Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenues of $313 million, reflecting a 14.1% year-over-year growth and exceeding guidance by nearly $10 million [9][31] - For the full year 2025, total revenue reached $1.18 billion, representing a 19% year-over-year increase [10][31] - Adjusted EBITDA for Q4 was $61.4 million, with an Adjusted EBITDA margin of 19.6%, while the full year Adjusted EBITDA was $249.1 million, yielding a margin of 21% [10][37] Business Line Data and Key Metrics Changes - Digital Customer Experience (DCX) revenue in Q4 increased by 4.8% year-over-year, driven by technology and healthcare verticals [12][35] - Trust and Safety services grew by 18% year-over-year in Q4, with a full-year growth of nearly 24% [14][35] - AI services experienced a remarkable growth of 46% year-over-year in Q4 and nearly 59% for the full year [15][36] Market Data and Key Metrics Changes - The company generated 52% of its Q4 revenues from the Philippines, 11% from the United States, 14% from India, and 23% from the rest of the world [33] - Latin America was the fastest-growing region, expanding by approximately 45% year-over-year in Q4, while Europe exceeded 25% growth [34] Company Strategy and Development Direction - The company aims to transform from a traditional service provider to a hybrid technology plus talent solutions partner, focusing on AI services and automation [17][20] - Significant investments are planned for AI transformation, with over $25 million allocated for 2026 [9][10] - The strategy includes a shift towards selling outcome-based solutions rather than time-based services, enhancing client relationships [20][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects in 2026, particularly in the autonomous vehicle and robotics sectors, expecting revenue from these areas to more than double [26][27] - The largest client is expected to leverage AI for efficiencies, which may impact revenue, but the relationship remains strong [26][31] - Management anticipates continued growth in AI services and DCX, while trust and safety volumes may face pressure due to automation [51][66] Other Important Information - The company announced a special dividend of $3.65 per share, totaling approximately $333 million, to be paid in March 2026 [8][43] - A refinancing of existing credit facilities was secured, increasing the term loan to $500 million and providing access to a $100 million revolving line of credit [7][43] Q&A Session Summary Question: 2026 outlook and service line acceleration - Management indicated that the outlook depends significantly on the largest client's automation plans, which could drive revenue towards the low or high end of guidance [49][50] Question: Investment plans for 2026 - The company is expanding its AI transformation team and investing in internal technical capabilities to improve efficiency across support organizations [52][53] Question: Pricing environment and margin guidance - The pricing environment is competitive, but the company maintains a premium position in AI services, which supports growth despite margin pressures from geographic shifts [56][58] Question: Revenue base changes due to automation - Management acknowledged that while automation will impact some volumes, the focus will remain on premium customer service, with a shift towards technology plus talent solutions [65][66] Question: Interest expense and dividend payments - Interest expense is expected to be approximately $40 million, factoring in new debt and dividend payments [70][72]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenues of $313 million, reflecting a 14.1% year-over-year growth and exceeding guidance by nearly $10 million [9][31] - For the full year 2025, total revenue reached $1.18 billion, representing a 19% year-over-year increase [10][31] - Adjusted EBITDA for Q4 was $61.4 million, with an Adjusted EBITDA margin of 19.6%, while the full year Adjusted EBITDA was $249.1 million, yielding a margin of 21% [10][37] - Adjusted net income for Q4 was $37.1 million, translating to an adjusted EPS of $0.40, marking nearly 30% growth compared to the previous year [39] Business Line Data and Key Metrics Changes - Digital Customer Experience (DCX) revenue in Q4 increased by 4.8% year-over-year, driven by technology and healthcare verticals [12][35] - Trust and Safety services grew by 18% year-over-year in Q4, with full-year growth at nearly 24% [14][35] - AI services experienced a remarkable 46% year-over-year growth in Q4 and nearly 59% for the full year, making it the fastest-growing service line [15][36] Market Data and Key Metrics Changes - Approximately 60% of Q4 signings were from existing clients, indicating strong client retention and growth [11] - Revenue from the top 20 clients, excluding the largest client, is expected to grow by approximately 15% in 2026 [27] - Latin America was the fastest-growing region, expanding by approximately 45% year-over-year in Q4 [34] Company Strategy and Development Direction - The company aims to transform from a traditional service provider to a hybrid technology plus talent solutions partner, focusing on AI services and automation [17][20] - Significant investments are planned for AI transformation, with over $25 million allocated for 2026 [9] - The strategy includes a shift towards selling outcome-based solutions rather than time-based services, enhancing operational efficiency and client relationships [19][66] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential revenue headwinds due to automation trends, particularly affecting trust and safety volumes [23][66] - The relationship with the largest client remains strong, with expectations of benefiting from vendor consolidation in the medium term [26] - The company anticipates full-year 2026 revenue to be in the range of $1.21 billion to $1.24 billion, reflecting a growth deceleration compared to 2025 [42] Other Important Information - A special dividend of $3.65 per share was declared, with an estimated total payment of approximately $333 million [8] - The company secured commitments to refinance existing credit facilities, increasing the term loan to $500 million and obtaining a $100 million revolving line of credit [7][43] Q&A Session Summary Question: 2026 outlook and service line acceleration - Management indicated that the largest client's automation plans could impact revenue, with potential for growth in AI services and DCX [49][50] Question: Pricing environment and margin guidance - The pricing environment is competitive, but the company maintains a premium position in AI services, which is expected to drive growth [56][57] Question: Revenue base and automation impact - The company expects to evolve towards a technology plus talent model, with AI services becoming a larger portion of the business while trust and safety may see slower growth [66][70]

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Kyndryl Holdings, Inc. due to alleged misleading statements and internal control weaknesses that have led to significant financial losses for investors [4][6][9]. Group 1: Legal Investigation and Class Action - Faruqi & Faruqi is encouraging investors who suffered losses in Kyndryl to contact them regarding their legal rights, particularly those who purchased securities between August 7, 2024, and February 9, 2026 [1][4]. - There is an April 13, 2026 deadline for investors to seek the role of lead plaintiff in a federal securities class action against Kyndryl [4][10]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [5]. Group 2: Allegations Against Kyndryl - The complaint alleges that Kyndryl's financial statements during the class period were materially misstated and that the company lacked adequate internal controls [6]. - Kyndryl disclosed that it expects to report material weaknesses in internal control over financial reporting for multiple reporting periods, indicating that previous assessments should no longer be relied upon [8]. - Following disclosures regarding internal control issues and the immediate departures of key executives, Kyndryl's stock price declined approximately 50% on February 9, 2026 [9]. Group 3: Company Disclosures - On February 9, 2026, Kyndryl announced that its Audit Committee is reviewing cash management practices and related disclosures after receiving voluntary document requests from the SEC [7]. - The company filed a Form NT 10-Q indicating a delay in filing its Quarterly Report on Form 10-Q [9].

SAN FRANCISCO, Feb. 25, 2026 (GLOBE NEWSWIRE) -- On February 17, 2026, Kyndryl Holdings, Inc. (NYSE: KD) filed two amended quarterly reports and one amended annual report providing further detail about problems previously reported on February 9, 2026. The recent filings reveal that “the Company’s disclosure controls and procedures and internal control over financial reporting were ineffective” as of March 31, June 30, and September 30, 2025. Each specified that “senior finance executives failed to set an ap ...

Financial Data and Key Metrics Changes - For the full year 2025, revenue increased by 14% to nearly $2.1 billion, and adjusted EPS grew by 18% year-over-year to $1.95 per share [5][24] - In Q4, revenue reached $543 million, representing 13% year-over-year organic growth [5][20] - Adjusted EPS for Q4 was $0.50, a year-over-year increase of 15% [20][23] Business Line Data and Key Metrics Changes - Data and AI-led revenue grew by 21% year-over-year, now representing 57% of total revenue, while digital operations, which represent 43% of the business, grew by 4% year-over-year [7][18] - The Insurance segment grew by 7% year-over-year, while the healthcare and life sciences segment reported a growth of 26% year-over-year [9][21] - The banking, capital markets, and diversified industries segment grew by 11% year-over-year, and the international growth markets segment grew by 8% year-over-year [10][11][22] Market Data and Key Metrics Changes - The healthcare and life sciences segment was the fastest-growing, driven by strong demand for data and AI solutions [9] - International markets are seen as a key driver for long-term growth, with several new deals won across various sectors [11] Company Strategy and Development Direction - The company is focused on embedding AI into workflows and modernizing data foundations for clients, positioning itself as a trusted partner in AI implementation [12][18] - The growth strategy includes deepening data and AI capabilities, expanding the partner ecosystem, and developing AI talent at scale [12][16] - The company anticipates revenue for 2026 to be in the range of $2.275 billion to $2.315 billion, representing 9%-11% organic growth [18][25] Management's Comments on Operating Environment and Future Outlook - Management noted that there is a greater propensity among enterprise clients to adopt AI, shifting focus from cost reduction to growth [31] - The company has strong visibility into 2026, with a robust pipeline and high renewal rates, indicating revenue stability [18][19] - The impact of the New Labour Codes in India is expected to result in a one-time increase in defined benefit liability but will not materially affect the income statement [26] Other Important Information - The company repurchased approximately 7.5 million shares at an average cost of $42.3 per share, totaling $317 million [24] - A $500 million common stock repurchase program was authorized, reflecting confidence in the company's growth trajectory [26][27] Q&A Session Summary Question: About accelerated decision-making at clients - Management observed that accelerated decision-making is due to a greater propensity from enterprise clients to adopt AI, fitting well with the company's capabilities [31] Question: Revenue impact when clients implement AI - The company highlighted that the penetration rate of outsourcing operations remains low, indicating significant opportunity for growth as clients adopt AI [34] Question: 2026 growth guidance reconciliation - Management clarified that the 2026 guidance is based on organic growth, with visibility and backlog being strong, and client wins in Q4 were more than double the pace of 2025 [41][42] Question: Growth potential of data and AI-led services versus digital operations - The data and AI-led business is expected to grow faster than the corporate average, while digital operations will grow at a slower pace [44] Question: Competitive landscape in AI - Management noted the emergence of new competitors, including hyperscalers and technology providers, but emphasized the company's integrated approach and domain expertise as key differentiators [84][85]

Financial Data and Key Metrics Changes - For the full year 2025, revenue increased by 14% to nearly $2.1 billion, and adjusted EPS grew by 18% year-over-year to $1.95 per share [4][22] - In Q4, revenue reached $543 million, representing 13% year-over-year organic growth [4][17] - Adjusted EPS for Q4 was $0.50, a year-over-year increase of 15% [17][21] Business Line Data and Key Metrics Changes - Data and AI-led revenue grew by 21% year-over-year and now represents 57% of total revenue, while digital operations, which represents 43% of the business, grew by 4% year-over-year [5][15] - The Insurance segment grew by 7% year-over-year, while the healthcare and life sciences segment reported a growth of 26% year-over-year [6][18] - The banking, capital markets, and diversified industries segment grew by 11% year-over-year, and the international growth markets segment grew by 8% year-over-year [9][20] Market Data and Key Metrics Changes - The healthcare and life sciences segment was the fastest-growing, driven by strong demand for data and AI solutions [7][19] - International markets are seen as important drivers of long-term growth, with several new deals won across various sectors [9][20] Company Strategy and Development Direction - The company is focused on embedding AI into workflows and expanding its partner ecosystem, with a strong emphasis on developing AI talent at scale [10][13] - The strategy includes deepening data and AI capabilities and modernizing operations using an integrated approach [10][12] - The company anticipates revenue for 2026 to be in the range of $2.275 billion to $2.315 billion, representing 9%-11% organic growth [15][23] Management's Comments on Operating Environment and Future Outlook - Management noted that there is a greater propensity from enterprise clients to adopt and leverage AI, indicating a shift from cost-cutting to growth initiatives [29][32] - The company expects strong momentum entering 2026, with high renewal rates and over 75% of revenue being recurring or annuity-like [15][25] Other Important Information - The company has a strong balance sheet with cash and investments totaling $331 million and a net cash position of $32 million [22] - A $500 million common stock repurchase program was authorized, reflecting confidence in the company's growth trajectory [24][25] Q&A Session Summary Question: About accelerated decision-making at clients - Management observed that accelerated decision-making is due to a greater propensity from enterprise clients to adopt AI, aligning with EXL's capabilities [28][29] Question: Revenue impact when clients implement AI - Management highlighted that the penetration rate of outsourcing operations remains low, indicating significant growth opportunities as clients adopt AI [31][32] Question: 2026 growth guidance reconciliation - Management clarified that the 2026 guidance is on an organic basis, similar to the previous year, and noted stronger visibility and backlog compared to last year [36][38] Question: Growth cadence throughout 2026 - Management indicated better visibility for the first half of 2026 compared to the second half, expecting a strong start to the year [45][46] Question: Competitive landscape in AI - Management acknowledged new competitors entering the AI space but emphasized EXL's integrated approach and domain expertise as key differentiators [80][82] Question: Update on acquisition priorities - Management expressed interest in pursuing acquisitions to enhance capabilities around data and AI, with a focus on geographic diversification [84][85]

Financial Data and Key Metrics Changes - Fourth quarter revenue grew 5% year-over-year, resulting in a slight improvement in full year revenue projections, coming in above the revised midpoint [5] - Non-GAAP operating margin was 18% in the fourth quarter and 9.1% for the year, exceeding the top end of revised projections [5] - Full-year pre-pension free cash flow was $128 million, up 55% from the prior year, exceeding expectations [6] - Year-end cash balance increased to over $400 million, up almost $40 million year-over-year [6] - Net leverage improved to 2.8x compared to 3.0x at the end of 2024 [6] Business Line Data and Key Metrics Changes - Digital Workplace Solutions (DWS) revenue was $126 million in the fourth quarter, down 3.7% year-over-year, and $508 million for the full year, down 3.1% [24] - Cloud, Applications & Infrastructure Solutions (CA&I) revenue was $191 million in the fourth quarter, a decline of 4.1% year-over-year, and $733 million for the full year, down 4.8% [26] - Enterprise Computing Solutions (ECS) revenue was $237 million in the fourth quarter, up 14% year-over-year, and $629 million for the full year, relatively flat to 2024 [27] Market Data and Key Metrics Changes - Total company TCV was $2.2 billion for the full year, driven by strong growth in XLNS renewal signings and new scope bookings [29] - Trailing twelve-month book-to-bill was 1.1 times for the total company and 1.2 times for XLNS solutions [30] - Backlog at year-end was $3.2 billion, up 12% sequentially and 11% from the prior year [30] Company Strategy and Development Direction - The company continues to execute a consistent operating strategy, focusing on improved profitability and free cash flow [4] - Artificial intelligence (AI) is viewed as a long-term driver of demand for core solutions, with investments in solution development and delivery skills [14] - The company aims to capitalize on AI-related demand and strengthen partnerships to accelerate growth in XLNS solutions [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic headwinds impacting discretionary spending but remains optimistic about pipeline activity and client engagement [46] - The company expects a mid-single-digit decline in XLNS solutions for 2026, with a focus on adopting emerging technology within existing clients [46] - Management anticipates achieving positive XLNS revenue growth in 2027 based on current interactions with clients [48] Other Important Information - The company has reduced global pension deficits by $300 million-$450 million at year-end, improving near-term cash flows [7] - The company received significant recognition from Gartner, elevating its position in the Outsourced Digital Workplace Services Magic Quadrant [12] - The company was named to Forbes list of America's Best Midsize Employers in 2026 [13] Q&A Session Questions and Answers Question: How are AI and automated code modernization tools influencing the roadmap for ClearPath Forward? - Management believes that code modernization enhances the platform and will drive more demand for ClearPath Forward, viewing it as a positive development [51][52] Question: What is the outlook for bookings activity and the bookings mix for 2026? - Management indicates a strong backlog and expects a shift towards new scope expansion opportunities in the existing client base, with a focus on new logo expansion [58][60] Question: How does the company counter competitive pricing dynamics? - The company emphasizes value and quality in its go-to-market strategy, aiming to illustrate the value delivered to clients rather than competing solely on price [66][69]

Financial Data and Key Metrics Changes - Fourth quarter revenue grew 5% year-over-year, resulting in a slight improvement in full year revenue projections, coming in above the revised midpoint [5] - Non-GAAP operating margin was 18% in the fourth quarter and 9.1% for the year, exceeding the top end of revised projections [5][34] - Full-year pre-pension free cash flow was $128 million, up 55% from the prior year, exceeding expectations of $110 million [6][37] - Year-end cash balance increased to over $400 million, up almost $40 million year-over-year [6][38] - Net leverage improved to 2.8x compared to 3.0x at the end of 2024 [6][39] Business Line Data and Key Metrics Changes - Digital Workplace Solutions (DWS) revenue was $126 million in the fourth quarter, down 3.7% year-over-year, and $508 million for the full year, down 3.1% [24] - Cloud, Applications & Infrastructure Solutions (CA&I) revenue was $191 million in the fourth quarter, a decline of 4.1% year-over-year, and $733 million for the full year, down 4.8% [26] - Enterprise Computing Solutions (ECS) revenue was $237 million in the fourth quarter, up 14% year-over-year, and $629 million for the full year, relatively flat to 2024 [27] Market Data and Key Metrics Changes - Total company TCV was $2.2 billion for the full year, driven by strong growth in Ex-L&S renewal signings and new scope bookings [29] - Trailing twelve-month book-to-bill was 1.1x for the total company and 1.2x for Ex-L&S solutions [30] - Backlog at year-end was $3.2 billion, up 12% sequentially and 11% from the prior year [30] Company Strategy and Development Direction - The company continues to execute a consistent operating strategy, focusing on improved profitability and free cash flow while advancing its pension removal strategy [4] - Artificial intelligence (AI) is viewed as a long-term driver of demand for the company's solutions, with investments in solution development and delivery skills to capitalize on it [14][16] - The company aims to leverage AI to enhance service delivery and streamline IT operations, with a focus on partnerships with hyperscalers to promote AI adoption [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic headwinds impacting discretionary spending but remains optimistic about pipeline activity and client engagement [46][68] - The company expects a mid-single-digit decline in Ex-L&S solutions for 2026, reflecting a deeper push into emerging technology adoption [46] - Management is confident in achieving positive Ex-L&S revenue growth in 2027 based on current interactions with clients and pipeline activity [48] Other Important Information - The company has reduced global pension deficits by $300 million-$450 million at year-end, improving near-term cash flows [7] - The company was recognized as a global leader in Gartner's Magic Quadrant for Outsourced Digital Workplace Services, enhancing its market position [12] - The company plans to roll out its Service Experience Accelerator, an agentic AI framework, to about a third of its existing client base during 2026 [16] Q&A Session Summary Question: How are AI and automated code modernization tools influencing the roadmap for ClearPath Forward? - Management believes that code modernization enhances the platform and will drive more demand for ClearPath Forward, viewing it as a positive development [50][51][54] Question: What is the outlook for bookings in 2026? - Management indicates a strong backlog going into 2026 and expects a mix shift towards existing client scope expansion, with a focus on new logo opportunities [58][62] Question: How does the company counter competitive pricing dynamics? - Management emphasizes a go-to-market strategy focused on enhanced experience and value rather than competing solely on price, aiming to illustrate the value delivered to clients [66][70]

Financial Data and Key Metrics Changes - Fourth quarter revenue grew 5% year-over-year, resulting in a slight improvement in full year revenue projections, coming in above the revised midpoint [5] - Non-GAAP operating margin was 18% in the quarter and 9.1% for the year, exceeding the top end of projections and representing a 30 basis points annual improvement [5] - Full-year pre-pension free cash flow was $128 million, up 55% from the prior year, exceeding expectations of $110 million [6] - Year-end cash balance increased to over $400 million, up almost $40 million year-over-year [6] - Net leverage improved to 2.8x compared to 3.0x at the end of 2024 [6] Business Line Data and Key Metrics Changes - Digital Workplace Solutions (DWS) revenue was $126 million in Q4, down 3.7% year-over-year, and $508 million for the full year, down 3.1% [24] - Cloud, Applications & Infrastructure Solutions (CA&I) revenue was $191 million in Q4, a decline of 4.1% year-over-year, and $733 million for the full year, down 4.8% [26] - Enterprise Computing Solutions (ECS) revenue was $237 million in Q4, up 14% year-over-year, with full year revenue relatively flat at $629 million [27] Market Data and Key Metrics Changes - Total company TCV was $2.2 billion for the full year, driven by strong growth in XLNS renewal signings and new scope bookings [28] - Trailing twelve-month book-to-bill was 1.1 times for the total company and 1.2 times for XLNS solutions [29] - Backlog at year-end was $3.2 billion, up 12% sequentially and 11% from the prior year [29] Company Strategy and Development Direction - The company continues to execute a consistent operating strategy, focusing on improved profitability and free cash flow while advancing its pension removal strategy [4] - Artificial intelligence (AI) is viewed as a powerful long-term driver of demand for the company's solutions, with investments in solution development and delivery skills to capitalize on it [13] - The company aims to leverage AI to enhance service delivery and streamline IT operations, with a focus on developing solutions that can be standardized across clients [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledges competitive pricing pressures and longer sales cycles but remains confident in the company's ability to maintain pricing discipline and deliver value [66] - The company expects a mid-single-digit decline in XLNS solutions for 2026, reflecting macro headwinds impacting discretionary spending [47] - Management anticipates positive XLNS revenue growth in 2027 based on interactions with clients and pipeline activity [49] Other Important Information - The company executed a pension annuity purchase that removed approximately $320 million of gross U.S. defined benefit pension liabilities in 2025 [7] - The company received significant recognition from Gartner, elevating it to a global leader position in their Outsourced Digital Workplace Services Magic Quadrant [12] - The company was named to Forbes list of America's Best Midsize Employers in 2026, reflecting a strong corporate culture [12] Q&A Session Summary Question: How are AI and automated code modernization tools influencing the roadmap for ClearPath Forward? - Management believes that code modernization enhances the platform but does not change the engineering challenges of running mission-critical workloads securely [52][54] Question: What is the outlook for bookings activity and the bookings mix for 2026? - Management indicates a strong backlog and expects a shift towards new scope expansion opportunities in the existing client base, with a significant total addressable market for new scope opportunities [62] Question: How does the company counter competitive pricing dynamics? - The company focuses on enhancing experience and value rather than competing solely on price, emphasizing the importance of demonstrating value to clients [69]

Core Insights - The company has successfully executed a pension removal strategy and streamlined corporate costs, resulting in a reduction of SG&A as a percentage of revenue by nearly 300 basis points over three years [1] - License and Support (L&S) revenue has seen substantial growth for the third consecutive year, exceeding expectations by nearly $40,000,000 due to increased client consumption and longer contract terms [1] - Improved market perception is attributed to heightened recognition from industry analysts, including a first-time 'Leader' ranking in Gartner's Magic Quadrant for Outsourced Digital Workplace Services [1] Financial Performance - Strategic renewals amounted to $1,700,000,000 in Total Contract Value (TCV), with many contracts including new scope expansions as clients prioritize delivery quality over competitive pricing [1] - The company has shifted its operational focus towards high-value infrastructure field services, such as liquid cooling for AI builds and enterprise storage, which provide higher margins compared to traditional PC maintenance [1] - The global pension deficit has been successfully reduced by $300,000,000 to $450,000,000 through discretionary contributions and annuity purchases, with a goal of full U.S. plan removal by 2029 [1]