Slides
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Second Quarter2026 EarningsNovember 5, 2025
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Disclaimers 2 Forward-looking statementsThis presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements often contain words such as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “objectives,” “opportunity,” “plan,” “position,” “predict,” “project,” “should,” “seek,” “target,” “will,” “would” and other similar words or expressions or the negative thereof or other variations thereon. All statements, other than statements of historical fact, including without limitation, statements concerning the Company’s plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends, including without limitation the outlook and financial objectives in this presentation (which does not assume any future acquisitions or divestitures), may be forward-looking statements. These statements do not guarantee future performance and speak only as of November 5, 2025, and the Company assumes no obligation to update its forward-looking statements, except as required by law. Actual outcomes or results may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others: failure to attract new customers, retain existing customers or sell additional services to customers; failure to meet growth and productivity objectives and maintain our capital allocation strategy; competition; impacts of relationships with critical suppliers and partners; failure to address and adapt to technological developments and trends; inability to attract and retain key personnel and other skilled employees; impact of economic, geopolitical, public health and other conditions; damage to the Company's reputation; inability to accurately estimate the cost of services and the timeline for completion of contracts; service delivery issues; the Company's ability to successfully manage acquisitions and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt levels; failure of the Company's intellectual property rights to prevent competitive offerings and the failure of the Company to obtain, retain and extend necessary licenses; the impairment of our goodwill or long-lived assets; risks relating to cybersecurity, data governance and privacy; risks relating to non-compliance with legal and regulatory requirements and changes in laws, regulations and policies in the U.S. and countries where the Company and its customers do business, including with respect to tariffs, taxes and other controls on imports or exports; adverse effects from tax matters; legal proceedings and investigatory risks; impact of changes in market liquidity conditions and customer credit risk on receivables; the Company's pension plans; the impact of currency fluctuations; and risks related to the Company's common stock and the securities market; and other factors described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on May 30, 2025, as such factors may be updated from time to time in the Company’s subsequent filings with the SEC.Non-GAAP financial measuresFinancial information contained in this presentation includes certain financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting policies in the United States of America (GAAP), such as adjusted EBITDA, adjusted pretax income, adjusted net income, adjusted EPS, adjusted EBITDA margin, adjusted pretax margin, adjusted net margin, net debt, net leverage ratio, free cash flow, adjusted free cash flow and constant currency, which include or exclude certain items from the most directly comparable GAAP financial measure. These non-GAAP measures differ from reported GAAP measures and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing Kyndryl's expected ongoing operating performance. Exclusion of items in our non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. Definitions of the non-GAAP measures are included in the appendix of this presentation. A reconciliation of non-GAAP financial measures for historical periods to the most directly comparable GAAP financial measure appears in the appendix to this presentation. Any non-GAAP financial measure used in this presentation is in addition to, and not meant to be considered superior to, or a substitute for, measures prepared in accordance with GAAP. A reconciliation of forward-looking non-GAAP financial information is not included in this presentation because the Company is unable to predict with reasonable certainty some individual components of such reconciliation without unreasonable effort. These items are uncertain, depend on various factors and could have a material impact on future results computed in accordance with GAAP. In this presentation, projections are based on exchange rates as of October 2025. Additionally, certain amounts may not add due to the use of rounded numbers; percentages presented are calculated based on the underlying amounts.
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SpeakersLori Chaitman, Global Head of Investor Relations Martin Schroeter, Chairman and Chief Executive OfficerDavid Wyshner, Chief Financial Officer 3
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4 Executing a differentiated strategy Our leadership, innovation and capabilities are boosting demand for our services1 2 3 4Drivingprofitable growth Targeting full-year revenue growth and margin expansionLeveraging our leadership positionCapitalizing on our alliances, innovation and expertise in mission-critical servicesAccelerating our progress Growing Kyndryl Consult,winning new logos and sustaining delivery excellenceAllocating capital to share buybacksIncreasing repurchase authorization by $400 million
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5 Driving growth through our mission-critical capabilities Delivering value and driving incremental opportunities with existing and new customers Kyndryl Consult revenueLTM Sept. 2024LTM Sept. 2025$2.5BSignings versus revenue (LTM book-to-bill)$3.4BHyperscaler-related revenueLTM Sept. 2024LTM Sept. 2025105%104%LTM Sept. 2024LTM Sept. 2025$0.8B$1.5B+32%quarters> 100% +94% LTM is last twelve months. The five quarters with LTM book-to-bill ratios above 100% are the five most recent quarters. Growth rates are in constant currency$16.0Bsignings$15.6Bsignings5100%
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Creating value for customers with unmatched delivery excellence The quality of our services fuels ‘share-of-wallet’ growth opportunities for Kyndryl6 Delivering actionable, data-driven insights and automationsKyndryl Bridge enhances ITEnabling customers to invest and innovate more efficiently across platformsDriving business outcomesIntegrating agents into our mission-critical solutionsEnterprise-grade agentic AIDelivery excellence is foundational to Kyndryl’s growth strategyWorld-class ‘run’ capabilities unlock ‘transform’ engagements186M monthly automations and 15M monthly insights generated by Kyndryl Bridge in conjunction with more than 100 partners integrated on the platformRegularly adding new scope during contract renewalsSolidifying Kyndryl as the ‘gold standard’ for infrastructure services
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7 Setting the pace for sustainable growth through innovation Meeting customers’ need for innovative, hybrid, best-of-breed solutions AlliancesBuilding solutions together to deliver customer outcomesKyndryl ConsultAdvising technology-first, industry-informed, AI-poweredMission-criticalExpanding scope and winning new logos through infrastructure expertise ModernizationCapitalizing on vast demand through cross-practice capabilitiesKyndryl BridgeDifferentiating through AI insights and uncovering new opportunitiesGrowth drivers
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Multiple factors driving demand for infrastructure modernization Enabling transformation to reduce risk, drive efficiency and embrace new technologies8 Mitigating operational riskDeploying AI to drive business outcomesAddressing‘tech debt’and end-of-life systemsBoosting efficiency, productivity and agilityEnhancingsecurity and resiliencyMeeting business and regulatory demandsModernizationdrivers$1.5Tglobal ‘tech debt’ related to out-of-date and sub-optimal systems74%of organizations are relying on service providers for modernization2x – 3xROI from mainframe modernization11Ranging from 288% for those who modernize applications on the mainframe to 362% for organizations who move workloads from the mainframe to other platforms
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Leveraging our mission-critical agentic AI strategy for Kyndryl and customers AI is a growth tailwind for Kyndryl, with AI content already in 25% of our signings9 Agent BuilderAgent catalog andindustry architecturesAgentic ingestionAgentic CoreEmployees (human-in-the-loop)Autonomous orchestrationMulti-agent collaboration Unified user interface• Advances customers’ AI investments from isolated pilots into core operations• State-of-the-art capabilities to orchestrate, secure and scale• Secure-by-design – enabling autonomous, transparent and compliant operations• Kyndryl Consult co-creation methodology to establish vision and design based on outcomesThe Kyndryl Agentic AI FrameworkResponsible AIAI content in signings measured over the last twelve months
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Example: Kyndryl expands scope of work with financial services customerDisplaced incumbent in new geographyWith incremental Kyndryl services scopeLeveraging alliancesCloud migration, enhanced security and global synergiesKyndryl ConsultModernization and AI-enablement, supported by Kyndryl BridgeProjected annualrevenue growth in now-global contract25%+Service quality, innovation and value creation enabled us to expand scope significantly10 Broad range of IT infrastructure services20-year relationship in Asia-Pacific region
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The margin profile of our post-spin signings is driving our earnings growth11 Focused on delivering an impactful ‘triple, double, single’Adjusted pretax income and marginSources of our revenue$482M$1.2B+FY25 FY28EHigh-single-digitmargin3.2%margin50%50%>90%<10%FY25FY28E$1B+FY25Continuing to drive toward our intermediate-term growth objectivesFY28EPost-spin signings (higher-margin)Pre-spin signings (lower-margin)Mid-single-digit growthMix of post-spin signings in our revenue are approximateSee appendix for reconciliation of non-GAAP metrics$446MAdjusted free cash flow
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The margin profile of our post-spin signings is driving our earnings growth12 Focused on delivering an impactful ‘triple, double, single’Adjusted pretax income and marginSources of our revenueMid-single-digit growthFY25 FY28EHigh-single-digitmargin3.2%marginFY26E$725M+ 50% 50% <10%FY25FY28EFY26EPost-spin signings (higher-margin)Pre-spin signings (lower-margin)67%33%FY25FY26E~$550MContinuing to drive toward our intermediate-term growth objectivesFY28EFY27EFY27EFY27E$1B+ $482M$1.2B+>90%Mix of post-spin signings in our revenue are approximateSee appendix for reconciliation of non-GAAP metrics Adjusted free cash flow$446M
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Financial highlightsGrowth strategy driving significant margin expansion Projecting substantial earnings growth againShare repurchasespowered by free cash flowResults reflect continued progress and consistent execution We design, build, manage and modernize the mission-critical systems that the world depends on13
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Principal Markets is comprised of Kyndryl’s operations in Canada, France, Germany, India, Italy, Spain/Portugal and the United Kingdom/Ireland. Strategic Markets is comprised of Kyndryl’s operations in all other geographic locations. Revenue growth (year-over-year) as reported was (1%) in the quarter ended September 30, 2025 and (7%) in the quarter ended September 30, 2024See appendix for reconciliation of non-GAAP metrics; numbers may not add due to rounding Fiscal second quarter 2026 financial results We continued to make strategic and financial progress, led by our 3A’s and Kyndryl Consult Quarter ended Sept. 30, 2024Quarter ended Sept. 30, 2025$3,774$3,721Revenue(6.8%)(3.7%)Growth, in constant currency$557$641Adjusted EBITDA14.8%17.2%Adjusted EBITDA margin$45$123Adjusted pretax income1.2%3.3%Adjusted pretax margin($ in millions)$899 $581 $1,334 $906 14Up 3.1 ptsUp 250 bpsUp 210 bpsStrategic MarketsUnited StatesPrincipal MarketsJapanQuarterlyrevenue by segment
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Investment-grade balance sheet metrics and positive cash flow 2Adjustedfree cash flow Free cash flowBalance sheet and cash flow metrics($ in millions, three months ended Sept. 30)Adjustedpretax income Now returning capital to shareholders through share repurchases15 $3.1BDebt$4.5BAvailable liquidity2$1.3BCash$147MCash flow from operations(three months ended Sept. 30)$89MShares repurchased(three months ended Sept. 30)1 Working capital was use of cash primarily due to the timing of receivables and vendor payments, which is expected to reverse in the second half of fiscal 20262 Consists of $1.3B of cash and $3.2B of undrawn senior unsecured credit facilitySee appendix for reconciliation of non-GAAP metrics$1.8BNet debtFree cash flow1($125)($25)$123 $193 ($145)$22 DepreciationexpenseNet capitalexpendituresCash taxespaidWorking capitaland other
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Strong projected margins on signings support our medium-term goals The quality of our post-spin signings is powering our earnings growth Pretax margin expected on post-spin signingsGross margin expected on post-spin signingsFiscal 2025Fiscal2024Gross profit book-to-bill126%26%LTM Sept. 202526%Fiscal 2025Fiscal 2024LTM Sept. 20251.5x1.2x1.1xFiscal 2025Fiscal 20249%9%LTM Sept. 20259% Supports ourhigh-single-digitmargin target1 Our gross profit book-to-bill is defined as our projected gross profit on signings during the last twelve months divided by our actual gross profit for the same period. See appendix for definitions16
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Reaffirming our fiscal 2026 outlook Focused on driving innovation, expanding margins and continuing to grow revenueBased on recent exchange rates, currency effects are expected to favorably impact revenue by ~$500M ($190M in the first half, $130M in the third quarter) year-over-year.Other outlook items: Depreciation expense ~$725M; amortization expense of transition costs and prepaid software $1.2B+; interest expense ~$100M; cash taxes ~$175M;income tax expense (related to adjusted pretax income) ~$200M; diluted shares outstanding ~239M, excluding any future share repurchasesThe November 2024 divestiture of our Securities Industry Services (SIS) platform in Canada reduced our revenue by $40M in the first half of fiscal year 2026 Fiscal 2026 outlookAt least $725 million, a year-over-year increase of at least 50%Adjusted pretax incomeApproximately 18%, a year-over-year increase of approximately 130 basis pointsAdjusted EBITDA marginApproximately $550 million, reflecting cash taxes of approximately $175 millionFree cash flow1% constant-currency growthRevenue17
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Poised to generate stronger fiscal second half 2026 revenue growth 18Our growth drivers position us to deliver ~1% full-year constant-currency revenue growth Constant-currency revenue growth projection(year-over-year)Growth is incremental to the four-point Kyndryl Consult and four-point hyperscaler-related contributions to growth in first half 2026(3%)Opening backlog~1 point~1 pointKyndryl Consult revenue growth~2 pointsHyperscaler-related revenue growth~2 pointsStronger pipeline and expanded deal content~2 points4% – 5%‘Anniversary’ of divestiture Second half 2026 outlook(1½ %) Second half 2026 outlookstarting pointFirst half 2026 (actual)
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Investment highlights Leader in mission-critical enterprise technology servicesInnovative and differentiated approach to delivery with AI-powered Kyndryl BridgeKyndryl Consult leverages our customer and partner relationshipsGlobal alliances and expanded capabilities enabling wallet-share gains and new-customer winsAnnuity-like revenue streams with 95%+ customer retentionUniquely well-positioned to harness secular trends in cloud, security, AI and modernizationStrong earnings and cash flow growth, propelling capital returns to shareholders 19Competitive advantage stemming from our people, data, expertise, scale and intellectual property
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Our services Approximate revenue based on twelve months ended September 30, 2025Industry revenue mix is approximate; public sector includes state, local and international governments RevenueOverviewPractice34%Delivering seamless, integrated, multicloud management in a hybrid modelCloud14%Delivering full line of cybersecurity, business continuity and disaster recovery services to help customers continuously adapt to new threats and regulatory standardsSecurity & Resiliency8%Providing unified network services for cloud and data center connectivityNetwork & Edge7%Providing full application platform hosting and expert assistance for application modernizationApplications, Data & AI7%Enhancing user experience and work location flexibility by providing a consumer experience to employeesDigital Workplace30%Providing secure, unified and fault-tolerant mainframe services for our customers’ core infrastructureCore Enterprise Diversified sources of revenue44%17%15%13%12%Revenue mix by industryFinancial servicesHealthcare and public sectorTechnology, media and telecomIndustrialsRetail, travel and logistics 21
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A Leader for Application Modernization Services in the U.S., ISG Provider Lens Mainframe Services and Solutions Report (2025) Recent accolades and industry recognition 22 Recognized as a Leader in the March 2025 Gartner® Magic Quadrant for Outsourced Digital Workplace Services, Global report; Industry Recognition2025 Dell Global Alliances Partner of the Year for Marketing, Americas Innovation, and Asia Pacific and Japan Expansion A Leader in the IDC MarketScape: Japan Managed Hybrid and Multi-public Cloud Services 2025 Vendor Assessment* Received a Gold sustainability rating from Ecovadis, placing Kyndryl in the top 5% of participating companies (2025) 2025 Cloudflare Americas Systems Integrator Partner of the Year 2025 Google Cloud Global Partner of the Year Award for Infrastructure Modernization 2025 HPE Global System Integrator Momentum Partner of the YearKyndryl designated a ‘RISE with SAP’ partner *IDC doc #JPJ53015725, Sept 2025 **451 Research, part of S&P Global Market Intelligence, Cyber Resiliency Services: Market Size & Position, 2024, Commissioned by KyndrylGartner®, Magic Quadrant for Outsourced Digital Workplace Services, Karl Rosander et al., 24 March 2025; Market Share Analysis: Infrastructure Implementation and Managed Services, Worldwide, 2024, Anupama . and Kratu Gupta, 30 May 2025.GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this Earnings Presentation), and the opinions expressed in the Gartner Content are subject to change without notice. Ranked No.1 in the Infrastructure Implementation and Managed Services Providers by Revenue in the Gartner Market Share Analysis: Infrastructure Implementation and Managed Services, Worldwide, 2024; Industry Recognition Named by Wall Street Journal as one of America’s Top 100 Most Loved Workplaces (2025)
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$306 $641 $98 $26 ($1)$123 $193 $20 Stock-based compensationOtheradjustmentsDepreciationexpenseAmortizationexpenseInterestexpense Fiscal second quarter 2026 adjusted pretax income and adjusted EBITDA 1 Effects of pension costs other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, charges related to ceasing to use leased/fixed assets and lease terminations, and currency impacts of highly inflationary countries2 Includes amortization of capitalized software costs and excludes depreciation of operating right-of-use assets 3 Amortization of transition costs and prepaid softwarePretax income (loss)as reportedAdjustedEBITDAAdjustedpretax income2 3Pretax income as reported ($ in millions) 231Intangibles amortization and other adjustments 1
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Fiscal second quarter 2026 adjusted EBITDA and free cash flow AdjustedEBITDAAdjustedfree cash flow1 32, 3 ($ in millions) 1Net capital expenditures compare to depreciation of $193M2Deferred costs offset amortization of prepaid software and transition costs of $306M3Working capital was use of cash primarily due to the timing of receivables and vendor payments, which is expected to reverse in the second half of fiscal 202624Free cash flow3($210)$641 ($125)($19)($25)($241)$22 Net capitalexpendituresDeferred costsInterestpaidCash taxespaidWorking capital (excl. deferredcosts) & other
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Definitions and rationale for non-GAAP metricsWe present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe it enhances investors' visibility to management decisions and their impacts on operational performance; enables better comparison to peer companies; and allows us to provide a long-term strategic view of the business going forward. 25 Adjusted EBITDA and adjusted EBITDA marginAdjusted 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 (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. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.Adjusted pretax income and adjusted pretax marginAdjusted pretax income is defined as pretax income excluding transaction-related costs (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. Adjusted pretax margin is calculated by dividing adjusted pretax income by revenue.Adjusted net income, adjusted net margin and adjusted earnings per share (EPS)Adjusted net income is defined as adjusted pretax income less the reported provision for income taxes, minus or plus the tax effect of the non-GAAP adjustments made to calculate adjusted pretax income, and excluding exceptional items impacting the reported provision for income taxes. Adjusted net margin is calculated by dividing adjusted net income, as defined above, by revenue. Adjusted earnings per share (EPS) is defined as adjusted net income divided by diluted weighted average shares outstanding to reflect shares that are dilutive or anti-dilutive based on the amount of adjusted net income.Constant-currencyConstant-currency information compares results between periods as if exchange rates had remained constant period over period. We define constant-currency revenues as total revenues excluding the impact of foreign exchange rate movements and use it to determine the constant-currency revenue growth on a year-over-year basis. Constant-currency revenues are calculated by translating current period revenues using corresponding prior-period exchange rates.Net debt and net leverage ratioNet debt is defined as total debt less cash and cash equivalents. Net leverage ratio is calculated by dividing net debt by the last twelve months’ adjusted EBITDA. Management uses net debt and net leverage ratio to evaluate its leverage.Free cash flow and adjusted free cash flowFree cash flow is defined as cash flows from operating activities less net capital expenditures. Adjusted free cash flow is defined as cash flows from operating activities 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. 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. We believe these metrics are useful supplemental financial measures to aid investors in assessing our ability to pursue business opportunities and investments and to service our debt.Signings, book-to-bill and gross profit book-to-billSignings are defined by Kyndryl as an initial estimate of the value of a customer’s commitment under a contract. The calculation involves estimates and judgments to gauge the extent of a customer's commitment, including the type and duration of the agreement as well as the presence of termination charges or wind-down costs. Contract extensions and increases in scope are treated as signings only to the extent of the incremental new value. Signings can vary over time due to a variety of factors including, but not limited to, the timing of signing a small number of larger outsourcing contracts, as well as the length of those contracts. The conversion of signings into revenue may vary based on the types of services and solutions, customer decisions and other factors, which may include, but are not limited to, macroeconomic environment or external events. Management uses signings to monitor the performance of the business, as a measure of customer engagement and our ability to drive growth.Our book-to-bill is defined as signings for the last twelve months divided by our revenues for the same period. Our gross profit book-to-bill is defined as our projected gross profit on signings ("book") for the last twelve months divided by our gross profit ("bill") for the same period. Projected gross profit on signings is calculated by multiplying the Company's projected gross margin for the last twelve months by total signings for the same period; and reported gross profit is revenue for the last twelve months less cost of services for the same period. Management uses book-to-bill and gross profit book-to-bill as additional supplemental color to illustrate to investors the quality of our signings growth in describing the financial and strategic progress on the Company's long-term strategy.
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Reconciliation of non-GAAP metricsThree months endedSept. 30, 2024Threemonths endedSept. 30, 2025Reconciliation of cash flows from operations to free cash flow and adjusted free cash flow$149$147Cash flow from operating activities (GAAP)(104)(125)Less: Net capital expenditures$45$22Free cash flow (non-GAAP)––Plus: Transaction-related payments (benefits)4–Plus: Workforce rebalancing payments related to charges incurred prior to March 31, 20246–Plus: Significant litigation payments$56$22Adjusted free cash flow (non-GAAP)Three months endedSept. 30, 2024Three months endedSept. 30, 2025Reconciliation of net income to adjusted pretax income and adjusted EBITDA($43)$68Net income (loss) (GAAP)3830Plus: Provision for income taxes($5)$98Pretax income (loss) (GAAP)Non-operating adjustments (before tax)10–Charges related to ceasing to use leased/ fixed assets and lease terminations––Transaction-related costs (benefits)2526Stock-based compensation expense107Amortization of acquisition-related intangible assets5(9)Other adjustments1$45$123Adjusted pretax income (non-GAAP)1.2%3.3%Adjusted pretax margin2520Interest expense150193Depreciation of property, equipment and capitalized software337306Amortization of transition costs and prepaid software$557$641Adjusted EBITDA (non-GAAP)(1.1)%1.8%Net income (loss) margin14.8%17.2%Adjusted EBITDA margin$3,774$3,721Revenue (GAAP) Three months endedSept. 30, 2024Three months endedSept. 30, 2025Reconciliation of adjusted pretax income to adjusted net income and adjusted EPS$45$123Adjusted pretax income (non-GAAP)(38)(30)Provision for income taxes (GAAP)(4)(3)Tax effect of non-GAAP adjustments$3$89Adjusted net income (non-GAAP)238.2235.9Diluted weighted average shares outstanding($0.19)$0.29Diluted earnings per share (GAAP)$0.01$0.38Adjusted EPS (non-GAAP)Balance as ofSept. 30, 2025Reconciliation of net debt and net leverage ratio$124Short-term debt3,004Long-term debt$3,127Total debt1,331Cash$1,796Net debt (non-GAAP)$2,691Last twelve months adjusted EBITDA (non-GAAP)0.7xNet leverage ratio (non-GAAP) ($ in millions, except per-share amounts) Numbers may not add due to rounding1 Other adjustments represent pension costs other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, and currency impacts of highly inflationary countries26
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Reconciliation of non-GAAP metrics Twelve months endedMarch 31, 2025Sixmonths endedSept. 30, 2024Sixmonths endedSept. 30, 2025Reconciliation of cash flows from operations to free cash flow and adjusted free cash flow$942$101$22Cash flow from operating activities (GAAP)(522)(202)(222)Less: Net capital expenditures$420($100)($200)Free cash flow (non-GAAP)(14)5–Plus: Transaction-related payments (benefits)2525–Plus: Workforce rebalancing payments related to charges incurred prior to March 31, 20241510–Plus: Significant litigation payments$446($60)($200)Adjusted free cash flow (non-GAAP) Twelve months endedMarch 31, 2025Six months endedSept. 30, 2024Six months endedSept. 30, 2025Reconciliation of net income to adjusted pretax income and adjusted EBITDA$252($32)$124Net income (loss) (GAAP)1849166Plus: Provision for income taxes$435$59$190Pretax income (GAAP)Non-operating adjustments (before tax)4820–Charges related to ceasing to use leased/ fixed assets and lease terminations(125)21–Transaction-related costs (benefits)1004950Stock-based compensation expense301714Amortization of acquisition-related intangible assets(6)(27)(4)Other adjustments1 $482$138$251Adjusted pretax income (non-GAAP)3.2%1.8%3.4%Adjusted pretax margin1005239Interest expense656276384Depreciation of property, equipment and capitalized software1,278647613Amortization of transition costs and prepaid software$2,516$1,113$1,288Adjusted EBITDA (non-GAAP)1.7%(0.4)%1.7%Net income (loss) margin16.7%14.8%17.3%Adjusted EBITDA margin$15,057$7,513$7,464Revenue (GAAP) Twelve months endedMarch 31, 2025Sixmonths endedSept. 30, 2024Six months endedSept. 30, 2025Reconciliation of adjusted pretax income to adjusted net income and adjusted EPS$482$138$251Adjusted pretax income (non-GAAP)(184)(91)(66)Provision for income taxes (GAAP)(14)(12)(6)Tax effect of non-GAAP adjustments$285$35$179Adjusted net income (non-GAAP)239.1237.0237.5Diluted weighted average shares outstanding$1.05($0.14)$0.52Diluted earnings per share (GAAP)$1.19$0.15$0.75Adjusted EPS (non-GAAP)($ in millions, except per-share amounts) Numbers may not add due to rounding1 Other adjustments represent pension costs other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, and currency impacts of highly inflationary countries27