10:23 AM EDT, 03/27/2025 (MT Newswires) -- Kyndryl ( KD ) shares declined about 11% in recent Thursday trading after short-seller Gotham City Research alleged that the company manipulates adjusted earnings before interest, taxes, depreciation and amortization and adjusted free cash flow.

Gotham City claimed the manipulation aims to make it appear that the company generates profits and cash flow. "In reality, [Kyndryl ( KD )] generates losses and burns cash," the short seller said.

Gotham City added that the company's earnings will be pressured "far below" consensus for 2025 and 2026 amid "higher incremental" IBM (IBM) cost of services.

As a result, Gotham City alleged Kyndryl's ( KD ) shares are worth between $4.71-$11.50 and $0 per share, or 67% to 100% below its current levels.

Kyndryl ( KD ) didn't immediately respond to a request for comment from MT Newswires.

Price: 30.36, Change: -3.71, Percent Change: -10.88