Iron Mountain Reports Third Quarter 2025 Results

PORTSMOUTH, N.H.--( BUSINESS WIRE)--Iron Mountain Incorporated (NYSE: IRM), a global leader in information management services, announces financial results for the third quarter of 2025.

“We are pleased to report another quarter of very strong performance in the third quarter, achieving all-time record Revenue, Adjusted EBITDA, and AFFO with strength across all of our key metrics. Our continued success is the result of our team’s consistent execution of our growth strategy and unwavering focus on meeting our customers’ needs with innovative solutions,” said William L. Meaney, President and CEO of Iron Mountain. “We have clear business momentum and are committed to sustaining industry-leading revenue and earnings growth for the foreseeable future. Our foundation of established relationships and trust with over 240,000 customers, comprehensive solutions offering, reputation for security, and global footprint, along with the strength in our growth businesses and physical records storage business position us to deliver on this commitment. Based on our strong 2025 performance and continued growth outlook, we are pleased to increase the dividend by 10%.”

Financial Performance Highlights for the Third Quarter of 2025

($ in millions, except per share data)

Three Months Ended

Y/Y % Change

Year to Date

Y/Y % Change

9/30/25

9/30/24

Reported $

Constant Fx

9/30/25

9/30/24

Reported $

Constant Fx

Storage Rental Revenue

$1,033

$936

10%

$2,991

$2,740

Service Revenue

$721

$622

16%

15%

$2,067

$1,828

13%

Total Revenues

$1,754

$1,557

13%

12%

$5,059

$4,569

11%

Net Income (Loss)

$86

$(34)

n/a

$59

$78

(24)%

Reported EPS

$0.28

$(0.11)

n/a

$0.19

$0.26

(27)%

Adjusted EPS

$0.54

$0.44

23%

$1.48

$1.28

16%

Adjusted EBITDA

$660

$568

16%

$1,869

$1,631

15%

Adjusted EBITDA Margin

37.6%

36.5%

110 bps

36.9%

35.7%

120 bps

AFFO

$393

$332

18%

$1,111

$977

14%

AFFO per share

$1.32

$1.13

17%

$3.73

$3.30

13%

Dividend

On November 5, 2025, Iron Mountain's Board of Directors declared a quarterly cash dividend of $0.864 per share of common stock for the fourth quarter, representing an increase of 10%. The fourth quarter 2025 dividend is payable on January 6, 2026, to shareholders of record at the close of business on December 15, 2025.

Guidance

Iron Mountain’s fourth quarter and full year 2025 guidance details are summarized in the table below.

2025 Guidance (1)

($ in millions, except per share data)

Full Year

2025

Approximate

Y/Y % Change

at Midpoint

Fourth Quarter

2025

Approximate

Y/Y % Change

Total Revenue

$6,790 - $6,940

~12%

~$1,800

~14%

Adjusted EBITDA

$2,520 - $2,570

~14%

~$690

~14%

AFFO

$1,505 - $1,530

~13%

~$415

~13%

AFFO Per Share

$5.04 - $5.13

~12%

~$1.39

~12%

(1) Iron Mountain does not provide a reconciliation of non-GAAP measures that it discusses as part of its annual guidance or long term outlook because certain significant information required for such reconciliation is not available without unreasonable efforts or at all, including, most notably, the impact of exchange rates on Iron Mountain’s transactions, loss or gain related to the disposition of real estate and other income or expense. Without this information, Iron Mountain does not believe that a reconciliation would be meaningful.

Q3 2025 Earnings Conference Call and Related Materials

The conference call / webcast details, earnings presentation and supplemental financial information, which includes definitions of certain capitalized terms used in this release, are available on Iron Mountain’s Investor Relations website.

About Iron Mountain

Iron Mountain Incorporated (NYSE: IRM) is trusted by more than 240,000 customers in 61 countries, including approximately 95% of the Fortune 1000, to help unlock value and intelligence from their assets through services that transcend the physical and digital worlds. Our broad range of solutions address their information management, digital transformation, information security, data center and asset lifecycle management needs. Our longstanding commitment to safety, security, sustainability and innovation in support of our customers underpins everything we do.

To learn more about Iron Mountain, please visit www.IronMountain.com.

Forward Looking Statements

We have made statements in this press release that constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our current expectations regarding our future results from operations, economic performance, financial condition, goals, strategies, investment objectives, plans and achievements.

These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as “believes”, “expects”, “anticipates”, “estimates”, “plans”, “intends”, “projects”, “pursue”, “will”, “commits” or similar expressions, we are making forward-looking statements. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. In addition, important factors that could cause actual results to differ from expectations include, among others: (i) our ability or inability to execute our strategic growth plan, including our ability to invest according to plan, grow our businesses (including through joint ventures or other co-investment vehicles), incorporate alternative technologies (including artificial intelligence) into our offerings, achieve satisfactory returns on new product offerings, continue our revenue management, expand and manage our global operations, complete acquisitions on satisfactory terms, integrate acquired companies efficiently and transition to more sustainable sources of energy; (ii) changes in customer preferences and demand for our storage and information management services, including as a result of the shift from paper and tape storage to alternative technologies that require less physical space or services activity; (iii) the costs of complying with and our ability to comply with laws, regulations and customer requirements, including those relating to data privacy and cybersecurity issues, as well as fire and safety and environmental standards; (iv) the impact of attacks on our internal information technology (“IT”) systems, including the impact of such incidents on our reputation and ability to compete and any litigation or disputes that may arise in connection with such incidents; (v) our ability to fund capital expenditures; (vi) the impact of our distribution requirements on our ability to execute our business plan; (vii) our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes; (viii) changes in the political and economic environments in the countries in which we operate and changes in the global political climate; (ix) our ability to raise debt or equity capital and changes in the cost of our debt; (x) our ability to comply with our existing debt obligations and restrictions in our debt instruments; (xi) the impact of service interruptions or equipment damage and the cost of power on our data center operations; (xii) the cost or potential liabilities associated with real estate necessary for our business; (xiii) unexpected events, including those resulting from climate change or geopolitical events, could disrupt our operations and adversely affect our reputation and results of operations; (xiv) failures to implement and manage new IT systems; (xv) other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated; and (xvi) the other risks described in our periodic reports filed with the SEC, including under the caption “Risk Factors” in Part I, Item 1A of our Annual Report. Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this press release.

Reconciliation of Non-GAAP Measures

Throughout this press release, Iron Mountain discusses (1) Adjusted EBITDA, (2) Adjusted EPS, (3) FFO (Nareit), (4) FFO (Normalized), (5) AFFO and (6) AFFO per share. These measures do not conform to accounting principles generally accepted in the United States (“GAAP”). These non-GAAP measures are supplemental metrics designed to enhance our disclosure and to provide additional information that we believe to be important for investors to consider in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as operating income, net income (loss) attributable to Iron Mountain Incorporated or cash flows from operating activities (as determined in accordance with GAAP). The reconciliation of these measures to the appropriate GAAP measure, as required by Regulation G under the Securities Exchange Act of 1934, as amended, and their definitions are included later in this release.

Condensed Consolidated Balance Sheets

(Unaudited; dollars in thousands)

9/30/2025

12/31/2024

ASSETS

Current Assets:

Cash and Cash Equivalents

$195,210

$155,716

Accounts Receivable, Net

1,371,367

1,291,379

Prepaid Expenses and Other

314,293

244,127

Total Current Assets

$1,880,870

$1,691,222

Property, Plant and Equipment:

Property, Plant and Equipment

$13,975,948

$11,985,997

Less: Accumulated Depreciation

(4,838,448)

(4,354,398)

Property, Plant and Equipment, Net

$9,137,500

$7,631,599

Other Assets, Net:

Goodwill

$5,269,541

$5,083,817

Customer and Supplier Relationships and Other Intangible Assets

1,253,919

1,274,731

Operating Lease Right-of-Use Assets

2,455,450

2,489,893

Other

635,573

545,853

Total Other Assets, Net

$9,614,483

$9,394,294

Total Assets

$20,632,853

$18,717,115

LIABILITIES AND EQUITY

Current Liabilities:

Current Portion of Long-term Debt

$699,320

$715,109

Accounts Payable

658,138

678,716

Accrued Expenses and Other Current Liabilities

1,151,107

1,366,568

Deferred Revenue

347,018

326,882

Total Current Liabilities

$2,855,583

$3,087,275

Long-term Debt, Net of Current Portion

15,494,236

13,003,977

Long-term Operating Lease Liabilities, Net of Current Portion

2,283,504

2,334,826

Other Long-term Liabilities

389,106

312,199

Deferred Income Taxes

218,223

205,341

Redeemable Noncontrolling Interests

75,353

78,171

Total Long-term Liabilities

$18,460,422

$15,934,514

Total Liabilities

$21,316,005

$19,021,789

(Deficit) Equity

Total (Deficit) Equity

$(683,152)

$(304,674)

Total Liabilities and (Deficit) Equity

$20,632,853

$18,717,115

Quarterly Condensed Consolidated Statements of Operations

(Unaudited; dollars in thousands, except per-share data)

Q3 2025

Q2 2025

Q/Q % Change

Q3 2024

Y/Y % Change

Revenues:

Storage Rental

$1,032,897

$1,009,989

2.3 %

$935,701

10.4 %

Service

721,196

701,959

2.7 %

621,657

16.0 %

Total Revenues

$1,754,093

$1,711,948

2.5 %

$1,557,358

12.6 %

Operating Expenses:

Cost of Sales (excluding Depreciation and Amortization)

$791,939

$754,837

4.9 %

$678,390

16.7 %

Selling, General and Administrative

335,248

390,456

(14.1) %

341,929

(2.0) %

Depreciation and Amortization

262,203

252,566

3.8 %

232,240

12.9 %

Acquisition and Integration Costs

5,402

4,815

12.2 %

11,262

(52.0) %

Restructuring and Other Transformation

47,346

50,340

(5.9) %

37,282

27.0 %

Loss (Gain) on Disposal/Write-Down of PP&E, Net

3,366

(962)

n/a

5,091

(33.9) %

Total Operating Expenses

$1,445,504

$1,452,052

(0.5) %

$1,306,194

10.7 %

Operating Income (Loss)

$308,589

$259,896

18.7 %

$251,164

22.9 %

Interest Expense, Net

209,740

205,063

2.3 %

186,067

12.7 %

Other (Income) Expense, Net

(3,986)

81,877

(104.9) %

86,362

(104.6) %

Net Income (Loss) Before Provision (Benefit) for Income Taxes

$102,835

$(27,044)

n/a

$(21,265)

n/a

Provision (Benefit) for Income Taxes

16,594

16,296

1.8 %

12,400

33.8 %

Net Income (Loss)

$86,241

$(43,340)

n/a

$(33,665)

n/a

Less: Net Income (Loss) Attributable to Noncontrolling Interests

1,951

1,581

23.4 %

(45)

n/a

Net Income (Loss) Attributable to Iron Mountain Incorporated

$84,290

$(44,921)

n/a

$(33,620)

n/a

Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:

Basic

$0.28

($0.15)

n/a

($0.11)

n/a

Diluted

$0.28

($0.15)

n/a

($0.11)

n/a

Weighted Average Common Shares Outstanding - Basic

295,771

295,364

0.1 %

293,603

0.7 %

Weighted Average Common Shares Outstanding - Diluted

297,981

295,364

0.9 %

293,603

1.5 %

Year to Date Condensed Consolidated Statements of Operations

(Unaudited; dollars in thousands, except per-share data)

YTD 2025

YTD 2024

% Change

Revenues:

Storage Rental

$2,991,262

$2,740,289

9.2 %

Service

2,067,308

1,828,341

13.1 %

Total Revenues

$5,058,570

$4,568,630

10.7 %

Operating Expenses:

Cost of Sales (excluding Depreciation and Amortization)

$2,256,980

$2,007,616

12.4 %

Selling, General and Administrative

1,055,441

1,006,232

4.9 %

Depreciation and Amortization

746,923

666,296

12.1 %

Acquisition and Integration Costs

16,040

28,573

(43.9) %

Restructuring and Other Transformation

152,432

124,562

22.4 %

Loss (Gain) on Disposal/Write-Down of PP&E, Net

7,975

8,270

(3.6) %

Total Operating Expenses

$4,235,791

$3,841,549

10.3 %

Operating Income (Loss)

$822,779

$727,081

13.2 %

Interest Expense, Net

609,541

527,107

15.6 %

Other Expense (Income), Net

106,379

79,665

33.5 %

Net Income (Loss) Before Provision (Benefit) for Income Taxes

$106,859

$120,309

(11.2) %

Provision (Benefit) for Income Taxes

47,725

42,328

12.8 %

Net Income (Loss)

$59,134

$77,981

(24.2) %

Less: Net Income (Loss) Attributable to Noncontrolling Interests

3,813

1,757

117.0 %

Net Income (Loss) Attributable to Iron Mountain Incorporated

$55,321

$76,224

(27.4) %

Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:

Basic

$0.19

$0.26

(26.9) %

Diluted

$0.19

$0.26

(26.9) %

Weighted Average Common Shares Outstanding - Basic

295,214

293,229

0.7 %

Weighted Average Common Shares Outstanding - Diluted

297,628

295,912

0.6 %

Quarterly Reconciliation of Net Income (Loss) to Adjusted EBITDA

(Dollars in thousands)

Q3 2025

Q2 2025

Q/Q %

Change

Q3 2024

Y/Y %

Change

Net Income (Loss)

$86,241

$(43,340)

n/a

$(33,665)

n/a

Add / (Deduct):

Interest Expense, Net

209,740

205,063

2.3 %

186,067

12.7 %

Provision (Benefit) for Income Taxes

16,594

16,296

1.8 %

12,400

33.8 %

Depreciation and Amortization

262,203

252,566

3.8 %

232,240

12.9 %

Acquisition and Integration Costs

5,402

4,815

12.2 %

11,262

(52.0) %

Restructuring and Other Transformation

47,346

50,340

(5.9) %

37,282

27.0 %

Loss (Gain) on Disposal/Write-Down of PP&E, Net (Including Real Estate)

3,366

(962)

n/a

5,091

(33.9) %

Other (Income) Expense, Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures

(5,329)

80,698

(106.6) %

85,532

(106.2) %

Stock-Based Compensation Expense

32,147

60,354

(46.7) %

29,563

8.7 %

Our Share of Adjusted EBITDA Reconciling Items from our Unconsolidated Joint Ventures

2,669

2,558

4.3 %

2,341

14.0 %

Adjusted EBITDA

$660,379

$628,388

5.1 %

$568,113

16.2 %

Adjusted EBITDA

We define Adjusted EBITDA as Net Income (Loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically: (i) Acquisition and Integration Costs; (ii) Restructuring and other transformation; (iii) Loss (Gain) on disposal/write-down of property, plant and equipment, net (including real estate); (iv) Other (Income) Expense, net; (v) Stock-based compensation expense; and (vi) Intangible impairments. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues. We use multiples of current or projected Adjusted EBITDA in conjunction with our discounted cash flow models to determine our estimated overall enterprise valuation and to evaluate acquisition targets. We believe Adjusted EBITDA and Adjusted EBITDA Margin provide our current and potential investors with relevant and useful information regarding our ability to generate cash flows to support business investment. These measures are an integral part of the internal reporting system we use to assess and evaluate the operating performance of our business.

Year to Date Reconciliation of Net Income (Loss) to Adjusted EBITDA

(Dollars in thousands)

YTD 2025

YTD 2024

% Change

Net Income (Loss)

$59,134

$77,981

(24.2) %

Add / (Deduct):

Interest Expense, Net

609,541

527,107

15.6 %

Provision (Benefit) for Income Taxes

47,725

42,328

12.8 %

Depreciation and Amortization

746,923

666,296

12.1 %

Acquisition and Integration Costs

16,040

28,573

(43.9) %

Restructuring and Other Transformation

152,432

124,562

22.4 %

Loss (Gain) on Disposal/Write-Down of PP&E, Net (Including Real Estate)

7,975

8,270

(3.6) %

Other Expense (Income), Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures

102,751

76,954

33.5 %

Stock-Based Compensation Expense

118,595

73,491

61.4 %

Our Share of Adjusted EBITDA Reconciling Items from our Unconsolidated Joint Ventures

7,557

5,767

31.0 %

Adjusted EBITDA

$1,868,673

$1,631,329

14.5 %

Quarterly Reconciliation of Reported Earnings per Share to Adjusted Earnings per Share

Q3 2025

Q2 2025

Q/Q %

Change

Q3 2024

Y/Y %

Change

Reported EPS - Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated

$0.28

$(0.15)

n/a

$(0.11)

n/a

Add / (Deduct):

Acquisition and Integration Costs

0.02

—

0.04

(50.0) %

Restructuring and Other Transformation

0.16

0.17

(5.9) %

0.13

23.1 %

Loss (Gain) on Disposal/Write-Down of PP&E, Net (Including Real Estate)

0.01

—

n/a

0.02

(50.0) %

Other (Income) Expense, Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures

(0.02)

0.27

(107.4) %

0.29

(106.9) %

Stock-Based Compensation Expense

0.11

0.20

(45.0) %

0.10

10.0 %

Non-Cash Amortization Related to Derivative Instruments

0.01

—

0.01

—

Tax Impact of Reconciling Items and Discrete Tax Items (1)

(0.04)

—

(0.04)

—

Income (Loss) Attributable to Noncontrolling Interests

0.01

—

n/a

Adjusted EPS - Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated

$0.54

$0.48

12.5 %

$0.44

22.7 %

(1) The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the three months ended September 30, 2025 and 2024 is 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 quarters ended September 30, 2025 and 2024 was 14.8% and 15.1% respectively, and quarter ended June 30, 2025 was 16.7%.

Adjusted Earnings Per Share, or Adjusted EPS

We define Adjusted EPS as reported earnings per share fully diluted from Net Income (Loss) attributable to Iron Mountain Incorporated (inclusive of our share of adjusted losses (gains) from our unconsolidated joint ventures) and excluding certain items, specifically: (i) Acquisition and Integration Costs; (ii) Restructuring and other transformation; (iii) Loss (Gain) on disposal/write-down of property, plant and equipment, net (including real estate); (iv) Other (Income) Expense, net; (v) Stock-based compensation expense; (vi) Non-cash amortization related to derivative instruments; (vii) Tax impact of reconciling items and discrete tax items; and (viii) Amortization related to the write-off of certain customer relationship intangible assets. We do not believe these excluded items to be indicative of our ongoing operating results, and they are not considered when we are forecasting our future results. We believe Adjusted EPS is of value to our current and potential investors when comparing our results from past, present and future periods. Figures may not foot due to rounding. 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 reported quarterly adjustments not summing to the full year adjustment.

Year to Date Reconciliation of Reported Earnings per Share to Adjusted Earnings per Share

YTD 2025

YTD 2024

% Change

Reported EPS - Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated

$0.19

$0.26

(26.9) %

Add / (Deduct):

Acquisition and Integration Costs

0.05

0.10

(50.0) %

Restructuring and Other Transformation

0.51

0.42

21.4 %

Loss (Gain) on Disposal/Write-Down of PP&E, Net (Including Real Estate)

0.03

—

Other Expense (Income), Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures

0.35

0.26

34.6 %

Stock-Based Compensation Expense

0.40

0.25

60.0 %

Non-Cash Amortization Related to Derivative Instruments

0.04

—

Tax Impact of Reconciling Items and Discrete Tax Items (1)

(0.10)

(0.08)

25.0 %

Income (Loss) Attributable to Noncontrolling Interests

0.01

—

Adjusted EPS - Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated

$1.48

$1.28

15.6 %

(1) The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the nine months ended September 30, 2025 and 2024 is 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 year to date periods ending September 30, 2025 and 2024 was 14.8% and 15.1%, respectively. The Tax Impact of Reconciling Items and Discrete Tax Items was calculated using the current year to date's estimate of the annual structural tax rate. This may result in the current period adjustment plus prior reported quarterly adjustments not summing to the year to date adjustment.

Quarterly Reconciliation of Net Income (Loss) to FFO and AFFO

(Dollars in thousands, except per-share data)

Q3 2025

Q2 2025

Q/Q %

Change

Q3 2024

Y/Y %

Change

Net Income (Loss)

$86,241

$(43,340)

n/a

$(33,665)

n/a

Add / (Deduct):

Real Estate Depreciation (1)

108,405

107,186

1.1 %

93,864

15.5 %

Loss (Gain) on Sale of Real Estate, Net of Tax

194

(4,981)

(103.9) %

531

(63.5) %

Data Center Lease-Based Intangible Assets Amortization (2)

1,858

1,683

10.4 %

5,604

(66.8) %

Our Share of FFO (Nareit) Reconciling Items from our Unconsolidated Joint Ventures

1,612

1,567

2.9 %

1,422

13.4 %

FFO (Nareit)

$198,310

$62,115

n/a

$67,756

192.7 %

Add / (Deduct):

Acquisition and Integration Costs

5,402

4,815

12.2 %

11,262

(52.0) %

Restructuring and Other Transformation

47,346

50,340

(5.9) %

37,282

27.0 %

Loss (Gain) on Disposal/Write-Down of PP&E, Net (Excluding Real Estate)

3,168

3,809

(16.8) %

4,554

(30.4) %

Other (Income) Expense, Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures

(5,329)

80,698

(106.6) %

85,532

(106.2) %

Stock-Based Compensation Expense

32,147

60,354

(46.7) %

29,563

8.7 %

Non-Cash Amortization Related to Derivative Instruments

4,176

4,177

—

4,176

—

Real Estate Financing Lease Depreciation

3,276

3,426

(4.4) %

3,692

(11.3) %

Tax Impact of Reconciling Items and Discrete Tax Items (3)

(11,547)

(11,671)

(1.1) %

(10,465)

10.3 %

Our Share of FFO (Normalized) Reconciling Items from our Unconsolidated Joint Ventures

(58)

—

(83)

(30.1) %

FFO (Normalized)

$276,891

$258,005

7.3 %

$233,269

18.7 %

Per Share Amounts (Fully Diluted Shares):

FFO (Nareit)

$0.67

$0.21

n/a

$0.23

191.3 %

FFO (Normalized)

$0.93

$0.87

6.9 %

$0.79

17.7 %

Weighted Average Common Shares Outstanding - Basic

295,771

295,364

0.1 %

293,603

0.7 %

Weighted Average Common Shares Outstanding - Diluted

297,981

297,642

0.1 %

293,603

1.5 %

(1) Includes depreciation expense related to owned real estate assets (land improvements, buildings, building and leasehold improvements, data center infrastructure and racking structures), excluding depreciation related to real estate financing leases.

(2) Includes amortization expense for Data Center In-Place Lease Intangible Assets and Data Center Tenant Relationship Intangible Assets.

(3) 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) from income taxes and (ii) other discrete tax items.

Funds From Operations, or FFO (Nareit), and FFO (Normalized)

Funds from operations ("FFO") is defined by the National Association of Real Estate Investment Trusts as net income (loss) excluding depreciation on real estate assets, losses and gains on sale of real estate, net of tax, and amortization of data center leased-based intangibles (“FFO (Nareit)”). We calculate our FFO measure, including FFO (Nareit), adjusting for our share of reconciling items from our unconsolidated joint ventures. FFO (Nareit) does not give effect to real estate depreciation because these amounts are computed, under GAAP, to allocate the cost of a property over its useful life. Because values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, we believe that FFO (Nareit) provides investors with a clearer view of our operating performance. Our most directly comparable GAAP measure to FFO (Nareit) is net income (loss).

We modify FFO (Nareit), as is common among REITs seeking to provide financial measures that most meaningfully reflect their particular business ("FFO (Normalized)"). Our definition of FFO (Normalized) excludes certain items included in FFO (Nareit) that we believe are not indicative of our core operating results, specifically: (i) Acquisition and Integration Costs; (ii) Restructuring and other transformation; (iii) Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate); (iv) Other (Income) Expense net; (v) Stock-based compensation expense; (vi) Non-cash amortization related to derivative instruments; (vii) Real estate financing lease depreciation; (viii) Tax impact of reconciling items and discrete tax items; (ix) Intangible impairments; and (x) (Income) loss from discontinued operations, net of tax.

FFO (Normalized) per share

FFO (Normalized) divided by weighted average fully-diluted shares outstanding.

Quarterly Reconciliation of Net Income (Loss) to FFO and AFFO (continued)

(Dollars in thousands, except per-share data)

Q3 2025

Q2 2025

Q/Q %

Change

Q3 2024

Y/Y %

Change

FFO (Normalized)

$276,891

$258,005

7.3 %

$233,269

18.7 %

Add / (Deduct):

Non-Real Estate Depreciation

77,774

69,960

11.2 %

66,787

16.5 %

Amortization Expense (1)

70,890

70,311

0.8 %

62,293

13.8 %

Amortization of Deferred Financing Costs

8,760

7,803

12.3 %

6,666

31.4 %

Revenue Reduction Associated with Amortization of Customer Inducements and Above- and Below-Market Leases

1,492

1,659

(10.1) %

1,321

12.9 %

Non-Cash Rent Expense (Income)

500

783

(36.1) %

4,984

(90.0) %

Reconciliation to Normalized Cash Taxes

(1,583)

(4,172)

(62.1) %

(2,166)

(26.9) %

Our Share of AFFO Reconciling Items from our Unconsolidated Joint Ventures

196

189

3.7 %

183

7.1 %

Less:

Recurring Capital Expenditures

41,604

34,794

19.6 %

41,337

0.6 %

AFFO

$393,316

$369,744

6.4 %

$332,000

18.5 %

Per Share Amounts (Fully Diluted Shares):

AFFO Per Share

$1.32

$1.24

6.5 %

$1.13

16.8 %

Weighted Average Common Shares Outstanding - Basic

295,771

295,364

0.1 %

293,603

0.7 %

Weighted Average Common Shares Outstanding - Diluted

297,981

297,642

0.1 %

293,603

1.5 %

(1) Includes customer and supplier relationship value, intake costs, acquisition of customer relationships, capitalized commissions and other intangibles.

Adjusted Funds From Operations, or AFFO

We define adjusted funds from operations (“AFFO”) as FFO (Normalized) (1) excluding (i) Non-cash rent expense (income), (ii) Depreciation on non-real estate assets, (iii) Amortization expense associated with customer and supplier relationship value, intake costs, acquisitions of customer and supplier relationships, capitalized commissions and other intangibles, (iv) Amortization of deferred financing costs and debt discount/premium, (v) Revenue reduction associated with amortization of customer inducements and above- and below-market data center leases and (vi) The impact of reconciling to normalized cash taxes and (2) including Recurring capital expenditures. We also adjust for these items to the extent attributable to our portion of unconsolidated ventures. We believe that AFFO, as a widely recognized measure of operations of REITs, is helpful to investors as a meaningful supplemental comparative performance measure to other REITs, including on a per share basis. AFFO should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as operating income, Net Income (Loss) or cash flows from operating activities (as determined in accordance with GAAP).

AFFO per share

AFFO divided by weighted average fully-diluted shares outstanding.

Year to Date Reconciliation of Net Income (Loss) to FFO and AFFO

(Dollars in thousands, except per-share data)

YTD 2025

YTD 2024

% Change

Net Income (Loss)

$59,134

$77,981

(24.2) %

Add / (Deduct):

Real Estate Depreciation (1)

309,738

275,208

12.5 %

(Gain) Loss on Sale of Real Estate, Net of Tax

(4,475)

(84)

n/a

Data Center Lease-Based Intangible Assets Amortization (2)

5,560

16,751

(66.8) %

Our Share of FFO (Nareit) Reconciling Items from our Unconsolidated Joint Ventures

4,675

2,975

57.1 %

FFO (Nareit)

$374,632

$372,831

0.5 %

Add / (Deduct):

Acquisition and Integration Costs

16,040

28,573

(43.9) %

Restructuring and Other Transformation

152,432

124,562

22.4 %

Loss (Gain) on Disposal/Write-Down of PP&E, Net (Excluding Real Estate)

12,269

8,583

42.9 %

Other Expense (Income), Net, Excluding our Share of Losses (Gains) from our Unconsolidated Joint Ventures

102,751

76,954

33.5 %

Stock-Based Compensation Expense

118,595

73,491

61.4 %

Non-Cash Amortization Related to Derivative Instruments

12,529

—

Real Estate Financing Lease Depreciation

9,850

9,914

(0.6) %

Tax Impact of Reconciling Items and Discrete Tax Items (3)

(28,719)

(24,992)

14.9 %

Our Share of FFO (Normalized) Reconciling Items from our Unconsolidated Joint Ventures

(241)

(92)

162.0 %

FFO (Normalized)

$770,138

$682,353

12.9 %

Per Share Amounts (Fully Diluted Shares):

FFO (Nareit)

$1.26

—

FFO (Normalized)

$2.59

$2.31

12.1 %

Weighted Average Common Shares Outstanding - Basic

295,214

293,229

0.7 %

Weighted Average Common Shares Outstanding - Diluted

297,628

295,912

0.6 %

(2) Includes amortization expense for Data Center In-Place Lease Intangible Assets and Data Center Tenant Relationship Intangible Assets.

Year to Date Reconciliation of Net Income (Loss) to FFO and AFFO (continued)

(Dollars in thousands, except per-share data)

YTD 2025

YTD 2024

% Change

FFO (Normalized)

$770,138

$682,353

12.9 %

Add / (Deduct):

Non-Real Estate Depreciation

212,880

181,783

17.1 %

Amortization Expense (1)

208,895

182,640

14.4 %

Amortization of Deferred Financing Costs

24,419

18,909

29.1 %

Revenue Reduction Associated with Amortization of Customer Inducements and Above- and Below-Market Leases

4,468

4,118

8.5 %

Non-Cash Rent Expense (Income)

4,508

14,301

(68.5) %

Reconciliation to Normalized Cash Taxes

(9,928)

(1,045)

n/a

Our Share of AFFO Reconciling Items from our Unconsolidated Joint Ventures

561

545

2.9 %

Less:

Recurring Capital Expenditures

104,481

107,050

(2.4) %

AFFO

$1,111,460

$976,554

13.8 %

Per Share Amounts (Fully Diluted Shares):

AFFO Per Share

$3.73

$3.30

13.0 %

Weighted Average Common Shares Outstanding - Basic

295,214

293,229

0.7 %

Weighted Average Common Shares Outstanding - Diluted

297,628

295,912

0.6 %

(1) Includes customer and supplier relationship value, intake costs, acquisition of customer relationships, capitalized commissions and other intangibles.