Executive Summary

Record Q3 with double‑digit growth and broad‑based strength: revenue $1.754B (+12.6% Y/Y), Adjusted EBITDA $660M (+16% Y/Y), AFFO $393M (+18% Y/Y), and Adj. EPS $0.54 (+23% Y/Y) .
Modest beats vs S&P Global consensus: revenue $1.754B vs $1.753B estimate*; Adj. EPS $0.54 vs $0.53 estimate*; operating outperformance driven by better segment mix and operating leverage (notably data centers and ALM) . Values retrieved from S&P Global.*
Guidance reiterated: FY25 revenue $6.79–$6.94B, Adj. EBITDA $2.52–$2.57B, AFFO $1.505–$1.53B; Q4 guide implies ~14% Y/Y growth for revenue and Adj. EBITDA .
Capital allocation catalyst: dividend increased 10% to $0.864 for the January 2026 payout, fourth straight annual raise, underscoring AFFO growth durability .

What Went Well and What Went Wrong

What Went Well
- “All‑time record Revenue, Adjusted EBITDA, and AFFO” with consolidated organic growth ~9–10% and margin expansion of +110 bps Y/Y to 37.6% .
- Data centers accelerated: revenue +33% Y/Y; renewal pricing +14% cash/+19% GAAP; Q3 signed 13MW; early Q4, a hyperscaler expanded to take entire 36MW Chicago site, supporting 2026+ growth visibility .
- ALM outperformed: +65% reported/+36% organic in Q3 with profitability expansion; tuck‑in of ACT Logistics in Australia; momentum in enterprise ALM wins .
What Went Wrong
- GAAP net income remains volatile due to FX on intercompany balances; though positive in Q3 ($86M), YTD GAAP EPS is $0.19 vs $0.26 prior year, driven by higher interest expense and FX .
- Service gross margin mixed as ALM and digital mix (lower‑margin services) grew faster; also fewer termination fees (a rate headwind), though retention improved—a long‑term positive .
- Elevated capex intensity to fund 1.3GW roadmap (Q3 growth capex $472M; YTD $1.54B) requires disciplined balance sheet management amid rising absolute debt balances .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025 Actual	Q3 2025 S&P Consensus*
Revenue ($B)	1.557	1.712	1.754	1.753*
Adjusted EBITDA ($B)	0.568	0.628	0.660	—
Adjusted EBITDA Margin (%)	36.5%	36.7%	37.6%	—
GAAP EPS ($)	(0.11)	(0.15)	0.28	—
Adjusted EPS ($)	0.44	0.48	0.54	0.53*
AFFO ($B)	0.332	0.370	0.393	—
AFFO/Share ($)	1.13	1.24	1.32	—

Notes: Values retrieved from S&P Global.*
Why vs. estimates: modest top‑line and Adj. EPS beat driven by operating leverage and better‑than‑planned margins in data centers and ALM; management said Adj. EBITDA was ~$10M ahead of their internal projection due to operational strength .

Segment performance (revenue, Adj. EBITDA, margins)

Segment	Q3 2024 Revenue ($M)	Q2 2025 Revenue ($M)	Q3 2025 Revenue ($M)	Q3 2024 Adj. EBITDA ($M)	Q2 2025 Adj. EBITDA ($M)	Q3 2025 Adj. EBITDA ($M)	Q3 2025 Margin
Global RIM	1,260	1,324	1,339	569	586	598	44.7%
Data Center	153	189	204	67	96	107	52.6%
Corporate & Other (incl. ALM)	144	199	211	(68)	(54)	(45)	n/a

Key KPIs

KPI	Q3 2024	Q2 2025	Q3 2025
Total storage volume (000s cu ft)	732,997	735,807	743,512
Storage facility utilization (%)	79.4%	80.6%	80.8%
Records mgmt retention rate (%)	92.7%	93.0%	93.2%
Data center: new/expansion kW signed	9,205	2,325	13,464
Data center churn (%)	0.5%	0.5%	0.3%
Renewal pricing (cash/GAAP)	13.1%/19.5% (Q2)	13.1%/19.5%	13.9%/18.8%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($B)	FY 2025	$6.79–$6.94 (raised in Q2)	$6.79–$6.94	Maintained
Adjusted EBITDA ($B)	FY 2025	$2.52–$2.57	$2.52–$2.57	Maintained
AFFO ($B)	FY 2025	$1.505–$1.53	$1.505–$1.53	Maintained
AFFO/Share ($)	FY 2025	$5.04–$5.13	$5.04–$5.13	Maintained
Revenue ($B)	Q4 2025	~1.8	~1.8	Maintained
Adj. EBITDA ($B)	Q4 2025	>0.65 (~14% Y/Y)	~0.69 (~14% Y/Y)	Reiterated higher Q4 cadence
AFFO ($B)	Q4 2025	~0.385	~0.415	Reiterated higher Q4 cadence
Dividend/Share ($)	Next declared	$0.785 (Q3 2025)	$0.864 (payable Jan 6, 2026)	Raised 10%

Management reiterated FY outlook and provided explicit Q4 targets, citing momentum in data centers (36MW of commencements in Q4) and ALM .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Data center demand & pricing	Low churn; strong pricing; commencements of 23MW in Q2; 25%+ 2026 growth expected from backlog	Q3 revenue +33% Y/Y; 13MW signed; 14%/19% cash/GAAP renewal; early Q4: entire 36MW Chicago site leased by hyperscaler; 450MW energizing in 24 months; 2026 growth ≥25% from backlog	Strengthening
AI/digital solutions	DXP platform momentum; government digitization wins (Treasury award in April)	Launched Insight DXP 2.0; new five‑year Treasury digitization contract up to $714M with seasonal 2026 ramp	Accelerating
ALM growth & component pricing	42% organic in Q2; improving profitability	+36% organic in Q3; enterprise‑led mix; selective tailwind from memory/HDD pricing	Strong, price‑assisted
RIM storage fundamentals	Retention ~93%; revenue mgmt mid‑single digits; steady organic volume	Retention 93.2%; continued revenue mgmt; volume and utilization up	Stable to improving
FX/macro impacts	FX impacted GAAP net income in Q1–Q2; reiterated focus on operating leverage	GAAP net income positive in Q3; still notes FX effects on intercompany balances	Less negative
Capital allocation	Raised FY25 guidance (Q1 & Q2); dividend growth policy aligned to AFFO	Dividend +10%; EUR 1.2B 4.75% 2034 notes issuance; leverage 5.0x within target	Shareholder‑friendly, funded

Management Commentary

“We achieved an all‑time high for quarterly revenue, adjusted EBITDA, and AFFO driven by strength across our business.” — CEO William L. Meaney .
“We are capitalizing on robust data center industry demand… we have high confidence in sustaining our data center revenue growth… underwritten by our pre‑leasing backlog, strong pipeline, as well as 450 megawatts… to be energized over the next 18–24 months.” — CEO .
“Adjusted EBITDA was an all‑time record… up $92 million, or 16% year‑on‑year… $10 million ahead of the projection we provided on our last call, driven by operational strength and productivity.” — CFO Barry Hytinen .
On the Treasury contract: “It will be linear with slight growth… there is a seasonality aspect with tax season… we’ve begun staffing and clearance to be ready for spring 2026.” — CEO .

Q&A Highlights

Treasury digitization contract (up to $714M/5 years): revenue will be seasonal (tax season), with ramp beginning into 2026; outcome range depends on volumes and form mix .
ALM dynamics: enterprise‑led growth with profitability expansion; some component pricing tailwinds (memory/HDD) but vary by part; expecting strong Q4 organic growth again .
Data center pipeline: hyperscalers refocusing on inference/cloud buildouts; 250MW energizing next 18 months (450MW over 24 months); 2026+ growth visibility solid, including London/Virginia/Madrid/Miami .
RIM outlook: continued mid‑single‑digit revenue management, low churn, improving retention; FX a sequential headwind embedded in Q4 guidance .

Estimates Context

Revenue: $1.754B actual vs $1.753B consensus* — slight beat. Values retrieved from S&P Global.*
Adjusted EPS: $0.54 actual vs $0.53 consensus* — beat by ~$0.01. Values retrieved from S&P Global.*
Street likely to lift FY Adj. EPS/AFFO per share modestly given Q3 upside and stronger Q4 run‑rate implied by commencements and reiterated guide .

Key Takeaways for Investors

Mix shift supports premium multiple: Data center (52.6% margin) and ALM are driving two‑thirds of consolidated growth and expanding margins; this underpins medium‑term double‑digit EBITDA growth .
Dividend growth is sustainable: low‑60s AFFO payout ratio and reiterated FY AFFO guide, plus balance sheet at 5.0x within target, support ongoing returns .
Near‑term catalysts: Q4 commencements (36MW) and leasing updates; further proof points on DXP/Treasury execution and enterprise ALM wins .
Watch GAAP noise: FX on intercompany balances and higher interest expense can obscure strong underlying cash/Adj. metrics; focus on Adj. EBITDA/AFFO trajectory .
Capex intensity remains high but pre‑leased: development is heavily pre‑leased to high‑credit hyperscalers, de‑risking returns across 1.3GW roadmap .
RIM durability intact: rising utilization and retention >93% with consistent revenue management continue to fund growth and stabilize cycles .
Risk checks: power cost pass‑through dynamics (non‑profit generating on power revenue), development execution/timing, and component pricing volatility within ALM .

Supporting detail excerpts

Revenue/storage/service mix and margin bridges, including reconciliation tables and definitions for non‑GAAP measures, are presented in the Q3 press release/exhibits .
Q2 and Q1 trends used for comparables and guidance evolution are sourced from prior quarter 8‑K exhibits and .

Values retrieved from S&P Global.*

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