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November 14, 2025 • 4 min read
Iron Mountain (IRM), a company synonymous with storing physical records, is rapidly transforming into a digital infrastructure powerhouse. To understand this evolution, let's dive into their latest quarterly report filed with the SEC and see what the numbers for the third quarter of 2025 reveal about their performance.
At its core, Iron Mountain is a Real Estate Investment Trust (REIT) specializing in storage and information management. While they still manage billions of physical assets for over 225,000 customers, their strategic focus has shifted heavily towards high-growth areas like data centers, digital services, and asset lifecycle management (ALM).
For the third quarter ended September 30, 2025, Iron Mountain reported total revenues of $1.75 billion, a solid 12.6% increase compared to the same period last year. This growth wasn't confined to one area; it was broad-based, showcasing the strength of their diversified strategy.
More impressively, the company swung from a net loss of $33.6 million in Q3 2024 to a net income of $84.3 million in Q3 2025. This significant turnaround was driven by higher operating income and favorable shifts in non-operating items, particularly a significant reduction in losses from foreign currency transactions that impacted the prior year.
The following flow diagram provides a visual breakdown of Iron Mountain's revenue streams and cost structure for the third quarter of 2025, illustrating how they arrived at their bottom-line profit.
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You'll notice a category in the chart labeled "Corporate and Other." This isn't simply unallocated revenue; it's a segment that includes some of the company's emerging businesses, such as secure storage for fine arts and, most notably, its fast-growing asset lifecycle management (ALM) business. The ALM division focuses on securely managing, remarketing, and recycling IT assets for large enterprises, a key growth driver for the company.
A closer look at the company's segments reveals where the real momentum is.
Global RIM Business: The traditional Records and Information Management business remains the foundation, posting revenue of $1.34 billion, up 6.2% year-over-year. This steady growth in a mature business, driven by price optimization and digital services, provides the stable cash flow needed to fund new ventures.
Global Data Center Business: This is the star of the show. Revenue from data centers surged by 33.2% to $204 million. More importantly, the segment's Adjusted EBITDA margin—a key measure of profitability—expanded dramatically from 43.6% to 52.6%. This indicates that as they lease more data center space, their profitability is scaling impressively.
Corporate and Other: Boosted by acquisitions and organic growth in the ALM business, this segment's revenue jumped 46.9% to $211 million. This highlights the success of their strategy to expand into adjacent, high-value services.
This rapid growth, especially in the data center space, requires significant investment. For the first nine months of 2025, Iron Mountain's capital expenditures totaled $1.76 billion. A staggering $1.33 billion of that was dedicated to data center development.
To fund this expansion, the company has taken on more debt. Total long-term debt increased to $16.2 billion from $13.7 billion at the start of the year. This includes a new offering of €1.2 billion in senior notes completed in September 2025. While the company remains within its debt covenant limits, its leverage will be a key metric for investors to monitor.
Iron Mountain's Q3 results paint a clear picture of a company in a successful, albeit capital-intensive, transformation. They are effectively using their legacy business as a springboard to dominate high-growth digital markets. The strong revenue growth and expanding margins, particularly in the data center segment, are testaments to their strategic execution. The challenge ahead will be to continue this growth trajectory while managing a significant debt load in a dynamic economic environment.
Last updated: November 14, 2025