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Alight(ALIT) - 2025 Q2 - Quarterly Report
2025-08-05 20:15
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________ FORM 10-Q _______________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39299 Alight, Inc. (Exact Name o ...
Alight(ALIT) - 2025 Q2 - Earnings Call Transcript
2025-08-05 13:32
Financial Data and Key Metrics Changes - Revenue for the second quarter was $528 million, with adjusted EBITDA at $127 million, reflecting an 80 basis point margin increase year-over-year [6][17] - Free cash flow for the first half increased over 30%, reaching $102 million [6][18] - Non-recurring project revenues decreased by $9 million or 20% [17] - A non-cash goodwill impairment charge of $983 million was taken due to current market valuation conditions [19] Business Line Data and Key Metrics Changes - Recurring revenue comprised over 93% of total revenue, amounting to $492 million for the quarter, with participant counts remaining flat [17] - Adjusted gross profit was $205 million, with an adjusted EBITDA margin expansion attributed to prior transformational initiatives [18] Market Data and Key Metrics Changes - The pace of Annual Recurring Revenue (ARR) bookings was slower than expected, with client expansion opportunities taking longer to close [12] - The company updated its expectations for second-half revenue, anticipating a decrease of approximately $45 million at the midpoint [23] Company Strategy and Development Direction - The company is focusing on enhancing client management and delivery capabilities through AI, automation, and strategic partnerships [7][9] - A partnership with Goldman Sachs Asset Management was announced to expand wealth offerings, viewed as a significant revenue growth opportunity [10] - The company is building a management team with both internal and external talent to strengthen competitive advantages [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a transitional year and emphasized the need for improved commercial execution to close deals [6][12] - The company remains confident in its health solutions reporting unit despite current market challenges [19] - Management expects a stronger retention rate in 2026, although they have become more cautious about second-half performance [21] Other Important Information - The company returned $42 million to shareholders through dividends and share repurchases [19] - The cash and cash equivalents balance at quarter-end was $227 million, with total debt at $2 billion [20] Q&A Session Summary Question: Sales cycle and client conversations - Management noted that client conversations are taking longer, impacting revenue timing, but they remain confident in growth opportunities [28][30] Question: Goldman Sachs partnership benefits - The partnership is expected to generate significant revenue in the future and strengthen the company's competitive positioning [33][35] Question: Revenue impact details - The $35 million revenue impact is primarily from smaller client deals being delayed, affecting start dates [40][42] Question: Sales team changes and expertise - Management emphasized the need for deep domain expertise in sales to improve execution and close more deals [44][46] Question: Salesforce hiring plans - The company is focused on hiring specialty expertise and has already brought in new talent to enhance sales capabilities [58] Question: Composition of late-stage deals - Late-stage deals are primarily from existing client relationships, with a focus on large Fortune 500 companies [61][62]
Alight(ALIT) - 2025 Q2 - Earnings Call Transcript
2025-08-05 13:30
Alight (ALIT) Q2 2025 Earnings Call August 05, 2025 08:30 AM ET Speaker0Good morning and thank you for holding. My name is Judith Van Rieder and I will be your conference operator today. Welcome to Alight's Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. As a reminder, today's call is being recorded, and a replay of the call will be available on the Investor Relations section of the company's website.And now I'd like to turn it over to Jere ...
Alight(ALIT) - 2025 Q2 - Earnings Call Presentation
2025-08-05 12:30
Financial Performance - Q2 2025 - Recurring revenue for Q2 2025 was $492 million, a decrease of 2.6% compared to the proforma adjusted Q2 2024[13] - Project revenue for Q2 2025 was $36 million, a decrease of 20% compared to Q2 2024's $45 million[13] - Total revenue for Q2 2025 was $528 million, a decrease of 4% compared to the proforma adjusted Q2 2024's $250 million[13] - Adjusted Gross Profit for Q2 2025 was $205 million, a decrease of 6.4% compared to the proforma adjusted Q2 2024's $219 million, with a margin of 38.8%, down 100 bps[13] - Adjusted EBITDA for Q2 2025 was $127 million, a decrease of 0.8% compared to the proforma adjusted Q2 2024's $128 million, but the margin increased by 80 bps to 24.1%[13] Revenue Growth Drivers & Outlook - The initial 2025 outlook for revenue from new wins was ~5-7%, which was updated to ~3.5-5.5%[16] - The initial 2025 outlook for revenue from volumes was ~0-1%, which was updated to ~0%[16] - The contract renewals are expected to have a negative impact of (6.5)% on revenue, consistent with the initial outlook[16] - The overall revenue impact is projected to be between (3)% and (1)%, with revenue between $2.282 billion and $2.329 billion[16,18] - The company has 95% of projected 2025 revenue under contract[18] FY25 Outlook - Adjusted EBITDA is projected to be between $620 million and $645 million, representing a growth of 4% to 9%[18] - Adjusted EPS is projected to be between $0.58 and $0.64, representing a growth of 2% to 12%[18] - Free Cash Flow is projected to be between $250 million and $285 million, representing a growth of 13% to 29%[18]
Alight(ALIT) - 2025 Q2 - Quarterly Results
2025-08-05 11:36
Alight Reports Second Quarter 2025 Results – Revenue of $528 million – – 95% of projected 2025 revenue under contract – Exhibit 99.1 – Key wins with Thermo Fisher Scientific, Highmark Health, Reinsurance Group of America, Incorporated (RGA) and Trinity Industries – – Announces new Wealth Solutions relationship with Goldman Sachs Asset Management – CHICAGO, IL – August 5, 2025 – Alight, Inc. (NYSE: ALIT), a leading cloud-based human capital and technology-enabled services provider, today reported results for ...
Alight (ALIT) Upgraded to Buy: Here's Why
ZACKS· 2025-07-09 17:00
Investors might want to bet on Alight, Inc. (ALIT) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual ...
Alight(ALIT) - 2025 Q1 - Quarterly Report
2025-05-08 20:44
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________ FORM 10-Q _______________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39299 Alight, Inc. (Exact Name ...
Alight, Inc. (ALIT) Lags Q1 Earnings Estimates
ZACKS· 2025-05-08 13:50
Alight, Inc. (ALIT) came out with quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -16.67%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.24, delivering a surprise of -4%.Over the last four quarters, the company has n ...
Alight(ALIT) - 2025 Q1 - Quarterly Results
2025-05-08 11:36
Revenue Performance - Revenue for Q1 2025 was $548 million, a decrease of 2.0% compared to $559 million in Q1 2024[3] - Total revenue for Q1 2025 was $548 million, a decrease of 2% from $559 million in Q1 2024[38] - Recurring revenues accounted for 94.9% of total revenue in Q1 2025[3] - Recurring revenue slightly decreased to $520 million from $521 million year-over-year[38] Profitability - Gross profit was $171 million, representing a gross profit margin of 31.2%, down from $182 million and 32.6% in the prior year[4] - Total gross profit for Q1 2025 was $171 million, down from $182 million in Q1 2024, resulting in a gross margin of 31.2%[38] - Adjusted gross profit decreased to $200 million from $208 million, with an adjusted gross margin of 36.5%[38] - Adjusted EBITDA increased to $118 million, up from $116 million year-over-year[5] - Adjusted EBITDA from continuing operations increased to $118 million in Q1 2025, up from $116 million in Q1 2024, with an adjusted EBITDA margin of 21.5% compared to 20.8%[29][30] - Free cash flow for Q1 2025 was $44 million, down from $61 million in Q1 2024, reflecting a decrease of approximately 27.9%[37] - Free cash flow from continuing operations was $44 million, down from $61 million in Q1 2024[38] Loss and Debt Management - Net loss improved to $17 million compared to a net loss of $121 million in the prior year[5] - Net income from continuing operations improved to a loss of $17 million for Q1 2025, compared to a loss of $121 million in Q1 2024, representing a 85.7% reduction in losses[28] - Total debt as of March 31, 2025, was $2,019 million, with cash and cash equivalents of $223 million[9] Operational Efficiency - Selling, general and administrative expenses decreased by $42 million compared to the prior year, primarily due to lower compensation expenses[6] - The company reported a share-based compensation expense of $6 million in Q1 2025, down from $28 million in Q1 2024, indicating a reduction of approximately 78.6%[28] - The company continues to focus on improving operational efficiency despite the revenue decline[38] Asset and Liability Management - Total assets decreased from $8,193 million as of December 31, 2024, to $7,913 million as of March 31, 2025, a decline of approximately 3.4%[26] - Total current assets decreased from $1,267 million as of December 31, 2024, to $1,062 million as of March 31, 2025, a decline of approximately 16.2%[26] - Total liabilities decreased from $3,880 million as of December 31, 2024, to $3,680 million as of March 31, 2025, a reduction of approximately 5.2%[26] - Cash and cash equivalents decreased from $343 million as of December 31, 2024, to $223 million as of March 31, 2025, a decline of approximately 35%[26] Future Outlook - The company has 92% of projected 2025 revenue under contract, indicating strong revenue visibility[10] - The company reaffirmed its full-year 2025 financial outlook, projecting revenue between $2,318 million and $2,388 million[13] Client Acquisition - New client wins included US Foods, Markel, and Delek, contributing to business growth[5] Project Revenue - BPaaS revenue increased to $126 million, up from $117 million year-over-year[38] - Project revenue decreased to $28 million from $38 million in the same quarter last year[38]
Alight: Turning Around The Corner
Seeking Alpha· 2025-03-31 16:07
I last wrote about Alight, Inc. (NYSE: ALIT ) suggesting that it was trading expensively with lackluster growth prospects. Since my last article, the stock has declined 26% with full year revenues decreasing 2.3% in 2024. Management has Amateur value investor seeking bargains in any market, with a specific focus on emerging markets. Admires great investors such as Li Lu and Peter Lynch, and am not afraid to go against the grain. Willing to buy any company at the right price, and is looking for low-risk and ...