Kyndryl Holdings, Inc.

We re also reinvesting in our growth initiatives and returning capital to shareholders through our share repurchase program.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

Share repurchases The Company repurchased 1.8 million shares of its common stock at a cost of $65 million in the first quarter, under the $300 million share repurchase program authorized in November 2024.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

Non-GAAP Financial Measures In an effort to provide investors with additional information regarding its results, the Company has provided certain metrics that are not calculated based on generally accepted accounting principles (GAAP), such as constant-currency results, adjusted EBITDA, adjusted pretax income, adjusted net income, adjusted EPS, adjusted EBITDA margin, adjusted pretax margin, adjusted net margin, net debt, free cash flow and adjusted free cash flow.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

Free Cash Flow is defined as cash flows from operating activities (GAAP), less net capital expenditures.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

Adjusted free cash flow is defined as cash flows from operating activities (GAAP) after adding back transaction-related payments, charges related to lease terminations, payments related to workforce rebalancing charges incurred prior to March 31, 2024, and significant litigation payments, less net capital expenditures.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

Management uses free cash flow and adjusted free cash flow as measures to evaluate our operating results, plan strategic investments and assess our ability and need to incur and service debt.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

We continue to focus on providing outstanding, innovative and expanded services to our customers, and on achieving our fiscal 2026 and multi-year objectives.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

We re also reinvesting in our growth initiatives and returning capital to shareholders through our share repurchase program.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

Adjusted pretax income was $128 million, a 39% increase compared to adjusted pretax income of $92 million in the prior-year period, reflecting contributions from Kyndryl s three-A initiatives Alliances, Advanced Delivery and Accounts.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

We continued to make strategic and financial progress in the quarter, highlighted by our increased earnings and the attractive margins built into our signings.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

Recent Developments Hyperscaler-related revenue In the first quarter, as part of Kyndryl s Alliances initiative, the Company generated $400 million in revenue tied to cloud hyperscaler alliances, an 86% year-over-year increase, and is progressing well toward its hyperscaler revenue target of $1.8 billion in fiscal 2026.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

Additional risks and uncertainties include, among others, those risks and uncertainties described in the Risk Factors section of the Company s Annual Report on Form 10-K for the fiscal year ended March 31, 2025, and may be further updated from time to time in the Company s subsequent filings with the Securities and Exchange Commission.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

Adjusted pretax income is defined as pretax income excluding transaction-related costs and benefits, charges related to ceasing to use leased / fixed assets, charges related to lease terminations, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, amortization of acquisition-related intangible assets, workforce rebalancing charges incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

Adjusted EBITDA is defined as net income (loss) excluding net interest expense, income taxes, depreciation and amortization (excluding depreciation of right-of-use assets and amortization of capitalized contract costs), charges related to ceasing to use leased / fixed assets, charges related to lease terminations, transaction-related costs and benefits, pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, workforce rebalancing charges incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

Adjusted free cash flow is defined as cash flows from operating activities (GAAP) after adding back transaction-related payments, charges related to lease terminations, payments related to workforce rebalancing charges incurred prior to March 31, 2024, and significant litigation payments, less net capital expenditures.

SEC original ↗Kyndryl Holdings, Inc. — Earnings release (8-K exhibit)EX-99Aug 4, 2025

Legal Proceedings 40 Item 1A.

SEC original ↗Kyndryl Holdings, Inc. — 10-Q Quarterly report10-QAug 5, 2026

Adjusted EBITDA is defined as net income (loss) excluding income taxes, interest expense, depreciation and amortization (excluding depreciation of right-of-use assets and amortization of capitalized contract costs), charges related to ceasing to use leased and owned fixed assets, charges related to lease terminations, transaction-related costs and benefits, pension expenses other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries.

SEC original ↗Kyndryl Holdings, Inc. — 10-Q Quarterly report10-QAug 5, 2026