Executive Summary

Record Q1 performance with revenue $1.593B (+7.8% YoY), Adjusted EBITDA $579.9M (+11.8% YoY), and AFFO $348.4M (+7.6% YoY); GAAP EPS fell to $0.05 on FX impacts, while Adjusted EPS held at $0.43 .
Guidance raised across the board: FY25 revenue to $6.74–$6.89B (from $6.65–$6.80B), Adjusted EBITDA to $2.505–$2.555B (from $2.475–$2.525B), AFFO to $1.48–$1.51B (from $1.45–$1.48B), and AFFO/sh to $4.95–$5.05 (from $4.85–$4.95) .
Growth engines executing: Data Center revenue +20% YoY with 52.4% EBITDA margin; ALM revenue +44% YoY (+22% organic); Global RIM delivered margin expansion to 44.3% and record retention/utilization .
Potential catalysts: US Treasury ~$140M digitization contract awarded (majority of revenue in 2026) not included in 2025 guidance; government RFQ now broadened to 5-year scope, company competing; dividend raised 10% effective Q2 .

What Went Well and What Went Wrong

What Went Well
- Broad-based strength in growth businesses: “data center, digital, and ALM collectively grew more than 20%,” sustaining double-digit consolidated growth .
- Pricing power and operating leverage: Adjusted EBITDA margin expanded 130 bps YoY to 36.4% with >50% incremental flow-through margin; commencements priced ~15% higher YoY and renewals +19% cash/+27% GAAP in data centers .
- Federal pipeline/AI-led digitization: Awarded ~US$140M Department of Treasury contract leveraging DXP with embedded AI; management sees increased federal pipeline; not baked into guide .
What Went Wrong
- GAAP earnings compressed: Net income fell to $16.2M from $77.0M, primarily due to FX impacts on intercompany balances; GAAP EPS $0.05 vs $0.25 .
- Elevated non-core costs: Restructuring and transformation expenses rose to $54.7M (up 49% QoQ); interest expense increased 18% YoY to $194.7M .
- Hyperscale leasing timing: No new hyperscale signings in the quarter (enterprise ~4 MW signed), though pipeline supports 125 MW FY target; quarterly DC leasing thus lighter .

Financial Results

Overall financials vs prior periods

Metric ($USD Millions, except per-share)	Q1 2024	Q4 2024	Q1 2025
Total Revenues	1,476.9	1,581.3	1,592.5
Reported EPS (Diluted) ($)	0.25	0.35	0.05
Adjusted EPS ($)	0.43	0.50	0.43
Adjusted EBITDA	518.9	605.1	579.9
Adjusted EBITDA Margin %	35.1%	38.3%	36.4%
AFFO	323.7	368.0	348.4
AFFO per share ($)	1.10	1.24	1.17

Non-GAAP adjustments (Q1 2025): Key add-backs to GAAP EPS include $0.18 restructuring/transform., $0.09 stock-based comp, $0.09 other expense, partly offset by -$0.04 tax impact, reconciling GAAP $0.05 to Adjusted $0.43 .

Segment performance (Q1 2025)

Segment	Revenue ($M)	YoY %	Adj. EBITDA ($M)	EBITDA Margin %
Global RIM	1,255.9	3.8%	556.3	44.3%
Data Center	173.2	20.3%	90.8	52.4%
Corporate & Other (incl. ALM)	163.4	33.1%	(67.2)	n/a
Total	1,592.5	7.8%	579.9	36.4%
All data .

KPIs and operating metrics

KPI	Q1 2025	Prior Period
Storage Volume (000s cubic ft.)	734,166	733,571 in Q4 2024
Records Mgmt Retention	92.9%	92.6% in Q4 2024
Storage Facility Utilization	79.9%	79.6% in Q4 2024
Data Center Leasable MW (Total)	424.2	416.2 in Q4 2024
DC Leased % (Stabilized / Total)	98.0% / 96.1%	97.4% / 95.5% in Q4 2024
DC New/Expansion kW Signed	3,700	9,664 in Q4 2024
DC Renewal Mark-to-Market	+18.7% cash / +26.5% GAAP	+6.3% cash / +10.7% GAAP in Q3 2024
DC Churn	0.3%	4.4% in Q4 2024 (elevated, normalized lower in 2025)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY 2025	$6.650–$6.800B	$6.740–$6.890B	Raised
Adjusted EBITDA	FY 2025	$2.475–$2.525B	$2.505–$2.555B	Raised
AFFO	FY 2025	$1.450–$1.480B	$1.480–$1.510B	Raised
AFFO per share	FY 2025	$4.85–$4.95	$4.95–$5.05	Raised
Revenue	Q2 2025 (point)	n/a	~$1.68B	New quarterly detail
Adjusted EBITDA	Q2 2025 (point)	n/a	~$620M	New quarterly detail
AFFO	Q2 2025 (point)	n/a	~$350M	New quarterly detail
AFFO per share	Q2 2025 (point)	n/a	~$1.18	New quarterly detail
Dividend	Q2 2025	$0.715 prior quarter	$0.785 declared for Q2 2025	Raised 10% effective Q2 2025

Notes: Company targets AFFO payout ratio in low–mid 60s; net lease-adjusted leverage remains 5.0x; liquidity ~~$2.1B to support growth capex (~~$1.8B plan for 2025) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24, Q4’24)	Current Period (Q1’25)	Trend
Data Center demand & leasing	2024 DC leasing 116 MW; 2025 target 125 MW; passed on a large, low-return deal to maintain pricing; strong pricing and margin outlook .	Enterprise ~4 MW signed; no hyperscale signings this quarter; pricing strong; renewal spreads +19% cash/+27% GAAP; 125 MW FY target reaffirmed with robust pipeline in US/EU/India .	Positive pipeline/pricing; timing of hyperscale.
AI/technology & Digital (DXP)	Expanding DXP with AI/ML use cases; rising SaaS deals and recurring digital revenue .	Awarded ~$140M US Treasury contract leveraging DXP with embedded AI; majority of revenue in 2026; broader 5-year RFQ underway; not in 2025 guide .	Accelerating federal opportunity.
Tariffs/macro exposure	Limited commentary previously.	Tariff exposure essentially nil in RIM; ALM diversified away from China; DC construction tariff exposure <5%; expect market to absorb tariffs .	Well-insulated.
ALM growth, mix & pricing	4Q24 ALM growth largely volume; pricing flattish; shifting mix toward enterprise for better margins .	ALM +44% revenue (+22% organic); mix ~59% enterprise in Q1; pricing flat to slightly down; profitability improving with synergies and scale; more enterprise ahead .	Scaling with better margin mix.
Regional DC focus	Building land bank; permitting/power constraints managed; focus on N. Virginia/Richmond, Amsterdam, Madrid, Chicago, Miami; India expansion .	Strong pipelines across Manassas/Richmond, Chicago, Miami (edge), Amsterdam, Madrid; India (Web Werks) pipeline strong .	Consistent execution pipeline.

Management Commentary

“We are pleased with our strong start to 2025… record results across the business and above our expectations… Our data center, digital, and ALM businesses are driving strong double digit organic revenue gains” — William L. Meaney, CEO .
“Adjusted EBITDA… was $5 million ahead of the projection… $4 million operating performance and ~$1 million from the U.S. dollar weakening” — Barry Hytinen, CFO .
“We have been awarded a contract for the Department of Treasury… leveraging our DXP platform and its embedded AI capabilities… contract value is approximately $140 million… majority of the revenue in 2026” — CEO .
“Pricing in the data center market continues to be very strong… renewal spreads… and the market would absorb [tariffs]” — CFO .

Q&A Highlights

Leasing cadence and 125 MW target: No hyperscale deals signed in Q1, but enterprise leasing solid and pipeline supports 125 MW FY guidance across US/EU/India; pricing discipline remains intact .
Tariff/supply chain: Minimal exposure—RIM revenues/costs locally matched; ALM resales increasingly diversified; DC construction exposure <5%, with strong pricing to offset .
ALM drivers: Volume wins across enterprise and hyperscale decommissioning drove +22% organic; pricing flat to slightly down; enterprise mix rising with better margins and network leverage .
Regional DC opportunity: Strongest pipelines in Northern Virginia/Manassas & Richmond, Chicago, Amsterdam, Madrid, India; Miami as smaller edge deployment .

Estimates Context

Q1 2025 actuals vs S&P Global consensus:

Revenue: $1,592.5M vs $1,594.3M consensus — essentially in line (slight miss)*.
Primary EPS: $0.43 vs $0.402 consensus — beat*.
EBITDA: $553.9M vs $576.9M consensus — below consensus*, while company-reported Adjusted EBITDA was $579.9M .
Values retrieved from S&P Global.*

Implications: Solid EPS beat and raised FY guide should support estimate revisions higher for revenue/EBITDA/AFFO; S&P’s EBITDA basis differs from company Adjusted EBITDA, so investors should align frameworks when benchmarking .

Key Takeaways for Investors

Durable double-digit growth algorithm intact: RIM pricing/retention plus DC and ALM scale are expanding margins and cash flow; FY25 guide raised across all key metrics .
Data center pricing power is a differentiator: Commencements +15% YoY price/kW; renewal spreads +19% cash/+27% GAAP, supporting margin expansion as backlog commences .
Hyperscale timing is the swing factor near term; pipeline supports 125 MW for 2025 despite no Q1 signings; regional power/construction sequencing on track .
Federal digitization could be a 2026 upside lever: ~$140M Treasury award (not in FY25 guide) and a broader 5-year RFQ underpin a growing US Gov’t pipeline tied to DXP/AI capabilities .
Capital deployment remains aggressive but balanced: ~$657M Q1 capex (mostly growth); liquidity ~$2.1B; leverage 5.0x within target; dividend lifted 10% with ~62% TTM payout .
Near-term trading frame: EPS beat and guidance raise are positive catalysts; any perceived hyperscale signing lull is timing, not demand; estimate revisions likely skew upward given DC pricing and ALM momentum .

Appendix: Additional Data Points

Non-GAAP bridges and definitions provided; Adjusted EPS reflects restructuring, SBC, and other non-core items; AFFO growth driven by EBITDA offset by higher financing amortization and recurring capex .
Q2 2025 outlook: Revenue ~ $1.68B, Adj. EBITDA ~ $620M, AFFO ~ $350M, AFFO/sh ~ $1.18; FY25 capex plan ~$1.8B growth and ~$150M recurring .

This recap synthesizes IRM’s 8-K press release, presentation, supplemental financials, and Q1’25 call, as well as prior quarter materials for trend analysis .

IRON MOUNTAIN INC (IRM)·Q1 2025 Earnings Summary