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Jun 30, 2025
Alight Q2 2025 Earnings Report
Alight reported its second quarter 2025 results, with a decrease in revenue but improvements in gross profit and adjusted EBITDA, despite a significant net loss due to a goodwill impairment charge.
Key Takeaways
Alight experienced a slight revenue decrease in Q2 2025 to $528 million, primarily due to lower project revenue. Despite a substantial net loss of $1,073 million driven by a non-cash goodwill impairment, the company demonstrated improved gross profit and adjusted EBITDA, reflecting stronger underlying business operations and productivity savings.
Revenue for Q2 2025 decreased by 1.9% to $528 million compared to the prior year, mainly due to lower project revenue.
The company reported a significant net loss of $1,073 million, primarily attributable to a $983 million non-cash goodwill impairment charge related to its Health Solutions reporting unit.
Gross profit improved to $176 million (33.3% margin) from $167 million (31.0% margin) in the prior year, driven by productivity savings.
Adjusted EBITDA increased to $127 million from $105 million in the second quarter of 2024, indicating stronger core operating performance.
Revenue by Segment
Forward Guidance
Alight has refined its top-line forecast for 2025 due to deals taking longer to close, but remains confident in delivering strong profitability and cash flow aligned with its outlook, supported by a strong pipeline and high client retention rates.
Positive Outlook
- The company expects to deliver strong profitability and cash flow.
- Operational levers are within the company's control.
- Tracking to another strong year of client retention rates.
- Pipeline remains strong, particularly for deals in later stages.
- Good progress continues with prospective clients.
Challenges Ahead
- Top-line forecast refined due to deals taking longer to close.
- Temporary delay in planned growth due to current environment.
- No specific negative financial targets provided for the full year.
- Uncertainty regarding the timing of deal closures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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