v3.26.1
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. ACCOUNTS RECEIVABLE
We maintain an allowance for doubtful accounts and a credit memo reserve for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. The rollforward of the allowance for doubtful accounts and credit memo reserves for the six months ended June 30, 2026 is as follows:
Balance as of December 31, 2025
$107,838 
Credit memos charged to revenue52,676 
Allowance for bad debts charged to expense31,863 
Deductions and other(1)
(87,159)
Balance as of June 30, 2026
$105,218 
(1)Primarily consists of the issuance of credit memos, the write-off of accounts receivable and the impact associated with currency translation adjustments.
B. LEASES
We lease facilities for certain warehouses, data centers and office spaces. We also have land leases, including those on which certain facilities are located.
Operating and financing lease right-of-use assets and lease liabilities as of June 30, 2026 and December 31, 2025 are as follows:
DESCRIPTIONJUNE 30, 2026DECEMBER 31, 2025
Assets:
Operating lease right-of-use assets$2,437,199 $2,465,196 
Financing lease right-of-use assets, net of accumulated depreciation(1)
502,784 470,803 
Liabilities:
Current
Operating lease liabilities$332,177 $319,129 
Financing lease liabilities(1)
63,245 56,287 
Long-term
Operating lease liabilities$2,265,294 $2,300,448 
Financing lease liabilities(1)
490,672 470,912 
(1)Financing lease right-of-use assets, current financing lease liabilities and long-term financing lease liabilities are included within Property, Plant and Equipment, Net, Current portion of long-term debt and Long-term Debt, net of current portion, respectively, within our Condensed Consolidated Balance Sheets.
The components of lease expense for the three and six months ended June 30, 2026 and 2025 are as follows:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
DESCRIPTION2026202520262025
Operating lease cost(1)
$183,433 $179,831 $367,802 $353,139 
Financing lease cost:
Depreciation of financing lease right-of-use assets$19,582 $15,246 $36,951 $28,978 
Interest expense for financing lease liabilities9,032 7,325 16,398 13,454 
(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $48,675 and $97,134 for the three and six months ended June 30, 2026, respectively, and $47,261 and $93,666 for the three and six months ended June 30, 2025, respectively.
Other information: Supplemental cash flow information relating to our leases for the six months ended June 30, 2026 and 2025 is as follows:
SIX MONTHS ENDED JUNE 30,
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:20262025
Operating cash flows used in operating leases$258,236 $244,840 
Operating cash flows used in financing leases (interest)16,398 13,454 
Financing cash flows used in financing leases34,265 27,242 
NON-CASH ITEMS:
Operating lease modifications and reassessments$51,537 $(21,629)
New operating leases (including acquisitions)98,356 58,717 
In February 2026, we entered into a finance lease that is expected to commence in the fourth quarter of 2026, with an initial lease term of 31 years. The total undiscounted minimum lease payments for this lease are approximately $223,400.
C. GOODWILL
Our reporting units as of December 31, 2025 are described in detail in Note 2.l. to Notes to Consolidated Financial Statements included in our Annual Report.
The changes in the carrying value of goodwill attributable to each reportable segment and Corporate and Other (as defined in Note 8) for the six months ended June 30, 2026 are as follows:
GLOBAL RIM BUSINESSGLOBAL DATA CENTER BUSINESSCORPORATE AND OTHERTOTAL CONSOLIDATED
Goodwill balance, net of accumulated amortization, as of December 31, 2025
$3,973,406 $482,864 $829,531 $5,285,801 
Fair value and other adjustments550 — (321)229 
Currency effects(12,042)(6,557)(239)(18,838)
Goodwill balance, net of accumulated amortization, as of June 30, 2026
$3,961,914 $476,307 $828,971 $5,267,192 
Accumulated goodwill impairment balance as of June 30, 2026
$132,409 $— $26,011 $158,420 
D. FAIR VALUE MEASUREMENTS
The assets and liabilities carried at fair value and measured on a recurring basis as of June 30, 2026 and December 31, 2025 are as follows:
FAIR VALUE MEASUREMENTS AS OF JUNE 30, 2026 USING
DESCRIPTION
TOTAL CARRYING
VALUE AS OF
JUNE 30, 2026
QUOTED PRICES IN
ACTIVE MARKETS
(LEVEL 1)		SIGNIFICANT OTHER
OBSERVABLE INPUTS
(LEVEL 2)
SIGNIFICANT
UNOBSERVABLE
INPUTS (LEVEL 3)(2)
Money Market Funds$19,590 $— $19,590 $— 
Time Deposits3,004 — 3,004 — 
Trading Securities9,346 7,493 1,853 — 
Derivative Assets3,380 — 3,380 — 
Derivative Liabilities54,717 — 54,717 — 
Deferred Purchase Obligations(1)
194,310 — — 194,310 
FAIR VALUE MEASUREMENTS AS OF DECEMBER 31, 2025 USING
DESCRIPTION
TOTAL CARRYING
VALUE AS OF
DECEMBER 31, 2025
QUOTED PRICES IN
ACTIVE MARKETS
(LEVEL 1)		SIGNIFICANT OTHER
OBSERVABLE INPUTS
(LEVEL 2)
SIGNIFICANT
UNOBSERVABLE
INPUTS (LEVEL 3)(2)
Money Market Funds$7,149 $— $7,149 $— 
Time Deposits3,430 — 3,430 — 
Trading Securities8,220 6,400 1,820 — 
Derivative Liabilities71,869 — 71,869 — 
Deferred Purchase Obligations(1)
134,142 — — 134,142 
(1)The balance as of June 30, 2026 and December 31, 2025 primarily relates to the fair value of the deferred purchase obligation associated with the Regency Transaction (as defined in Note 3 to Notes to Consolidated Financial Statements included in our Annual Report).
(2)The following is a rollforward of the Level 3 liabilities presented above for December 31, 2025 through June 30, 2026:
Balance as of December 31, 2025
$134,142 
Additions— 
Payments— 
Other changes, including accretion60,168 
Balance as of June 30, 2026
$194,310 
The level 3 valuations of the deferred purchase obligations were determined utilizing a discounted cash flow model and take into account our forecasted projections as they relate to the underlying performance of the business. The discounted cash flow model incorporates assumptions as to expected results over the achievement period, including adjustments for volatility and timing, as well as discount rates that account for the risk of the arrangement and overall market risks. Any material change to these assumptions may result in a significantly higher or lower fair value of the deferred purchase obligations.
There were no material items that were measured at fair value on a non-recurring basis as of June 30, 2026 and December 31, 2025 other than those disclosed in Note 2.p. to Notes to Consolidated Financial Statements included in our Annual Report
E. ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET
The changes in Accumulated other comprehensive items, net for the three and six months ended June 30, 2026 and 2025 are as follows:
THREE MONTHS ENDED JUNE 30, 2026
THREE MONTHS ENDED JUNE 30, 2025
FOREIGN
CURRENCY
TRANSLATION AND OTHER
ADJUSTMENTS		DERIVATIVE FINANCIAL
INSTRUMENTS		TOTALFOREIGN
CURRENCY
TRANSLATION AND OTHER
ADJUSTMENTS		DERIVATIVE FINANCIAL
INSTRUMENTS		TOTAL
Beginning of Period$(397,302)$(5,316)$(402,618)$(493,553)$(8,816)$(502,369)
Other comprehensive (loss) income:
Foreign currency translation and other adjustments(15,037)— (15,037)139,811 — 139,811 
Change in fair value of interest rate swaps— 2,371 2,371 — (1,025)(1,025)
Total other comprehensive (loss) income(15,037)2,371 (12,666)139,811 (1,025)138,786 
End of Period$(412,339)$(2,945)$(415,284)$(353,742)$(9,841)$(363,583)
SIX MONTHS ENDED JUNE 30, 2026
SIX MONTHS ENDED JUNE 30, 2025
FOREIGN
CURRENCY
TRANSLATION AND OTHER
ADJUSTMENTS		DERIVATIVE FINANCIAL
INSTRUMENTS		TOTALFOREIGN
CURRENCY
TRANSLATION AND OTHER
ADJUSTMENTS		DERIVATIVE FINANCIAL
INSTRUMENTS		TOTAL
Beginning of Period$(358,049)$(10,959)$(369,008)$(568,129)$(1,823)$(569,952)
Other comprehensive (loss) income:
Foreign currency translation and other adjustments(54,290)— (54,290)214,387 — 214,387 
Change in fair value of interest rate swaps— 6,807 6,807 — (8,018)(8,018)
Reclassifications from accumulated other comprehensive items, net— 1,207 1,207 — — — 
Total other comprehensive (loss) income(54,290)8,014 (46,276)214,387 (8,018)206,369 
End of Period$(412,339)$(2,945)$(415,284)$(353,742)$(9,841)$(363,583)
F. REVENUES
Certain costs to fulfill or obtain customer contracts and certain initial direct costs of obtaining leases, including the costs associated with the initial movement of customer records into physical storage and certain commission expenses, are collectively referred to as "Contract Costs". Contract Costs are primarily made up of Intake Costs and Commissions (each as defined in Note 2.s. to Notes to Consolidated Financial Statements included in our Annual Report). Contract Costs as of June 30, 2026 and December 31, 2025 are as follows:
JUNE 30, 2026DECEMBER 31, 2025
DESCRIPTIONGROSS
CARRYING
AMOUNT		ACCUMULATED
AMORTIZATION		NET
CARRYING
AMOUNT		GROSS
CARRYING
AMOUNT		ACCUMULATED
AMORTIZATION		NET
CARRYING
AMOUNT
Intake Costs and other fulfillment costs asset$106,103 $(59,739)$46,364 $111,923 $(60,999)$50,924 
Commissions asset249,604 (119,248)130,356 243,966 (110,365)133,601 
Deferred revenue liabilities are reflected in our Condensed Consolidated Balance Sheets as follows:
DESCRIPTIONLOCATION IN BALANCE SHEETJUNE 30, 2026
DECEMBER 31, 2025(1)
Deferred revenue—Current(2)
Deferred revenue$397,974 $402,091 
Deferred revenue—Long-term(3)
Other Long-term Liabilities170,278 165,804 
(1)    The beginning balance of current and long-term deferred revenue for the year ended December 31, 2025 was $326,882 and $110,601, respectively.
(2)    Approximately half of this revenue is expected to be recognized over the next month, with the remainder expected to be recognized over the next two to 12 months. The current deferred revenue accounted for under Accounting Standards Codification 842, Leases ("ASC 842") is approximately $75,000 and $41,600 as of June 30, 2026 and December 31, 2025, respectively.
(3)    The long-term deferred revenue accounted for under ASC 842 is approximately $152,800 and $141,100 as of June 30, 2026 and December 31, 2025, respectively.
In addition to our deferred revenue, we have remaining performance obligations related to certain customer contracts that have annual or monthly fixed fees with noncancelable terms. As of June 30, 2026, approximately $252,000 of remaining performance obligations are expected to be recognized as revenue over periods generally ranging from one to five years, with approximately 25% expected to be recognized within the next 12 months. As permitted under ASC 606, we do not disclose the value of remaining performance obligations for contracts to which we have applied the "right to invoice" practical expedient (as described in Note 2.s. to Notes to Consolidated Financial Statements included in our Annual Report).
DATA CENTER LESSOR CONSIDERATIONS
Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period. Our data center revenue contracts are accounted for in accordance with ASC 842. Storage rental revenue associated with our Global Data Center Business for the three and six months ended June 30, 2026 and 2025 is as follows:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
2026202520262025
Storage rental revenue(1)
$258,892 $188,279 $511,397 $361,224 
(1)    Revenue associated with variable lease payments, primarily related to power and connectivity, included within storage rental revenue was approximately $56,900 and $116,800 for the three and six months ended June 30, 2026, respectively, and $39,100 and $73,500 for the three and six months ended June 30, 2025, respectively.
G. STOCK-BASED COMPENSATION
Our stock-based compensation expense includes the cost of stock options, restricted stock units ("RSUs") and performance units ("PUs") (together, "Employee Stock-Based Awards").
STOCK-BASED COMPENSATION EXPENSE
Stock-based compensation expense for Employee Stock-Based Awards for the three and six months ended June 30, 2026 and 2025 is as follows:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
2026202520262025
Stock-based compensation expense$56,787 $60,354 $85,044 $86,448 
On March 1, 2026, we granted approximately 74,000 stock options, 552,000 RSUs and 441,000 PUs under the 2014 Plan (as defined in Note 2.t. to Notes to Consolidated Financial Statements included in our Annual Report).
As of June 30, 2026, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards, inclusive of our estimated achievement of the performance metrics, is $152,371.
H. OTHER EXPENSE (INCOME), NET
Other expense (income), net for the three and six months ended June 30, 2026 and 2025 consists of the following:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
DESCRIPTION2026202520262025
Foreign currency transaction (gains) losses, net(1)
$(13,901)$87,155 $(38,413)$116,818 
Other, net(2)
43,079 (5,278)62,883 (6,453)
Other Expense (Income), Net
$29,178 $81,877 $24,470 $110,365 
(1)The gains for the three and six months ended June 30, 2026 primarily consist of the impact of changes in the exchange rate of the Euro against the United States dollar on our intercompany balances with and between certain of our subsidiaries.
(2)Other, net for the three and six months ended June 30, 2026 primarily consists of a loss of approximately $41,900 and $59,700, respectively, due to the change in value of our deferred purchase obligations and other deferred payments.
I. INCOME TAXES
We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our effective tax rates for the three and six months ended June 30, 2026 and 2025 are as follows:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
2026(1)
2025(2)
2026(1)
2025(2)
Effective Tax Rate12.2 %60.3 %14.1 %773.6 %
(1)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and six months ended June 30, 2026 were the (i) benefits derived from the dividends paid deduction, (ii) non-taxable income we recorded in Other expense (income), net during the period, as well as the differences in the tax rates to which our foreign earnings are subject, partially offset by (iii) disallowed interest expenses of certain entities.
(2)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and six months ended June 30, 2025 were the (i) lack of tax benefits recognized for the foreign exchange losses we recorded in Other expense (income), net, during the period, (ii) disallowed interest expenses of certain entities and (iii) the differences in the tax rates to which our foreign earnings are subject, partially offset by (iv) benefits derived from the dividends paid deduction.
Effective on January 1, 2026, the One Big Beautiful Bill Act increased the maximum allowable value of a REIT’s total assets held in one or more taxable REIT subsidiaries at the end of any quarter from 20% to 25%.
J. INCOME (LOSS) PER SHARE—BASIC AND DILUTED
The calculations of basic and diluted income (loss) per share for the three and six months ended June 30, 2026 and 2025 are as follows:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
2026202520262025
Net Income (Loss)$106,102 $(43,340)$255,101 $(27,107)
Less: Net Income (Loss) Attributable to Noncontrolling Interests4,672 1,581 10,006 1,862 
Net Income (Loss) Attributable to Iron Mountain Incorporated
$101,430 $(44,921)$245,095 $(28,969)
Weighted-average shares—basic297,741,000 295,364,000 297,295,000 294,935,000 
Effect of potentially dilutive stock options1,828,000 — 1,766,000 — 
Effect of potentially dilutive RSUs and PUs280,000 — 281,000 — 
Weighted-average shares—diluted299,849,000 295,364,000 299,342,000 294,935,000 
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:
 Basic$0.34 $(0.15)$0.82 $(0.10)
 Diluted$0.34 $(0.15)$0.82 $(0.10)
Antidilutive stock options, RSUs and PUs excluded from the calculation76,397 2,413,370 153,039 2,632,028