Alight(ALIT) - 2025 Q3 - Quarterly Results

Revenue Performance - Revenue for Q3 2025 decreased by 4.0% to $533 million, down from $555 million in Q3 2024[3] - Revenue for the nine months ended September 30, 2025, was $1,609 million, down from $1,652 million in 2024, reflecting a decrease of approximately 2.6%[28] - Total revenue for the three months ended September 30, 2025, was $533 million, a decrease of 4% compared to $555 million in the same period of 2024[37] - Recurring revenue for the nine months ended September 30, 2025, was $1,501 million, down from $1,518 million in 2024, reflecting a decline of 1%[37] Profitability Metrics - Gross profit increased to $178 million with a gross profit margin of 33.4%, compared to $174 million and 31.4% in the prior year[4] - Adjusted EBITDA improved to $138 million, up from $118 million in the previous year[4] - Adjusted EBITDA from continuing operations for the nine months ended September 30, 2025, was $383 million, up from $339 million in 2024, reflecting an increase of approximately 12.9%[28] - Adjusted EBITDA from continuing operations for the three months ended September 30, 2025, increased to $138 million, up from $118 million in 2024, representing a growth of 17%[37] - Adjusted gross profit for the three months ended September 30, 2025, was $206 million, an increase from $200 million in 2024, marking a growth of 3%[35] - Adjusted gross profit margin for the nine months ended September 30, 2025, was 38.0%, up from 36.6% in 2024[37] Net Income and Loss - Net loss for Q3 2025 was $1,055 million, significantly higher than a net loss of $44 million in Q3 2024, primarily due to a non-cash goodwill impairment charge of $1,338 million[4] - Net income from continuing operations for the nine months ended September 30, 2025, was a loss of $2,145 million, compared to a loss of $169 million for the same period in 2024[27] - Goodwill impairment charges for the nine months ended September 30, 2025, amounted to $2,321 million, significantly impacting net income[29] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, were $205 million, with total debt at $2,010 million[9] - Cash provided by operating activities for the nine months ended September 30, 2025, was $236 million, compared to $134 million in 2024, indicating a year-over-year increase of approximately 76.1%[27] - Free cash flow from continuing operations for the nine months ended September 30, 2025, was $151 million, compared to a negative $20 million in 2024[36] - Cash, cash equivalents, and restricted cash from continuing operations at the end of the period was $432 million, down from $562 million at the end of the same period in 2024[27] Shareholder Actions - The company repurchased $25 million of common stock under its existing share repurchase program[4] Future Guidance - Future revenue guidance for 2025 is projected between $2,252 million and $2,282 million[13] - Adjusted diluted earnings per share for 2025 is expected to be between $0.54 and $0.58[13] Asset and Liability Management - Total assets decreased from $8,193 million as of December 31, 2024, to $5,538 million as of September 30, 2025, representing a decline of approximately 32.3%[25] - Total liabilities decreased from $3,880 million as of December 31, 2024, to $3,534 million as of September 30, 2025, a reduction of about 8.9%[25] Client Acquisition - New client wins include MetLife, Cintas, and Mass General Brigham[4] Capital Expenditures - Capital expenditures for the nine months ended September 30, 2025, were $85 million, a decrease from $95 million in 2024[36] BPaaS Revenue - BPaaS revenue for the three months ended September 30, 2025, was $123 million, slightly up from $121 million in 2024[37]