IRON MOUNTAIN INC

Previous wording

The following discussion and analysis of our financial condition and results of operations for the three and six months ended June 30, 2026 should be read in conjunction with our Condensed Consolidated Financial Statements and Notes thereto for the three and six months ended June 30, 2026, included herein, and our Consolidated Financial Statements and Notes thereto for the year ended December 31, 2025, included in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission ("SEC") on February 12, 2026 (our "Annual Report").

Current wording

The following discussion and analysis of our financial condition and results of operations for the three and nine months ended September 30, 2026 should be read in conjunction with our Condensed Consolidated Financial Statements and Notes thereto for the three and nine months ended September 30, 2026, included herein, and our Consolidated Financial Statements and Notes thereto for the year ended December 31, 2025, included in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission ("SEC") on February 12, 2026 (our "Annual Report").

Previous wording

The following discussions set forth, for the periods indicated, management's discussion and analysis of financial condition and results of operations. Significant trends and changes are discussed for the three and six months ended June 30, 2026 within each section. Trends and changes that are consistent for both the three and six month periods are not repeated and are discussed on a year to date basis only.

Current wording

The following discussions set forth, for the periods indicated, management's discussion and analysis of financial condition and results of operations. Significant trends and changes are discussed for the three and nine months ended September 30, 2026 within each section. Trends and changes that are consistent for both the three and nine month periods are not repeated and are discussed on a year to date basis only.

Previous wording

Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the six months ended June 30, 2026 consists of the following:

Current wording

Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the nine months ended September 30, 2026 consists of the following:

Previous wording

(1)The differences between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the three and six months ended June 30, 2026 and 2025 are primarily due to (i) the reconciling items above, which impact our reported Net Income (Loss) Before Provision (Benefit) for Income Taxes but have an insignificant impact on our reported Provision (Benefit) for Income Taxes and (ii) other discrete tax items. Our structural tax rate for purposes of the calculation of Adjusted EPS for the three and six months ended June 30, 2026 and 2025 was 16.1% and 16.7%, respectively. The Tax impact of reconciling items and discrete tax items is calculated using the current quarter's estimate of the annual structural tax rate. This may result in the current period adjustment plus prior period reported quarterly adjustments not summing to the full year adjustment.

Current wording

(1)The differences between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the three and nine months ended September 30, 2026 and 2025 are primarily due to (i) the reconciling items above, which impact our reported Net Income (Loss) Before Provision (Benefit) for Income Taxes but have an insignificant impact on our reported Provision (Benefit) for Income Taxes and (ii) other discrete tax items. Our structural tax rate for purposes of the calculation of Adjusted EPS for the three and nine months ended September 30, 2026 and 2025 was 17.1% and 14.8%, respectively. The Tax impact of reconciling items and discrete tax items is calculated using the current quarter's estimate of the annual structural tax rate. This may result in the current period adjustment plus prior period reported quarterly adjustments not summing to the full year adjustment.

Previous wording

(3)Columns may not foot due to rounding.

Current wording

(2)Columns may not foot due to rounding.

Previous wording

(2)Represents the tax impact of (i) the reconciling items above, which impact our reported Net Income (Loss) Before Provision (Benefit) for Income Taxes but have an insignificant impact on our reported Provision (Benefit) for Income Taxes and (ii) other discrete tax items. Discrete tax items resulted in a (benefit) provision for income taxes of $(7.8) million and $(8.0) million for the three and six months ended June 30, 2026, respectively, and $2.3 million and $2.6 million for the three and six months ended June 30, 2025, respectively.

Current wording

(2)Represents the tax impact of (i) the reconciling items above, which impact our reported Net Income (Loss) Before Provision (Benefit) for Income Taxes but have an insignificant impact on our reported Provision (Benefit) for Income Taxes and (ii) other discrete tax items. Discrete tax items resulted in a (benefit) provision for income taxes of $15.8 million and $7.8 million for the three and nine months ended September 30, 2026, respectively, and $(1.6) million and $1.0 million for the three and nine months ended September 30, 2025, respectively.

Previous wording

COMPARISON OF THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 TO THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 (IN THOUSANDS):

Current wording

COMPARISON OF THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 TO THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 (IN THOUSANDS):

Previous wording

Primary factors influencing the change in reported storage rental revenue and reported service revenue for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 include the following:

Current wording

Primary factors influencing the change in reported storage rental revenue and reported service revenue for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 include the following:

Previous wording

Primary factors influencing the change in reported Cost of sales for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 include the following:

Current wording

Primary factors influencing the change in reported Cost of sales for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 include the following:

Previous wording

Primary factors influencing the change in reported Selling, general and administrative expenses for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 include the following:

Current wording

Primary factors influencing the change in reported Selling, general and administrative expenses for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 include the following:

Previous wording

Depreciation expense increased $52.0 million, or 15.1%, for the six months ended June 30, 2026 compared to the prior year period. See Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated.

Current wording

Depreciation expense increased $73.5 million, or 13.8%, for the nine months ended September 30, 2026 compared to the prior year period. See Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated.

Previous wording

Acquisition and Integration Costs for the six months ended June 30, 2026 and 2025 were approximately $4.6 million and $10.6 million, respectively.

Current wording

Acquisition and Integration Costs for the nine months ended September 30, 2026 and 2025 were approximately $9.2 million and $16.0 million, respectively.

Previous wording

Loss (gain) on disposal/write-down of property, plant and equipment, net for the six months ended June 30, 2026 and 2025 was approximately $19.1 million and $4.6 million, respectively.

Current wording

Loss (gain) on disposal/write-down of property, plant and equipment, net for the nine months ended September 30, 2026 and 2025 was approximately $27.4 million and $8.0 million, respectively.

Previous wording

Interest expense, net increased $47.5 million to $447.3 million in the six months ended June 30, 2026 from $399.8 million in the prior year period. The increase is primarily due to higher average debt outstanding during the six months ended June 30, 2026 compared to the prior year period. Our weighted average interest rate, inclusive of the fees associated with our outstanding letters of credit, was 5.6% and 5.7% as of June 30, 2026 and 2025, respectively. See Note 5 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our indebtedness.

Current wording

Interest expense, net increased $54.2 million to $663.8 million in the nine months ended September 30, 2026 from $609.5 million in the prior year period. The increase is primarily due to higher average debt outstanding during the nine months ended September 30, 2026 compared to the prior year period. Our weighted average interest rate, inclusive of the fees associated with our outstanding letters of credit, was 5.7% and 5.6% as of September 30, 2026 and 2025, respectively. See Note 5 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our indebtedness.

Previous wording

Other expense (income), net for the three and six months ended June 30, 2026 and 2025 consists of the following (in thousands):

Current wording

Other expense (income), net for the three and nine months ended September 30, 2026 and 2025 consists of the following (in thousands):

Previous wording

(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.

Current wording

(1)The gains for the nine months ended September 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.

Previous wording

(2)Other, net for the three and six months ended June 30, 2026 primarily consists of a loss of approximately $41.9 million and $59.7 million, respectively, due to the change in value of our deferred purchase obligations and other deferred payments.

Current wording

(2)Other, net for the three and nine months ended September 30, 2026 primarily consists of a loss of approximately $10.2 million and $69.9 million, respectively, due to the change in value of our deferred purchase obligations and other deferred payments.

Previous wording

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:

Current wording

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 nine months ended September 30, 2026 and 2025 are as follows:

Previous wording

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.

Current wording

The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended September 30, 2026 were the (i) disallowed interest expenses of certain entities, (ii) valuation allowances established against the deferred tax assets in certain foreign jurisdictions, partially offset by (iii) benefits derived from the dividends paid deduction and (iv) 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. The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the nine months ended September 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 and (iv) valuation allowances established against the deferred tax assets in certain foreign jurisdictions.

Previous wording

On January 5, 2026, the OECD announced a comprehensive Side-by-Side safe harbor package (the “SbS Safe Harbor”) that, if enacted, would exempt U.S.-parented multinational companies from certain Top-Up Taxes under Pillar Two beginning January 1, 2026. While the SbS Safe Harbor is not yet enacted in any foreign jurisdiction where we operate, we expect that the SbS Safe Harbor may be adopted prior to the year ended December 31, 2026.

Current wording

On January 5, 2026, the OECD announced a comprehensive Side-by-Side safe harbor package (the “SbS Safe Harbor”) that, if enacted, would exempt U.S.-parented multinational companies from certain Top-Up Taxes under Pillar Two beginning January 1, 2026. During 2026, several jurisdictions where we operate enacted domestic legislation aligning with the SbS Safe Harbor. The enactment of these safe harbor rules did not have a material impact on our consolidated financial statements.

Previous wording

SIX MONTHS ENDED YEAR OVER YEAR SEGMENT ANALYSIS: GLOBAL RIM BUSINESS (IN MILLIONS)

Current wording

NINE MONTHS ENDED YEAR OVER YEAR SEGMENT ANALYSIS: GLOBAL RIM BUSINESS (IN MILLIONS)

Previous wording

Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global RIM Business segment for the six months ended June 30, 2026 compared to the prior year period include the following:

Current wording

Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global RIM Business segment for the nine months ended September 30, 2026 compared to the prior year period include the following:

Previous wording

•organic service revenue growth primarily driven by increases in our Global Digital Solutions business and growth in our traditional service activity levels; and

Current wording

•organic service revenue growth primarily driven by increases in our Global Digital Solutions business (as defined in our Annual Report) and growth in our traditional service activity levels; and

Previous wording

SIX MONTHS ENDED YEAR OVER YEAR SEGMENT ANALYSIS: GLOBAL DATA CENTER BUSINESS (IN MILLIONS)

Current wording

NINE MONTHS ENDED YEAR OVER YEAR SEGMENT ANALYSIS: GLOBAL DATA CENTER BUSINESS (IN MILLIONS)

Previous wording

Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global Data Center Business segment for the six months ended June 30, 2026 compared to the prior year period include the following:

Current wording

Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global Data Center Business segment for the nine months ended September 30, 2026 compared to the prior year period include the following:

Previous wording

•organic storage rental revenue growth from leases that commenced during the first six months of 2026 and in prior periods, improved pricing and increased customer usage of power;

Current wording

•organic storage rental revenue growth from leases that commenced during the first nine months of 2026 and in prior periods, improved pricing and increased customer usage of power;

Previous wording

•a 60 basis point increase in Adjusted EBITDA Margin reflecting lease commencements, improved pricing and cost containment, partially offset by higher pass-through power costs.

Current wording

•a 160 basis point increase in Adjusted EBITDA Margin reflecting lease commencements, improved pricing and cost containment, partially offset by higher pass-through power costs.

Previous wording

Primary factors influencing the change in revenue and Adjusted EBITDA in Corporate and Other (as defined in Note 8 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report) for the six months ended June 30, 2026 compared to the prior year period include the following:

Current wording

Primary factors influencing the change in revenue and Adjusted EBITDA in Corporate and Other (as defined in Note 8 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report) for the nine months ended September 30, 2026 compared to the prior year period include the following:

Previous wording

•an increase in service revenue of $24.4 million due to acquisitions in our ALM business;

Current wording

•an increase in service revenue of $31.7 million due to acquisitions in our ALM business;

Previous wording

The following is a summary of our cash balances and cash flows (in thousands) as of and for the six months ended June 30,

Current wording

The following is a summary of our cash balances and cash flows (in thousands) as of and for the nine months ended September 30,

Previous wording

For the six months ended June 30, 2026, net cash flows provided by operating activities increased by $315.4 million compared to the prior year period, primarily due to an increase in net income (loss) (excluding non-cash charges) of $353.8 million, partially offset by a decrease in cash from working capital of $38.4 million.

Current wording

For the nine months ended September 30, 2026, net cash flows provided by operating activities increased by $363.6 million compared to the prior year period, primarily due to an increase in net income (loss) (excluding non-cash charges) of $471.0 million, partially offset by a decrease in cash from working capital of $107.4 million.

Previous wording

Our significant investing activity during the six months ended June 30, 2026 included cash paid for capital expenditures of $1,106.2 million. Additional details of our capital spending are included in the "Capital Expenditures" section below.

Current wording

Our significant investing activity during the nine months ended September 30, 2026 included cash paid for capital expenditures of $1,724.2 million. Additional details of our capital spending are included in the "Capital Expenditures" section below.

Previous wording

Our significant financing activities during the six months ended June 30, 2026 included:

Current wording

Our significant financing activities during the nine months ended September 30, 2026 included:

Previous wording

•Net payments of approximately $621.2 million primarily associated with repayments under the Revolving Credit Facility, partially offset by borrowings under our data center credit facilities, which were used to partially finance the construction of our data centers.

Current wording

•Net payments of approximately $51.0 million primarily associated with repayments under the Revolving Credit Facility, partially offset by borrowings under our data center credit facilities, which were used to partially finance the construction of our data centers.

Previous wording

•Payment of dividends in the amount of $532.7 million on our common stock.

Current wording

•Payment of dividends in the amount of $790.0 million on our common stock.

Previous wording

The following table presents our capital spend for the six months ended June 30, 2026 and 2025, organized by the type of the spending as described in our Annual Report (in thousands):

Current wording

The following table presents our capital spend for the nine months ended September 30, 2026 and 2025, organized by the type of the spending as described in our Annual Report (in thousands):

Previous wording

See Note 7 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for a listing of dividends that we declared during the first six months of 2026 and fiscal year 2025.

Current wording

See Note 7 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for a listing of dividends that we declared during the first nine months of 2026 and fiscal year 2025.

Previous wording

On August 5, 2026, we declared a dividend to our stockholders of record as of September 15, 2026 of $0.864 per share, payable on October 2, 2026.

Current wording

On November 5, 2026, we declared a dividend to our stockholders of record as of December 15, 2026 of $0.993 per share, payable on January 6, 2027.

Previous wording

During the quarter ended June 30, 2026, we entered into an agreement with a partner to form our Iron Mountain Data Centers Virginia 9 JV, LP joint venture, which resulted in Noncontrolling interests of approximately $49.9 million in our Condensed Consolidated Balance Sheet as of June 30, 2026.

Current wording

During the quarter ended June 30, 2026, we entered into an agreement with a partner to form our Iron Mountain Data Centers Virginia 9 JV, LP joint venture, which resulted in initial Noncontrolling interests of approximately $49.9 million recorded in our Condensed Consolidated Balance Sheet.

Previous wording

On June 9, 2026, Iron Mountain Data Centers Virginia 9, LLC, an indirect subsidiary of IMI, entered into a credit agreement that includes a term loan facility (the "Virginia 9 Term Loans") and a letter of credit facility (collectively, the "Virginia 9 Credit Agreement"), under which we have the option to borrow, in the form of term loans, an aggregate outstanding amount not to exceed $298.0 million. The Virginia 9 Term Loans bear interest at SOFR plus 3.00%. The Virginia 9 Credit Agreement requires the payment of a commitment fee on any unused commitments at a rate of 0.90%. The Virginia 9 Credit Agreement is secured by the equity interests and assets of Iron Mountain Data Centers Virginia 9, LLC and is scheduled to mature on June 9, 2029, at which point all obligations will become due. We have two one-year options that allow us to extend the maturity date, subject to the conditions specified in the Virginia 9 Credit Agreement. As of June 30, 2026, we had $29.6 million outstanding on the Virginia 9 Term Loans and the interest rate in effect under the Virginia 9 Credit Agreement was 6.9%.

Current wording

On June 9, 2026, Iron Mountain Data Centers Virginia 9, LLC, an indirect subsidiary of IMI, entered into a credit agreement that includes a term loan facility (the "Virginia 9 Term Loans") and a letter of credit facility (collectively, the "Virginia 9 Credit Agreement"), under which we have the option to borrow, in the form of term loans, an aggregate outstanding amount not to exceed $298.0 million. The Virginia 9 Term Loans bear interest at SOFR plus 3.00%. The Virginia 9 Credit Agreement requires the payment of a commitment fee on any unused commitments at a rate of 0.90%. The Virginia 9 Credit Agreement is secured by the equity interests and assets of Iron Mountain Data Centers Virginia 9, LLC and is scheduled to mature on June 9, 2029, at which point all obligations will become due. We have two one-year options that allow us to extend the maturity date, subject to the conditions specified in the Virginia 9 Credit Agreement. As of September 30, 2026, we had $138.6 million outstanding on the Virginia 9 Term Loans and the interest rate in effect under the Virginia 9 Credit Agreement was 6.9%.