US EditionKyndryl Issues Statement in Response to Misleading Report
- On March 27, 2025, Kyndryl Holdings, Inc. , the world's largest IT infrastructure services provider serving thousands of enterprise customers in over 60 countries, issued a statement from New York in response to a short seller report released that morning.
- The statement was prompted by a report from short-seller Gotham City, alleging that Kyndryl has manipulated certain financial metrics, specifically its reported adjusted EBITDA and adjusted free cash flow.
- Kyndryl believes the claims in the report are inaccurate and deliberately misleading, asserting that its accounting and disclosures are correct and in accordance with all applicable reporting requirements, while also highlighting its transformation into a company driving profitable growth.
- Kyndryl rejects the report's conclusions, contending that the 'so-called analysis' was designed to manipulate the company's stock for the short seller's benefit, and emphasizes that they were not given the opportunity to address inaccuracies before its publication.
- Gotham City alleges that Kyndryl faces a potential $1 billion to $2 billion increase in service costs over the next few years and has identified accounting and disclosure irregularities, while Kyndryl maintains its focus on executing its growth strategy despite shares falling nearly 13% following the report's release.
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Kyndryl Issues Statement in Response to Misleading Report
NEW YORK, March 27, 2025 /PRNewswire/ -- Kyndryl Holdings, Inc. (NYSE: KD), the world's largest IT infrastructure services provider, today issued a statement in response to a short seller report.
Kyndryl shares slump after Gotham City alleges it manipulated metrics
Shares of Kyndryl fell nearly 13 per cent on Thursday, after a research report from short-seller Gotham City alleged the IT services provider has manipulated certain financial metrics. Gotham City said Kyndryl manipulated its reported adjusted EBITDA and adjusted free cash flow to give the appearance of profi
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Leaning Left3Leaning Right4Center13Last UpdatedBias Distribution65% Center
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