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Mar 31
Alight Q1 2025 Earnings Report
Reported First Quarter 2025 Results
Key Takeaways
Alight reported a decrease in revenue for the first quarter of 2025 compared to the prior year, primarily due to lower project revenue and net commercial activity. Despite this, the company saw improvements in net loss and Adjusted EBITDA, benefiting from reduced expenses and lower interest payments. Alight reaffirmed its full-year 2025 financial outlook, citing a strong amount of projected revenue already under contract.
Revenue decreased by 2.0% to $548 million in Q1 2025.
Net loss improved significantly to $17 million compared to a $121 million net loss in Q1 2024.
Adjusted EBITDA increased to $118 million from $116 million in the prior year period.
92% of projected 2025 revenue is already under contract, providing strong visibility.
Alight
Alight
Alight Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.comProject Revenue
CapyFin.comBPaaS Revenue
CapyFin.com Forward Guidance
Alight reaffirmed its full-year 2025 financial outlook, expecting revenue between $2,318 million and $2,388 million, Adjusted EBITDA between $620 million and $645 million, Adjusted diluted EPS between $0.58 and $0.64, and free cash flow between $250 million and $285 million.
Positive Outlook
- Full-year 2025 financial outlook reaffirmed.
- Strong visibility with 92% of projected 2025 revenue under contract.
- Benefit from a long-cycle recurring business model.
- Operational levers are within control.
- Resilience of the business model.
Challenges Ahead
- Not immune to market impacts.
- Potential future events such as unexpected client volume fluctuations could impact revenue.
- Potential for early contract terminations.
- Potential for early contract renewals differing from estimates.
- Comparability of the 'Revenue Under Contract' metric may be limited compared to other companies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income