compact on 24/7 Carbon Free Energy.
STRONG ENVIRONMENTAL FOCUS • Iron Mountain provides a Green Power Pass solution in the data center market to help customers manage their carbon footprint. • Founding signatory of the UN Compact on 24/7 Carbon Free Energy.
Differentiated Compliance and Security We offer comprehensive compliance support as well as physical and cybersecurity. Our Security-in-Depth strategy integrates both technical and human security measures, with oversight provided by senior security leaders with military and public sector backgrounds.
We offer comprehensive compliance support as well as physical security and cybersecurity. Our “Security-in-Depth” strategy integrates both technical and human security measures, with oversight from senior security leaders with military and public sector backgrounds.
COMPANY CULTURE We are committed to making a meaningful impact on our customers, our people and our business by cultivating a culture that is firmly grounded in our values: Acting with Integrity, Owning Safety and Security, Building Customer Value, Taking Ownership and Promoting Inclusion and Teamwork .
IRON MOUNTAIN 2025 FORM 10-K 5 Table of Contents Part I COMPANY CULTURE We are committed to making a meaningful impact on our customers, our people and our business by cultivating a culture that is firmly grounded in our values: Acting with Integrity, Owning Safety and Security, Building Customer Value, Taking Ownership and Promoting Inclusion and Teamwork .
Project Matterhorn focuses on the formation of a solution-based sales approach that is designed to allow us to optimize our shared services and best practices to better serve our customers' needs. We are investing to accelerate growth and to capture a greater share of the large, global addressable markets in which we operate.
Project Matterhorn enabled the development of a solution-based sales approach that allowed us to optimize our shared services and best practices to better serve our customers' needs. As part of this, we invested to accelerate growth and to capture a greater share of the large, global addressable markets in which we operate.
As of December 31, 2024, we are a constituent of multiple indexes that focus on corporate sustainability standards, including several MSCI All Country World Indexes (ACWI), such as the ACWI Low Carbon Leaders, ACWI Climate Paris Aligned, ACWI ESG Leaders and ACWI Socially Responsible Index (SRI).
As of June 30, 2025, we are a constituent of multiple indexes that focus on corporate sustainability standards, including several MSCI All Country World Indexes (ACWI), such as the ACWI Low Carbon Target and World Low Carbon SRI Selection, ACWI Climate Paris Aligned, ACWI USA Extended ESG Leaders and ACWI KLD 400 Social Index.
The program also includes enterprise-wide certified ISO 14001 and 50001 environmental and energy management systems and complies with ISO 14064 for greenhouse gas emissions, supporting our commitment to sustainability.
The program also includes enterprise-wide certified ISO 14001 and 50001 environmental and energy management systems and complies with ISO 14064 for greenhouse gas emissions, supporting our commitment to sustainability. We have matched 100% of the energy consumption in our data centers with clean energy annually since 2017.
Our business has a highly diverse customer base of more than 240,000 customers - with no single customer accounting for more than approximately 1% of revenue during the year ended December 31, 2024 - and operates in 61 countries globally. This presents a significant cross-sell opportunity for our expanding solutions, including digital, data center and ALM.
Our business has a highly diverse customer base of more than 240,000 customers - with no single customer accounting for more than approximately 3% of revenue during the year ended December 31, 2025 - and operates in 61 countries globally.
These benefits vary by location but generally include health and welfare benefits, paid time off and programs to support financial security. Additionally, employees are able to access emotional well-being resources through global employee assistance programs. Certain unionized employees receive benefits through unions and are not eligible to participate in our benefit programs.
Additionally, employees are able to access emotional well-being resources through global employee assistance programs and new global mental health training. Certain unionized employees receive benefits through unions and are not eligible to participate in our benefit programs.
We transparently report on our sustainability efforts and the advancement of our objectives by using widely adopted reporting frameworks such as the Global Reporting Initiative, CDP and EcoVadis. In addition, we continue to further align our reporting with the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures. Our work continues to receive recognition.
In addition, we continue to further align our reporting with the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures. Our work continues to receive recognition.
In our Global Data Center Business, our lease durations vary by customer, with a weighted average lease expiration of 10.6 years as of December 31, 2024.
In our Global Data Center Business, our lease durations vary by customer, with a weighted average lease expiration of 10.3 years as of December 31, 2025. Limited Revenue Cyclicality Historically, economic downturns have not significantly affected our storage rental business.
All union employees are currently under renewed labor agreements or operating under an extension agreement. IRON MOUNTAIN 2024 FORM 10-K 5 Table of Contents Part I BENEFIT PROGRAMS We provide our employees with benefits that are designed to support their overall physical, financial, emotional and social well-being.
All union employees are currently under renewed labor agreements or operating under an extension agreement. BENEFIT PROGRAMS We provide our employees with benefits that are designed to support their overall physical, financial, emotional and social well-being. These benefits vary by location but generally include health and welfare benefits, paid time off and programs to support financial security.
In addition, we are subject to numerous laws and regulations relating to data privacy and cybersecurity, which are complex, change frequently and have tended to become more stringent over time.
Coverage is provided for both liability and remediation costs. 6 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part I In addition, we are subject to numerous laws and regulations relating to data privacy and cybersecurity, which are complex, change frequently and have tended to become more stringent over time.
IRON MOUNTAIN 2024 FORM 10-K 3 Table of Contents Part I BUSINESS ATTRIBUTES Our business has the following attributes: Large, Diversified, Global Business The world’s most heavily regulated organizations trust us with the storage of their records. Our mission-critical storage offerings and related services generated approximately $6.1 billion in annual revenue in 2024.
IRON MOUNTAIN 2025 FORM 10-K 3 Table of Contents Part I BUSINESS ATTRIBUTES Our business has the following attributes: Large, Global, Diversified Business The world’s most heavily regulated organizations trust us with their information management, digital transformation, information security, data center and ALM needs.
GOVERNMENT REGULATION We are required to comply with numerous laws and regulations covering a wide variety of subject matters which may have a material effect on our capital expenditures, earnings and competitive position. 6 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I For example, some of our currently and formerly owned or leased properties were previously used by entities other than us for industrial or other purposes, or were affected by waste generated from nearby properties, that involved the use, storage, generation and/or disposal of hazardous substances and wastes, including petroleum products.
For example, some of our currently and formerly owned or leased properties were previously used by entities other than us for industrial or other purposes, or were affected by waste generated from nearby properties, that involved the use, storage, generation and/or disposal of hazardous substances and wastes, including petroleum products.
These business lines, including Global Data Center, ALM and Global Digital Solutions, represent markets with strong, secular growth. 4 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I In addition, our Global Data Center Business has the following attributes: Large Data Center Platform with Significant Expansion Opportunity As of December 31, 2024, we had 416 MW of leasable capacity with an additional 864 MW under construction or held for development.
We will continue to seek ways to optimize the efficiency of our real estate portfolio. 4 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part I Large Data Center Platform with Differentiated Compliance and Security and Sustainability Focus As of December 31, 2025, we had 488 MW of leasable capacity with an additional 852 MW under construction or held for development.
Our strategy is underpinned by our persistent focus on best-in-class customer experience, as we continue to seek innovative solutions to help our customers progress on their journey from physical storage to a digital ecosystem.
Our strategy is underpinned by our persistent focus on best-in-class customer experience as we continue to deliver innovative solutions, such as Insight Digital Experience Platform (“DXP”), to help our customers better leverage data and drive improved efficiency. • We provide our digital solutions offering globally to customers across an array of market verticals.
Due to the durability of our total global physical volumes, the success of our revenue management initiatives and the growth of our Global Data Center Business, we believe we can continue to grow organic storage rental revenue over time.
We anticipate continued growth in organic storage rental revenue, supported by the longevity of our total global physical volumes, successful revenue management initiatives and the expansion of our Global Data Center business. Significant Owner and Operator of Real Estate We operate over 98 million square feet of real estate worldwide.
Utilizing our global scale as well as over 70 years of customer trust to deliver differentiated data center offerings • We have made significant progress in scaling our Global Data Center Business through acquisitions and organic growth, with 29 operating data centers across 21 global markets, either directly or through unconsolidated joint ventures. • As of December 31, 2024, we had leased approximately 96% of the existing 416 megawatt ("MW") capacity of our data centers.
We are also focused on completing construction and commencing data center leases entered into in prior periods. • As of December 31, 2025, we operated 31 data centers across 21 global markets, either directly or through unconsolidated joint ventures. In addition, we had leased approximately 97% of the existing 488 megawatt ("MW") capacity of our data centers.
While we foster an environment of learning, collaboration, diversity and wellbeing, we know culture truly thrives in the everyday experience of working at Iron Mountain. Our culture encourages open communication and innovation while fostering trust, engagement and exceptional performance.
We foster an environment of learning, collaboration and wellbeing. Our culture encourages open communication and innovation while building trust, driving engagement and delivering exceptional performance. We evaluate this through our annual global employee engagement survey (the "IM Listening Survey") and use data driven insights to deepen our understanding of our global workforce.
Led by our President and CEO, William Meaney, our Inclusive Leadership Alliance (the "Alliance") includes members of the Executive Leadership Team and plays a pivotal role in advancing our culture and driving growth. The Alliance reviews and supports key initiatives, monitors progress toward enterprise goals, ensures accountability through measurable targets and communicates achievements to stakeholders.
The team reviews and supports key initiatives, monitors progress toward enterprise goals, ensures accountability through measurable targets and communicates achievements to stakeholders. They also actively review the results of our IM Listening Survey, aligning on enterprise-wide actions and focus areas that continue to reinforce our culture.
We have been organized and have operated as a REIT beginning with our taxable year ended December 31, 2014. BUSINESS STRATEGY OVERVIEW Our company has been a market leader in the physical ecosystem supporting information storage and retrieval, as most businesses have relied on paper documents or computer tapes to store their valuable information.
We have been organized and have operated as a REIT beginning with our taxable year ended December 31, 2014.
In 2024, the Science Based Targets initiative ("SBTi") validated our targets, which are aligned with the Paris Climate Agreement aspiration of limiting the global temperature increase to 1.5 degrees Celsius. Our data center team was recognized with the Decarbonization of Electricity award from BroadGroup International for their work and thought leadership on carbon-free energy.
Our emissions reduction targets, which align with the Paris Climate Agreement aspiration to limit the global temperature increase to 1.5 degrees Celsius, have been validated by the Science Based Targets initiative ("SBTi"). Our ALM business received the ITAD Company of the Year award at the ITAD Summit in July 2025.
Continued revenue growth in physical storage through revenue management actions as well as volume growth achieved in faster growing markets and our consumer business, as well as complementary business growth • We are establishing and enhancing leadership positions in higher-growth markets such as central and eastern Europe, Latin America, Asia, the Middle East and Africa. • We continue to identify, acquire, incubate and scale complementary businesses and products to support our long-term growth objectives and drive solid returns on invested capital.
Records Management: Driving continued revenue growth in our physical storage Records Management business (as defined below) • We are focused on driving volume growth, while also capitalizing on revenue management opportunities as we enhance the value we are providing customers through our expanded suite of global and integrated services. • We are a leading global provider of physical records management services and will seek to enhance our position in higher-growth markets such as Central and Eastern Europe, Latin America, Asia, the Middle East and Africa.
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Over time, customers are increasing their digital information, with the new information storage ecosystem being a hybrid of physical and digital media. We have evolved our business to meet our customers' needs while remaining focused on driving growth supported by our four pillars outlined below.
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BUSINESS STRATEGY OVERVIEW Our strategy is to be the leading partner to our more than 240,000 customers by providing a broad range of end-to-end solutions leveraging our strong reputation for security and chain of custody, decades-long relationships built on trust, and global footprint and operational scale.
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These opportunities include our Global Digital Solutions, ALM, Fine Arts and Consumer Storage (each as defined below) businesses.
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With leadership positions in physical records management, digital solutions, data center, and asset lifecycle management, Iron Mountain serves as a key global partner for enterprises. Our key strategic priorities are outlined below.
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Establishing and maintaining a leadership position in critical digital infrastructure as well as developing and offering new products and services that allow our customers to achieve reliable and secure information management solutions in an increasingly hybrid physical and digital world • We are positioned to take advantage of the secular growth trends of the changing nature of digital infrastructure.
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Digital Solutions: Delivering differentiated digital solutions which give transformative results to our customers in terms of revenue, security and cost • We are focused on supporting our customers' digital transformation needs as they navigate a complex regulatory environment and seek to gain access to their dark data.
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We continue to scale our Global Digital Solutions business to complement our existing offerings in records and information management, ALM, and our Global Data Center business in order to respond to our customers’ growing interest and need to react to environmental, social and corporate governance considerations.
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Data Center: Supplying differentiated data center offerings through our global scale and customer trust • We are focused on growing our data center operating portfolio by leasing unsold capacity to hyperscale customers across various global markets.
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This full suite of complementary businesses puts Iron Mountain in a unique position to cross sell our products and services to our customers. • Our customers are faced with navigating a more complex regulatory environment, and one in which hybrid physical and digital solutions have become the norm.
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IRON MOUNTAIN 2025 FORM 10-K 1 Table of Contents Part I ALM: Providing asset lifecycle management capabilities, which are both economic and environmentally sustainable • We are a global ALM provider and are focused on broadening our customer base and increasing our penetration with existing customers through cross-selling initiatives, expanded capabilities and select tuck-in acquisitions. • As of December 31, 2025, we operated 34 facilities across 8 global markets.
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IRON MOUNTAIN 2024 FORM 10-K 1 Table of Contents Part I Continued investment in our growth agenda, our business and customer-centric solutions • We have established an investment strategy to fuel our growth.
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We incurred approximately $574.4 million in Restructuring and other transformation costs related to Project Matterhorn since its inception.
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The investments we outlined in our plan for Project Matterhorn (as defined below) have been informed by our established leadership position in the physical storage business, our expanding services such as Global Digital Solutions and ALM and our significant progress in the Global Data Center Business.
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In October 2025, we launched version 2.0 of DXP, which offers enhanced content management and smart document processing, an easy-to-use secure platform with workflow tools and AI agents, allowing customers to make faster and more insightful decisions as well as eliminate obsolete and duplicative data to save costs.
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We have incurred approximately $378.5 million in Restructuring and other transformation costs from the inception of Project Matterhorn through December 31, 2024. We expect to incur approximately $150.0 million in costs related to Project Matterhorn during the year ending December 31, 2025, at which point the program is expected to be completed.
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As an S&P 500 REIT with approximately 1,340 locations globally, our mission-critical solutions generated approximately $6.9 billion in annual revenue in 2025.
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In August 2024, we launched the InSight Digital Experience Platform (also referred to as DXP), a secure, software-as-a-service platform designed to automate customer workflows, enhance data accessibility, ensure audit compliance and optimize customer data for AI applications.
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Approximately 5% of our customers currently buy from more than one of our business units, which presents a significant cross-sell opportunity for our expanding solutions, including digital, data center and ALM.
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Comprehensive Information Management Solution As an S&P 500 REIT with approximately 1,350 locations globally and with offerings spanning physical storage, digitization solutions and digital storage, we are positioned to provide a holistic offering to our customers. We are able to cater to our customers’ physical and digital needs and to help guide their digital transformation journey.
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Strong Positions in Large and Growing Markets We have strong global market positions in each of our businesses, including records management, data center, ALM, digital solutions and fine arts storage. The markets for our solutions are large and growing. We see continued opportunity for growth as our focus on providing innovative solutions unlocks greater value for our customers.
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Significant Owner and Operator of Real Estate We operate approximately 98 million square feet of real estate worldwide. Our owned real estate footprint spans to over 24 million square feet. Limited Revenue Cyclicality Historically, economic downturns have not significantly affected our storage rental business.
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Synergistic Business Model We operate a synergistic business model, where we leverage cross-selling opportunities against our end-to-end solutions across our 240,000 customers. Our reputation for security, longstanding relationships, and our proven track record of reliability and trust, along with our comprehensive solutions offering and global scale, enables our customers to partner with a single vendor to increase their operational efficiency.
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Shifting Revenue Mix We have identified a number of areas where we see opportunity for growth as we position ourselves to unlock greater value for our customers.
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Our owned real estate footprint spans to over 24 million square feet.
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Efficient Access and Flexibility We have the ability to provide customers with a range of deployment options from one cabinet to an entire building, leveraging our global portfolio of hyperscale-ready and underground data centers.
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These insights collectively enable us to boost employee engagement, measure effectiveness and refine our approach for sustained success. Led by our President and CEO, William Meaney, our Executive Leadership Team plays a pivotal role in advancing our culture and driving growth.
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We also provide access to numerous carriers, cloud providers and peering exchanges with migration support. 100% Clean Energy Data Centers We have matched 100% of the energy consumption in our data centers with clean energy annually since 2017.
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Several members of our Executive Leadership Team are also active sponsors of our employee resource groups, acting as allies and champions of inclusivity and belonging across the enterprise, ensuring that our working environment is a place where all Mountaineers feel that they belong and can contribute at their best.
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We evaluate this through regular employee surveys and by leveraging data to gain a deeper understanding of our global workforce, and how they work. These insights collectively enable us to drive enhanced employee engagement, measure effectiveness and refine our approach for sustained success.
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GOVERNMENT REGULATION We are required to comply with numerous laws and regulations covering a wide variety of subject matters which may have a material effect on our capital expenditures, earnings and competitive position.
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Our volunteer-based global employee resource groups play an essential role in supporting talent attraction, retention and development, and serving as valuable allies across our company. Each group is sponsored by one or more members of Iron Mountain’s Executive Leadership Team.
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Risk Factors" included in this Annual Report. SUSTAINABILITY As a global leader in innovative solutions, data center infrastructure and asset lifecycle and information management services, we strive to take responsibility for a sustainable future by unlocking opportunities in our operations and beyond. We have embedded sustainability across our organizational processes to optimize performance and meet stakeholder needs.
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Risk Factors" included in this Annual Report. SUSTAINABILITY At Iron Mountain, we are using our influence and expertise to drive innovations that protect and elevate the effectiveness of our customers’ endeavors, while also creating a meaningful, positive impact on individuals, the environment, and our overall performance.
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Our collaborative approach enables customers to make better decisions about how they manage their most valuable information and assets, prioritizes our employee well-being and development, and supports our local communities. We transparently report on our sustainability efforts and the advancement of our objectives by using widely adopted reporting frameworks such as the Global Reporting Initiative, CDP and EcoVadis.
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Iron Mountain is committed to sustainable growth, and this is highlighted through initiatives and targets within our company. We aim to minimize our environmental impact, foster a culture and processes that support the well-being of our global teams, and to be a catalyst for positive change within our communities.
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This recognition reflects our continued commitment to delivering sustainable, secure and value-driven IT asset disposition solutions.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Expansion into Global Digital Solutions and ALM services means that our privacy and security risk profile is increasing. In particular, we are hosting increasing volumes of customer digital data, including sensitive and confidential data, and disposing of customer data-bearing devices. This may result in increased regulatory exposure, contractual liability and security expectations from customers.
Expansion into Global Digital Solutions and ALM services means that our data privacy and security risk profile is increasing. In particular, we are hosting increasing volumes of customer digital data, including sensitive and confidential data, and disposing of customer data-bearing devices. This may result in increased regulatory exposure, contractual liability and security expectations from customers.
If governments enact trade policies or environmental regulations that restrict or increase the cost of exporting IT assets into China or other markets in which we sell decommissioned IT asset components or recyclable materials, or increase the enforcement of such policies, then the revenue from the sale of these assets may be negatively impacted.
If governments enact trade policies or environmental regulations that restrict or increase the cost of exporting IT assets into China or the other markets in which we sell decommissioned IT asset components or recyclable materials, or increase the enforcement of such policies, then the revenue from the sale of these assets may be negatively impacted.
Unexpected events, including fires or explosions at our facilities, war or other military conflict, terrorist activities, natural disasters such as earthquakes and wildfires, unplanned power outages, supply disruptions, failure of equipment or systems, and severe weather events, such as droughts, heat waves, hurricanes, and flooding, could adversely affect our reputation and results of operations through physical damage to our facilities, equipment and customers' inventory and through physical damage to, or disruption of, local infrastructure.
Unexpected events, including fires or explosions at our facilities, war or other military conflict, terrorist activities, natural disasters such as earthquakes and wildfires, unplanned power outages, supply disruptions, failure of equipment or systems, and severe weather events, such as droughts, heat waves, wind events, hurricanes, and flooding, could adversely affect our reputation and results of operations through physical damage to our facilities, equipment and customers' inventory and through physical damage to, or disruption of, local infrastructure.
In particular, if the accumulation of cash in our TRSs causes (i) the fair market value of our securities in our TRSs to exceed 20% of the fair market value of our assets or (ii) the fair market value of our securities in our TRSs and other nonqualifying assets to exceed 25% of the fair market value of our assets, then we will fail to remain qualified for taxation as a REIT.
In particular, if the accumulation of cash in our TRSs causes (i) the fair market value of our securities in our TRSs to exceed 25% of the fair market value of our assets or (ii) the fair market value of our securities in our TRSs and other nonqualifying assets to exceed 25% of the fair market value of our assets, then we will fail to remain qualified for taxation as a REIT.
We and our customers are subject to laws and governmental regulations relating to data privacy and cybersecurity, and our customers’ demands in this area are increasing. This may cause us to incur significant expenses and non-compliance with such regulations and demands could harm our business.
We and our customers are subject to laws and governmental regulations, including laws relating to data privacy and cybersecurity, and our customers’ demands in this area are increasing. This may cause us to incur significant expenses and non-compliance with such regulations and demands could harm our business.
If stored records and tapes become less active, our service revenue growth and profits from related services may decline. Our Records Management and Data Management service revenue growth is being negatively impacted by declining activity rates as stored records and tapes are becoming less active and more archival.
As stored records and tapes become less active, our service revenue growth and profits from related services may decline. Our Records Management and Data Management service revenue growth is being negatively impacted by declining activity rates as stored records and tapes are becoming less active and more archival.
We may encounter challenges in the integration process including the following: • challenges and difficulties associated with managing our larger, more complex, company; • conforming standards, controls, procedures and policies, business cultures and compensation and benefits structures between the two businesses; • consolidating corporate and administrative infrastructures; • coordinating geographically dispersed organizations; • retaining critical acquired talent; • potential unknown liabilities and unforeseen expenses or delays associated with an acquisition; and • our ability to deliver on our strategy going forward.
We may encounter challenges in the integration process including the following: • challenges and difficulties associated with managing our larger, more complex, company; • conforming standards, controls, procedures and policies, business cultures and compensation and benefits structures between the two businesses; • consolidating corporate and administrative infrastructures; • coordinating geographically dispersed organizations; • retaining critical acquired talent; • retaining key customers; • potential unknown liabilities and unforeseen expenses or delays associated with an acquisition; and • our ability to deliver on our strategy going forward.
The global nature of our business and our growth strategy, which includes continued acquisitions and investments in countries where we do not currently operate, is subject to numerous risks, including: • fluctuations of currency exchange rates in the markets in which we operate; • the impact of laws and regulations that apply to us in countries in which we operate or have made investments; in particular, we are subject to sanctions and anti-corruption laws, such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and, although we have implemented internal controls, policies and procedures and training to deter prohibited practices, our employees, partners, contractors or agents may violate or circumvent such policies and the law; • costs and difficulties associated with managing global operations, including cross-border sales; • the volatility of certain economies in which we operate; • political uncertainties and changes in the global political climate or other global events, such as war or other military conflict, trade wars or global pandemics, which may create additional risk in relation to our global operations, which may become more pronounced as we consolidate operations across countries and need to move data across borders; • the risk that business partners upon whom we depend for technical assistance or management and acquisition expertise in some markets will not perform as expected; • difficulties attracting and retaining local management and key employees to operate our business in certain countries; and • cultural differences and differences in business practices and operating standards, as well as risks and challenges in expanding into countries where we have no prior operational experience.
The global nature of our business and our growth strategy, which includes continued acquisitions and investments in countries where we do not currently operate or have limited operations, is subject to numerous risks, including: • fluctuations of currency exchange rates in the markets in which we operate; • the impact of laws and regulations that apply to us in countries in which we operate or have made investments; in particular, we are subject to sanctions and anti-corruption laws, such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and, although we have implemented internal controls, policies and procedures and training to deter prohibited practices, our employees, partners, contractors or agents may violate or circumvent such policies and the law; • costs and difficulties associated with managing global operations, including cross-border sales; • the volatility of certain economies in which we operate; • political uncertainties and changes in the global political climate or other global events, such as war or other military conflict, tariffs or trade restrictions, trade wars, global pandemics or supply chain challenges, which may create additional risk in relation to our global operations, which may become more pronounced as we consolidate operations across countries and need to move data across borders; • the risk that business partners upon whom we depend for technical assistance or management and acquisition expertise in some markets will not perform as expected; • difficulties attracting and retaining local management and key employees to operate our business in certain countries; and • cultural differences and differences in business practices and operating standards, as well as risks and challenges in expanding into countries where we have no prior operational experience.
Volume in and demand for our traditional storage related services has evolved as our customers adopt alternative storage technologies or as retention requirements change, which may require significantly less space than traditional physical records and tape storage; however, volumes in our Global RIM Business segment were relatively steady in 2024 and we expect them to remain relatively consistent in the near term.
Volume in and demand for our traditional storage related services has evolved as our customers adopt alternative storage technologies or as retention requirements change, which may require significantly less space than traditional physical records and tape storage; however, volumes in our Global RIM Business segment were relatively steady in 2025 and we expect them to remain relatively consistent in the near term.
We conduct a significant portion of our business activities, including our information management services businesses and several of our international operations, through domestic and foreign TRSs. Under the Code, no more than 20% of the value of the assets of a REIT may be represented by securities of one or more TRSs. Similar rules apply to other nonqualifying assets.
We conduct a significant portion of our business activities, including our information management services businesses and several of our international operations, through domestic and foreign TRSs. Under the Code, no more than 25% of the value of the assets of a REIT may be represented by securities of one or more TRSs. Similar rules apply to other nonqualifying assets.
As part of our strategic growth plan, including Project Matterhorn, we expect to invest in our existing businesses, including records and information management storage and services businesses in our higher-growth markets, data centers, digital solutions, ALM business and other complementary businesses, and in new businesses, business strategies, products, services, technologies and geographies.
As part of our strategic growth plan, we expect to invest in our existing businesses, including records and information management storage and services businesses in our higher-growth markets, data centers, digital solutions, ALM business and other complementary businesses, and in new businesses, business strategies, products, services, technologies and geographies.
Such risks include: • acquisition and occupancy costs that make it difficult to meet anticipated margins and difficulty locating suitable facilities due to a relatively small number of available buildings having the desired characteristics in some real estate markets; • increases in rent expense and property taxes as a result of the increasing demand for industrial real estate; • uninsured losses or damage to our facilities due to an inability to obtain full coverage on a cost-effective basis for some casualties, such as fires, hurricanes and earthquakes, or any coverage for certain losses, such as losses from riots or terrorist activities; • inability to use our real estate holdings effectively and costs associated with vacating or consolidating facilities if the demand for physical storage were to diminish; • liability under environmental laws for the costs of investigation and cleanup of contaminated real estate owned or leased by us, whether or not (i) we know of, or were responsible for, the contamination, or (ii) the contamination occurred while we owned or leased the property; and • costs of complying with fire protection and safety standards.
Such risks include: • acquisition and occupancy costs that make it difficult to meet anticipated margins and difficulty locating suitable facilities due to a relatively small number of available buildings having the desired characteristics in some real estate markets; • increases in rent expense and property taxes as a result of the increasing demand for industrial real estate; • uninsured losses or damage to our facilities due to an inability to obtain full coverage on a cost-effective basis for some casualties, such as fires, severe weather events, earthquakes and other natural disasters, or any coverage for certain losses, such as losses from riots or terrorist activities; • inability to use our real estate holdings effectively and costs associated with vacating or consolidating facilities if the demand for physical storage were to diminish; • liability under environmental laws for the costs of investigation and cleanup of contaminated real estate owned or leased by us, whether or not (i) we know of, or were responsible for, the contamination, or (ii) the contamination occurred while we owned or leased the property; and • costs of complying with fire protection and safety standards.
Additionally, uncertain macroeconomic conditions, particularly within mainland China, may reduce our purchasers’ demand for the IT asset components that we sell, thereby reducing our revenues and earnings. Failure to comply with certain regulatory and contractual requirements under our United States Government contracts could adversely affect our revenues, operating results and financial position and reputation.
Additionally, uncertain macroeconomic conditions, particularly within China, may reduce our purchasers’ demand for the IT asset components that we sell, thereby reducing our revenues and earnings. Failure to comply with certain regulatory and contractual requirements under our government contracts could adversely affect our revenues, operating results and financial position and reputation.
Although we seek to prevent and detect attempts by unauthorized users to gain access to our IT systems, and incur significant costs to do so, our IT and network infrastructure has in the past been and may in the future be vulnerable to attacks by hackers, including state-sponsored organizations with significant financial and technological resources, breaches due to employee error, fraud or malice or other disruptions (including, but not limited to, computer viruses and other malware, denial of service and ransomware), which may involve a breach requiring us to notify regulators, clients or employees and enlist identity theft protection.
Although we seek to prevent and detect attempts by unauthorized users to gain access to our IT systems, and incur significant costs to do so, our IT and network infrastructure has in the past been and may in the future be vulnerable to cyberattacks and security incidents, including by state-sponsored organizations with significant financial and technological resources, breaches due to employee or contractor error, fraud or malice or other disruptions (including, but not limited to, computer viruses and other malware, denial of service and ransomware), which may involve a breach requiring us to notify regulators, clients or employees and enlist identity theft protection.
However, for tax years beginning before 2026, REIT dividends paid to noncorporate stockholders that meet specified holding period requirements are generally taxed at an effective tax rate lower than applicable ordinary income tax rates due to the availability of a deduction under the Code for specified forms of income from passthrough entities.
However, REIT dividends paid to noncorporate stockholders that meet specified holding period requirements are generally taxed at an effective tax rate lower than applicable ordinary income tax rates due to the availability of a deduction under the Code for specified forms of income from passthrough entities.
Deficiencies, including any material weakness, in our internal control over financial reporting which may occur in the future could result in misstatements of our results of operations, restatements of our financial statements, a decline in our stock price, or otherwise materially adversely affect our business, reputation, results of operations, financial condition or liquidity. We face competition for customers.
Deficiencies, including any material weakness, in our internal control over financial reporting which may occur in the future could result in misstatements of our results of operations, restatements of our financial statements, a decline in our stock price, or otherwise materially adversely affect our business, reputation, results of operations, financial condition or liquidity.
As of December 31, 2024, we operated approximately 1,350 facilities worldwide, including approximately 550 in the United States, and face special risks attributable to the real estate we own or lease, which could have a material adverse effect on our revenues, operating results and financial position.
As of December 31, 2025, we operated approximately 1,340 facilities worldwide, including approximately 530 in the United States, and face special risks attributable to the real estate we own or lease, which could have a material adverse effect on our revenues, operating results and financial position.
Although we maintain insurance coverage for various cybersecurity risks, there is no guarantee that all costs or losses incurred will be fully insured. Damage to our reputation could make us less competitive, which could negatively impact our business, financial condition and results of operations. Failure to successfully integrate acquired businesses could negatively impact our balance sheet and results of operations.
Although we maintain insurance coverage for various cybersecurity risks, there is no guarantee that all costs or losses incurred will be fully insured. Damage to our reputation could make us less competitive, which could negatively impact our business, financial condition and results of operations.
Having the United States Government as a customer subjects us to certain regulatory and contractual requirements. Failure to comply with these requirements could subject us to investigations, price reductions, up to treble damages, and civil penalties. Noncompliance with certain regulatory and contractual requirements could also result in us being suspended or debarred from future United States Government contracting.
Having the government entities as customers subjects us to certain regulatory and contractual requirements. Failure to comply with these requirements could subject us to investigations, price reductions, up to treble damages, and civil penalties. Noncompliance with certain regulatory and contractual requirements could also result in us being suspended or debarred from future contracting with such government entities.
Further, many of the purchasers of the decommissioned IT asset components are geographically concentrated, particularly within mainland China.
Further, many of the purchasers of the decommissioned IT asset components are geographically concentrated, particularly in China.
If we fail to meet our commitment to transition to more renewable and sustainable sources of energy, it may negatively impact our ability to attract and retain customers, employees and investors who focus on this commitment. Furthermore, changes to environmental laws and standards may increase the cost to operate some of our businesses.
If we fail to transition to more sustainable sources of energy, it may negatively impact our ability to attract and retain certain of our customers, employees and investors. Furthermore, changes to environmental laws and standards may increase the cost to operate some of our businesses.
In addition, hedging losses in any of our TRSs generally will not provide any tax benefit, except for being carried forward for possible use against future income or gain in the TRSs. 18 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I Distributions payable by REITs generally do not qualify for preferential tax rates, which could reduce the demand for and market price of our common stock.
In addition, hedging losses in any of our TRSs generally will not provide any tax benefit, except for being carried forward for possible use against future income or gain in the TRSs. Distributions payable by REITs generally do not qualify for preferential tax rates, which could reduce the demand for and market price of our common stock.
If we are not able to continue and effectively manage pricing, our results of operations could be adversely affected and we may not be able to execute on our strategic growth plan. Our customer contracts may not always limit our liability and may sometimes contain terms that could subject us to significant liability or lead to disputes in contract interpretation.
If we are not able to continue and effectively manage pricing, our results of operations could be adversely affected and we may not be able to execute on our strategic growth plan. 10 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part I Our customer contracts do not always limit our liability and sometimes contain terms that could subject us to significant liability or lead to disputes in contract interpretation.
Additionally, global fluctuations in the price of power can increase the cost of energy, and we may be limited in our ability to, or may not always choose to, pass these increased costs on to our customers. We face additional risks in expanding our Global Data Center Business, including the significant amount of capital required.
Additionally, global fluctuations in the price of power can increase the cost of energy, and we may be limited in our ability to, or may not always choose to, pass these increased costs on to our customers. 12 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part I We face additional risks in expanding our Global Data Center Business, including the significant amount of capital required.
In connection with our pursuit or entrance into any such venture, we may be subject to additional risks, including: • our ability to sell our interests in the venture may be limited by the venture agreement; • we may not have the right to exercise sole decision-making authority regarding the properties, business, partnership, venture or other entity; • we may be liable for the venture's failure to comply with applicable law despite only having a non-controlling interest in the venture; • if our partners become bankrupt or fail to fund their share of required capital contributions, we may choose or be required to contribute unplanned capital; • our partners may have economic, tax or other interests or goals that are inconsistent with our interests or goals, which could affect our ability to negotiate satisfactory venture terms, to operate the property or business or to maintain our qualification for taxation as a REIT; and • disputes may arise between us and our partners that result in litigation or arbitration that would increase our expenses and divert the attention of our officers and directors. 12 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I Each of these factors may result in returns on these investments being less than we expect or in losses, and our financial and operating results may be adversely affected.
In connection with our pursuit or entrance into any such venture, we may be subject to additional risks, including: • our ability to sell our interests in the venture may be limited by the venture agreement; • we may not have the right to exercise sole decision-making authority regarding the properties, business, partnership, venture or other entity; • we may be liable for the venture's failure to comply with applicable law despite only having a non-controlling interest in the venture; • if our partners become bankrupt or fail to fund their share of required capital contributions, we may choose or be required to contribute unplanned capital; • our partners may have economic, tax or other interests or goals that are inconsistent with our interests or goals, which could affect our ability to negotiate satisfactory venture terms, to operate the property or business or to maintain our qualification for taxation as a REIT; and • disputes may arise between us and our partners that result in litigation or arbitration that would increase our expenses and divert the attention of our officers and directors.
Our use of joint ventures or other co-investment vehicles could expose us to additional risks and liabilities, including our lack of sole decision-making authority and our reliance on joint venture or other co-investment vehicle partners who may have economic and business interests that are inconsistent with our business interests.
IRON MOUNTAIN 2025 FORM 10-K 11 Table of Contents Part I Our use of joint ventures or other co-investment vehicles could expose us to additional risks and liabilities, including our lack of sole decision-making authority and our reliance on joint venture or other co-investment vehicle partners who may have economic and business interests that are inconsistent with our business interests.
We are currently experiencing rising construction costs which reflect the increase in cost of labor and raw materials, as well as supply chain and logistical challenges.
We continue to experience rising construction costs which reflect the increase in cost of labor and raw materials, as well as supply chain and logistical challenges.
In addition, future regulatory action and environmental laws may impose costs for environmental compliance that do not exist today. 14 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I Unexpected events, including those resulting from climate change or geopolitical events, could disrupt our operations and adversely affect our reputation and results of operations.
In addition, future regulatory action and environmental laws may impose costs for environmental compliance that do not exist today. Unexpected events, including those resulting from climate change or geopolitical events, could disrupt our operations and adversely affect our reputation and results of operations.
Even if we remain qualified for taxation as a REIT, some of our business activities are subject to corporate level income tax and foreign taxes, which will continue to reduce our cash flows, and we will have potential deferred and contingent tax liabilities.
IRON MOUNTAIN 2025 FORM 10-K 17 Table of Contents Part I Even if we remain qualified for taxation as a REIT, some of our business activities are subject to corporate level income tax and foreign taxes, which will continue to reduce our cash flows, and we will have potential deferred and contingent tax liabilities.
Our reputation for providing secure information storage to customers is critical to the success of our business. Our reputation or brand, and specifically, the trust our customers place in us, could be negatively impacted in the event of perceived or actual failures by us to store information securely.
Our reputation or brand, and specifically, the trust our customers place in us, could be negatively impacted in the event of perceived or actual failures by us to store information securely.
Consequently, our distribution levels may fluctuate and we may not be able to meet our public commitments with respect to dividend growth. IRON MOUNTAIN 2024 FORM 10-K 19 Table of Contents Part I Our business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting.
Consequently, our distribution levels may fluctuate and we may not be able to meet our public commitments with respect to dividend growth. Our business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting.
Although we maintain a comprehensive insurance program, we can provide no assurance that we will be able to maintain insurance policies on acceptable terms or with high enough coverage amounts to cover losses to us in connection with customer contract disputes.
Although we maintain a comprehensive insurance program, we can provide no assurance that we will be able to maintain insurance policies on acceptable terms or with high enough coverage amounts to cover losses to us in connection with customer contract disputes. As a global company, we are subject to the unique risks of operating in many countries.
IRON MOUNTAIN 2024 FORM 10-K 17 Table of Contents Part I As a REIT, we are limited in our ability to fund distribution payments using cash generated through our TRSs. Our ability to receive distributions from our TRSs is limited by the rules with which we must comply to maintain our qualification for taxation as a REIT.
As a REIT, we are limited in our ability to fund distribution payments using cash generated through our TRSs. Our ability to receive distributions from our TRSs is limited by the rules with which we must comply to maintain our qualification for taxation as a REIT.
If, in any taxable year, we fail to remain qualified for taxation as a REIT and are not entitled to relief under the Code: • we will not be allowed a deduction for distributions to stockholders in computing our taxable income; • we will be subject to federal and state income tax on our taxable income at regular corporate income tax rates; and • we would not be eligible to elect REIT status again until the fifth taxable year that begins after the first year for which we failed to qualify for taxation as a REIT. 16 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I Any such corporate tax liability could be substantial and would reduce the amount of cash available for other purposes.
If, in any taxable year, we fail to remain qualified for taxation as a REIT and are not entitled to relief under the Code: • we will not be allowed a deduction for distributions to stockholders in computing our taxable income; • we will be subject to federal and state income tax on our taxable income at regular corporate income tax rates; and • we would not be eligible to elect REIT status again until the fifth taxable year that begins after the first year for which we failed to qualify for taxation as a REIT.
In addition, our reputation for providing secure information storage is critical to our success, and actions to manage cost structure, such as outsourcing certain transportation, security or other functions, could negatively impact our reputation and adversely affect our business, and, if we are unable to appropriately align our cost structure with decreased levels of service activity, our operating results could be adversely affected.
In addition, our reputation for providing secure information storage is critical to our success, and actions to manage cost structure, such as outsourcing certain transportation, security or other functions, could negatively impact our reputation and adversely affect our business, and, if we are unable to appropriately align our cost structure with decreased levels of service activity, our operating results could be adversely affected. 8 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part I Our customers continue to evolve the way they store records, which could impact our storage revenue.
If we fail to remain qualified for taxation as a REIT, we may need to borrow additional funds or liquidate some investments to pay any additional tax liability. Accordingly, funds available for investment and distributions to stockholders could be reduced. As a REIT, failure to make required distributions would subject us to federal corporate income tax.
Any such corporate tax liability could be substantial and would reduce the amount of cash available for other purposes. If we fail to remain qualified for taxation as a REIT, we may need to borrow additional funds or liquidate some investments to pay any additional tax liability. Accordingly, funds available for investment and distributions to stockholders could be reduced.
We may also face private derivative securities claims because of adverse government actions. Any of these outcomes could have a material adverse effect on our revenues, operating results, financial position and reputation. We may be subject to certain costs and potential liabilities associated with the real estate required for our business.
We may also face private derivative securities claims because of adverse government actions. Any of these outcomes could have a material adverse effect on our revenues, operating results, financial position and reputation.
We expect to continue paying regular quarterly distributions; however, the amount, timing and form of our regular quarterly distributions will be determined, and will be subject to adjustment, by our board of directors.
As a REIT, failure to make required distributions would subject us to federal corporate income tax. We expect to continue paying regular quarterly distributions; however, the amount, timing and form of our regular quarterly distributions will be determined, and will be subject to adjustment, by our board of directors.
IRON MOUNTAIN 2024 FORM 10-K 13 Table of Contents Part I Our ALM business may be subject to additional risks, including those related to its client and geographic concentration, government trade policies, and macroeconomic conditions.
Our ALM business may be subject to additional risks, including those related to its client and geographic concentration, government trade policies, and macroeconomic conditions.
IRON MOUNTAIN 2024 FORM 10-K 15 Table of Contents Part I Certain of our indebtedness, including indebtedness under our Credit Agreement (as defined below), is paid at floating interest rates, and as a result, our interest expense or the cost of our debt may increase due to rising interest rates or changes to benchmark rates.
Certain of our indebtedness, including indebtedness under our Credit Agreement (as defined below), is paid at floating interest rates, and as a result, our interest expense or the cost of our debt may increase due to rising interest rates or changes to benchmark rates. Restrictive debt covenants may limit our ability to pursue our growth strategy.
The performance of our businesses relies on our ability to attract, develop, and retain talented personnel, while controlling our labor costs. We are highly dependent on skilled and qualified personnel to operate our businesses.
These organizations may not begin or continue to use us for their future storage and information management service needs. The performance of our businesses relies on our ability to attract, develop, and retain talented personnel, while controlling our labor costs. We are highly dependent on skilled and qualified personnel to operate our businesses.
There can be no assurance that we will manage our IT systems and implement these new systems as planned or that we will do so without disruptions to our operations, which could have an adverse effect on our business, financial condition, results of operations and cash flows.
There can be no assurance that we will manage our IT systems and implement these new systems as planned or that we will do so without disruptions to our operations, which could have an adverse effect on our business, financial condition, results of operations and cash flows. 14 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part I RISKS RELATED TO OUR INDEBTEDNESS Our indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our various debt instruments.
Significant costs or disruptions at our data centers could adversely affect our business, financial condition and results of operations. Our Global Data Center Business depends on providing customers with highly reliable facilities, power infrastructure and operations solutions, and we will need to retain and hire qualified personnel to manage our data centers.
Our Global Data Center Business depends on providing customers with highly reliable facilities, power infrastructure and operations solutions, and we will need to retain and hire qualified personnel to manage our data centers. Service interruptions or significant equipment damage could result in difficulty maintaining service-level commitment obligations that we owe to certain of our customers.
More favorable rates will nevertheless continue to apply to regular corporate "qualified" dividends, which may cause some investors to perceive that an investment in a REIT is less attractive than an investment in a non-REIT entity that pays dividends, thereby reducing the demand and market price of our common stock.
More favorable rates will nevertheless continue to apply to regular corporate "qualified" dividends, which may cause some investors to perceive that an investment in a REIT is less attractive than an investment in a non-REIT entity that pays dividends, thereby reducing the demand and market price of our common stock. 18 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part I The ownership and transfer restrictions contained in our certificate of incorporation may not protect our qualification for taxation as a REIT, could have unintended antitakeover effects and may prevent our stockholders from receiving a takeover premium.
Certain important corporate events, however, such as leveraged recapitalizations that would increase the level of our indebtedness, would not constitute a "change of control" under our indentures. IMI is a holding company, and, therefore, its ability to make payments on its various debt obligations depends in large part on the operations of its subsidiaries.
Certain important corporate events, however, such as leveraged recapitalizations that would increase the level of our indebtedness, would not constitute a "change of control" under our indentures.
We compete with multiple businesses in all geographic areas where we operate; our current or potential customers may choose to use those competitors instead of us. In addition, if we are successful in winning record storage customers from competitors, the process of moving their stored records into our facilities is often costly and time consuming.
In addition, if we are successful in winning record storage customers from competitors, the process of moving their stored records into our facilities is often costly and time consuming. We also compete, in some of our business lines, with our current and potential customers’ internal storage and information management services capabilities and their cloud-based alternatives.
To realize these anticipated benefits, we must be able to successfully integrate our business and the acquired businesses, and this integration is complex and time-consuming.
For example, the success of our significant acquisitions depends, in large part, on our ability to realize the anticipated benefits, including cost savings or revenue acceleration from combining the acquired businesses with ours. To realize these anticipated benefits, we must be able to successfully integrate our business and the acquired businesses, and this integration is complex and time-consuming.
In addition, we will be subject to a 4% nondeductible excise tax on our undistributed taxable income if the actual amount that we distribute to our stockholders for a calendar year is less than the minimum amount specified under the Code.
In addition, we will be subject to a 4% nondeductible excise tax on our undistributed taxable income if the actual amount that we distribute to our stockholders for a calendar year is less than the minimum amount specified under the Code. 16 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part I We may be required to borrow funds, sell assets or raise equity to satisfy our REIT distribution requirements, to comply with asset ownership tests or to fund capital expenditures, future growth and expansion initiatives.
The process of integrating acquired businesses, particularly in new markets or for new offerings, may involve difficulties and may require a disproportionate amount of our management’s attention and our financial and other resources. 10 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I For example, the success of our significant acquisitions depends, in large part, on our ability to realize the anticipated benefits, including cost savings or revenue acceleration from combining the acquired businesses with ours.
The process of integrating acquired businesses, particularly in new markets or for new offerings, may involve difficulties and may require a disproportionate amount of our management’s attention and our financial and other resources.
IRON MOUNTAIN 2024 FORM 10-K 9 Table of Contents Part I Our customers continue to evolve the way they store records, which could impact our storage revenue. We derive substantial revenues from rental fees for the storage of physical records and computer backup media and from storage related services.
We derive substantial revenues from rental fees for the storage of physical records and computer backup media and from storage related services.
Finally, emerging AI regulations, increasing use of AI and generative AI tools and their integration into our businesses may require additional resources and create additional compliance and cybersecurity risks. Attacks on our internal IT systems could damage our reputation, cause us to lose revenues and adversely affect our business, financial condition and results of operations.
Attacks on our internal IT systems could damage our reputation, cause us to lose revenues and adversely affect our business, financial condition and results of operations. Our reputation for providing secure information storage to customers is critical to the success of our business.
RISKS RELATED TO OUR INDEBTEDNESS Our indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our various debt instruments. As of December 31, 2024, our total long-term debt was approximately $13,836.4 million, stockholders' deficit was approximately $503.1 million and we had cash and cash equivalents of approximately $155.7 million.
As of December 31, 2025, our total long-term debt was approximately $16,544.5 million, stockholders' deficit was approximately $981.0 million and we had cash and cash equivalents of approximately $158.5 million. Our indebtedness could have important consequences to our current and potential investors.
This could impact our results of operations, our competitiveness and the trading value of our stock. We have made a commitment to prioritize sustainable energy practices, reduce our carbon footprint and transition to more renewable and sustainable sources of energy, particularly in our Global Data Center Business.
This could impact our results of operations, our competitiveness and the trading value of our stock.
Removed
IRON MOUNTAIN 2024 FORM 10-K 11 Table of Contents Part I As a global company, we are subject to the unique risks of operating in many countries. As of December 31, 2024, we operated in 61 countries.
Added
Our business is subject to regulation under a wide variety of laws and regulations in the jurisdictions which we operate. Although we have policies and procedures designed to comply with applicable laws and regulations, failure to comply with the various laws and regulations may result in civil and criminal liability, fines and penalties and increased costs of compliance.
Removed
Service interruptions or significant equipment damage could result in difficulty maintaining service-level commitment obligations that we owe to certain of our customers.
Added
Finally, emerging AI technology, such as AI and generative AI systems, have become subject to regulation under new laws and new applications of prior existing laws which require additional resources and increase compliance risks as we integrate AI into our services.
Removed
Our indebtedness could have important consequences to our current and potential investors.
Added
Recent developments in the cybersecurity threat landscape include the use of AI and machine learning, as well as an increased number of cyber extortion and ransomware attacks.
Removed
Restrictive debt covenants may limit our ability to pursue our growth strategy.
Added
As techniques used to breach security change frequently and are generally not recognized until launched against a target, we may not be able to promptly detect that a cyber breach has occurred, or implement security measures in a timely manner or, if and when implemented, we may not be able to determine the extent to which these measures could be circumvented .
Removed
We may be required to borrow funds, sell assets or raise equity to satisfy our REIT distribution requirements, to comply with asset ownership tests or to fund capital expenditures, future growth and expansion initiatives.
Added
IRON MOUNTAIN 2025 FORM 10-K 9 Table of Contents Part I The development and use of AI in our business and operations presents risks and challenges that may adversely impact our business and operating results.
Removed
The ownership and transfer restrictions contained in our certificate of incorporation may not protect our qualification for taxation as a REIT, could have unintended antitakeover effects and may prevent our stockholders from receiving a takeover premium.
Added
Our ability to attract and retain customers, particularly in our Global Digital Solutions business, depends on our ability to offer innovative products and services, including through developing or deploying emerging technologies such as AI.
Removed
We also compete, in some of our business lines, with our current and potential customers’ internal storage and information management services capabilities and their cloud-based alternatives. These organizations may not begin or continue to use us for their future storage and information management service needs.
Added
Some of our products, services and processes leverage AI, including both machine learning and generative AI, and we continue to make investments in initiatives focused on the further development and deployment of these technologies.
Added
However, there is no assurance that our use or development of AI will enhance our products or services or their marketability, improve operating results, or deliver anticipated benefits, and our product development initiatives involving AI may be unsuccessful.
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While implementation of these technologies offers the potential for innovation and competitive differentiation, it also poses significant risks and uncertainties, especially given its early stage of commercial adoption.
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The use of AI in our product initiatives and offerings or services, or in our internal business operations, may give rise to risks related to accuracy, bias, discrimination, intellectual property infringement, misappropriation or leakage of proprietary, confidential and personal information, defamation, data privacy, and cybersecurity.
Added
Any error, defect, or vulnerability in our AI-powered products or business processes could undermine the quality of our products and services, adversely impact our clients’ businesses, subject us or our clients to regulatory scrutiny, fines or litigation and cause reputational harm.
Added
We are exposed to similar risks in connection with the use of AI technology by our third-party vendors and clients. These technologies are subject to an evolving and fragmented legal and regulatory landscape.
Added
The absence of a unified regulatory framework, and the risk of divergent or conflicting regulations across jurisdictions applicable to our business, could increase the complexity and costs of compliance for us and our clients. New or changing legal requirements may limit or restrict our use of AI, impose burdensome obligations, or require us to modify or discontinue certain offerings.
Added
Any of these factors, alone or in combination, could adversely affect our business, reputation, or results of operations. Failure to successfully integrate acquired businesses could negatively impact our balance sheet and results of operations.
Added
As of December 31, 2025, we operated in 61 countries.
Added
Each of these factors may result in returns on these investments being less than we expect or in losses, and our financial and operating results may be adversely affected. Significant costs or disruptions at our data centers could adversely affect our business, financial condition and results of operations.
Added
IRON MOUNTAIN 2025 FORM 10-K 13 Table of Contents Part I We may be subject to certain costs and potential liabilities associated with the real estate required for our business.
Added
IRON MOUNTAIN 2025 FORM 10-K 15 Table of Contents Part I IMI is a holding company, and, therefore, its ability to make payments on its various debt obligations depends in large part on the operations of its subsidiaries.
Added
IRON MOUNTAIN 2025 FORM 10-K 19 Table of Contents Part I We face competition for customers. We compete with multiple businesses in all geographic areas where we operate; our current or potential customers may choose to use those competitors instead of us.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

7 edited+0 added−2 removed19 unchanged
Among other things, the cybersecurity controls in our information security program address information access rights, incident monitoring and response processes, information technology system configuration, network security, security architecture planning, mobile device security and compliance with information security policy requirements and protocols.
Among other things, the cybersecurity controls in our information security program address information access rights, incident monitoring response processes, information technology system configuration, network security, security architecture planning, mobile device security and compliance with information security policy requirements and protocols.
These cybersecurity controls are designed to oversee, identify and mitigate risks from all cybersecurity threats, including those arising from our use of third-party service providers.
These cybersecurity controls are designed to oversee, identify and mitigate risks from cybersecurity threats, including those arising from our use of third-party service providers.
Our information security team also regularly undergoes continuing education to ensure our implementation of best-in-class techniques. IRON MOUNTAIN 2024 FORM 10-K 21 Table of Contents Part I
Our information security team also regularly undergoes continuing education to ensure our implementation of best-in-class techniques. IRON MOUNTAIN 2025 FORM 10-K 21 Table of Contents Part I
The results of our assessments are tracked and evaluated to ensure these third parties comply with our cybersecurity standards.
The results of our assessments are tracked and evaluated to ensure these third parties comply with our cybersecurity standards. We require all employees to undertake data protection and cybersecurity training and compliance programs annually.
To date, our information security program has been successful in protecting against risks from cybersecurity threats, and we have not had any cybersecurity incidents that have materially affected or are reasonably likely to materially affect our business strategy, results of operations or financial condition.
All cybersecurity incidents are assessed to determine whether disclosure is required pursuant to any contractual or regulatory requirements and any material cybersecurity incident is also reported to our board of directors (our "Board"). 20 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part I To date, our information security program has been successful in protecting against risks from cybersecurity threats, and we have not had any cybersecurity incidents that have materially affected or are reasonably likely to materially affect our business strategy, results of operations or financial condition.
We require all employees to undertake data protection and cybersecurity training and compliance programs annually. 20 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I Our reputation for providing secure information storage to customers is critical to the success of our business, and protecting against material cybersecurity risks is an integral part of maintaining that reputation.
Our reputation for providing secure information storage to customers is critical to the success of our business, and protecting against material cybersecurity risks is an integral part of maintaining that reputation.
Our information security program has adopted all elements of the NIST cybersecurity framework, including the six functions of identify, protect, detect, respond, recover and govern, as well as each of the categories and control groups thereunder.
Our information security program has adopted all elements of the NIST cybersecurity framework, including the six functions of identify, protect, detect, respond, recover and governance. We use the NIST framework as a guide to ensure our information security program is designed to manage cybersecurity risks relevant to our business.
Removed
This does not imply that we meet any particular technical standards, specifications, or requirements, but only that we use the NIST framework as a guide to ensure our information security program is designed to manage cybersecurity risks relevant to our business.
Removed
All cybersecurity incidents are assessed to determine whether disclosure is required pursuant to any contractual or regulatory requirements and any material cybersecurity incident is also reported to our board of directors (our "Board").

Item 2. Properties

Properties — owned and leased real estate

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The following table sets forth a summary of the lease expirations for leases in place related to our Global Data Center Business, for which we are the lessor, as of December 31, 2024.
The following table sets forth a summary of the lease expirations for leases in place related to our Global Data Center Business, for which we are the lessor, as of December 31, 2025.
ITEM 2. PROPERTIES. As of December 31, 2024, we conducted operations through 1,110 leased facilities and 236 owned facilities. Our facilities are divided among our reportable segments and Corporate and Other as follows: Global RIM Business (1,211), Global Data Center Business (33) and Corporate and Other (102). These facilities contain a total of approximately 98.1 million square feet of space.
ITEM 2. PROPERTIES. As of December 31, 2025, we conducted operations through 1,111 leased facilities and 232 owned facilities. Our facilities are divided among our reportable segments and Corporate and Other as follows: Global RIM Business (1,214), Global Data Center Business (36) and Corporate and Other (93). These facilities contain a total of approximately 98.6 million square feet of space.
Our total building utilization and total racking utilization as of December 31, 2024 in Records Management and Data Management are as follows: RECORDS MANAGEMENT (1) DATA MANAGEMENT BUILDING UTILIZATION RACKING UTILIZATION BUILDING UTILIZATION RACKING UTILIZATION 77% 83% 37% 57% (1) Total building utilization and total racking utilization for Records Management includes the utilization for Global Digital Solutions and Consumer Storage.
Our total building utilization and total racking utilization as of December 31, 2025 in Records Management and Data Management are as follows: RECORDS MANAGEMENT (1) DATA MANAGEMENT BUILDING UTILIZATION RACKING UTILIZATION BUILDING UTILIZATION RACKING UTILIZATION 81% 88% 38% 62% (1) Total building utilization and total racking utilization for Records Management includes the utilization for Global Digital Solutions and Consumer Storage.
A breakdown of owned and leased facilities by country (and by state within the United States) is listed below: LEASED OWNED TOTAL COUNTRY/STATE NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET North America United States (Including Puerto Rico) Alabama 3 293,193 — — 3 293,193 Arizona 7 486,528 6 1,207,281 13 1,693,809 Arkansas 2 63,604 — — 2 63,604 California 69 7,092,102 9 942,356 78 8,034,458 Colorado 5 274,461 4 484,490 9 758,951 Connecticut 3 208,253 3 527,666 6 735,919 Delaware 3 236,719 2 162,721 5 399,440 District of Columbia 1 1,670 — — 1 1,670 Florida 31 2,777,184 1 119,374 32 2,896,558 Georgia 13 1,100,981 2 129,611 15 1,230,592 Idaho 1 45,000 — — 1 45,000 Illinois 12 1,237,895 7 1,309,975 19 2,547,870 Indiana 4 290,116 — — 4 290,116 Iowa 1 100,000 1 14,200 2 114,200 Kansas 3 479,786 — — 3 479,786 Kentucky — — 4 418,760 4 418,760 Louisiana 4 388,475 — — 4 388,475 Maine — — 1 95,000 1 95,000 Maryland 20 1,997,098 1 19,001 21 2,016,099 Massachusetts 10 566,633 5 862,350 15 1,428,983 Michigan 11 845,398 1 39,502 12 884,900 Minnesota 10 810,337 — — 10 810,337 Mississippi 2 171,000 — — 2 171,000 Missouri 12 1,335,639 1 25,120 13 1,360,759 Montana 3 38,548 — — 3 38,548 Nebraska 1 34,560 2 266,733 3 301,293 Nevada 9 227,840 1 107,041 10 334,881 New Hampshire 1 2,188 1 146,467 2 148,655 New Jersey 27 3,375,178 8 2,476,635 35 5,851,813 New Mexico 2 114,473 — — 2 114,473 New York 17 1,003,191 10 970,800 27 1,973,991 North Carolina 21 1,073,820 1 97,000 22 1,170,820 Ohio 10 1,138,809 3 242,087 13 1,380,896 Oklahoma 4 196,044 — — 4 196,044 Oregon 12 438,586 — — 12 438,586 Pennsylvania 20 2,590,759 3 2,062,761 23 4,653,520 Puerto Rico 4 223,089 1 54,352 5 277,441 Rhode Island 1 94,968 — — 1 94,968 South Carolina 4 168,636 2 214,238 6 382,874 Tennessee 5 256,743 4 63,909 9 320,652 Texas 37 2,582,518 19 1,838,880 56 4,421,398 Utah 2 78,148 1 90,553 3 168,701 Vermont 1 35,200 — — 1 35,200 Virginia 17 1,306,303 7 1,165,472 24 2,471,775 Washington 9 729,435 4 180,228 13 909,663 West Virginia 2 105,502 — — 2 105,502 Wisconsin 4 325,520 — — 4 325,520 Total United States 440 36,942,130 115 16,334,563 555 53,276,693 Canada 39 2,769,235 14 1,652,793 53 4,422,028 Total North America 479 39,711,365 129 17,987,356 608 57,698,721 22 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I LEASED OWNED TOTAL COUNTRY/STATE NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET International Argentina 2 134,753 4 298,864 6 433,617 Australia 46 2,913,577 1 13,885 47 2,927,462 Austria 1 2,691 1 58,771 2 61,462 Bahrain 2 33,659 — — 2 33,659 Belgium 3 190,740 — — 3 190,740 Brazil 42 2,816,571 6 291,280 48 3,107,851 Bulgaria 1 68,889 — — 1 68,889 Chile 2 3,692 18 715,894 20 719,586 China Mainland (including China - Hong Kong S.A.R., China-Taiwan and China-Macau S.A.R.) 52 1,985,570 1 20,721 53 2,006,291 Colombia 17 771,479 — — 17 771,479 Croatia 1 26,049 1 36,447 2 62,496 Cyprus 2 51,118 2 46,246 4 97,364 Czech Republic 7 138,788 — — 7 138,788 Denmark 3 161,361 — — 3 161,361 Egypt 3 113,506 1 163,611 4 277,117 England 66 5,615,341 17 552,986 83 6,168,327 Estonia 1 38,861 — — 1 38,861 Eswatini 3 6,997 — — 3 6,997 Finland 3 95,896 — — 3 95,896 France 26 2,150,804 12 936,486 38 3,087,290 Germany 17 852,231 3 308,504 20 1,160,735 Greece 10 903,245 — — 10 903,245 Hungary 7 345,645 — — 7 345,645 India 81 4,038,809 3 226,432 84 4,265,241 Indonesia 18 527,746 2 58,965 20 586,711 Ireland 7 413,662 5 178,558 12 592,220 Jordan 1 107,639 — — 1 107,639 Kuwait 2 11,626 — — 2 11,626 Latvia 2 37,868 — — 2 37,868 Lesotho 1 3,617 — — 1 3,617 Lithuania 2 70,041 — — 2 70,041 Malaysia 10 495,755 — — 10 495,755 Mexico 8 430,868 8 585,885 16 1,016,753 Morocco 7 660,484 — — 7 660,484 The Netherlands 4 412,225 — — 4 412,225 New Zealand 6 388,888 — — 6 388,888 Northern Ireland 2 55,310 — — 2 55,310 Norway 4 155,323 — — 4 155,323 Oman 2 71,059 — — 2 71,059 Peru 2 47,265 10 433,770 12 481,035 Philippines 13 427,312 — — 13 427,312 Poland 18 779,173 — — 18 779,173 Qatar 1 27,663 — — 1 27,663 Romania 7 484,773 — — 7 484,773 Saudi Arabia 7 400,687 — — 7 400,687 Scotland 2 86,386 3 324,751 5 411,137 Serbia 2 132,373 — — 2 132,373 Singapore 8 489,467 2 186,956 10 676,423 Slovakia 5 172,769 — — 5 172,769 South Africa 14 468,094 — — 14 468,094 South Korea 7 246,577 — — 7 246,577 Spain 19 511,793 4 204,527 23 716,320 Sweden 7 327,213 — — 7 327,213 Switzerland 11 287,410 — — 11 287,410 Thailand 6 375,940 2 105,487 8 481,427 IRON MOUNTAIN 2024 FORM 10-K 23 Table of Contents Part I LEASED OWNED TOTAL COUNTRY/STATE NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET International (continued) Turkey 10 694,437 — — 10 694,437 Ukraine 9 185,648 — — 9 185,648 United Arab Emirates 7 695,118 1 434,442 8 1,129,560 Vietnam 2 54,829 — — 2 54,829 Total International 631 34,197,310 107 6,183,468 738 40,380,778 Total 1,110 73,908,675 236 24,170,824 1,346 98,079,499 The leased facilities typically have initial lease terms of five to 10 years with one or more renewal options.
A breakdown of owned and leased facilities by country (and by state within the United States) is listed below: LEASED OWNED TOTAL COUNTRY/STATE NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET North America United States (Including Puerto Rico) Alabama 3 293,193 — — 3 293,193 Arizona 6 325,013 7 1,422,903 13 1,747,916 Arkansas 2 63,604 — — 2 63,604 California 72 7,217,776 9 942,356 81 8,160,132 Colorado 5 274,461 4 484,490 9 758,951 Connecticut 3 208,253 3 527,666 6 735,919 Delaware 2 173,119 2 162,721 4 335,840 District of Columbia 1 1,670 — — 1 1,670 Florida 33 2,768,902 1 119,374 34 2,888,276 Georgia 14 1,237,981 2 129,611 16 1,367,592 Idaho 1 45,000 — — 1 45,000 Illinois 13 1,377,218 6 1,281,947 19 2,659,165 Indiana 3 269,586 — — 3 269,586 Iowa 1 100,000 1 14,200 2 114,200 Kansas 3 479,786 — — 3 479,786 Kentucky — — 4 418,760 4 418,760 Louisiana 4 388,475 — — 4 388,475 Maine — — 1 95,000 1 95,000 Maryland 18 1,876,017 1 19,001 19 1,895,018 Massachusetts 9 498,633 5 862,350 14 1,360,983 Michigan 11 845,398 1 39,502 12 884,900 Minnesota 10 810,337 — — 10 810,337 Mississippi 2 171,000 — — 2 171,000 Missouri 11 1,292,639 1 25,120 12 1,317,759 Montana 3 38,548 — — 3 38,548 Nebraska 1 34,560 2 266,733 3 301,293 Nevada 7 203,108 1 107,041 8 310,149 New Hampshire 1 2,188 1 146,467 2 148,655 New Jersey 23 3,149,689 8 2,476,635 31 5,626,324 New Mexico 2 114,473 — — 2 114,473 New York 16 986,344 10 970,800 26 1,957,144 North Carolina 20 1,031,820 1 97,000 21 1,128,820 Ohio 10 1,138,809 3 242,087 13 1,380,896 Oklahoma 4 196,044 — — 4 196,044 Oregon 10 403,586 — — 10 403,586 Pennsylvania 15 2,215,675 3 2,062,761 18 4,278,436 Puerto Rico 4 223,089 1 54,352 5 277,441 Rhode Island 1 94,968 — — 1 94,968 South Carolina 4 168,636 2 214,238 6 382,874 Tennessee 4 253,143 4 63,909 8 317,052 Texas 35 2,587,318 19 1,838,880 54 4,426,198 Utah 2 78,148 1 90,553 3 168,701 Vermont 1 35,200 — — 1 35,200 Virginia 14 1,192,151 10 1,659,782 24 2,851,933 Washington 8 729,135 3 124,815 11 853,950 West Virginia 1 67,847 — — 1 67,847 Wisconsin 4 325,520 — — 4 325,520 Total United States 417 35,988,060 117 16,961,054 534 52,949,114 Canada 34 2,462,760 14 1,652,793 48 4,115,553 Total North America 451 38,450,820 131 18,613,847 582 57,064,667 22 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part I LEASED OWNED TOTAL COUNTRY/STATE NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET International Argentina 2 134,753 4 298,864 6 433,617 Australia 46 2,765,054 1 13,885 47 2,778,939 Austria 2 4,397 1 58,771 3 63,168 Bahrain 2 33,659 — — 2 33,659 Belgium 3 190,740 — — 3 190,740 Brazil 38 2,593,515 6 291,280 44 2,884,795 Bulgaria 1 68,889 — — 1 68,889 Chile 1 3,423 18 715,894 19 719,317 China Mainland (including China - Hong Kong S.A.R., China-Taiwan and China-Macau S.A.R.) 49 1,975,607 — — 49 1,975,607 Colombia 18 807,344 — — 18 807,344 Croatia 2 57,953 1 36,447 3 94,400 Cyprus 4 80,278 2 46,246 6 126,524 Czech Republic 6 136,605 — — 6 136,605 Denmark 3 161,361 — — 3 161,361 Egypt 4 215,763 1 163,611 5 379,374 England 62 6,011,592 17 552,986 79 6,564,578 Estonia 1 38,861 — — 1 38,861 Eswatini 3 6,997 — — 3 6,997 Finland 3 95,896 — — 3 95,896 France 27 2,286,657 12 936,486 39 3,223,143 Germany 16 849,001 3 308,504 19 1,157,505 Greece 7 534,927 — — 7 534,927 Hungary 6 326,037 — — 6 326,037 India 119 5,212,410 5 265,364 124 5,477,774 Indonesia 19 541,147 2 58,965 21 600,112 Ireland 5 382,059 5 178,558 10 560,617 Jordan 1 107,639 — — 1 107,639 Kuwait 2 11,626 — — 2 11,626 Latvia 2 37,868 — — 2 37,868 Lesotho 1 3,617 — — 1 3,617 Lithuania 3 85,572 — — 3 85,572 Malaysia 10 495,755 — — 10 495,755 Mexico 8 460,519 8 585,885 16 1,046,404 Morocco 7 662,185 — — 7 662,185 The Netherlands 4 412,225 — — 4 412,225 New Zealand 6 388,888 — — 6 388,888 Northern Ireland 2 55,310 — — 2 55,310 Norway 4 155,323 — — 4 155,323 Oman 2 71,059 — — 2 71,059 Peru 2 47,265 3 321,942 5 369,207 Philippines 12 509,853 — — 12 509,853 Poland 18 775,708 — — 18 775,708 Qatar 1 31,409 — — 1 31,409 Romania 8 504,525 — — 8 504,525 Saudi Arabia 7 410,590 — — 7 410,590 Scotland 2 86,386 3 324,751 5 411,137 Serbia 2 153,901 — — 2 153,901 Singapore 9 602,152 2 186,956 11 789,108 Slovakia 5 172,769 — — 5 172,769 South Africa 13 442,713 — — 13 442,713 South Korea 6 233,897 — — 6 233,897 Spain 20 513,183 4 171,407 24 684,590 Sweden 7 327,213 — — 7 327,213 Switzerland 11 287,453 — — 11 287,453 Thailand 8 310,162 2 105,487 10 415,649 IRON MOUNTAIN 2025 FORM 10-K 23 Table of Contents Part I LEASED OWNED TOTAL COUNTRY/STATE NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET International (continued) Turkey 10 694,437 — — 10 694,437 Ukraine 9 185,648 — — 9 185,648 United Arab Emirates 7 695,118 1 434,442 8 1,129,560 Vietnam 2 54,829 — — 2 54,829 Total International 660 35,501,722 101 6,056,731 761 41,558,453 Total 1,111 73,952,542 232 24,670,578 1,343 98,623,120 The leased facilities typically have initial lease terms of five to 10 years with one or more renewal options.
YEAR NUMBER OF LEASES EXPIRING TOTAL MEGAWATTS EXPIRING PERCENTAGE OF TOTAL MEGAWATTS EXPIRING ANNUALIZED TOTAL CONTRACT RENT EXPIRING (IN THOUSANDS) PERCENTAGE OF TOTAL CONTRACT VALUE ANNUALIZED RENT 2025 947 32.8 6.1 % $ 87,435 10.8 % 2026 372 28.3 5.3 % 71,103 8.8 % 2027 189 14.8 2.8 % 43,542 5.4 % 2028 111 38.5 7.2 % 69,900 8.6 % 2029 66 50.5 9.5 % 52,612 6.5 % 2030 27 54.5 10.2 % 67,744 8.4 % 2031 5 2.5 0.5 % 4,913 0.6 % Thereafter 28 311.8 58.4 % 412,800 50.9 % Total 1,745 533.7 100.0 % $ 810,049 100.0 % 24 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I
YEAR NUMBER OF LEASES EXPIRING TOTAL MEGAWATTS EXPIRING PERCENTAGE OF TOTAL MEGAWATTS EXPIRING ANNUALIZED TOTAL CONTRACT RENT EXPIRING (IN THOUSANDS) PERCENTAGE OF TOTAL CONTRACT VALUE ANNUALIZED RENT 2026 949 27.9 4.8 % $ 86,202 8.9 % 2027 272 19.2 3.3 % 69,646 7.2 % 2028 280 45.2 7.7 % 107,023 11.1 % 2029 86 30.6 5.2 % 46,107 4.8 % 2030 77 63.1 10.8 % 86,172 8.9 % 2031 14 10.1 1.7 % 22,974 2.4 % 2032 8 17.3 3.0 % 27,718 2.9 % Thereafter 32 372.9 63.5 % 519,337 53.8 % Total 1,718 586.3 100.0 % $ 965,179 100.0 % 24 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part I

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

3 edited+0 added−0 removed0 unchanged
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS We did not sell any unregistered equity securities during the three months ended December 31, 2024, nor did we repurchase any shares of our common stock during the three months ended December 31, 2024. ITEM 6. [RESERVED.]
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS We did not sell any unregistered equity securities during the three months ended December 31, 2025, nor did we repurchase any shares of our common stock during the three months ended December 31, 2025. ITEM 6. [RESERVED.]
See Note 9 to Notes to Consolidated Financial Statements included in this Annual Report for additional information on dividends declared on our common stock.
See Note 8 to Notes to Consolidated Financial Statements included in this Annual Report for additional information on dividends declared on our common stock.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Our common stock is traded on the NYSE under the symbol "IRM". The closing price of our common stock on the NYSE on February 7, 2025 was $106.06. As of February 7, 2025, there were 3,444 holders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Our common stock is traded on the NYSE under the symbol "IRM". The closing price of our common stock on the NYSE on February 6, 2026 was $95.78. As of February 6, 2026, there were 2,840 holders of record of our common stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

105 edited+17 added−30 removed74 unchanged
(2) Includes foreign currency transaction (gains) losses, net, debt extinguishment expense and other, net. See Note 2.v. to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding the components of Other expense (income), net.
(2) Includes foreign currency transaction losses (gains), net, debt extinguishment expense and other, net. See Note 2.v. to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding the components of Other expense (income), net.
IRON MOUNTAIN 2024 FORM 10-K 31 Table of Contents Part II 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.
IRON MOUNTAIN 2025 FORM 10-K 31 Table of Contents Part II 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.
Selling, general and administrative expenses consist primarily of wages and benefits for management, administrative, IT, sales, account management and marketing personnel, as well as expenses related to communications, travel, professional fees, bad debts, training, office equipment and supplies. 28 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the year ended December 31, 2024 consists of the following: COST OF SALES SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Trends in facility occupancy costs are impacted by: • the total number of facilities we occupy; • the mix of properties we own versus properties we lease; • fluctuations in per square foot occupancy costs; • the levels of utilization of these properties; and • data center power costs.
Selling, general and administrative expenses consist primarily of wages and benefits for management, administrative, IT, sales, account management and marketing personnel, as well as expenses related to communications, travel, professional fees, bad debts, training, office equipment and supplies. 28 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part II Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the year ended December 31, 2025 consists of the following: COST OF SALES SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Trends in facility occupancy costs are impacted by: • the total number of facilities we occupy; • the mix of properties we own versus properties we lease; • fluctuations in per square foot occupancy costs; • the levels of utilization of these properties; and • data center power costs.
Due to the inherent uncertainty of future events, actual values of net assets acquired could be different from our estimated fair values and could have a material impact on our financial statements. 34 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II Of the net assets acquired in our acquisitions, the fair value of owned buildings, including data center infrastructure and building improvements, customer and supplier relationship and data center lease-based intangible assets, racking structures and operating leases are generally the most common and most significant.
Due to the inherent uncertainty of future events, actual values of net assets acquired could be different from our estimated fair values and could have a material impact on our financial statements. 34 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part II Of the net assets acquired in our acquisitions, the fair value of owned buildings, including data center infrastructure and building improvements, customer and supplier relationship and data center lease-based intangible assets, racking structures and operating leases are generally the most common and most significant.
(3) Columns may not foot due to rounding. 32 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II 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)").
(3) Columns may not foot due to rounding. 32 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part II 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)").
The notional values of our cross-currency interest rate swaps, by currency, as of December 31, 2024 and 2023 are as follows (in thousands): YEAR ENDED DECEMBER 31, 2024 2023 Euro $ 509,187 $ 509,187 Canadian dollar 350,000 — $ 859,187 $ 509,187 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.
The notional values of our cross-currency interest rate swaps, by currency, as of December 31, 2025 and 2024 are as follows (in thousands): YEAR ENDED DECEMBER 31, 2025 2024 Euro $ 509,187 $ 509,187 Canadian dollar 350,000 350,000 $ 859,187 $ 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.
(2) The differences between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the years ended December 31, 2024 and 2023 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.
(2) The differences between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the years ended December 31, 2025 and 2024 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.
In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we compare the percentage change in the results from one period to another period in this report using constant currency presentation. The constant currency growth rates are calculated by translating the 2023 results at the 2024 average exchange rates.
In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we compare the percentage change in the results from one period to another period in this report using constant currency presentation. The constant currency growth rates are calculated by translating the 2024 results at the 2025 average exchange rates.
Our depreciation and amortization charges result primarily from depreciation related to storage systems, which include buildings, building and leasehold improvements, data center infrastructure, racking structures and computer systems hardware and software. Amortization relates primarily to customer and supplier relationship intangible assets, Contract Costs (as defined below in Critical Accounting Estimates ) and data center lease-based intangible assets.
Our depreciation charges result primarily from depreciation related to storage systems, which include buildings, building and leasehold improvements, data center infrastructure, racking structures and computer systems hardware and software. Our amortization charges relate primarily to customer and supplier relationship intangible assets, Contract Costs (as defined below in Critical Accounting Estimates ) and data center lease-based intangible assets.
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. See Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for additional information on our derivative instruments.
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. See Note 5 to Notes to Consolidated Financial Statements included in this Annual Report for additional information on our derivative instruments.
At December 31, 2024, no factors were identified that would alter the conclusions of our October 1, 2024 goodwill impairment analysis. In making this assessment, we considered a number of factors including operating results, business plans, anticipated future cash flows, transactions and marketplace data.
At December 31, 2025, no factors were identified that would alter the conclusions of our October 1, 2025 goodwill impairment analysis. In making this assessment, we considered a number of factors including operating results, business plans, anticipated future cash flows, transactions and marketplace data.
This discussion contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and in other securities laws. See "Cautionary Note Regarding Forward-Looking Statements" on page iii of this Annual Report and "Item 1A. Risk Factors" beginning on page 9 of this Annual Report.
This discussion contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and in other securities laws. See "Cautionary Note Regarding Forward-Looking Statements" on page iii of this Annual Report and "Item 1A. Risk Factors" beginning on page 8 of this Annual Report.
Contract Costs are capitalized and amortized as a component of depreciation and amortization in our Consolidated Statements of Operations, generally over a three year term, which we have determined is consistent with the transfer of the underlying performance obligations to which the assets relate.
Contract Costs are capitalized and amortized as a component of depreciation and amortization in our Consolidated Statements of Operations, generally over a three year term, which we have determined is consistent with the transfer of the underlying performance obligations to which the assets relate or the lease term.
IRON MOUNTAIN 2024 FORM 10-K 35 Table of Contents Part II GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS NOT SUBJECT TO AMORTIZATION Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment, or more frequently if impairment indicators arise.
IRON MOUNTAIN 2025 FORM 10-K 35 Table of Contents Part II GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS NOT SUBJECT TO AMORTIZATION Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment, or more frequently if impairment indicators arise.
IRON MOUNTAIN 2024 FORM 10-K 33 Table of Contents Part II CRITICAL ACCOUNTING ESTIMATES Our discussion and analysis of our financial condition and results of operations are based upon our Consolidated Financial Statements, which have been prepared in accordance with GAAP.
IRON MOUNTAIN 2025 FORM 10-K 33 Table of Contents Part II CRITICAL ACCOUNTING ESTIMATES Our discussion and analysis of our financial condition and results of operations are based upon our Consolidated Financial Statements, which have been prepared in accordance with GAAP.
Certain costs to fulfill or obtain customer contracts and certain initial direct costs of obtaining data center 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".
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".
Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2024 were as follows: • North American Records and Information Management reporting unit ("North America RIM") • Europe Records and Information Management reporting unit ("Europe RIM") • Latin America Records and Information Management reporting unit ("Latin America RIM") • Asia, Australia and New Zealand Records and Information Management reporting unit ("APAC RIM") • Media and Archive Services (formerly Entertainment Services) • Global Data Center • Fine Arts • ALM See Note 2.l. to Notes to Consolidated Financial Statements included in this Annual Report for a description of our reporting units.
Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2025 were as follows: • North American Records and Information Management reporting unit ("North America RIM") • Europe Records and Information Management reporting unit ("Europe RIM") • Latin America Records and Information Management reporting unit ("Latin America RIM") • Asia, Australia and New Zealand Records and Information Management reporting unit ("APAC RIM") • Media and Archive Services • Global Data Center • Fine Arts • ALM See Note 2.l. to Notes to Consolidated Financial Statements included in this Annual Report for a description of our reporting units.
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 this Annual Report) was determined utilizing a Monte-Carlo simulation model and takes into account our forecasted projections as it relates to the underlying performance of the business.
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 this Annual Report) was initially established utilizing a Monte-Carlo simulation model and takes into account our forecasted projections as it relates to the underlying performance of the business.
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 SOFR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.
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 SOFR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.
Our leverage and fixed charge coverage ratios under the Credit Agreement as of December 31, 2024 are as follows: DECEMBER 31, 2024 MAXIMUM/MINIMUM ALLOWABLE Net total lease adjusted leverage ratio 5.0 Maximum allowable of 7.0 Fixed charge coverage ratio 2.4 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 December 31, 2024.
Our leverage and fixed charge coverage ratios under the Credit Agreement as of December 31, 2025 are as follows: DECEMBER 31, 2025 MAXIMUM/MINIMUM ALLOWABLE Net total lease adjusted leverage ratio 4.9 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 December 31, 2025.
(2) Tax expense associated with the gain on sale of real estate for the years ended December 31, 2024 and 2023 was approximately $1.1 million and $0.5 million, respectively. (3) Includes amortization expense for Data Center In-Place Leases and Data Center Tenant Relationships as defined in Note 2.m. to Notes to Consolidated Financial Statements included in this Annual Report.
(2) Tax (benefit) expense associated with the gain on sale of real estate for the years ended December 31, 2025 and 2024 was approximately $(0.2) million and $1.1 million, respectively. (3) Includes amortization expense for Data Center In-Place Leases and Data Center Tenant Relationships as defined in Note 2.m. to Notes to Consolidated Financial Statements included in this Annual Report.
We did not record impairment charges for any of our long-lived assets or finite-lived intangibles during the years ended December 31, 2024 and 2023.
We did not record impairment charges for any of our long-lived assets or finite-lived intangibles during the years ended December 31, 2025 and 2024.
IRON MOUNTAIN 2024 FORM 10-K 29 Table of Contents Part II The following table is a comparison of underlying average exchange rates of the foreign currencies that had the most significant impact on our United States dollar-reported revenues and expenses: PERCENTAGE OF UNITED STATES DOLLAR- REPORTED REVENUE FOR THE YEAR ENDED DECEMBER 31, AVERAGE EXCHANGE RATES FOR THE YEAR ENDED DECEMBER 31, PERCENTAGE (WEAKENING) / STRENGTHENING OF FOREIGN CURRENCY 2024 2023 2024 2023 Australian dollar 2.6 % 2.6 % $ 0.660 $ 0.664 (0.6) % British pound sterling 6.9 % 7.2 % $ 1.278 $ 1.243 2.8 % Canadian dollar 4.9 % 5.1 % $ 0.730 $ 0.741 (1.5) % Euro 6.8 % 6.6 % $ 1.082 $ 1.081 0.1 % The percentage of United States dollar-reported revenues for all other foreign currencies was 13.6% and 14.5% for the years ended December 31, 2024 and 2023, respectively. 30 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II 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.
IRON MOUNTAIN 2025 FORM 10-K 29 Table of Contents Part II The following table is a comparison of underlying average exchange rates of the foreign currencies that had the most significant impact on our United States dollar-reported revenues and expenses: PERCENTAGE OF UNITED STATES DOLLAR- REPORTED REVENUE FOR THE YEAR ENDED DECEMBER 31, AVERAGE EXCHANGE RATES FOR THE YEAR ENDED DECEMBER 31, PERCENTAGE (WEAKENING) / STRENGTHENING OF FOREIGN CURRENCY 2025 2024 2025 2024 Australian dollar 2.7 % 2.6 % $ 0.645 $ 0.660 (2.3) % British pound sterling 6.8 % 6.9 % $ 1.318 $ 1.278 3.1 % Canadian dollar 4.4 % 4.9 % $ 0.716 $ 0.730 (1.9) % Euro 6.8 % 6.8 % $ 1.130 $ 1.082 4.4 % The percentage of United States dollar-reported revenues for all other foreign currencies was 13.0% and 13.6% for the years ended December 31, 2025 and 2024, respectively. 30 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part II 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.
TOTAL REVENUES For the year ended December 31, 2024, the increase in reported revenue was primarily driven by reported storage rental revenue growth and reported service revenue growth.
TOTAL REVENUES For the year ended December 31, 2025, the increase in reported revenue was primarily driven by reported storage rental revenue growth and reported service revenue growth.
We have performed our annual goodwill impairment review as of October 1, 2024 and 2023. We concluded that as of October 1, 2024 and 2023, goodwill was not impaired.
We have performed our annual goodwill impairment review as of October 1, 2025 and 2024. We concluded that as of October 1, 2025 and 2024, goodwill was not impaired.
IRON MOUNTAIN 2024 FORM 10-K 53 Table of Contents Part II CROSS-CURRENCY SWAP AGREEMENTS We utilize cross-currency interest rate 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.
IRON MOUNTAIN 2025 FORM 10-K 51 Table of Contents Part II CROSS-CURRENCY SWAP AGREEMENTS We utilize cross-currency interest rate 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.
For a discussion of our results for the year ended December 31, 2023 compared to the year ended December 31, 2022, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K filed with the SEC on February 22, 2024.
For a discussion of our results for the year ended December 31, 2024 compared to the year ended December 31, 2023, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K filed with the SEC on February 14, 2025.
The remaining amount available for borrowing under the Revolving Credit Facility as of December 31, 2024, which is based on IMI’s leverage ratio, the last 12 months' earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR"), other adjustments as defined in the Credit Agreement and current external debt, was $2,621.2 million (which amount represents the maximum availability as of such date).
The remaining amount available for borrowing under the Revolving Credit Facility as of December 31, 2025, which is based on IMI’s leverage ratio, the last 12 months' earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR"), other adjustments as defined in the Credit Agreement and current external debt, was $1,986.1 million (which amount represents the maximum availability as of such date).
We have assessed the sensitivity of these assumptions on each of our reporting units as of October 1, 2024.
We have assessed the sensitivity of these assumptions on each of our reporting units as of October 1, 2025.
See Note 2.i. to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated. Amortization expense increased $21.3 million, or 8.5%, on a reported dollar basis for the year ended December 31, 2024 compared to the year ended December 31, 2023.
See Note 2.i. to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated. Amortization expense increased $21.9 million, or 8.1%, on a reported dollar basis for the year ended December 31, 2025 compared to the year ended December 31, 2024.
These gains resulted primarily from the impact of changes in the exchange rate of the British pound sterling and the Euro against the United States dollar compared to December 31, 2023 on our intercompany balances with and between certain of our subsidiaries.
These losses resulted primarily from the impact of changes in the exchange rate of the British pound sterling and the Euro against the United States dollar compared to December 31, 2024 on our intercompany balances with and between certain of our subsidiaries.
In addition, there were gains and losses recorded in Other expense (income), net for which there was no tax impact. As a REIT, we are entitled to a deduction for dividends paid, resulting in a substantial reduction of federal income tax expense.
In addition, we recorded gains and losses in Other expense (income), net during the period, for which there was no tax impact. As a REIT, we are entitled to a deduction for dividends paid, resulting in a substantial reduction of federal income tax expense.
Additional details of our capital spending are included in the "Capital Expenditures" section below. • Cash paid for acquisitions, net of cash acquired, of $178.4 million, primarily funded by borrowings under the Revolving Credit Facility (as defined below). C.
Additional details of our capital spending are included in the "Capital Expenditures" section below. • Cash paid for acquisitions, net of cash acquired, of $101.6 million, primarily funded by borrowings under the Revolving Credit Facility (as defined below). C.
Prior to the par call date, we may redeem the 6 1 / 4 % Notes at the redemption price or make-whole premium specified in the indenture governing the 6 1 / 4 % Notes, together with accrued and unpaid interest to, but excluding, the redemption date.
Prior to the par call date, we may redeem the Euro Notes at the redemption price or make-whole premium specified in the indenture governing the Euro Notes, together with accrued and unpaid interest to, but excluding, the redemption date.
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: YEAR ENDED DECEMBER 31, 2024 2023 Reported EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated $ 0.61 $ 0.63 Add/(Deduct): Acquisition and Integration Costs 0.12 0.09 Restructuring and other transformation 0.54 0.60 Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate) 0.02 (0.04) Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures 0.13 0.34 Stock-based compensation expense 0.40 0.25 Non-cash amortization related to derivative instruments (1) 0.06 0.07 Tax impact of reconciling items and discrete tax items (2) (0.12) (0.12) Income (Loss) Attributable to Noncontrolling Interests 0.01 0.01 Adjusted EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated (3) $ 1.77 $ 1.82 (1) Relates to the amortization of the excluded component of our cross-currency swap agreements, which is recognized on a straight-line basis as a component of Interest expense, net in our Consolidated Statements of Operations.
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: YEAR ENDED DECEMBER 31, 2025 2024 Reported EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated $ 0.49 $ 0.61 Add/(Deduct): Acquisition and Integration Costs 0.07 0.12 Restructuring and other transformation 0.66 0.54 Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate) 0.08 0.02 Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures 0.40 0.13 Stock-based compensation expense 0.47 0.40 Non-cash amortization related to derivative instruments (1) 0.06 0.06 Tax impact of reconciling items and discrete tax items (2) (0.12) (0.12) Income (Loss) Attributable to Noncontrolling Interests 0.03 0.01 Adjusted EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated (3) $ 2.12 $ 1.77 (1) Relates to the amortization of the excluded component of our cross-currency swap agreements, which is recognized on a straight-line basis as a component of Interest expense, net in our Consolidated Statements of Operations.
Costs are comprised of (1) restructuring costs, which include (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 include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement of our growth initiatives.
Costs 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 of December 31, 2024, our cross-currency interest rate swap agreements have maturity dates ranging from August 2025 through November 2026.
As of December 31, 2025, our cross-currency interest rate swap agreements have maturity dates ranging from February 2026 through November 2026.
PROVISION (BENEFIT) FOR INCOME TAXES We have been organized and have operated as a REIT beginning with our taxable year ended December 31, 2014. Our effective tax rates for the years ended December 31, 2024 and 2023 were 24.9% and 17.6%, respectively.
PROVISION (BENEFIT) FOR INCOME TAXES We have been organized and have operated as a REIT beginning with our taxable year ended December 31, 2014. Our effective tax rates for the years ended December 31, 2025 and 2024 were 27.9% and 24.9%, respectively.
CREDIT AGREEMENT Our 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 due 2031").
CREDIT AGREEMENT Our 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").
We noted that, based on the estimated fair value of all of our reporting units determined as of October 1, 2024: • a hypothetical decrease of 10% in the expected annual future cash flows of these reporting units, with all other assumptions unchanged, would have decreased the estimated fair value of our reporting units as of October 1, 2024 by a range of approximately 9.9% to 12.5% but would not, however, have resulted in the carrying value of any of our reporting units exceeding their estimated fair value; and • a hypothetical increase of 100 basis points in the discount rate, with all other assumptions unchanged, would have decreased the estimated fair value of our reporting units as of October 1, 2024 by a range of approximately 3.8% to 14.0% but would not, however, have resulted in the carrying value of any of our reporting units exceeding their estimated fair value.
We noted that, based on the estimated fair value of our reporting units determined as of October 1, 2025: • a hypothetical decrease of 10% in the expected annual future cash flows of these reporting units, with all other assumptions unchanged, would have decreased the estimated fair value of our reporting units as of October 1, 2025 by a range of approximately 9.4% to 10.6% but would not, however, have resulted in the carrying value of any of our reporting units exceeding their estimated fair value; and • a hypothetical increase of 100 basis points in the discount rate, with all other assumptions unchanged, would have decreased the estimated fair value of our reporting units as of October 1, 2025 by a range of approximately 3.3% to 10.9% but would not, however, have resulted in the carrying value of any of our reporting units exceeding their estimated fair value.
IRON MOUNTAIN 2024 FORM 10-K 27 Table of Contents Part II OVERVIEW PROJECT MATTERHORN In September 2022, we announced Project Matterhorn, a global program designed to accelerate the growth of our business. Project Matterhorn investments focus on transforming our operating model to a global operating model.
IRON MOUNTAIN 2025 FORM 10-K 27 Table of Contents Part II OVERVIEW PROJECT MATTERHORN In 2025, we completed our investments in Project Matterhorn, a global program designed to accelerate the growth of our business, which we announced in September 2022. Project Matterhorn investments focused on transforming our operating model to a global operating model.
We had no significant concentrations of liquid investments as of December 31, 2024.
We had no significant concentrations of liquid investments as of December 31, 2025.
Service revenues include charges for related service activities, the most significant of which include: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refiling of removed records, customer termination and permanent withdrawal fees, project revenues and courier operations, consisting primarily of the pickup and delivery of records upon customer request; (2) secure shredding of sensitive documents and the subsequent sale of shredded paper for recycling, the price of which can fluctuate from period to period; (3) the decommissioning, data erasure, processing and disposition, and recycling or sale of IT hardware and component assets; (4) digital solutions, including the scanning, imaging and document conversion services of active and inactive records, consulting services and the sale of software as a service; and (5) data center services, including set up, monitoring and support of our customers' assets which are protected in our data center facilities, and special project services, including data center fitout.
Service revenues include charges for related service activities, the most significant of which include: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refiling of removed records, customer termination and permanent withdrawal fees, project revenues and courier operations, consisting primarily of the pickup and delivery of records upon customer request; (2) secure shredding of sensitive documents and the subsequent sale of shredded paper for recycling, the price of which can fluctuate from period to period; (3) the decommissioning, data erasure, processing and disposition, and recycling or sale of IT hardware and component assets; and (4) digital solutions, including the scanning, imaging and document conversion services of active and inactive records, consulting services and the sale of software as a service, including our Digital Experience Platform.
As of December 31, 2024 and 2023, we have approximately $1,482.0 million and $520.0 million, respectively, in notional value outstanding on our interest rate swap agreements. As of December 31, 2024, our interest rate swap agreements have maturity dates ranging from October 2025 through May 2027.
As of December 31, 2025 and 2024, we have approximately $1,349.0 million and $1,482.0 million, respectively, in notional value outstanding on our interest rate swap agreements. As of December 31, 2025, our interest rate swap agreements have maturity dates ranging from February 2026 through May 2027.
During the years ended December 31, 2024 and 2023, we incurred approximately $161.4 million and $175.2 million, respectively, of Restructuring and other transformation costs related to Project Matterhorn, which are comprised of (1) restructuring costs, which include (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 include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement of our growth initiatives.
During the years ended December 31, 2025 and 2024, we incurred approximately $195.9 million and $161.4 million, respectively, in Restructuring and other transformation costs related to Project Matterhorn, 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.
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 years ended December 31, 2024 and 2023 was approximately $6.2 million and $(12.8) 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 years ended December 31, 2025 and 2024 was approximately $24.6 million and $6.2 million, respectively.
The following is a summary of the ALM reporting unit including the goodwill balance (in thousands), the percentage by which the fair value of the reporting unit exceeded its carrying value and certain key assumptions used by us in determining the fair value of the reporting unit as of October 1, 2024: REPORTING UNIT GOODWILL BALANCE AT OCTOBER 1, 2024 PERCENTAGE BY WHICH THE FAIR VALUE OF THE REPORTING UNIT EXCEEDED THE REPORTING UNIT CARRYING VALUE AS OF OCTOBER 1, 2024 KEY ASSUMPTIONS IN THE FAIR VALUE OF REPORTING UNIT MEASUREMENT AS OF OCTOBER 1, 2024 DISCOUNT RATE AVERAGE ANNUAL ADJUSTED EBITDA MARGIN USED IN DISCOUNTED CASH FLOW AVERAGE ANNUAL CAPITAL EXPENDITURES AS PERCENTAGE OF REVENUE (1) TERMINAL GROWTH RATE (2) ALM $748,000 57.4% 15.5% 15.4% 1.4% 3.5% (1) For purposes of our goodwill impairment analysis, the term "capital expenditures" includes both growth investment and recurring capital expenditures.
The following is a summary of the ALM reporting unit including the goodwill balance (in thousands), the percentage by which the fair value of the reporting unit exceeded its carrying value and certain key assumptions used by us in determining the fair value of the reporting unit as of October 1, 2025: REPORTING UNIT GOODWILL BALANCE AT OCTOBER 1, 2025 PERCENTAGE BY WHICH THE FAIR VALUE OF THE REPORTING UNIT EXCEEDED THE REPORTING UNIT CARRYING VALUE AS OF OCTOBER 1, 2025 KEY ASSUMPTIONS IN THE FAIR VALUE OF REPORTING UNIT MEASUREMENT AS OF OCTOBER 1, 2025 DISCOUNT RATE AVERAGE ANNUAL ADJUSTED EBITDA MARGIN USED IN DISCOUNTED CASH FLOW AVERAGE ANNUAL CAPITAL EXPENDITURES AS PERCENTAGE OF REVENUE (1) TERMINAL GROWTH RATE (2) ALM $781,128 93.7% 15.0% 18.6% 1.7% 3.5% (1) For purposes of our goodwill impairment analysis, the term "capital expenditures" includes both growth investment and recurring capital expenditures.
Of this, we expect capital expenditures for growth investment of approximately $1,800.0 million, and recurring capital expenditures of approximately $150.0 million. DIVIDENDS See Note 9 to Notes to Consolidated Financial Statements included in this Annual Report for information on dividends.
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 8 to Notes to Consolidated Financial Statements included in this Annual Report for information on dividends.
RESTRUCTURING AND OTHER TRANSFORMATION Restructuring and other transformation costs for the years ended December 31, 2024 and 2023 were approximately $161.4 million and $175.2 million, respectively, and related to operating expenses associated with the implementation of Project Matterhorn.
RESTRUCTURING AND OTHER TRANSFORMATION Restructuring and other transformation costs for the years ended December 31, 2025 and 2024 were approximately $195.9 million and $161.4 million, respectively, and related to operating expenses associated with the implementation of Project Matterhorn.
Available borrowings under the Revolving Credit Facility are subject to compliance with our indenture covenants as discussed below. The weighted average interest rate in effect under the Revolving Credit Facility as of December 31, 2024 was 6.3%.
Available borrowings under the Revolving Credit Facility are subject to compliance with our indenture covenants as discussed below. The weighted average interest rate in effect under the Revolving Credit Facility as of December 31, 2025 was 5.7%.
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. PROJECT MATTERHORN As disclosed above, in September 2022, we announced Project Matterhorn.
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. PROJECT MATTERHORN As disclosed above, as of December 31, 2025, we completed our investments in Project Matterhorn.
Discrete tax items resulted in a (benefit) provision for income taxes of $(6.2) million and $(18.1) million for the years ended December 31, 2024 and 2023, respectively.
Discrete tax items resulted in a provision (benefit) for income taxes of $2.0 million and $(6.2) million for the years ended December 31, 2025 and 2024, respectively.
We have assets for foreign net operating losses of $146.6 million and foreign disallowed interest expense carryforwards of $17.7 million, with various expiration dates (and in some cases no expiration date), subject to valuation allowances of approximately 72.0% and 46.5%, respectively.
We have assets for foreign net operating losses of $146.3 million and foreign disallowed interest expense carryforwards of $46.6 million, with various expiration dates (and in some cases no expiration date), subject to valuation allowances of approximately 77.5% and 26.8%, respectively.
We have assets for foreign net operating losses of $146.6 million and foreign disallowed interest expense carryforwards of $17.7 million, with various expiration dates (and in some cases no expiration date), subject to valuation allowances of approximately 72.0% and 46.5%, respectively. IRON MOUNTAIN 2024 FORM 10-K 55 Table of Contents Part II
We have assets for foreign net operating losses of $146.3 million and foreign disallowed interest expense carryforwards of $46.6 million, with various expiration dates (and in some cases no expiration date), subject to valuation allowances of approximately 77.5% and 26.8%, respectively. 52 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part II
Our structural tax rate for purposes of the calculation of Adjusted EPS for the years ended December 31, 2024 and 2023 was 15.6% and 12.3%, respectively.
Our structural tax rate for purposes of the calculation of Adjusted EPS for the years ended December 31, 2025 and 2024 was 13.1% and 15.6%, respectively.
CASH FLOWS FROM INVESTING ACTIVITIES Our significant investing activities during the year ended December 31, 2024 included: • Cash paid for capital expenditures of $1,791.6 million.
CASH FLOWS FROM INVESTING ACTIVITIES Our significant investing activities during the year ended December 31, 2025 included: • Cash paid for capital expenditures of $2,271.6 million.
OTHER EXPENSES, NET INTEREST EXPENSE, NET Interest expense, net increased $135.6 million to $721.6 million in the year ended December 31, 2024 from $585.9 million in the year ended December 31, 2023. The increase is primarily due to higher average debt outstanding during the year ended December 31, 2024 compared to the prior year period.
OTHER EXPENSES, NET INTEREST EXPENSE, NET Interest expense, net increased $107.8 million to $829.3 million in the year ended December 31, 2025 from $721.6 million in the year ended December 31, 2024. The increase is primarily due to higher average debt outstanding during the year ended December 31, 2025 compared to the prior year period.
DECEMBER 2024 OFFERING On December 6, 2024, IMI completed a private offering of (in thousands): SERIES OF NOTES AGGREGATE PRINCIPAL AMOUNT MATURITY DATE INTEREST PAYMENT DUE PAR CALL DATE (1) 6 1 / 4 % Notes $ 1,200,000 January 15, 2033 January 15 and July 15 December 6, 2029 (1) We may redeem the 6 1 / 4 % Notes at any time, at our option, in whole or in part.
SEPTEMBER 2025 OFFERING On September 10, 2025, IMI completed a private offering of (in thousands): SERIES OF NOTES AGGREGATE PRINCIPAL AMOUNT MATURITY DATE INTEREST PAYMENT DUE PAR CALL DATE (1) Euro Notes € 1,200,000 January 15, 2034 January 15 and July 15 September 10, 2030 (1) We may redeem the Euro Notes at any time, at our option, in whole or in part.
These agreements primarily consist of term loan facilities with the following terms (in thousands): AGREEMENT MAXIMUM BORROWING AMOUNT OUTSTANDING BORROWINGS AS OF December 31, 2024 DIRECT OBLIGOR CONTRACTUAL INTEREST RATE (1) UNUSED COMMITMENT FEE MATURITY DATE (2) Virginia 4/5 $ 204,987 $ 76,535 Iron Mountain Data Centers Virginia 4/5 Subsidiary, LLC SOFR plus a credit spread adjustment of 0.1% plus 1.625% 0.49 % October 31, 2025 Virginia 3 275,000 271,079 Iron Mountain Data Centers Virginia 3, LLC SOFR plus 2.50% 0.75 % August 31, 2026 Virginia 7 Term Loans 300,000 32,074 Iron Mountain Data Centers Virginia 7, LLC SOFR plus 2.50% 0.75 % April 12, 2027 Virginia 6 Term Loans 210,000 137,495 Iron Mountain Data Centers Virginia 6, LLC SOFR plus 2.75% 0.75 % May 3, 2027 (1) The term loans are indexed to the one-month Secured Overnight Financing Rate (the "SOFR") benchmark rate.
These agreements primarily consist of term loan facilities with the following terms (in thousands): AGREEMENT MAXIMUM BORROWING AMOUNT OUTSTANDING BORROWINGS AS OF DECEMBER 31, 2025 DIRECT OBLIGOR CONTRACTUAL INTEREST RATE UNUSED COMMITMENT FEE MATURITY DATE (2) Virginia 3 Term Loans (1)(2) $ 275,000 271,079 Iron Mountain Data Centers Virginia 3, LLC SOFR plus 2.50% 0.75 % August 31, 2026 Virginia 7 Term Loans (1)(2) 300,000 275,314 Iron Mountain Data Centers Virginia 7, LLC SOFR plus 2.50% 0.75 % April 12, 2027 Virginia 6 Term Loans (1)(2) 210,000 210,000 Iron Mountain Data Centers Virginia 6, LLC SOFR plus 2.75% 0.75 % May 3, 2027 Virginia 4/5 Term Loans due 2030 (2) 208,224 208,224 Iron Mountain Data Centers Virginia 4/5 Subsidiary, LLC 5.60% N/A November 1, 2030 (1) The term loans are indexed to the one-month Secured Overnight Financing Rate ("SOFR") benchmark rate.
Based on our goodwill impairment analysis as of October 1, 2024, all of our reporting units had estimated fair values exceeding their carrying values by greater than 35%. The ALM reporting unit represented approximately $749.6 million, or 14.7%, of our consolidated goodwill balance at December 31, 2024, and its fair value is most sensitive to changes in our assumptions.
Based on our goodwill impairment analysis as of October 1, 2025, all of our reporting units had estimated fair values exceeding their carrying values. The ALM reporting unit represented approximately $780.3 million, or 14.8%, of our consolidated goodwill balance at December 31, 2025, and its fair value is sensitive to changes in our assumptions.
The interest rates in effect under the Term Loan A and the Term Loan B due 2031 as of December 31, 2024 were 6.1% and 6.4%, respectively. VIRGINIA CREDIT AGREEMENTS As our Global Data Center Business continues to expand, we have entered into credit agreements in order to partially finance the construction of various data centers.
The interest rates in effect under the Term Loan A and the Term Loan B as of December 31, 2025 were 5.5% and 5.8%, respectively. DATA CENTER DEBT AGREEMENTS As our Global Data Center Business continues to expand, we have entered into debt agreements in order to partially finance the construction of various data centers.
The carrying value and equity interest in our unconsolidated joint venture at December 31, 2024 is as follows (in thousands): December 31, 2024 CARRYING VALUE EQUITY INTEREST Joint venture with AGC Equity Partners $ 61,075 20.00 % NET OPERATING LOSSES At December 31, 2024, we have federal net operating loss carryforwards of $95.5 million and disallowed interest expense carryforwards of $152.2 million, both of which can be carried forward indefinitely, and of which $89.2 million and $68.7 million, respectively, are expected to be realized to reduce future federal taxable income.
The carrying value and equity interest in our unconsolidated joint venture at December 31, 2025 is as follows (in thousands): DECEMBER 31, 2025 CARRYING VALUE EQUITY INTEREST Joint venture with AGC Equity Partners $ 85,156 20.00 % NET OPERATING LOSSES At December 31, 2025, we have federal net operating loss carryforwards of $116.2 million and disallowed interest expense carryforwards of $185.9 million, both of which can be carried forward indefinitely, and of which $109.9 million and $64.6 million, respectively, are expected to be realized to reduce future federal taxable income.
ACQUISITION AND INTEGRATION COSTS Acquisition and Integration Costs for the years ended December 31, 2024 and 2023 were approximately $35.8 million and $25.9 million, respectively.
ACQUISITION AND INTEGRATION COSTS Acquisition and Integration Costs for the years ended December 31, 2025 and 2024 were approximately $19.5 million and $35.8 million, respectively.
Both depreciation and amortization are impacted by the timing of acquisitions. Depreciation expense increased $103.4 million, or 19.7%, on a reported dollar basis for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Both depreciation and amortization are impacted by the timing of acquisitions. Depreciation expense increased $101.6 million, or 16.1%, on a reported dollar basis for the year ended December 31, 2025 compared to the year ended December 31, 2024.
STORAGE RENTAL REVENUE AND SERVICE REVENUE Primary factors influencing the change in reported storage rental revenue and reported service revenue for the year ended December 31, 2024 compared to the year ended December 31, 2023 include the following: STORAGE RENTAL REVENUE • organic storage rental revenue growth driven by increased volume in faster growing markets and our Global Data Center Business segment and revenue management.
STORAGE RENTAL REVENUE AND SERVICE REVENUE Primary factors influencing the change in reported storage rental revenue and reported service revenue for the year ended December 31, 2025 compared to the year ended December 31, 2024 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.
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): YEAR ENDED DECEMBER 31, 2024 2023 Net Income (Loss) $ 183,666 $ 187,263 Add/(Deduct): Real estate depreciation (1) 367,362 322,045 (Gain) loss on sale of real estate, net of tax (2) (6,698) (16,656) Data center lease-based intangible assets amortization (3) 22,304 22,322 Our share of FFO (Nareit) reconciling items from our unconsolidated joint ventures 4,830 2,226 FFO (Nareit) 571,464 517,200 Add/(Deduct): Acquisition and Integration Costs 35,842 25,875 Restructuring and other transformation 161,359 175,215 Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate) 14,025 4,307 Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures 39,159 98,891 Stock-based compensation expense 118,138 73,799 Non-cash amortization related to derivative instruments 16,705 21,097 Real estate financing lease depreciation 13,135 12,019 Tax impact of reconciling items and discrete tax items (4) (37,248) (35,307) Our share of FFO (Normalized) reconciling items from our unconsolidated joint ventures (17) (374) FFO (Normalized) $ 932,562 $ 892,722 (1) Includes depreciation expense related to owned real estate assets (land improvements, buildings, building and leasehold improvements, data center infrastructure and racking structures), excluding depreciation related to real estate financing leases.
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): YEAR ENDED DECEMBER 31, 2025 2024 Net Income (Loss) $ 152,254 $ 183,666 Add/(Deduct): Real estate depreciation (1) 421,561 367,362 (Gain) loss on sale of real estate, net of tax (2) (3,299) (6,698) Data center lease-based intangible assets amortization (3) 7,395 22,304 Our share of FFO (Nareit) reconciling items from our unconsolidated joint ventures 6,264 4,830 FFO (Nareit) 584,175 571,464 Add/(Deduct): Acquisition and Integration Costs 19,545 35,842 Restructuring and other transformation 195,912 161,359 Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate) 27,759 14,025 Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures 118,473 39,159 Stock-based compensation expense 140,280 118,138 Non-cash amortization related to derivative instruments 16,705 16,705 Real estate financing lease depreciation 13,124 13,135 Tax impact of reconciling items and discrete tax items (4) (35,757) (37,248) Our share of FFO (Normalized) reconciling items from our unconsolidated joint ventures (296) (17) FFO (Normalized) $ 1,079,920 $ 932,562 (1) Includes depreciation expense related to owned real estate assets (land improvements, buildings, building and leasehold improvements, data center infrastructure and racking structures), excluding depreciation related to real estate financing leases.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (IN THOUSANDS): YEAR ENDED DECEMBER 31, 2024 2023 Net Income (Loss) $ 183,666 $ 187,263 Add/(Deduct): Interest expense, net 721,559 585,932 Provision (benefit) for income taxes 60,872 39,943 Depreciation and amortization 900,905 776,159 Acquisition and Integration Costs (1) 35,842 25,875 Restructuring and other transformation 161,359 175,215 Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate) 6,196 (12,825) Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures (2) 39,159 98,891 Stock-based compensation expense 118,138 73,799 Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures 8,684 11,425 Adjusted EBITDA $ 2,236,380 $ 1,961,677 (1) Represent 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").
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (IN THOUSANDS): YEAR ENDED DECEMBER 31, 2025 2024 Net Income (Loss) $ 152,254 $ 183,666 Add/(Deduct): Interest expense, net 829,335 721,559 Provision (benefit) for income taxes 58,934 60,872 Depreciation and amortization 1,024,435 900,905 Acquisition and Integration Costs (1) 19,545 35,842 Restructuring and other transformation 195,912 161,359 Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate) 24,641 6,196 Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures (2) 118,473 39,159 Stock-based compensation expense 140,280 118,138 Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures 10,141 8,684 Adjusted EBITDA $ 2,573,950 $ 2,236,380 (1) Represent 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").
As of December 31, 2024, we had various outstanding letters of credit totaling $7.8 million under the Revolving Credit Facility.
As of December 31, 2025, we had various outstanding letters of credit totaling $12.4 million under the Revolving Credit Facility.
The Term Loan B due 2031 is scheduled to mature on January 31, 2031, at which point all obligations become due. As of December 31, 2024, we had $121.0 million, $216.0 million and $1,850.7 million outstanding under the Revolving Credit Facility, Term Loan A and the Term Loan B due 2031, respectively.
The Term Loan B is scheduled to mature on January 31, 2031, at which point all obligations become due. As of December 31, 2025, we had $751.5 million, $487.5 million and $2,031.5 million outstanding under the Revolving Credit Facility, the Term Loan A and the Term Loan B, respectively.
During the quarter ended September 30, 2024, we entered into an agreement with a partner to form our Iron Mountain Data Centers Virginia 6/7 JV, LLC joint venture, which resulted in an initial Noncontrolling interest of approximately $103.1 million recorded in our Consolidated Balance Sheet at September 30, 2024. 50 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II 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.
NONCONTROLLING INTERESTS In December 2025, we entered into an agreement with a partner to form our Iron Mountain Data Centers Arizona 3 JV, LP joint venture, which resulted in an initial Noncontrolling interest of approximately $74.8 million recorded in our Consolidated Balance Sheet at December 31, 2025. 48 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part II 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.
ACQUISITIONS See Note 3 to Notes to Consolidated Financial Statements included in this Annual Report for information regarding our acquisitions.
See Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding this agreement.
The assumptions used also reflect market pricing for IT hardware and component assets that is consistent with pricing we observed in the current year. 36 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II KEY ASSUMPTIONS Key factors that could reasonably be expected to have a negative impact on the estimated fair value of these reporting units and potentially result in impairment charges include, but are not limited to: (i) a deterioration in general economic conditions, (ii) significant adverse changes in regulatory factors or in the business climate, (iii) adverse actions or assessment by regulators and (iv) changes in market trends due to the evolution of technology, all of which could result in adverse changes to the key assumptions used in valuing the reporting units.
Key factors that could reasonably be expected to have a negative impact on the estimated fair value of these reporting units and potentially result in impairment charges include, but are not limited to: (i) a deterioration in general economic conditions, (ii) significant adverse changes in regulatory factors or in the business climate, (iii) adverse actions or assessment by regulators and (iv) changes in market trends due to the evolution of technology, all of which could result in adverse changes to the key assumptions used in valuing the reporting units.
Revenue for all our lines of business, with the exception of storage revenues in our Global Data Center Business (which is subject to Accounting Standards Codification ("ASC") Topic 842, Leases ), is recognized in accordance with ASC 606, Revenue from Contracts with Customers ("ASC 606"), the application of which requires that we make significant judgments related to performance obligations and the transfer of control to the customer.
The majority of our revenue is recognized in accordance with Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606"), the application of which requires that we make significant judgments related to performance obligations and the transfer of control to the customer.
Project Matterhorn focuses on the formation of a solution-based sales approach that is designed to allow us to optimize our shared services and best practices to better serve our customers' needs. We are investing to accelerate growth and to capture a greater share of the large, global addressable markets in which we operate.
Project Matterhorn enabled the development of a solution-based sales approach that allowed us to optimize our shared services and best practices to better serve our customers' needs. As part of this, we invested to accelerate growth and to capture a greater share of the large, global addressable markets in which we operate.
At December 31, 2024, we have federal net operating loss carryforwards of $95.5 million and disallowed interest expense carryforwards of $152.2 million, both of which can be carried forward indefinitely, and of which $89.2 million and $68.7 million, respectively, are expected to be realized to reduce future federal taxable income.
At December 31, 2025, we have federal net operating loss carryforwards of $116.2 million and disallowed interest expense carryforwards of $185.9 million, both of which can be carried forward indefinitely, and of which $109.9 million and $64.6 million, respectively, are expected to be realized to reduce future federal taxable income.
The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate were: YEAR ENDED DECEMBER 31, 2024 2023 The lack of tax benefits recognized for the ordinary losses and disallowed interest expenses of certain entities of $37.0 million and differences in the tax rates to which our foreign earnings are subject of $13.3 million, partially offset by the benefits derived from the dividends paid deduction of $33.9 million.
The lack of tax benefits recognized for the ordinary losses and disallowed interest expenses of certain entities of $37.0 million and differences in the tax rates to which our foreign earnings are subject of $13.3 million, partially offset by the benefits derived from the dividends paid deduction of $33.9 million.
We have determined that the majority of our contracts contain series performance obligations which qualify to be recognized under a practical expedient available in ASC 606 known as the "right to invoice".
Storage revenue for our Global Data Center Business is recognized in accordance with ASC Topic 842, Leases. We have determined that the majority of our contracts contain series performance obligations which qualify to be recognized under a practical expedient available in ASC 606 known as the "right to invoice".
IRON MOUNTAIN 2024 FORM 10-K 43 Table of Contents Part II 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): YEAR ENDED DECEMBER 31, DOLLAR CHANGE PERCENTAGE CHANGE 2024 2023 Net Income (Loss) $ 183,666 $ 187,263 $ (3,597) (1.9) % Net Income (Loss) as a percentage of Revenue 3.0 % 3.4 % Adjusted EBITDA $ 2,236,380 $ 1,961,677 $ 274,703 14.0 % Adjusted EBITDA Margin 36.4 % 35.8 % Adjusted EBITDA Margin for the year ended December 31, 2024 increased 60 basis points from the prior year driven by favorable overhead management, offset by changes in our revenue mix. ↑ INCREASED BY $274.7 MILLION OR 14.0% Adjusted EBITDA 44 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II SEGMENT ANALYSIS See the discussion of Business Segments under Item I and Note 11 to Notes to Consolidated Financial Statements, both included in this Annual Report, for a description of our reportable segments.
We do not expect the OBBBA provisions to have a material impact on our consolidated financial statements. 42 IRON MOUNTAIN 2025 FORM 10-K Table of Contents Part II 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): YEAR ENDED DECEMBER 31, DOLLAR CHANGE PERCENTAGE CHANGE 2025 2024 Net Income (Loss) $ 152,254 $ 183,666 $ (31,412) (17.1) % Net Income (Loss) as a percentage of Revenue 2.2 % 3.0 % Adjusted EBITDA $ 2,573,950 $ 2,236,380 $ 337,570 15.1 % Adjusted EBITDA Margin 37.3 % 36.4 % Adjusted EBITDA Margin for the year ended December 31, 2025 increased 90 basis points from the prior year driven by favorable overhead management, offset by changes in our revenue mix. ↑ INCREASED BY $337.6 MILLION OR 15.1% Adjusted EBITDA IRON MOUNTAIN 2025 FORM 10-K 43 Table of Contents Part II SEGMENT ANALYSIS See the discussion of Business Segments under Item I and Note 10 to Notes to Consolidated Financial Statements, both included in this Annual Report, for a description of our reportable segments.
CASH FLOWS The following is a summary of our cash balances and cash flows (in thousands) as of and for the years ended December 31, 2024 2023 Cash Flows from Operating Activities $ 1,196,708 $ 1,113,567 Cash Flows from Investing Activities (2,136,761) (1,444,356) Cash Flows from Financing Activities 876,745 425,666 Cash and Cash Equivalents, End of Year 155,716 222,789 A.
CASH FLOWS The following is a summary of our cash balances and cash flows (in thousands) as of and for the years ended December 31, 2025 2024 Cash Flows from Operating Activities $ 1,339,999 $ 1,196,708 Cash Flows from Investing Activities (2,574,206) (2,136,761) Cash Flows from Financing Activities 1,267,914 876,745 Cash and Cash Equivalents, End of Year 158,535 155,716 A.
CASH FLOWS FROM OPERATING ACTIVITIES For the year ended December 31, 2024, net cash flows provided by operating activities increased by $83.1 million compared to the prior year period primarily due to an increase in net income (excluding non-cash charges) of $114.9 million, partially offset by a decrease in cash from working capital of $31.8 million. B.
CASH FLOWS FROM OPERATING ACTIVITIES For the year ended December 31, 2025, net cash flows provided by operating activities increased by $143.3 million compared to the prior year period primarily due to an increase in net income (loss) (excluding non-cash charges) of $131.4 million and an increase in cash from working capital of $11.9 million. B.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

9 edited+2 added−1 removed11 unchanged
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. CREDIT RISK 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. We had no significant concentrations of liquid investments as of December 31, 2024.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. CREDIT RISK 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. We had no significant concentrations of liquid investments as of December 31, 2025.
See Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion on our interest rate swaps and Note 7 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion of our long-term indebtedness, including the fair values of such indebtedness as of December 31, 2024.
See Note 5 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion on our interest rate swaps and Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion of our long-term indebtedness, including the fair values of such indebtedness as of December 31, 2025.
A 10% depreciation in year-end 2024 functional currencies, relative to the United States dollar, would result in a reduction in our equity of $335.6 million. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. The information required by this item is included in Item 15(a) of this Annual Report.
A 10% depreciation in year-end 2025 functional currencies, relative to the United States dollar, would result in a reduction in our equity of $374.7 million. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. The information required by this item is included in Item 15(a) of this Annual Report.
This creates a tax efficient natural currency hedge. We have entered into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and certain of our functional foreign currencies, including the Euro and the Canadian dollar.
We have entered into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and certain of our functional foreign currencies, including the Euro and the Canadian dollar.
Occasionally, we may use interest rate swaps as a tool to maintain our targeted level of fixed rate debt. As of December 31, 2024, approximately 14.4%, or $1,989.4 million, of our total long-term debt outstanding was subject to variable interest rates.
Occasionally, we may use interest rate swaps as a tool to maintain our targeted level of fixed rate debt. As of December 31, 2025, approximately 22.0%, or $3,640.4 million, of our total long-term debt outstanding was subject to variable interest rates.
If the weighted average variable interest rate on our variable rate debt had increased by 1%, our net income for the year ended December 31, 2024 would have been reduced by approximately $23.2 million.
If the weighted average variable interest rate on our average variable rate debt outstanding during the year had increased by 1%, our net income for the year ended December 31, 2025 would have been reduced by approximately $41.9 million.
IM UK has financed a portion of its capital needs through the issuance of the GBP Notes and through borrowings under the UK Bilateral Revolving Credit Facility, each of which are denominated in British pounds sterling. Our Australian business has financed a portion of its capital needs through direct borrowings in Australian dollars under the AUD Term Loan.
IM UK has financed a portion of its capital needs through the issuance of the UK Revolving Credit Facility, which is denominated in British pounds sterling. Our Australian business has financed a portion of its capital needs through direct borrowings in Australian dollars under the AUD Term Loan. These create a tax efficient natural currency hedge.
As of December 31, 2024, our cash and cash equivalents balance was $155.7 million.
As of December 31, 2025, our cash and cash equivalents balance was $158.5 million.
See Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion on our cross-currency swap agreements. 56 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II The impact of devaluation or depreciating currency on an entity depends on the residual effect on the local economy and the ability of an entity to raise prices and/or reduce expenses.
IRON MOUNTAIN 2025 FORM 10-K 53 Table of Contents Part II The impact of devaluation or depreciating currency on an entity depends on the residual effect on the local economy and the ability of an entity to raise prices and/or reduce expenses.
Removed
In addition, on occasion, we enter into currency swaps to temporarily or permanently hedge an overseas investment, such as a major acquisition, to lock in certain transaction economics.
Added
In addition, IMI has financed a portion of its capital needs through the issuance of the Euro Notes, which are a natural hedge against our net investments in our Euro denominated subsidiaries.
Added
See Note 5 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion on our cross-currency swap agreements.

Other IRM 10-K year-over-year comparisons