Investment Thesis
Iron Mountain exhibits fundamental weakness despite revenue growth, with deteriorating profitability (net income down 5% YoY), severely negative free cash flow of -$931.6M, and critical balance sheet distress evidenced by negative stockholders' equity of -$981M. The company's highly leveraged capital structure with $16.4B in long-term debt against negative equity raises substantial concerns about financial sustainability and dividend safety for a REIT.
IRM Strengths
- Revenue growth of 12.2% YoY demonstrates top-line expansion in core business
- Operating income of $1.2B and 16.9% operating margin show core operations generate acceptable returns before financing costs
- Operating cash flow of $1.3B provides some cash generation from operations
- Interest coverage ratio of 4.5x indicates current ability to service debt obligations
IRM Risks
- Negative free cash flow of -$931.6M indicates capital expenditures ($2.3B) significantly exceed operating cash generation, limiting capital return capacity
- Negative stockholders' equity of -$981M represents severe balance sheet deterioration and technical insolvency on accounting basis
- Net income declined 5% YoY despite 12.2% revenue growth, showing profitability deterioration and margin compression
- Poor liquidity position with current ratio of 0.74x below 1.0x threshold creates near-term refinancing risk
- Diluted EPS declined 19.7% YoY, indicating shareholder value destruction despite operational growth
- High leverage with $16.4B debt against negative equity creates structural financial fragility
Key Metrics to Watch
- Free cash flow trend and path to positive FCF generation
- Stockholders' equity recovery trajectory and deleveraging progress
- Operating margin sustainability amid capital intensity
- Debt reduction initiatives and refinancing capacity
- Operating cash flow stability relative to capital expenditure obligations
IRM Financial Metrics
IRM Profitability Ratios
IRM Balance Sheet & Liquidity
IRM 5-Year Financial Trend
5-Year Trend Summary: IRON MOUNTAIN INC's revenue has grown significantly by 326% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.63 reflects profitable operations.
IRM Growth Metrics (YoY)
IRM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.6B | -$33.7M | $-0.11 |
| Q2 2025 | $1.5B | -$27.1M | $-0.10 |
| Q1 2025 | $1.5B | $16.2M | $0.05 |
| Q3 2024 | $1.4B | -$33.7M | $-0.11 |
| Q2 2024 | $1.4B | $1.1M | $0.00 |
| Q1 2024 | $1.3B | $65.5M | $0.22 |
| Q3 2023 | $1.3B | $91.4M | $0.31 |
| Q2 2023 | $1.3B | $1.1M | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
IRM Capital Allocation
IRM SEC Filings
Access official SEC EDGAR filings for IRON MOUNTAIN INC (CIK: 0001020569)