NYSE:IRM
IRON MOUNTAIN INC
A diversified information management giant facing revenue growth but weighed down by significant net debt and declining profit margins.
Key Metrics
Investment Thesis
Bull Case
Iron Mountain offers a defensive growth play in the essential data infrastructure space with a dominant market share that allows for pricing power; the company's strategic pivot toward digital services is likely to eventually offset the capital intensity of its physical storage legacy assets.
Bear Case
Investors should be cautious due to the widening gap between operating cash flow and total capital outflows, which limits financial flexibility; the sharp contraction in net income over the last three years signals potential margin compression or increased cost pressures that have not been fully addressed.
About IRON MOUNTAIN INC
Iron Mountain Inc. (IRM) is a global leader in information management services, providing secure document storage, data center solutions, and digital transformation services primarily to enterprise clients and the public sector.
Analysis
Management Discussion
While revenue grew to $6.90B in 2025, the company's profitability has deteriorated significantly, with net profit falling from $187.3M in 2023 to just $152.3M this year; notably, cash flow from operations of $1.34B is barely covering the massive capital expenditures of $2.27B and significant dividend payments of $919.4M.
Industry Overview
The information management industry is shifting from purely physical storage to hybrid digital-physical solutions as enterprises seek to reduce on-premise footprint while maintaining compliance; this transition creates high barriers to entry but also intensifies competition for market share among established players.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.10B | $5.48B | $6.15B | $6.90B |
| Cost of Revenue | $2.19B | $2.36B | $2.70B | $3.08B |
| Gross Profit | $2.91B | $3.12B | $3.45B | $3.82B |
| Operating Expenses | $1.86B | $2.20B | $2.44B | $2.66B |
| Operating Income | $1.05B | $921.8M | $1.01B | $1.16B |
| G&A | $1.14B | $1.24B | $1.34B | $1.39B |
| Stock-Based Comp | $56.9M | $73.8M | $118.1M | $140.3M |
| D&A | $727.6M | $776.2M | $900.9M | $1.02B |
| Depreciation | $479.0M | $525.9M | $629.3M | $730.9M |
| Amortization | $248.6M | $250.3M | — | — |
| Other OpEx | $724.0M | $964.4M | $1.10B | $1.26B |
| Non-Operating Income | $-418.2M | $-694.6M | $-765.0M | $-952.6M |
| Interest Income | $8.3M | $12.5M | $14.7M | $17.1M |
| Pre-Tax Income | $631.6M | $227.2M | $244.5M | $211.2M |
| Income Tax | $69.5M | $39.9M | $60.9M | $58.9M |
| Continuing Ops | $562.1M | $187.3M | $183.7M | $152.3M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $562.1M | $187.3M | $183.7M | $152.3M |
| Minority Interest | $5.2M | $3.0M | $3.5M | $7.7M |
| Net to Common | $557.0M | $184.2M | $180.2M | $144.6M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.55B | $1.74B | $1.69B | $1.93B |
| Cash & Equivalents | $141.8M | $222.8M | $155.7M | $158.5M |
| Accounts Receivable | $1.17B | $1.26B | $1.29B | $1.44B |
| Inventory | $11.7M | — | — | — |
| Prepaid Expenses | $230.4M | $252.9M | $244.1M | $332.8M |
| Other Current Assets | $-11.7M | $0 | $0 | $0 |
| Long-Term Assets | $14.59B | $15.74B | $17.03B | $19.19B |
| Intangibles | $1.42B | $1.28B | $1.27B | $1.27B |
| Goodwill | $4.88B | $5.02B | $5.08B | $5.29B |
| Operating Leases | $2.58B | $2.70B | $2.49B | $2.47B |
| Other LT Assets | $5.70B | $6.74B | $8.18B | $10.17B |
| Total Assets | $16.14B | $17.47B | $18.72B | $21.13B |
| Current Liabilities | $1.92B | $2.24B | $3.09B | $2.62B |
| Accounts Payable | $469.2M | $539.6M | $678.7M | $710.7M |
| Current Debt | $87.5M | $120.7M | $715.1M | $216.1M |
| Current Leases | $288.7M | $291.8M | $315.4M | $319.1M |
| Deferred Revenue | $328.9M | $325.7M | $326.9M | $402.1M |
| Other Current Liab | $-483.0M | $-494.2M | $-538.0M | $-588.7M |
| Long-Term Liabilities | $13.59B | $15.03B | $15.93B | $19.21B |
| Long-Term Debt | $10.48B | $11.81B | $13.00B | $16.22B |
| LT Operating Leases | $2.43B | $2.56B | $2.33B | $2.30B |
| Other LT Liab | $642.6M | $550.2M | $485.1M | $532.7M |
| Total Liabilities | $15.50B | $17.26B | $19.02B | $21.83B |
| Shareholders' Equity | $636.8M | $211.8M | $-304.7M | $-709.3M |
| AOCI | $-442.0M | $-371.2M | $-570.0M | $-369.0M |
| Total L&E | $16.14B | $17.47B | $18.72B | $21.13B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $562.1M | $187.3M | $183.7M | $152.3M |
| Non-Cash Adjustments | $168.7M | $826.3M | $928.9M | $723.0M |
| Working Capital Changes | $196.8M | $100.0M | $84.2M | $464.8M |
| Cash from Operations | $927.7M | $1.11B | $1.20B | $1.34B |
| Capital Expenditures | $875.4M | $1.34B | $1.79B | $2.27B |
| Cash from Investing | $-1.66B | $-1.44B | $-2.14B | $-2.57B |
| Dividends Paid | $724.4M | $737.6M | $789.5M | $919.4M |
| Cash from Financing | $639.2M | $425.7M | $876.7M | $1.27B |
| FX Effect | $-20.5M | $-13.9M | $-3.8M | $-30.9M |
| Net Change in Cash | $-114.0M | $81.0M | $-67.1M | $2.8M |
| Beginning Cash | $255.8M | $141.8M | $222.8M | $155.7M |
| Ending Cash | $141.8M | $222.8M | $155.7M | $158.5M |
Frequently Asked Questions
How does IRON MOUNTAIN INC make money?
The company's revenue is driven by three core pillars: Document Services (secure physical storage and retrieval), Data Center Services (colocation, cloud migration, and managed services for digital assets), and Digital Transformation Services (consulting, automation, and analytics solutions).
What are the main risks for IRM?
The company operates with substantial net debt relative to EBITDA, creating vulnerability to interest rate hikes; recent data shows a persistent decline in net income alongside rising capital expenditures which could compress cash flow; regulatory compliance costs for sensitive client data pose ongoing operational risks.
What is IRM's competitive advantage?
Iron Mountain leverages a massive global footprint with over 280 locations to offer unmatched scale and reliability; its diversified revenue mix across physical, digital, and hybrid storage models provides resilience against sector-specific downturns.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.