Executive Summary

IRM delivered record Q2 2025 results: revenue $1.71B (+11.6% y/y), Adjusted EBITDA $628M (+15.4% y/y), AFFO $370M (+15.2% y/y); GAAP net loss of $43M driven by FX impact on intercompany balances .
Revenue beat Wall Street consensus by ~$28.9M ($1,711.9M actual vs $1,683.3M consensus*); Adjusted EPS of $0.48 was below consensus* ($0.50), while margins expanded 120 bps y/y .
Guidance raised across metrics: FY25 revenue to $6.79–$6.94B, Adjusted EBITDA $2.52–$2.57B, AFFO $1.505–$1.530B, AFFO/share $5.04–$5.13, with Q3 guide at ~$1.75B revenue and >$650M Adjusted EBITDA .
Stock reaction catalysts: strong segment momentum (RIM, Data Center, ALM), explicit multi-year growth view for data centers (≥25% revenue growth in 2026) and accelerating digital solutions/AI positioning, balanced against lighter new DC leasing pace YTD and FX-driven GAAP loss .

What Went Well and What Went Wrong

What Went Well

Broad-based strength: Global RIM revenue $1,324M (+6% y/y), Data Center $189M (+24% y/y), Corporate & Other $199M (+52% y/y); Adjusted EBITDA margin expanded to 36.7% (+120 bps y/y) .
Data center execution: 23MW commenced, renewals totaling 25MW, churn 0.5%, and renewal pricing +13% cash/+20% GAAP; segment Adjusted EBITDA up 46% y/y to $96M with ~51% margin .
ALM acceleration: reported +70% y/y (organic +42%) with profitability improvement and enterprise/data center wins; management emphasized synergy with hyperscale relationships and secure chain-of-custody advantage .

Quotes:

“We delivered another quarter of record financial performance… increasing our guidance across all key financial metrics.” — CEO William L. Meaney .
“We achieved… Adjusted EBITDA margin… up 120 basis points year on year… significant operating leverage resulting in an incremental flow through margin of 47%.” — CFO Barry Hytinen .

What Went Wrong

GAAP bottom line: Net (Loss) Income $(43.3)M vs $34.6M prior year, driven by FX changes on intercompany balances; Reported EPS $(0.15) .
New DC leasing lighter than plan YTD (6MW signed), prompting a 30–80MW full-year leasing expectation and reliance on commencements/backlog for near-term growth .
Service margin mix: Service gross margin dipped y/y (33.1% vs 34.3%) as costs rose, despite higher revenue; terminations/withdrawal fees slightly lower y/y .

Financial Results

Quarterly Trajectory (oldest → newest)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$1,581	$1,593	$1,712
Reported EPS ($)	$0.35	$0.05	$(0.15)
Adjusted EPS ($)	$0.50	$0.43	$0.48
Adjusted EBITDA ($USD Millions)	$605	$580	$628
Adjusted EBITDA Margin (%)	38.3%	36.4%	36.7%
AFFO ($USD Millions)	$368	$348	$370
AFFO per share ($)	$1.24	$1.17	$1.24

Q2 vs Prior Year and Consensus

Metric	Q2 2024	Q2 2025 Actual	Q2 2025 Consensus*
Revenue ($USD Millions)	$1,534	$1,712	$1,683.3*
Adjusted EPS ($)	$0.42	$0.48	$0.5012*
Adjusted EBITDA ($USD Millions)	$544	$628	—

Notes: Revenue beat consensus by ~$28.9M; Adjusted EPS of $0.48 was below consensus* $0.50; margins expanded y/y . Values marked with * retrieved from S&P Global.

Segment Breakdown (Q2 2025 vs Q2 2024)

Segment	Revenue Q2 2024 ($MM)	Revenue Q2 2025 ($MM)	y/y Growth	Adj. EBITDA Q2 2024 ($MM)	Adj. EBITDA Q2 2025 ($MM)	Margin Q2 2025
Global RIM	$1,251	$1,324	+6%	$548.7	$586.3	44.3%
Data Center	$153	$189	+24%	$66.0	$96.3	50.8%
Corporate & Other	$131	$199	+52%	$(70.4)	$(54.2)	n/a

KPIs and Operating Metrics (Q2 2025)

KPI	Value
Storage volume (cubic ft)	735.8M (Total); Global RIM 728.7M
Facility capacity utilization	80.6%
Records management retention rate	93.0%
Storage NOI per sq ft	$8.69; Storage revenue/sq ft $10.83
DC commencements	23,215 kW (23MW)
DC renewals	25,215 kW; cash +13.1%, GAAP +19.5%
DC churn	0.5%
DC leased % (total)	96.3%; stabilized 97.9%
DC portfolio	450.2MW operating; 201.5MW under construction (60.2% pre-leased); 628.2MW held for development
Dividend per share	$0.785 declared for Q3 payout Oct 3
Net lease-adjusted leverage	5.0x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($MM)	FY 2025	$6,740–$6,890	$6,790–$6,940	Raised
Adjusted EBITDA ($MM)	FY 2025	$2,505–$2,555	$2,520–$2,570	Raised
AFFO ($MM)	FY 2025	$1,480–$1,510	$1,505–$1,530	Raised
AFFO per share ($)	FY 2025	$4.95–$5.05	$5.04–$5.13	Raised
Revenue ($MM)	Q3 2025	—	~$1,750	New quarterly guide
Adjusted EBITDA ($MM)	Q3 2025	—	>$650	New quarterly guide
AFFO ($MM)	Q3 2025	—	~$385	New quarterly guide
AFFO per share ($)	Q3 2025	—	~$1.28	New quarterly guide
Dividend	Q3 2025	$0.785 declared	$0.785 declared	Maintained

Management cited strong Q2 outperformance, positive outlook, currency tailwinds, and small M&A (India CRC) in the raise .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
AI/technology initiatives (DXP, AI agents)	Digital solutions scaling; strong FY24 growth and FY25 outlook	Record digital revenue; launching AI agents; recognized by Gartner/Everest	Accelerating execution and visibility
Data center market/leasing	FY25 guide strong; portfolio expansion	Organic storage +26%; commencements 23MW; renewals strong; new leasing lighter YTD (6MW) but pipeline intensifying; ≥25% revenue growth expected in 2026 from backlog	Near-term timing headwind; medium-term trajectory intact
ALM growth/positioning	Building capability; synergy with hyperscale and enterprise	+70% reported (+42% organic); balanced growth across channels; improved component pricing late Q2	Accelerating with better margins
Treasury digitization award	Disclosed; not in guidance	Work commenced; RFQ for larger/longer engagement; minimal revenue in Q2; sub-$5M expected in Q3	Potential multi-year uplift; near-term limited
Macro/FX impacts	FX sensitivities noted in prior materials	FX change on intercompany balances drove GAAP net loss	Ongoing FX sensitivity
Capital & leverage	Dividend increased (Q4’24); leverage ~5.0x	Term Loan A/AUD upsized; leverage 5.0x; >$1B OCF and leverage-neutral growth funding	Stable leverage with growth investment

Management Commentary

“We are delivering AI powered digital solutions… becoming a key leader… with our Insight Digital Experience Platform (DXP)… excited about the upcoming release of AI agents…” — CEO .
“Pricing remains strong with renewal pricing spreads of 13–20%… data center adjusted EBITDA… 50% and rising… very attractive development returns with hyperscale customers (10–15 year duration).” — CFO .
“ALM revenue… 70% y/y… organic 42%… significant improvement in ALM profitability… driven by volume and improved component pricing late in the quarter.” — CFO .
“We are increasing our full year guidance… expectation for another record year of results.” — IRM press release .

Q&A Highlights

Data center leasing timing: Hyperscale focus on LLM training campuses shifted attention; now re-engaging on inference/cloud where IRM plays; near-term lighter signings but pipeline robust across Northern Virginia, Richmond, Amsterdam, Chicago, Madrid .
Capital deployment: Majority of DC growth capex supports 100% pre-leased assets in AZ, London, Northern Virginia; no change in approach .
ALM mix and drivers: Balanced growth across enterprise and DC decommissioning; primarily volume-driven; early Q3 memory pricing improvement noted .
Margins/flow-through: 47% incremental flow-through driven by RIM leverage and DC margin >50% with pricing and commencements; ALM margin trending up .
Treasury contract: $1M revenue recognized in Q2; sub-$5M expected Q3; bulk of work seasonal into 2026; RFQ for larger, longer-term engagement submitted .

Estimates Context

Q2 2025: Revenue beat; Adjusted EPS miss vs S&P Global consensus.
- Revenue: Actual $1,711.9M vs $1,683.3M consensus* (beat).
- EPS: Adjusted EPS $0.48 vs $0.5012 consensus* (miss).
Next quarter consensus:
- Q3 2025 revenue $1,753.4M*, EPS $0.54*, EBITDA $650.1M*; Company guided ~$1,750M revenue and >$650M Adjusted EBITDA .
Note: Consensus “EBITDA” and company-reported “Adjusted EBITDA” definitions may differ; comparisons presented for directional context only.
Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Mix shift and margin: Strong RIM leverage plus DC margin >50% underpin sustained margin expansion; flow-through of ~47% highlights operating leverage .
DC growth runway intact: Despite lighter YTD leasing, commencements/renewals, backlog, and power availability support ≥25% DC revenue growth in 2026 without assuming incremental leasing .
ALM scaling: 70% reported growth with improving pricing and enterprise annuity dynamics enhances non-capital-intensive growth exposure .
Digital/AI catalysts: DXP platform validation (analyst recognition; AI agent launch) and the Treasury RFQ present potential multi-year upside; near-term revenue minimal .
Guidance momentum: Raised FY25 ranges across revenue, Adjusted EBITDA, AFFO, AFFO/share; Q3 guide consistent with y/y double-digit growth .
Risk monitor: FX swings (GAAP losses), DC leasing timing, service cost inflation; balance sheet stable at 5.0x net lease-adjusted leverage and liquidity enhanced via term loan upsizes .
Trading lens: Near-term focus on Q3 print vs guide (~~$1.75B/~~>$650M), DC leasing updates (30–80MW FY target), ALM pricing trends, and progress on Treasury and India CRC integration .

Appendix: Detailed Storage/Service Margins

Metric	Q2 2024	Q1 2025	Q2 2025
Storage revenue ($MM)	$919.7	$948.4	$1,010.0
Storage gross margin (%)	70.0%	70.6%	71.4%
Service revenue ($MM)	$614.7	$644.2	$702.0
Service gross margin (%)	34.3%	32.5%	33.1%

All non-estimate metrics, segment results, and management commentary are sourced from IRM’s Q2 2025 8-K/press release and earnings call materials – – –. Values marked with * retrieved from S&P Global.

IRON MOUNTAIN INC (IRM)·Q2 2025 Earnings Summary