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Sep 30
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.
Alight
Alight
Alight Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.comProject Revenue
CapyFin.comBPaaS Revenue
CapyFin.com 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.
- Forward-looking statements are subject to various risks and uncertainties, including economic declines and competition.
- Risks related to cyber-attacks, security vulnerabilities, and disruptions in IT systems could impact future performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income