A month has gone by since the last earnings report for Iron Mountain (IRM). Shares have lost about 15.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Iron Mountain due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Iron Mountain's Q3 AFFO Beat Estimates, Revenues Improve Y/Y
Iron Mountain reported third-quarter AFFO per share of $1.32, beating the Zacks Consensus Estimate of $1.29. This figure jumped 16.8% year over year.
Iron Mountain’s results reflected solid performances across all segments, including the storage, service, global RIM and data center business. However, higher interest expenses in the quarter undermined the performance to an extent.
Total quarterly revenues of $1.75 billion missed the Zacks Consensus Estimate of $1.76 billion. However, the figure improved 12.6% year over year.
Q3 in Detail
Storage rental revenues were $1.03 billion in the third quarter, up 10.4% year over year. We had estimated quarterly storage rental revenues of $1.04 billion.
Service revenues increased 16% from the prior-year quarter to $721.2 million. Our estimate was pegged at $709.6 million.
The Global RIM business’s revenues grew 6.2% year over year to $1.34 billion. Our estimate was pegged at $1.36 billion.
The Global Data Center business reported revenues of $204.1 million in the third quarter, rising 33.2% year over year. The figure exceeded our estimate pegged at $192.1 million.
Adjusted EBITDA rose 16.2% year over year to $660.4 million. The adjusted EBITDA margin expanded 110 basis points to 37.6%.
However, interest expenses increased 12.7% year over year to $209.7 million in the quarter.
Balance Sheet Position
Iron Mountain exited the third quarter with $195.2 million of cash and cash equivalents, down from $218 million as of June 30, 2025.
As of Sept. 30, 2025, the company has net debt of $16.11 billion, up from $15.48 billion as of June 30, 2025, with a weighted average years to maturity of 4.6 years and a weighted average interest rate of 5.6%.
2025 Guidance
For the fourth quarter of 2025, Iron Mountain expects AFFO per share of approximately $1.39. Revenues are estimated at approximately $1.80 billion, while adjusted EBITDA is anticipated at approximately $690 million.
For 2025, the company reiterates its guidance for AFFO per share between $5.04 and $5.13. Revenues are estimated in the range of $6.79-$6.94 billion, while adjusted EBITDA is anticipated between $2.52 billion and $2.57 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Iron Mountain has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Iron Mountain has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Iron Mountain belongs to the Zacks Business - Information Services industry. Another stock from the same industry, Verisk Analytics (VRSK), has gained 4.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Verisk reported revenues of $768.3 million in the last reported quarter, representing a year-over-year change of +5.9%. EPS of $1.72 for the same period compares with $1.67 a year ago.
For the current quarter, Verisk is expected to post earnings of $1.60 per share, indicating a change of -0.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.5% over the last 30 days.
Verisk has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Iron Mountain Incorporated (IRM): Free Stock Analysis Report Verisk Analytics, Inc. (VRSK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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