Alight(ALIT) - 2025 Q1 - Quarterly Results

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]