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Kyndryl Holdings KD Amortization Of Transition Costs And Prepaid Software

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Other financials

Income statement

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Revenue$3.8B-0.8%
Gross profit$849.0M+2.9%
Net income$17.0M-75.4%
EPS (diluted)$0.08-71.4%

Balance sheet

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Cash & equivalents$2.6B+46.9%
Total debt$5.2B+22.4%
Total equity$1.2B-3.6%
Total assets$12.6B+20.1%

Cash flow

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Operating cash flow$498.0M-14.3%
CapEx$116.0M-51.7%
Free cash flow$382.0M+12.0%

Valuation

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Market cap$2.45B-59.5%
Enterprise value$4.98B-43.6%
P/E12.4×-11.7×
P/S0.2×-0.2×

Profitability

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Gross margin21.8%+0.9pp
Net margin1.3%-0.4pp
FCF margin-3%

Returns & leverage

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Return on equity16.5%-6.0pp
Debt / equity4.4×+0.9×
Current ratio0.9×-0.2×

Where this comes from

Reported directly by Kyndryl Holdings in its filing.

Tagged under the XBRL concept kd:AmortizationOfTransitionCostsAndPrepaidSoftware.

The official record: Kyndryl Holdings’s 10-K, filed May 29, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Kyndryl Holdings's amortization of transition costs and prepaid software?
Kyndryl Holdings (KD) reported amortization of transition costs and prepaid software of $312M in Q1 2026.
How has Kyndryl Holdings's amortization of transition costs and prepaid software changed year-over-year?
Kyndryl Holdings's amortization of transition costs and prepaid software increased by 2.6% year-over-year, from $304M to $312M.
What is the long-term trend for Kyndryl Holdings's amortization of transition costs and prepaid software?
Over 4 years (2022 to 2026), Kyndryl Holdings's amortization of transition costs and prepaid software has grown at a -0.7% compound annual growth rate (CAGR), from $1.27B to $1.24B.
What does amortization of transition costs and prepaid software mean?
This represents the non-cash expense associated with the systematic allocation of costs incurred during the transition phase of service contracts and prepaid software licenses over their useful lives. It reflects the consumption of assets that facilitate long-term service delivery and infrastructure management. Monitoring this helps investors understand the underlying cost structure of service delivery and the timing of expense recognition for major IT implementation projects.