results, progress Today, the liquidity, XXXX focus Martin, hello, and I'd we're on year our and quarterly we're sheet our raising for to Thanks, our making outlook how our accounts. discuss fiscal balance everyone. like and
Our key progress first strong operational remarkable our reflect results on execution quarter and initiatives.
constant highest QX $X.X through signings X%. are year-over-year totaled continue higher-margin services remained And our quarter, momentum up to revenue constant services. currency, we the X% Consult has a in X% of for constant Demand currency were quarter, revenues revenue gain Kyndryl signings represented while down total XX% the billion, XX% year-over-year in in and currency. advisory and July ever. our percentage resilient, in In year-to-date our XX, decline grew the in
Consult performance Kyndryl reflects the for firms. post-spin issues services our other This in macro some outweighing are how pressuring growth opportunities
million. Our adjusted EBITDA grew $XXX XX% to year-over-year
pretax margin in EBITDA XXX increase adjusted of was Adjusted Our $XX was year-over-year year quarter. million income a $XX profit points. to XX.X%, the million, a compared prior improvement basis
year-over-year software our driving progress more than offset substantial what's increases we is and our cost XAs continued results Our on the and faced.
workplace geographic through AI, We cloud, customers' enterprise. data X and edge, needs digital applications, segments practices: network core also global our operating and through resiliency, security and address our and our and
Our including demand reflect business signings growth and signings, and security mix Consult coming to cloud, other our continues Kyndryl to apps, most with evolve AI, data of from areas.
as that full the results on have More the out position momentarily. we we earnings as year look quarter, targets generally, May delivered back to thrilled discuss to exceed we're laid I'll us in
cash flow our sheet. to Turning and balance
cash Our timing in million negative adjusted to effects. the was entirely flow $XXX free quarter, due
Our will gross negative cash in capital adjusted million, positive. million change that were asset our from dispositions. flow of $X $XXX QX adjusted not free we received does full and The flow expectation free year expenditures cash be proceeds
as year, quarter but QX stems well periods. payments in payments be In out amortized fact, from were were flow made for throughout the fiscal licenses the software accrued as in seasonality future annual QX incentive June prior that paid will in but that our cash in
result, free our flow. negative a our of the caused QX pretax flow income free As the adjusted our a to seasonal cash course reverse to provided will items that over the bridge year. from cash adjusted We be
investors, our free feedback EBITDA our we've cash flow in a on some from appendix. bridge based provided from And the to also adjusted
Our financial position remains strong.
March XX balance cash at Our $X.X was billion.
Our available combined committed $X capacity liquidity billion balance quarter nearly of facilities borrowing debt gave cash under us at end. with
was no XXXX. And maturities billion. revolving laddered quarter are debt our late Our outstanding We well net facility. XXXX under debt from at to end had our credit borrowings $X.X
target net well leverage range. within As our sits our result, a
allocation. rated by grade We in and Moody's, to Fitch no S&P. capital change our There's approach investment are
Our liquidity, remain grade investment maintain top continue to priorities be to our in reinvest strong business. and
including cash year rebalancing migrations and free systems outlays, spin-related full adjusted Our workforce will cash fund flow help required costs.
to leadership and benefits in time, capital allow and flow combined services, returning remaining initiatives Over margins our our to Kyndryl's to all shareholders, cash significantly from in ultimately our us investment grade. expand position IT XA regularly a with position free should while consider be infrastructure
In on our roughly signings the we're accounts focus an of mid-single themselves pre-spin gross than in our These following margin higher spin, XX% both pretax to and margins blueprint we initiative, margin were the the breakeven our bulk accounts signing business our digits. represented deals executing a expected roughly generating close were with of that margins revenues. paying the attention for signings accounts. Immediately the and
with all quarter combined gross digits discipline new And over pricing the last for XX pretax move the mid-XXs to a favorable months, trend. our we've to June signings The on projected engagement profit and up continuation of margins collaborative customers was that high-single for in profit. the
Importantly, what margins we've been the we've signing that agreements support full aiming fully independent, quarters is we're medium-term X in this that for. the means been
most in lower-margin, mid- reflected In single-digit only business, because be our recently signings. our deals, high revenue margins. of our pretax adjusted legacy to P&L coming fact, signed at the operating But of prevalence our from we'd pre-spin still contracts if is in multiyear
of that overall our change in post-spin towards see currently which mix will can't at But results our the time you pricing the we're margins business now shifts as more increasingly result, contracts. contracts. a higher As with full benefit
revenue XXXX, In of post contracts fact, spin. half signed about fiscal next will coming be year, our our from
we'll we digits. X/X in move XXXX, efforts, in to XXXX. most from our margins we higher-margin And We're be anticipate post-spin momentum. that will our than that when Now in post-spin turn our the the started revenue flywheel year of to high into move And the to single will reflects pretax gain for up our XX% revenue fiscal more signings. ending of fiscal March eager
our As on continue initiatives. XAs we Martin mentioned, to progress
Alliances in pretax expectation annual over time, drive supports roughly initiative revenue that million will signings, momentum income. continued $XXX and Our our our
in expenses our Delivery growth over including actions the more. driving Advanced opportunities income we've to in savings from taken. drive business, or will pretax income. practices, benefits $XXX of time is see our our pretax which cost to annual initiative equating our incremental million global Kyndryl roughly initiative we the workforce annual and drive Our Consult We're control And among to initiatives, Accounts will XA also million coming throughout through $XXX
$XXX will to time we're a central current is pretax of margins. is over growth roughly efforts these XAs our contribute Progress on our creation earnings in that million of tackling total opportunity the income. relative value annual for In source expect the magnitude then, We tremendous Kyndryl.
fiscal first on, to fiscal strong our we're build a quarter outlook raising With this for profit year.
roughly than We now $XXX at largely adjusted making software fiscal This and would our expect associated basis due basis points pretax IBM we've to margin initiatives be million, last versus we least to The the drive XXX to even the an We're that efficiency. outlook increase taken income progress We more which cost our margins an year. points to significantly face. XA compared headwinds actions a taking to but expect the XXXX. to are of increase we're raising for $XXX expand the represents and our margin larger actions XX%. adjusted basis of XXX EBITDA point have implies impact, increase we're with million XXX
our margin focus than actions of strategies savings million million and $XXX this are year. expect we our expect estate at growth. workforce at Kyndryl in initiative contribute consolidation, We all and pricing year more our this least other rebalancing, accounts $XXX profit Consult, to incremental Advanced growth contributing generate last, least to Real our Delivery to
currency, X% exchange $XX.X Our on for to outlook a be billion year-over-year translates to based continues X% to to revenue recent decline constant billion in which of $XX.X rates.
involve relationships. typically due revenue actions of These we taking negative we're with from near-term revenue to are born XXXX or year-over-year clear, business. selected transform backlog low to be ongoing primarily margin plus removing our customer were changes To scope we intentional projecting is decline fiscal the the soft
in in the a points. basis improvement least quarter, XXX we positive. adjusted at mid-single decline on expect in a revenues pretax pretax currency year-over-year and margin income constant to slightly will September low basis, digits to be the for to This represent year-over-year For of adjusted
we of positive I depreciation expense. As $XXX project mentioned, expenditures this million million roughly expect cash $XXX and net capital to of adjusted be flow fiscal year. free We about
in also our and earnings time. last primarily to We migrations This be closer incur move million of reported spin-related we expect actions. systems work, outlays so will we about rebalancing expect cash year earnings for the workforce $XXX adjusted GAAP for charges, separation-related our to over which
noncash our only year, principal amortization. stock-based and intangibles should be next fact, In adjustments noncash comp
As and over growth to and committed term, medium expansion Martin XXXX the revenue significant flow by remain cash we to calendar free returning highlighted, delivering margin growth.
We drive have plan already a game all of technology return this and progress, taken alliances, our a solid strategic to revenues. we've and our starts to game with expand costs the our manage our plan on earn steps
how discussed we've As operate. the to with paid a blueprint accounts a and our obscure gross This aggregate that mission-critical provide. we blueprint appropriately for nearly average for consists fact revenue, started which within get represent margins previously, XX% of the reflect business, north that ability we generate want of Kyndryl, we results to $XX refer strong our billion as services our to about XX% we of
roughly no was revenue other expenses margin Our losing accounts money. virtually and generating after billion gross of focused $X was SG&A
majority business opportunity addressing like accounts relationships our all our is margins. about by look make our initiative accounts customer the that Our focus of to the elements blueprint substandard generate of more
why blueprint initiative accounts. That's gap initiative a of margin major accounts our about is us. Accounts $XXX a the and on half our our priority for for only closing relies million gross between the Accounts target major us Our opportunity and focus
comes the on we accounts margins has opportunity, tremendous that have our were focused XX% toward quite our the In XXXX, X of the And our progress as to this including making ongoing we're progress increasing of over roughly fiscal making progress of our We're expect significantly part the in revenue. most margins where form as customer last relationships, accelerated situations we've months. of said, and negative. remedied margins
consistent to although a or our next few ultimately of necessary. focus been have if to that with annual the remains expect accounts something more we're pretax March XXXX million are to $XXX out willing do over our we our by addressed expectation than Only that Accounts years, rarely relationship, our When exiting will look we earnings. we initiative contribute customer XX% more
focused our our enthusiastic I and prospects. Delivery, as technology to accounts, actions Advanced short, look about efficiency, Martin, our at incredibly and our you. drive In I'm back progress alliances to
