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Jun 30
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.
Alight
Alight
Alight Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.comProject Revenue
CapyFin.comBPaaS Revenue
CapyFin.com 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.
- Macroeconomic and industry conditions could impact future results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income