IRM · 10-Q · 2026Q2 · Full report
Operating Expense Trends
IRON MOUNTAIN INC · 2026-08-05 · Importance 59 · Surprise 48 · In source text
Six-month cost of sales increased $383.4 million, or 26.2%, to $1,848.4 million, raising its revenue ratio from 44.3% to 46.6%. Product cost of sales and other expense increased $221.1 million, or 96.7%, primarily in ALM in line with higher product sales, while labor costs increased $77.8 million and facilities costs increased $77.6 million. Facilities expense increased because of higher data-center utilities costs, rent, and real-estate taxes, and labor expense increased with higher service activity primarily in Global RIM Business. SG&A increased $54.9 million, or 7.6%, to $775.1 million, driven by higher compensation, professional fees, and marketing costs; depreciation increased $52.0 million and amortization increased $12.6 million.
Key facts
- Product cost of sales and other for the six months ended June 30, 2026: $449,839 thousand, up $221,138 thousand or 96.7% vs prior year driven by ALM product sales increases. source
- Cost of sales (three months ended June 30, 2026): $958,609 thousand, up $203,772 thousand or 27.0% vs prior year. source
- Operating Expenses for the three months ended June 30, 2026: $1,655,534 thousand, up $203,482 thousand or 14.0% vs prior year. source
- Labor cost in Cost of sales for the six months ended June 30, 2026: $644,102 thousand, up $77,777 thousand or 13.7% vs prior year. source
- Facilities cost in Cost of sales for the six months ended June 30, 2026: $658,507 thousand, up $77,567 thousand or 13.4% vs prior year, primarily driven by higher utilities cost in Global Data Center Business and increases in rent and real estate tax expense. source
- Selling, general and administrative expenses for the six months ended June 30, 2026: $775,103 thousand, up $54,910 thousand or 7.6% vs prior year. source
- Depreciation expense increased $52.0 million, or 15.1%, for the six months ended June 30, 2026 compared to prior year period. source
- Amortization expense increased $12.6 million, or 8.9%, for the six months ended June 30, 2026 compared to prior year period. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -10.9% | Product cost of sales and other for the six months ended June 30, 2026: $449,839 thousand, up $221,138 thousand or 96.7% vs prior year… |
| operating_income | negative | realized | -10.0% | Cost of sales (three months ended June 30, 2026): $958,609 thousand, up $203,772 thousand or 27.0% vs prior year. |
| operating_income | negative | realized | -3.8% | Labor cost in Cost of sales for the six months ended June 30, 2026: $644,102 thousand, up $77,777 thousand or 13.7% vs prior year. |
| operating_income | negative | realized | -2.7% | Selling, general and administrative expenses for the six months ended June 30, 2026: $775,103 thousand, up $54,910 thousand or 7.6% vs… |