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Sep 30, 2025
Alight Q3 2025 Earnings Report
Alight reported its third quarter 2025 results, with revenue decreasing by 4.0% to $533 million, primarily due to lower project revenue and commercial activity. Despite a net loss driven by a significant goodwill impairment charge, the company saw improvements in gross profit and adjusted EBITDA.
Key Takeaways
Alight's third quarter of 2025 was marked by a 4.0% decrease in revenue to $533 million, largely influenced by reduced project revenue and the finalization of a commercial agreement related to a 2024 divestiture. The company reported a substantial net loss of $1,055 million, primarily due to a $1,338 million non-cash goodwill impairment charge. However, adjusted EBITDA improved to $138 million from $118 million in the prior year, and adjusted diluted EPS increased to $0.12.
Revenue for Q3 2025 decreased by 4.0% to $533 million compared to $555 million in Q3 2024.
The company reported a net loss of $1,055 million, primarily due to a $1,338 million non-cash goodwill impairment charge.
Adjusted EBITDA improved to $138 million from $118 million in the prior year period, with an adjusted EBITDA margin of 25.9%.
Adjusted diluted earnings per share increased to $0.12 from $0.09 in the prior year period.
Revenue by Segment
Forward Guidance
Alight provided its business outlook for the full year 2025, projecting revenue between $2,252 million and $2,282 million, adjusted EBITDA between $595 million and $620 million, and adjusted diluted EPS between $0.54 and $0.58. Free cash flow is expected to be between $225 million and $250 million.
Positive Outlook
- Projected full-year 2025 revenue of $2,252 million to $2,282 million.
- Anticipated adjusted EBITDA for 2025 between $595 million and $620 million.
- Expected adjusted diluted EPS for 2025 in the range of $0.54 to $0.58.
- Forecasted free cash flow for 2025 between $225 million and $250 million.
- Continued focus on AI and automation investments to strengthen competitive advantages.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- The company did not provide GAAP financial measures on a forward-looking basis, citing unreasonable effort.
- The probable significance of unavailable GAAP information for forward-looking measures could be material to future results.
Revenue & Expenses
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Avg. Return Before/After Earnings
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