Iron Mountain (IRM) risk factors, FY2025 10-K

BUSINESS RISKS

1. 01Failure to execute our strategic growth plan may adversely impact our financial condition and results of operations
2. 02As stored records and tapes become less active, our service revenue growth and profits from related services may decline
3. 03Our customers continue to evolve the way they store records, which could impact our storage revenue
4. 04We and our customers are subject to laws and governmental regulations, including laws relating to data privacy and cybersecurity, and our customers’ demands in this area are increasing. This may cause us to incur significant expenses and non-compliance with such regulations and demands could harm our business34% rewritten
5. 05Attacks on our internal IT systems could damage our reputation, cause us to lose revenues and adversely affect our business, financial condition and results of operations31% rewritten
6. 06The development and use of AI in our business and operations presents risks and challenges that may adversely impact our business and operating resultsNew
7. 07Failure to successfully integrate acquired businesses could negatively impact our balance sheet and results of operations
8. 08Our future growth depends in part upon our ability to continue to effectively manage and execute on revenue management
9. 09Our customer contracts do not always limit our liability and sometimes contain terms that could subject us to significant liability or lead to disputes in contract interpretation
10. 10As a global company, we are subject to the unique risks of operating in many countries
11. 11Significant costs or disruptions at our data centers could adversely affect our business, financial condition and results of operations
12. 12Expanding our Global Data Center Business requires significant capital. In addition, we may be required to commit significant operational and financial resources in connection with the organic growth of our Global Data Center Business substantially in advance of such newly developed data centers generating revenue
13. 13Our ALM business may be subject to additional risks, including those related to its client and geographic concentration, government trade policies, and macroeconomic conditions
14. 14Failure to comply with certain regulatory and contractual requirements under our government contracts could adversely affect our revenues, operating results and financial position and reputation36% rewritten
15. 15We may be subject to certain costs and potential liabilities associated with the real estate required for our business
16. 16Unexpected events, including those resulting from climate change or geopolitical events, could disrupt our operations and adversely affect our reputation and results of operations
17. 17Fluctuations in commodity prices may affect our operating revenues and results of operations
18. 18Failure to manage and adequately implement our new IT systems could negatively affect our business

RISKS RELATED TO OUR INDEBTEDNESS

1. 19Our indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our various debt instruments
2. 20Restrictive debt covenants may limit our ability to pursue our growth strategy
3. 21We may not have the ability to raise the funds necessary to finance the repurchase of outstanding senior notes upon a change of control event as required by our indentures
4. 22IMI is a holding company, and, therefore, its ability to make payments on its various debt obligations depends in large part on the operations of its subsidiaries

RISKS RELATED TO OUR TAXATION AS A REIT

1. 23If we fail to remain qualified for taxation as a REIT, we will be subject to tax at corporate income tax rates and will not be able to deduct distributions to stockholders when computing our taxable income
2. 24As a REIT, failure to make required distributions would subject us to federal corporate income tax
3. 25We may be required to borrow funds, sell assets or raise equity to satisfy our REIT distribution requirements, to comply with asset ownership tests or to fund capital expenditures, future growth and expansion initiatives
4. 26Complying with REIT requirements may limit our flexibility, cause us to forgo otherwise attractive opportunities that we would otherwise pursue to execute our strategic growth plan, or otherwise reduce our income and amounts available for distribution to our stockholders
5. 27As a REIT, we are limited in our ability to fund distribution payments using cash generated through our TRSs
6. 28Our extensive use of TRSs, including for certain of our international operations, may cause us to fail to remain qualified for taxation as a REIT
7. 29Even if we remain qualified for taxation as a REIT, some of our business activities are subject to corporate level income tax and foreign taxes, which will continue to reduce our cash flows, and we will have potential deferred and contingent tax liabilities
8. 30Complying with REIT requirements may limit our ability to hedge effectively and increase the cost of our hedging and may cause us to incur tax liabilities
9. 31Distributions payable by REITs generally do not qualify for preferential tax rates, which could reduce the demand for and market price of our common stock
10. 32The ownership and transfer restrictions contained in our certificate of incorporation may not protect our qualification for taxation as a REIT, could have unintended antitakeover effects and may prevent our stockholders from receiving a takeover premium
11. 33Legislative or other actions affecting REITs could have a negative effect on us or our stockholders
12. 34As a REIT, we are generally required to distribute at least 90% of our REIT taxable income to our stockholders. Furthermore, we are committed to growing our dividends, and have stated this publicly
13. 35Our business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting
14. 36We face competition for customers
15. 37The performance of our businesses relies on our ability to attract, develop, and retain talented personnel, while controlling our labor costs