Kyndryl Holdings, Inc. has recently released its 10-K report, providing an insight into the company's operations and financial performance. Established in 2020, Kyndryl operates as a technology services company and IT infrastructure services provider, offering a wide range of services including cloud services, digital workplace services, security and resiliency services, and network services to various industries worldwide. The company was formed as a wholly-owned subsidiary of IBM in September 2021 and later separated from IBM through a tax-free spin-off on November 3, 2021, becoming an independent, publicly-traded company headquartered in New York, New York.
In the 10-K report, Kyndryl reported its financial performance for the years ending March 31, 2025, 2024, and 2023. The company's revenue for the year ended March 31, 2025, was $15.1 billion, reflecting a 6% decline compared to the previous year. However, net income improved to $252 million, a significant increase from the prior year's net loss of $340 million. The company's total assets as of March 31, 2025, amounted to $10.5 billion, with liabilities of $9.1 billion and equity of $1.3 billion.
Kyndryl's financial performance was affected by various factors, including the reduction of low-margin components of customer relationships and currency effects. The company's revenue decline was attributed to actions taken to reduce low-margin components of its customer relationships, resulting in revenue declines across its United States, Japan, Principal Markets, and Strategic Markets segments.
The company also provided a segment-wise analysis of its financial performance. The United States segment reported a 10% decline in revenue for the year ended March 31, 2025, compared to the previous year, while Japan's revenue increased by 1%. Principal Markets and Strategic Markets segments reported revenue declines of 5% and 8%, respectively, for the same period.
Kyndryl also highlighted the use of non-GAAP financial metrics, such as revenue growth in constant currency and adjusted EBITDA, to provide additional insights into its financial performance. Revenue growth in constant currency is a non-GAAP measure that eliminates the effects of exchange rate fluctuations when translating from foreign currencies to the United States dollar. Adjusted EBITDA, another non-GAAP measure, is used to evaluate the company's performance, excluding certain items that do not necessarily correspond to changes in the operations of the business.
Today the company's shares have moved -1.95% to a price of $38.6725. If you want to know more, read the company's complete 10-K report here.
