What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Iron Mountain (IRM) revenue becomes net income?

For TTM through Q1 2026, Iron Mountain turned $7.25B of revenue into $272M of net income — a net margin of 3.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Iron Mountain (IRM) gross, operating, and net margins?

For TTM through Q1 2026, Iron Mountain reported a gross margin of 55%, an operating margin of 18%, and a net margin of 3.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Iron Mountain (IRM) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Iron Mountain (IRM) Income Statement Waterfall

Revenue

$7.25B

Gross Margin

+55.0%

Operating Margin

+18.0%

Net Margin

+3.8%

Income statement waterfall for Iron Mountain (IRM) — TTM through Q1 2026

Net income: $272M

Margin breakdown for Iron Mountain (IRM) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$7.25B	$7.25B
Cost of Revenue	-$3.26B	$3.99B
Gross Profit	$3.99B	$3.99B
Operating Expenses	-$2.68B	$1.3B
Operating Income	$1.3B	$1.3B
Other Income / Expense	-$949M	$356M
Pre-tax Income	$356M	$356M
Income Tax	-$71.2M	$285M
Other Items	-$12.7M	$272M
Net Income	$272M	$272M

Revenue$7.25B
Cost of Revenue-$3.26B
Gross Profit$3.99B
Operating Expenses-$2.68B
Operating Income$1.3B
Other Income / Expense-$949M
Pre-tax Income$356M
Income Tax-$71.2M
Other Items-$12.7M
Net Income$272M

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Iron Mountain (IRM) Key Financials

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Income Statement

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Profitability

Operating Margin18.0%

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Capital Return

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Operations

Employees11.7K

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