Company: KD
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001558370-25-010303
Chunk: 11

Company: Kyndryl Holdings, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 11
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Item 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2025

Overview

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​​​​​​​​​​​Three Months Ended June 30, (Dollars in millions)  ​2025​2024Revenue​$3,743​​$3,739​Revenue growth (GAAP)​​0 %​​(11)%Revenue growth in constant currency(1)​​(3)% ​​(8)%Net income (loss)​$ 56​​$ 11​Adjusted EBITDA(1)​$ 647​​$556​

(1)    Revenue growth in constant currency and adjusted EBITDA are non-GAAP financial metrics. For definitions of these metrics and a reconciliation of adjusted EBITDA to the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, see “⸺Segment Results.”

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​​​​​​​​​​​​​​​    June 30,​March 31,(Dollars in millions)    2025    2025Assets​$ 11,495​$ 10,452Liabilities​​ 10,151​​ 9,121Equity​​ 1,343​​ 1,331

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Organization of Information

Kyndryl Holdings, Inc. was formed as a wholly-owned subsidiary of IBM in September 2021 to hold the operations of the infrastructure services unit of IBM’s Global Technology Services segment. On November 3, 2021, Kyndryl separated from IBM through a spin-off that was tax-free for U.S. federal tax purposes. Following the Separation, Kyndryl became an independent, publicly-traded company and the world’s leading IT infrastructure services provider. 

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Financial Performance Summary

Macro Dynamics 

Most economists, including the International Monetary Fund, expect positive global macroeconomic growth in calendar year 2025. Global markets have experienced increased volatility in recent months, driven by geopolitical developments, concerns over the imposition of import tariffs by the United States, reactions from other nations and proposed U.S. government spending reductions. Increased economic uncertainty may impact the level of global macroeconomic activity.

Financial Performance

For the three months ended June 30, 2025, we reported $3.7 billion in revenue, a slight increase compared to the prior-year period. The revenue performance included a favorable currency exchange rate impact of