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KYNDRYL REPORTS THIRD QUARTER FISCAL 2025 RESULTS

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Revenues for the quarter ended December 31, 2024 total $3.74 billion, pretax income is $258 million, and net income is $215 millionAdjusted EBITDA is $704 million, adjusted pretax income is $160 million, and adjusted net income is $124 millionKyndryl Consult delivers double-digit revenue growth in the quarter and over the last twelve monthsRaises earnings and cash flow outlook for fiscal year 2025 and reaffirms constant-currency revenue growth in the fourth quarter, supported by continued strong signings growth

NEW YORK, Feb. 3, 2025 /PRNewswire/ — Kyndryl Holdings, Inc. (NYSE: KD), the world’s largest IT infrastructure services provider, today released financial results for the quarter ended December 31, 2024, the third quarter of its 2025 fiscal year. 

“In the third quarter, we delivered another quarter of strong signings growth and significant margin expansion, led by Kyndryl Consult, Kyndryl Bridge and our alliances with hyperscalers.  With sustained momentum in our signings coupled with higher operating margins, we remain on track to deliver constant-currency revenue growth in the fourth quarter of this fiscal year and are raising our full-year outlook for adjusted earnings and adjusted free cash flow,” said Kyndryl Chairman and Chief Executive Officer Martin Schroeter.

“In November, at our first Investor Day as an independent company, we outlined our multi-year growth strategy, emphasizing that over the next three years we expect to triple adjusted free cash flow and more than double adjusted pretax earnings.  In addition, we initiated a $300 million share repurchase program, reflecting our confidence in our future growth trajectory,” Mr. Schroeter said. 

Results for the Fiscal Third Quarter Ended December 31, 2024

For the third quarter, Kyndryl reported revenues of $3.74 billion, a year-over-year decline of 5% and 3% in constant currency.  The year-over-year constant-currency revenue decline reflects the Company’s continued progress in reducing inherited no-margin and low-margin third-party content in customer contracts, as well as the divestiture of its SIS platform.  In addition, exchange rates moved significantly over the course of the quarter and had an unfavorable year-over-year impact on reported revenue.  The Company reported pretax income of $258 million and net income of $215 million, or $0.89 per diluted share, in the quarter, compared to a net loss of $12 million, or ($0.05) per diluted share, in the prior-year period.

Adjusted pretax income was $160 million, a 154% increase compared to adjusted pretax income of $63 million in the prior-year period, reflecting contributions from the Company’s three-A initiatives, offset by the contractually required increase in IBM software costs and workforce rebalancing charges of $17 million.  Adjusted net income was $124 million, or $0.51 per diluted share, compared to a net loss in the prior-year period.  Adjusted EBITDA was $704 million, a 14% year-over-year increase.  Cash flow from operations was $260 million, and adjusted free cash flow was $171 million in the quarter.

Total signings in the quarter were $4.1 billion, representing a year-over-year increase of 10% on a reported basis and 12% in constant currency.  Total signings for the twelve months ended December 31, 2024 were $16.3 billion, a year-over-year increase of 31%.

“Once again, we delivered strong progress on our three-A’s initiatives and robust signings growth that demonstrate customer demand for the essential services and insights we offer.  The margins associated with our signings continue to support our outlook for future earnings and free cash flow growth,” said David Wyshner, Kyndryl’s Chief Financial Officer.

Recent Developments

Alliances initiative – In the third quarter, Kyndryl recognized $300 million in revenue tied to cloud hyperscaler alliances, positioning the Company to exceed its hyperscaler revenue target of nearly $1 billion in fiscal year 2025.Advanced Delivery initiative – The AI-enabled Kyndryl Bridge operating platform is further enhancing the world-class technology services the Company provides and creating additional revenue opportunities. It has also helped Kyndryl free up more than 12,300 delivery professionals. This has generated annualized savings of approximately $725 million as of quarter-end, tracking to exceed the Company’s $750 million fiscal 2025 year-end goal.Accounts initiative – Kyndryl continued to address elements of contracts with substandard margins, bringing the total impact from this initiative to $825 million of annualized benefits, progressing ahead of track vis-a-vis the Company’s $850 million fiscal 2025 year-end objective.Strong projected margin on recent signings – In the quarter, projected pretax income margins associated with total signings were in the high-single-digit range, in line with recent quarters, reflecting the Company’s focus on margin expansion.Double-digit growth in Kyndryl Consult – In the third quarter, Kyndryl Consult revenues grew 26% year-over-year. Kyndryl Consult signings grew 35% year-over-year in the third quarter and have grown 45% year-over-year over the last twelve months.Securities Industry Services (SIS) divestiture – In November, the Company completed its previously announced divestiture of its SIS platform in Canada. The Company recognized an after-tax gain of $138 million in the quarter related to this transition, which is excluded from the Company’s adjusted earnings metrics.Share repurchases – The Company repurchased 859,000 shares of its common stock at a cost of $30 million in the third quarter, under the $300 million share repurchase program authorized in November.

Raising Fiscal Year 2025 Earnings and Cash Flow Outlook

Kyndryl is raising its earnings and cash flow outlook for its fiscal year 2025, which runs from April 2024 to March 2025:

Adjusted pretax income of at least $475 million, representing a year-over-year increase of at least $310 million.Adjusted EBITDA margin of at least 16.7%, representing a year-over-year increase of at least 200 basis points.Adjusted free cash flow of approximately $350 million.

The Company expects to deliver constant-currency revenue growth of approximately 2% in the fourth quarter.

Earnings Webcast

Kyndryl’s earnings call for the third fiscal quarter is scheduled to begin at 8:30 a.m. ET on February 4, 2025.  The live webcast can be accessed by visiting investors.kyndryl.com on Kyndryl’s investor relations website.  A slide presentation will be made available on Kyndryl’s investor relations website before the call on February 4, 2025.  Following the event, a replay will be available via webcast for twelve months at investors.kyndryl.com.

About Kyndryl

Kyndryl (NYSE: KD) is the world’s largest IT infrastructure services provider, serving thousands of enterprise customers in more than 60 countries.  The Company designs, builds, manages and modernizes the complex, mission-critical information systems that the world depends on every day. For more information, visit www.kyndryl.com.

Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  All statements other than statements of historical fact included in this press release, including 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 and other non-historical statements, including without limitation the outlook and financial objectives in this press release (which does not assume any future acquisitions or divestitures), are forward-looking statements.  Such forward-looking statements often contain words such as  “aim,” “anticipate,” “believe,” “contemplate,” “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.  Forward-looking statements are based on the Company’s current assumptions and beliefs regarding future business and financial performance.

The Company’s actual business, financial condition or results of operations 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; 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, political, 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; the impact of our business with government customers; 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; adverse effects from tax matters and environmental matters; legal proceedings and investigatory risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; the Company’s pension plans; the impact of currency fluctuations; risks related to the Company’s spin-off; and risks related to the Company’s common stock and the securities market.

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, 2024, and may be further updated from time to time in the Company’s subsequent filings with the Securities and Exchange Commission.  Any forward-looking statement in this press release speaks only as of the date on which it is made.  Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

In this release, certain amounts may not add due to the use of rounded numbers; percentages presented are calculated based on the underlying amounts.  Forecasted amounts are based on currency exchange rates as of January 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 and adjusted free cash flow.  Such non-GAAP metrics are intended to supplement GAAP metrics, but not to replace them.  The Company’s non-GAAP metrics may not be comparable to similarly titled metrics used by other companies.  Definitions of non-GAAP metrics and reconciliations of non-GAAP metrics for historical periods to GAAP metrics are included in the tables in this release.

A reconciliation of forward-looking non-GAAP financial information is not included in this release 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. 

Investor Contact:
investors@kyndryl.com

Media Contact:
press@kyndryl.com

 

Table 1

CONSOLIDATED INCOME STATEMENT

(in millions, except per share amounts)

Three Months Ended

Nine Months Ended

December 31,

December 31,

2024

2023

2024

2023

Revenues

$

3,744

$

3,936

$

11,257

$

12,202

Cost of services

$

2,981

$

3,184

$

8,939

$

10,055

Selling, general and administrative expenses

647

705

1,951

2,059

Workforce rebalancing charges

17

19

92

115

Transaction-related costs (benefits)

(148)

(77)

(128)

12

Interest expense

24

31

77

92

Other expense (income)

(35)

21

9

34

Total costs and expenses

$

3,486

$

3,883

$

10,940

$

12,367

Income (loss) before income taxes

$

258

$

53

$

317

$

(165)

Provision for income taxes

43

65

134

131

Net income (loss)

$

215

$

(12)

$

183

$

(295)

Earnings per share data

Basic earnings (loss) per share

$

0.93

$

(0.05)

$

0.79

$

(1.29)

Diluted earnings (loss) per share

0.89

(0.05)

0.77

(1.29)

Weighted-average basic shares outstanding

232.2

229.6

231.5

228.9

Weighted-average diluted shares outstanding

240.7

229.6

238.3

228.9

 

Table 2

SEGMENT RESULTS

AND SELECTED BALANCE SHEET INFORMATION

(dollars in millions)

Three Months Ended December 31,

Year-over-Year Growth

As

Constant

Segment Results

2024

2023

Reported

Currency

Revenue

United States

$

961

$

1,032

(7 %)

(7 %)

Japan

579

581

(0 %)

3 %

Principal Markets1

1,300

1,361

(4 %)

(4 %)

Strategic Markets1

904

962

(6 %)

(3 %)

  Total revenue

$

3,744

$

3,936

(5 %)

(3 %)

Adjusted EBITDA2

United States

$

204

$

194

Japan

111

94

Principal Markets

226

191

Strategic Markets

187

161

Corporate and other3

(24)

(25)

  Total adjusted EBITDA

$

704

$

615

Nine Months Ended December 31,

Year-over-Year Growth

As

Constant

Segment Results

2024

2023

Reported

Currency

Revenue

United States

$

2,907

$

3,305

(12 %)

(12 %)

Japan

1,753

1,761

(0 %)

6 %

Principal Markets1

3,933

4,128

(5 %)

(5 %)

Strategic Markets1

2,664

3,009

(11 %)

(10 %)

  Total revenue

$

11,257

$

12,202

(8 %)

(6 %)

Adjusted EBITDA2

United States

$

496

$

607

Japan

288

278

Principal Markets

655

511

Strategic Markets

445

476

Corporate and other3

(66)

(71)

  Total adjusted EBITDA

$

1,818

$

1,801

December 31,

March 31,

Balance Sheet Data

2024

2024

Cash and equivalents

$

1,501

$

1,553

Debt (short-term and long-term)

3,201

3,238

1 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.  Kyndryl’s operations in Australia/New Zealand transitioned from Principal Markets to Strategic Markets in the quarter ended June 30, 2024; historical segment information has been updated to reflect this change.

2 In the three months ended December 31, 2024, amounts include workforce rebalancing charges of $11 million in United States, $1 million in Japan, $3 million in Principal Markets, and $2 million in Strategic Markets. In the nine months ended December 31, 2024, amounts include workforce rebalancing charges of $38 million in United States, $4 million in Japan, $16 million in Principal Markets, and $33 million in Strategic Markets.

3 Represents net amounts not allocated to segments.

 

Table 3

CONSOLIDATED STATEMENT OF CASH FLOWS

(dollars in millions)

Nine Months Ended December 31,

2024

2023

Cash flows from operating activities:

Net income (loss)

$

183

$

(295)

Adjustments to reconcile net income (loss) to cash provided by operating
activities:

Depreciation and amortization

Depreciation of property, equipment and capitalized software

471

639

Depreciation of right-of-use assets

220

251

Amortization of transition costs and prepaid software

974

946

Amortization of capitalized contract costs

314

418

Amortization of acquisition-related intangible assets

23

23

Stock-based compensation

78

72

Deferred taxes

22

55

Net (gain) loss on asset sales and other

(108)

(6)

Change in operating assets and liabilities:

Deferred costs (excluding amortization)

(1,273)

(1,023)

Right-of-use assets and liabilities (excluding depreciation)

(212)

(269)

Workforce rebalancing liabilities

(22)

(28)

Receivables

177

(13)

Accounts payable

(265)

(339)

Taxes

(39)

(33)

Other assets and other liabilities

(183)

(90)

Net cash provided by operating activities

$

361

$

309

Cash flows from investing activities:

Capital expenditures

$

(365)

$

(449)

Proceeds from disposition of property and equipment

70

134

Acquisitions and divestitures, net of cash acquired

137

Other investing activities, net

(42)

(35)

Net cash used in investing activities

$

(199)

$

(350)

Cash flows from financing activities:

Debt repayments

$

(108)

$

(103)

Common stock repurchases

(30)

Common stock repurchases for tax withholdings

(32)

(19)

Other financing activities, net

(2)

(1)

Net cash used in financing activities

$

(172)

$

(123)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

$

(39)

$

(5)

Net change in cash, cash equivalents and restricted cash

$

(49)

$

(169)

Cash, cash equivalents and restricted cash at beginning of period

$

1,554

$

1,860

Cash, cash equivalents and restricted cash at end of period

$

1,505

$

1,691

Supplemental data

Income taxes paid, net of refunds received

$

123

$

140

Interest paid on debt

$

100

$

108

Net cash provided by operating activities was $260 million in the three months ended December 31, 2024 and $101 million in the six months ended September 30, 2024.

Table 4

NON-GAAP METRIC DEFINITIONS AND RECONCILIATIONS
(dollars in millions, except signings)

We report our financial results in accordance with GAAP.  We also 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.

Constant-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.

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.  The Company’s fiscal year 2025 outlook for adjusted pretax income includes approximately $100 million of anticipated workforce rebalancing charges.  Adjusted pretax margin is calculated by dividing adjusted pretax income by revenue.

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.  The Company’s fiscal year 2025 outlook for adjusted EBITDA includes approximately $100 million of anticipated workforce rebalancing charges.  Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.

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 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.   The weighted average common shares outstanding used to calculate adjusted earnings (loss) per share will differ from such shares used to calculate diluted earnings (loss) per share (GAAP) when the inclusion of dilutive shares has an anti-dilutive effect for one calculation but not for the other.

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.  Management uses adjusted free cash flow as a measure to evaluate its operating results, plan strategic investments and assess our ability and need to incur and service debt.  We believe adjusted free cash flow is a useful supplemental financial measure to aid investors in assessing our ability to pursue business opportunities and investments and to service our debt.  Adjusted free cash flow is a financial measure that is not recognized under U.S. GAAP and should not be considered as an alternative to cash flows from operations or liquidity derived in accordance with U.S. GAAP.

Signings 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. We calculate this based on various considerations 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 as a tool to monitor the performance of the business including the business’ ability to attract new customers and sell additional scope into our existing customer base.

Reconciliation of net income (loss)

to adjusted pretax income,

adjusted EBITDA, adjusted net

Three Months Ended

Nine Months Ended

income (loss) and adjusted EPS

December 31,

December 31,

(in millions, except per share amounts)

2024

2023

2024

2023

Net income (loss) (GAAP)

$

215

$

(12)

$

183

$

(295)

Provision for income taxes

43

65

134

131

Pretax income (loss) (GAAP)

$

258

$

53

$

317

$

(165)

Workforce rebalancing charges incurred prior to
March 31, 2024

19

115

Charges related to ceasing to use leased/fixed
assets and lease terminations

9

14

29

24

Transaction-related costs (benefits)1

(148)

(77)

(128)

12

Stock-based compensation expense

29

25

78

72

Amortization of acquisition-related intangible
assets

7

8

23

23

Other adjustments2

5

21

(22)

52

Adjusted pretax income (non-GAAP)

$

160

$

63

$

297

$

135

Interest expense

24

31

77

92

Depreciation of property, equipment and
capitalized software3

194

207

470

629

Amortization of transition costs and prepaid
software

327

314

974

946

Adjusted EBITDA (non-GAAP)

$

704

$

615

$

1,818

$

1,801

Net income margin

5.7 %

(0.3) %

1.6 %

(2.4) %

Adjusted EBITDA margin

18.8 %

15.6 %

16.1 %

14.8 %

Adjusted pretax income (non-GAAP)

$

160

$

63

$

297

$

135

Provision for income taxes (GAAP)

(43)

(65)

(134)

(131)

Tax effect of non-GAAP adjustments

7

(8)

(4)

(27)

Adjusted net income (loss) (non-GAAP)

$

124

$

(11)

$

159

$

(23)

Diluted weighted average shares outstanding for
calculating adjusted EPS4

240.7

229.6

238.3

228.9

Diluted earnings (loss) per share (GAAP)

$

0.89

$

(0.05)

$

0.77

$

(1.29)

Adjusted earnings (loss) per share (non-GAAP)

$

0.51

$

(0.05)

$

0.67

$

(0.10)

1 Kyndryl’s reported results for the three months ended December 31, 2024 include a transaction-related gain of $145 million pretax ($138 million after-tax) related to the Company’s divestiture of its Securities Industry Services platform in Canada.

2 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 countries.

3 Amount for the nine months ended December 31, 2023 excludes $10 million of expense that is included in transaction-related costs and benefits.

4 For the three and nine months ended December 31, 2024, the computation of adjusted earnings (loss) per share (EPS) included certain securities that were dilutive to the calculation.

 

Three Months Ended

Nine Months Ended

Reconciliation of cash flow from operations

December 31,

December 31,

to adjusted free cash flow (in millions)

2024

2023

2024

2023

Cash flows from operating activities (GAAP)

$

260

$

436

$

361

$

309

Plus: Transaction-related payments (benefits)

29

5

113

Plus: Workforce rebalancing payments related to
charges incurred prior to March 31, 2024

29

25

142

Plus: Significant litigation payments

5

11

14

55

Plus: Payments related to lease terminations

2

7

Less: Net capital expenditures

(93)

(159)

(295)

(315)

Adjusted free cash flow (non-GAAP)

$

171

$

348

$

111

$

311

 

Three Months Ended

Nine Months Ended

December 31,

December 31,

Signings (in billions)

2024

2023

2024

2023

Signings1

$

4.1

$

3.7

$

12.7

$

8.9

1 Signings for the three months ended December 31, 2024 increased by 10%, and 12% in constant currency, compared to the three months ended December 31, 2023.  Signings for the nine months ended December 31, 2024 increased by 43%, and 45% in constant currency, compared to the nine months ended December 31, 2023. 

 

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SOURCE Kyndryl

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Electrosoft Celebrates 25 Years of Federal Cybersecurity Innovation and Impact

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Founding CEO Dr. Sarbari Gupta reflects on firm’s evolution and sets the course for its next chapter

RESTON, Va., April 21, 2026 /PRNewswire/ — Electrosoft Services, LLC, a leading provider of federal cybersecurity and digital transformation services, today announced its 25th anniversary, marking a quarter century of innovation and partnership in support of government missions. Founded in 2001 and led by its founding CEO, Dr. Sarbari Gupta, the company has grown from a small, focused team into a trusted partner on some of the federal government’s most consequential cybersecurity and digital engineering programs.

“I founded Electrosoft because I believed federal agencies deserved a cybersecurity partner that would grow with them through every shift in technology and every evolution in the threat environment. Twenty-five years in, that belief has only gotten stronger,” said Dr. Gupta. “What fills me with the most pride isn’t the milestone itself, but the trust we’ve built and the team that earned it.”

Electrosoft’s journey began with its first prime contract at NIST in 2001. Years later, company experts became named authors of NIST special publications on digital identity. That foundation has expanded into support for federal civilian and defense agencies such as DLA, USTRANSCOM, GSA, Treasury and HHS, as well as multiple-award vehicles including GSA OASIS+, DLA JETS 2.0, NIST CAPSS, Treasury PROTECTS and CISA DTSS.

Over the years, the company has been consistently recognized as a top workplace, fast-growing company and technology thought leader.

Recent milestones include several significant contract and contract vehicle wins from HHS, Treasury and CISA and a 2025 strategic investment from DigitalNet.ai that supports expanded capabilities in artificial intelligence while preserving the independent leadership and customer continuity that have defined the firm.

As Electrosoft enters its next chapter, the company’s integrated delivery model unifies cybersecurity, digital engineering and AI to meet the evolving demands of federal missions.

For more information, read Electrosoft’s 25th Anniversary newsletter.

About Electrosoft Services

Electrosoft is a cybersecurity, digital engineering and intelligent automation firm delivering secure, scalable solutions for federal agencies. With 25 years of experience, the award-winning company combines deep mission expertise with modern engineering practices to help agencies operate securely, modernize with confidence and accelerate operational performance. Electrosoft is headquartered in Reston, Virginia. www.electrosoft-inc.com

Press Contact
Jeanne Zepp
jzepp@electrosoft-inc.com

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SOURCE Electrosoft Services, LLC

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New Survey from Beyond Finance and Operation HOPE reveals young Americans are focusing on immediate priorities and real-world decisions over long-term financial ideals

45% would use tax refunds for bills or debt, 77% rely on short-term financial strategies like Buy Now Pay Later for essentials, 39% are turning to AI to guide money decisions, and 73% want to know someone’s exact financial situation before the third date

CHICAGO and ATLANTA, April 21, 2026 /PRNewswire/ — Almost 80% of Gen Z and Millennials use ‘survival spending’ to get by in today’s economy with nearly half of Gen Z and Millennials indicating they would use a tax refund to cover bills or pay down debt, 77% relying on short-term financial strategies like Buy Now, Pay Later for essentials, and 39% turning to AI to guide money decisions. As part of its annual Financial Practice Week, Beyond Finance partnered with leading financial literacy nonprofit Operation HOPE to examine how young Americans are actually managing money, finding a clear break from traditional financial practice as they cope with the current economic landscape.

The research challenges the idea that younger generations are abandoning financial responsibility. Instead, it shows a generation actively adapting, making decisions that prioritize immediate needs, flexibility, and informed tradeoffs. While 7 in 10 say wealth-building feels out of reach, their actions tell a more defining story: Financial strategy today is less about getting ahead and more about staying in control. From how they allocate income to how they seek advice — including 73% who want full financial transparency before the third date — Gen Z and Millennials are building financial practices grounded in adaptability, prioritization, and real-world decision-making.

These additional findings follow recent Financial Literacy Month news on the rise of ‘survival spending,’ and give us a closer look at how Gen Z and Millennials are actually managing money, making tradeoffs, and navigating financial decisions day to day.

A Shift Toward Immediate Financial Priorities

Tax refunds used for survival, not splurging: 45% would put the money toward bills or debt, and less than 4% would spend it on travel or leisure.

‘Survival spending’ has become a financial strategy: Nearly 77% report using tactics like Buy Now, Pay Later for essentials, reflecting a shift toward short-term financial management.

Side hustles are now part of the baseline financial plan: 71% say additional income is necessary just to keep up.

Experiences over savings: 59% say spending on meaningful experiences today feels more practical than saving for long-term goals that seem increasingly out of reach, with 65% feeling uncertain whether traditional retirement planning will deliver real security.

Redefining Financial Practices

Peer-to-Peer learning on the rise: Financial practice is becoming more social. Gen Z is now more likely to consult social media experts (24%) than they are their parents (21%) to refine their money strategies.

Financial silence is waning: The practice of “financial silence” is disappearing, with 73% of respondents wanting to know someone’s exact financial situation before the third date. 

The Rise of Real-Time Financial Decision-Making

AI is becoming a financial co-pilot: 39% are already using AI to budget or inform financial decisions, often running “what if” scenarios before taking action.

Hybrid decision-making is emerging as the norm: Many are combining AI insights with human advice, creating more personalized, responsive approaches to money management.

Digital tools are reshaping engagement: 16% use apps that gamify saving and spending, reinforcing financial habits through continuous interaction.

“Gen Z and Millennials aren’t failing at money. The system they inherited has changed, and they’re responding in real time,” said Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance. “What we’re seeing is a generation shifting from long-term financial ideals to daily financial practices, such as using windfalls to stabilize, leaning on tools like AI to make decisions, and prioritizing what’s immediately within their control. That adaptability isn’t a weakness — it’s a new form of financial resilience.”

Despite these challenges, younger generations remain highly engaged, adapting their behaviors and redefining what financial success looks like in today’s environment.

“Every generation must answer the economic test of its time, and this generation is no different. Gen Z and Millennials are not walking away from success. They are searching for a model that speaks to their lived reality, their struggle, and their hope. The old rules alone cannot carry them where they need to go. We must give them something deeper than theory. We must restore their sense of unlimited possibility, backed with vision, tools, and a pathway. At Operation HOPE, we believe financial literacy is the new civil rights issue of our time. And our calling is to help this generation move from uncertainty to confidence, from surviving to thriving, and from financial stress to lasting wealth—so they can build not just a living, but a future,” said John Hope Bryant, founder, chairman, and CEO of Operation HOPE.

Redefining Hope for a New Financial Reality

Held during the last week of Financial Literacy Month, Beyond Finance’s Financial Practice Week is an initiative designed to help people reconnect with their financial power by building personalized, emotionally grounded practices. To examine your money mindset further, explore a money management guide from Beyond Finance and then take Operation HOPE’s quizzes, AI video training, and micro-courses.

This survey was commissioned by Beyond Finance in collaboration with Operation HOPE, and conducted by QuestionPro, a third-party research company, from March 16 – 18, 2026, with a collective sample of 2,000 Millennial (born 1981 to 1996) and Gen Z adults (born 1997-2008) Americans. An executive summary of the findings can be found here. Full research findings are available upon request.

About Beyond Finance

Beyond Finance, LLC, is the nation’s largest debt consolidation company. In its commitment to providing clients with a personalized approach to move beyond debt, Beyond Finance provides simple and transparent solutions that help consumers lower their eligible monthly payments, reduce the impact of interest, and reach a debt-free life sooner. Beyond Finance holds an A+ rating with the Better Business Bureau and has been awarded with multiple recognitions for its commitment to clients: Organization of the Year – The Business Intelligence Group’s Excellence in Customer Service Award, Gold Stevie Award for Outstanding Customer Service Department, Banking Tech Award – Financial Wellness Champion, Best In Biz Gold Award for top Customer Service Team, and 3 ConsumerAffairs’ “Buyer’s Choice Awards.” Beyond Finance has offices in Chicago, Atlanta, and Houston. For more information, visit BeyondFinance.com.

About Operation HOPE, Inc.

Since 1992, Operation HOPE has been moving America from civil rights to “silver rights” with the mission of making free enterprise and capitalism work for the underserved—disrupting poverty for millions of low and moderate-income youth and adults across the nation. Through its community uplift model, HOPE Inside, which received the 2016 Innovator of the Year recognition by American Banker magazine, Operation HOPE has served more than 4 million individuals and directed more than $4.2 billion in economic activity into disenfranchised communities—turning check-cashing customers into banking customers, renters into homeowners, small business dreamers into small business owners, minimum wage workers into living wage consumers, and uncertain disaster victims into financially empowered disaster survivors. For more information visit OperationHOPE.org. Follow the HOPE conversation on TwitterFacebookInstagram, or LinkedIn.

View original content to download multimedia:https://www.prnewswire.com/news-releases/almost-80-of-gen-z-and-millennials-use-survival-spending-302747513.html

SOURCE Beyond Finance

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Sidekick Health Expands Its Intelligent Care Platform with MSK, Advancing Its Solutions for Rising Risk and Multi-Condition Care Complexity

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The new program joins 24+ conditions plus medication support in one platform, giving health plans and employers a single solution for their most complex and costliest populations

NEW YORK, April 21, 2026 /PRNewswire/ — Sidekick Health, a digital health innovation company, today announced the launch of its musculoskeletal (MSK) health program and pain management support. These new, clinician-backed resources are available alongside 24+ conditions spanning cardiometabolic, oncology, behavioral health, women’s health, inflammation and immunology, discharge management, and medication support — all within a single platform.

More than half of Americans live with two or more chronic conditions, and MSK is one of the most common, affecting more than one in three adults and accounting for nearly 10% of national medical spending — insufficient MSK intervention can lead to overutilization, surgery, and opioid dependence. Importantly, MSK conditions don’t happen in a silo. With the launch of this program, Sidekick is positioned to support MSK and pain alongside cardiovascular disease, diabetes, mental health and menopause, delivering a multi-condition approach that’s designed to address rising risk, utilization, and ultimately the total cost of care.

“MSK has been one of the most consistent asks from health plan partners and their members. This launch aims to close that gap and positions us to better address the needs of our payer partners and their members — from multi-condition management to medication support to physical rehabilitation — in one solution.” said Travis Parkinson, President, Healthcare & Life Sciences, Sidekick Health.

The program approaches MSK support and rehabilitation from multiple angles, both physical and mental. It aims to transform how individuals manage MSK pain by shifting focus to functional restoration, while the pain management support layer combines cognitive behavioral therapy (CBT), mindfulness, and pain neuroscience education, designed to help members reduce medication reliance and build lasting self-management skills.

It was built from the ground up in collaboration with doctors of physical therapy (DPTs), clinical experts, and practicing clinicians, and incorporates key elements targeting rising risk, utilization, and quality metrics for health plans, multi-condition complexity for employers, and cost of care across all stakeholders:

Fall-risk mitigation with targeted exercises supporting joint and muscle health and strength that scale to meet member abilityPelvic floor support aimed to address lower back and hip pain and improve bladder controlPain management support available alongside MSK and other conditions, vital as patients work toward ending the cycle of disability, easing emotional distress, and improving quality of life

The program was developed in collaboration with MOBĒ, a whole-person condition management company, whose health plan and employer clients will have access to the program at launch through MOBE Missions, powered by Sidekick’s platform.

“What makes MSK particularly complex to support is how it interacts with other conditions and treatments. Approximately 75% of MOBĒ participants have an MSK condition, live with four or more chronic conditions, and utilize three or four more chronic medications from multiple prescribers, making integrated, cross-condition support a necessary feature for safe and sustained improvement,” said Leslie Helou PharmD, Senior Vice President of Health Outcomes Strategy at MOBĒ.

Most health plans are managing rising risk and complexity — in their growing proportion of multi-chronic health profiles and care management workflows. Sidekick’s platform simplifies this complexity and delivers real-time risk signals to deliver against organizational, clinical, and financial priorities.

“We’ve built a companion that can follow a person through their entire health journey — not just the condition they were most recently diagnosed with. Adding MSK isn’t a feature update. It’s just one more step as we deliver the intelligent care infrastructure health plans have been asking for.” said Tryggvi Thorgeirsson, co-founder and CEO, Sidekick Health.

About Sidekick Health

Sidekick Health is an intelligent care company. Its AI-powered solutions span cardiometabolic, musculoskeletal, oncology, behavioral health, women’s health, hospital discharge management, and inflammation and immunology conditions, and deliver lifestyle, medication, and care management support. Sidekick works with health insurers, employers, and pharmaceutical companies, and develops regulated prescription digital therapeutics designed to improve patient outcomes, enhance clinical efficiency, and reduce the cost of care.

Media Contact
Manda Bertrand
Press@sidekickhealth.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/sidekick-health-expands-its-intelligent-care-platform-with-msk-advancing-its-solutions-for-rising-risk-and-multi-condition-care-complexity-302748222.html

SOURCE Sidekick Health

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