# Alight, Inc. / Delaware (ALIT) Informational only - not investment advice. CIK: 0001809104 SIC: 7389 Services-Business Services, NEC SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7389 Services-Business Services, NEC](/industry/7389/) Latest 10-K filed: 2026-02-24 SEC page: https://www.sec.gov/edgar/browse/?CIK=1809104 Filing source: https://www.sec.gov/Archives/edgar/data/1809104/000162828026011108/alit-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-24 · accession 0001628280-26-011108 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001809104.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 2,262,000,000 USD | 2025 | verified | | Net income | -3,097,000,000 USD | 2025 | verified | | Assets | 4,568,000,000 USD | 2025 | verified | | Free cash flow | 250,000,000 USD | 2025 | computed | | Net margin | -136.91% | 2025 | computed | | Operating margin | -136.60% | 2025 | computed | | Revenue YoY | -3.00% | 2025 | computed | | ROE | -296.65% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | ALIT | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | -136.9% | 5.8% | 0 | 59 | | Operating margin | -136.6% | 9.2% | 0 | 56 | | Revenue growth | -3.0% | 8.4% | 7 | 58 | | FCF margin | 11.1% | 14.2% | 37 | 58 | | ROE | -296.6% | 8.7% | 0 | 52 | | ROA | -67.8% | 2.9% | 0 | 59 | | Liabilities / equity | 3.37 | 1.52 | 74 | 54 | | Current ratio | 1.31 | 1.34 | 46 | 57 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7389 Services-Business Services, NEC, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 2262000000 | USD | 2025 | 2026-02-24 | | Net income | -3097000000 | USD | 2025 | 2026-02-24 | | Assets | 4568000000 | USD | 2025 | 2026-02-24 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001809104.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 2,552,000,000 | 2,728,000,000 | | 2,207,000,000 | 2,386,000,000 | 2,332,000,000 | 2,262,000,000 | | Net income | | | -35,000,000 | -62,000,000 | -345,000,000 | -157,000,000 | -3,097,000,000 | | Operating income | 265,000,000 | 147,000,000 | | -94,000,000 | -81,000,000 | -90,000,000 | -3,090,000,000 | | Gross profit | | | | 686,000,000 | 810,000,000 | 794,000,000 | 765,000,000 | | Diluted EPS | | | -0.08 | -0.14 | -0.70 | -0.29 | -5.87 | | Operating cash flow | | | | 286,000,000 | 386,000,000 | 252,000,000 | 360,000,000 | | Capital expenditures | | | | 131,000,000 | 140,000,000 | 121,000,000 | 110,000,000 | | Dividends paid | | | | 0.00 | 0.00 | 21,000,000 | 86,000,000 | | Share buybacks | | | | 12,000,000 | 40,000,000 | 167,000,000 | 65,000,000 | | Assets | | 6,956,000,000 | 10,988,000,000 | 11,235,000,000 | 10,782,000,000 | 8,193,000,000 | 4,568,000,000 | | Liabilities | | 6,273,000,000 | 6,060,000,000 | 6,146,000,000 | 6,040,000,000 | 3,880,000,000 | 3,522,000,000 | | Stockholders' equity | | 683,000,000 | 4,140,000,000 | 4,439,000,000 | 4,462,000,000 | 4,309,000,000 | 1,044,000,000 | | Cash and cash equivalents | | 506,000,000 | 372,000,000 | 228,000,000 | 324,000,000 | 343,000,000 | 273,000,000 | | Free cash flow | | | | 155,000,000 | 246,000,000 | 131,000,000 | 250,000,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | -2.81% | -14.46% | -6.73% | -136.91% | | Operating margin | 10.38% | 5.39% | | -4.26% | -3.39% | -3.86% | -136.60% | | Return on equity | | | -0.85% | -1.40% | -7.73% | -3.64% | -296.65% | | Return on assets | | | -0.32% | -0.55% | -3.20% | -1.92% | -67.80% | | Liabilities / equity | | 9.18 | 1.46 | 1.38 | 1.35 | 0.90 | 3.37 | | Current ratio | | 1.25 | 1.16 | 1.20 | 1.27 | 1.42 | 1.31 | ## As-reported value updates 14 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/ALIT/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001809104.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | -0.08 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | -0.14 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | -0.14 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 813,000,000 | -48,000,000 | -0.10 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 960,000,000 | -162,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 559,000,000 | -114,000,000 | -0.21 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 538,000,000 | 23,000,000 | 0.04 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 555,000,000 | -74,000,000 | -0.14 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 680,000,000 | 8,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 548,000,000 | -25,000,000 | -0.05 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 528,000,000 | -1,073,000,000 | -2.03 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 533,000,000 | -1,067,000,000 | -2.02 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 653,000,000 | -932,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 534,000,000 | -19,000,000 | -0.04 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 511,000,000 | -10,000,000 | -0.38 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from ALIT's latest 10-K: [/company/ALIT/business/](/company/ALIT/business/). ## Risk Factors Verbatim Item 1A Risk Factors from ALIT's latest 10-K: [/company/ALIT/risk-factors/](/company/ALIT/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1809104/000162828026052636/alit-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-08-04 Report date: 2026-06-30 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and related notes which are included elsewhere in this Quarterly Report on Form 10-Q and with the Annual Report. In addition to historical information, the following discussion contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results could differ materially as a result of the factors discussed in "Item 1A. Risk Factors" in our Annual Report. See "Forward-Looking Statements" in this Quarterly Report on Form 10-Q. BUSINESS Overview Alight is a technology-enabled services company delivering human capital management solutions to many of the world’s largest and most complex organizations. This includes the implementation and administration of employee benefits (e.g. health, wealth and leaves) solutions. Alight’s numerous solutions and services are utilized year-round by employees and their family members in support of their overall health, wealth and wellbeing goals. Participants can access their solutions digitally, including through a mobile application on Alight Worklife®, our intuitive, cloud-based employee engagement platform. Through Alight Worklife, the Company believes it is defining the future of employee benefits by providing an enterprise level, integrated offering designed to drive better outcomes for organizations and individuals. We aim to be the pre-eminent employee experience partner by providing personalized experiences that help employees make the best decisions for themselves and their families about their health, wealth and wellbeing. At the same time, we help employers tackle their biggest people and business challenges by helping them understand prevalence, trends and risks to generate better outcomes for the future, such as improved employee productivity and retention, while also realizing a return on their people investment. Our data, analytics and AI allow us to deliver actionable insights that drive measurable outcomes, such as healthcare claims savings, for companies and their people. Business Combination On July 2, 2021 (the “Closing Date”), Alight Holding Company, LLC (the "Predecessor" or "Alight Holdings") completed a business combination (the "Business Combination") with a special purpose acquisition company. On the Closing Date, pursuant to the Business Combination Agreement, the special purpose acquisition company became a wholly owned subsidiary of Alight, Inc. (“Alight”, the “Company”, “we” “us” “our” or the “Successor”). As of June 30, 2026, Alight owned approximately 99% of the economic interest in the Predecessor, had 100% of the voting power and controlled the management of the Predecessor. The non-voting ownership percentage held by noncontrolling interest was less than 1% as of June 30, 2026. Divestiture On July 12, 2024, the Company, completed the previously announced sale (the “Transaction”) of the “Divested Business” entities affiliated with H.I.G. Capital, L.L.C. (collectively, “Buyer”), pursuant to the terms of the Stock and Asset Purchase Agreement (the “Purchase Agreement”), dated as of March 20, 2024. Under the terms of the Purchase Agreement, the Buyer agreed to acquire the Divested Business for total consideration of up to $1.2 billion, in the form of (1) $1.0 billion in cash (the “Closing Cash Consideration”) payable at the closing of the transactions (the “Closing”) contemplated by the Purchase Agreement, (2) a note with an aggregate principal amount of $50 million, and an initial fair value of $35 million as of July 12, 2024 issued at Closing (the “Seller Note”) by an indirect parent of Buyer (the “Note Issuer”) and (3) contingent upon the financial performance of the Divested Business for the 2025 fiscal year, a note with an aggregate principal amount of up to $150 million (the “Additional Seller Note”) and an initial fair value of $43 million as of July 12, 2024 to be issued by the Note Issuer. The Seller Note has a stated interest rate of 8.0% which is expected to mature in July 2030. Reverse Stock Split At Alight's 2026 Annual Meeting of Stockholders held on June 10, 2026, stockholders approved a reverse stock split of Alight's outstanding common stock and a corresponding decrease in the number of authorized shares of each class and series of common stock (the "Reverse Stock Split"). On June 10, 2026, the Company's Board of Directors determined to effectuate the Reverse Stock Split at a ratio of 1-for-20. The Reverse Stock Split became effective as of Tuesday, June 30, 2026, at 5:00 p.m. Eastern Time (the "Effective Time"). Alight’s Class A Common Stock began trading on a split-adjusted basis on the NYSE under the existing symbol (ALIT) when the market opened on Wednesday, July 1, 2026. Proportionate adjustments were also made to Alight’s outstanding equity-based awards and equity plans as well as to the outstanding limited liability company units of Alight Holdings in accordance with the terms of the applicable agreements. All issued and outstanding common stock, share price, authorized share, weighted average shares outstanding, earnings 33 (loss) per share, share-based compensation awards, outstanding Alight Holdings units and per share amounts contained in this Quarterly Report on Form 10-Q have been adjusted retroactively to reflect the Reverse Stock Split for all periods presented. EXECUTIVE SUMMARY OF FINANCIAL RESULTS The following table sets forth our historical results of operations for the periods indicated below: [[GREPCENT_TABLE]] [["","Three Months Ended June 30,","","Six Months Ended June 30,"],["(in millions)","2026","","2025","","2026","","2025"],["Revenue","$","511","","","$","528","","","$","1,045","","","$","1,076"],["Cost of services, exclusive of depreciation and amortization","337","","","325","","","684","","","676"],["Depreciation and amortization","32","","","27","","","63","","","53"],["Gross Profit","142","","","176","","","298","","","347"],["Operating Expenses"],["Selling, general and administrative","109","","","130","","","214","","","234"],["Depreciation and intangible amortization","73","","","73","","","146","","","148"],["Goodwill impairment","\u2014","","","983","","","\u2014","","","983"],["Total Operating expenses","182","","","1,186","","","360","","","1,365"],["Operating Income (Loss) From Continuing Operations","(40)","","","(1,010)","","","(62)","","","(1,018)"],["Other (Income) Expense"],["(Gain) Loss from change in fair value of financial instruments","\u2014","","","28","","","\u2014","","","20"],["(Gain) Loss from change in fair value of tax receivable agreement","(46)","","","23","","","(65)","","","32"],["Interest expense","24","","","22","","","48","","","44"],["Other (income) expense, net","1","","","(7)","","","\u2014","","","(18)"],["Total Other (income) expense, net","(21)","","","66","","","(17)","","","78"],["Income (Loss) From Continuing Operations Before Taxes","(19)","","","(1,076)","","","(45)","","","(1,096)"],["Income tax expense (benefit)","(9)","","","(3)","","","(16)","","","(6)"],["Net Income (Loss) From Continuing Operations","(10)","","","(1,073)","","","(29)","","","(1,090)"],["Net Income (Loss) From Discontinued Operations, Net of Tax","\u2014","","","(1)","","","\u2014","","","(9)"],["Net Income (Loss)","(10)","","","(1,074)","","","(29)","","","(1,099)"],["Net income (loss) attributable to noncontrolling interests","\u2014","","","(1)","","","\u2014","","","(1)"],["Net Income (Loss) Attributable to Alight, Inc.","$","(10)","","","$","(1,073)","","","$","(29)","","","$","(1,098)"]] [[/GREPCENT_TABLE]] REVIEW OF RESULTS Key Components of Our Continuing Operations Revenue Our clients’ demand for our services ultimately drives our revenues. We generate primarily all of our revenue, which is highly recurring, from fees for services provided from contracts across all solutions, which is primarily based on a contracted fee charged per participant per period (e.g., monthly or annually, as applicable). Our contracts typically have three to five-year terms for ongoing services with mutual renewal options. The majority of the Company’s revenue is recognized over time when control of the promised services is transferred, and the customers simultaneously receive and consume the benefits of our services. Payment terms are consistent with industry practice. We calculate growth rates for each of our solutions in relation to recurring revenues and revenues from project work. One of the components of our growth in recurring revenues is the increase in net commercial activity which reflects items such as client wins and losses (“Net Commercial Activity”). We define client wins as sales to new clients and sales of new solutions to existing clients. We define client losses as instances where clients do not renew or terminate their arrangements in relation to individual solutions or all of the solutions that we provide. We use annual revenue retention rates as an important measure to manage our business. We calculate annual revenue retention on a gross basis by identifying the clients from whom we generated 34 revenue in the prior year and determining what percentage of that revenue is generated from those same clients for the same solutions in the subsequent year. Cost of Services, exclusive of Depreciation and Amortization Cost of services, exclusive of depreciation and amortization includes compensation-related and vendor costs directly attributable to client-related services and costs related to application development and client-related infrastructure. Depreciation and Amortization Depreciation and amortization expenses include the depreciation and amortization related to our hardware, software and application development. Depreciation and amortization may increase or decrease in absolute dollars in future periods depending on the future level of capital investments in hardware, software and application development. Selling, General and Administrative Selling, general and administrative expenses include compensation-related costs for administrative and management employees, system and facilities expenses, and costs for external professional and consulting services. Depreciation and Intangible Amortization Depreciation and intangible amortization expenses consist of charges relating to the depreciation of the property and equipment used in our business and the amortization of acquired customer-related and contract based intangible assets and technology related intangible assets. Depreciation and intangible amortization may increase or decrease in absolute dollars in future periods depending on the future level of capital investments in hardware and other equipment as well as amortization expense associated with future acquisitions. Goodwill impairment Goodwill impairment consists of charges relating to Goodwill. We review goodwill for impairment annually on October 1st and more frequently if events or changes in circumstances indicate that an impairment may exist. If the carrying value of the reporting unit exceeds its fair value, the fair value of the reporting unit’s goodwill is calculated and an impairment loss equal to the excess is recorded. (Gain) Loss from Change in Fair Value of Financial Instruments (Gain) loss from change in fair value of financial instruments includes the impact of the revaluation to fair value at the end of each reporting period for the Seller Earnouts contingent consideration and the Additional Seller Note. (Gain) Loss from Change in Fair Value of Tax Receivable Agreement (Gain) loss from change in fair value of Tax Receivable Agreement ("TRA") includes the impact of the revaluation to fair value at the end of each reporting period. Interest Expense Interest expense primarily includes [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1809104/000162828026011108/alit-20251231.htm Complete FY 2025 MD&A: /company/ALIT/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-24 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. This discussion includes forward-looking statements. See ‘Disclaimer Regarding Forward-Looking Statements’ for certain cautionary information regarding forward-looking statements and ‘Risk Factors’ in Item 1A. of this Annual Report for a list of factors that could cause actual results to differ materially from those predicted in those statements. This discussion includes references to non-GAAP financial measures as defined in the rules of the SEC. We present such non-GAAP financial measures as we believe such information is of interest to the investment community because it provides additional meaningful methods of evaluating certain aspects of the Company’s operating performance from period to period on a basis that may not be otherwise apparent under U.S. generally accepted accounting principles (“U.S. GAAP”), and these provide a measure against which our businesses may be assessed in the future. Our methods of calculating these measures may differ from those used by other companies and therefore comparability may be limited. These financial measures should be viewed in addition to, not in lieu of, the consolidated financial statements for the year ended December 31, 2025. See ‘Non-GAAP Financial Measures’ below for further discussion. BUSINESS Overview Alight is a technology-enabled services company delivering human capital management solutions to many of the world’s largest and most complex organizations. This includes the implementation and administration of employee benefits (e.g. health, wealth and leaves) solutions. Alight’s numerous solutions and services are utilized year-round by employees and their family members in support of their overall health, wealth and wellbeing goals. Participants can access their solutions digitally, including through a mobile application on Alight Worklife®, our intuitive, cloud-based employee engagement platform. Through Alight Worklife, the Company believes it is defining the future of employee benefits by providing an enterprise level, integrated offering designed to drive better outcomes for organizations and individuals. We aim to be the pre-eminent employee experience partner by providing personalized experiences that help employees make the best decisions for themselves and their families about their health, wealth and wellbeing. At the same time, we help employers tackle their biggest people and business challenges by helping them understand prevalence, trends and risks to generate better outcomes for the future, such as improved employee productivity and retention, while also realizing a return on their people investment. Our data, analytics and AI allow us to deliver actionable insights that drive measurable outcomes, such as healthcare claims savings, for companies and their people. Business Combination On July 2, 2021 (the “Closing Date”), Alight Holding Company, LLC (the "Predecessor" or "Alight Holdings") completed a business combination (the "Business Combination") with a special purpose acquisition company. On the Closing Date, pursuant to the Business Combination Agreement, the special purpose acquisition company became a wholly owned subsidiary of Alight, Inc. (“Alight”, the “Company”, “we” “us” “our” or the “Successor”). As of December 31, 2025, Alight owned approximately 99% of the economic interest in the Predecessor, had 100% of the voting power and controlled the management of the Predecessor. The non-voting ownership percentage held by noncontrolling interest was less than 1% as of December 31, 2025. Divestiture On July 12, 2024, the Company, completed the previously announced sale (the “Transaction”) of the “Divested Business” entities affiliated with H.I.G. Capital, L.L.C. (collectively, “Buyer”), pursuant to the terms of the Stock and Asset Purchase Agreement (the “Purchase Agreement”), dated as of March 20, 2024. Under the terms of the Purchase Agreement, the Buyer agreed to acquire the Divested Business for total consideration of up to $1.2 billion, in the form of (1) $1.0 billion in cash (the “Closing Cash Consideration”) payable at the closing of the transactions (the “Closing”) contemplated by the Purchase Agreement, (2) a note with an aggregate principal amount of $50 million, and an initial fair value of $35 million as of July 12, 2024 issued at Closing (the “Seller Note”) by an indirect parent of Buyer (the “Note Issuer”) and (3) contingent upon the financial performance of the Divested Business for the 2025 fiscal year, a note with an aggregate principal amount of up to $150 million (the “Additional Seller Note”) and an initial fair value of $43 million as of July 12, 2024 to be issued by the Note Issuer. The Seller Note has a stated interest rate of 8.0%. The Company incurred higher operating expenses in 2024 as a result of professional fees paid in conjunction with the Transaction. 32 EXECUTIVE SUMMARY OF FINANCIAL RESULTS The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand the results of operations and financial condition of Alight. This MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and the accompanying Notes to Financial Statements (Part II, Item 8 of this Form 10-K). This section generally discusses the results of our operations for the year ended December 31, 2025 compared to the year ended December 31, 2024. For a discussion of the year ended December 31, 2024 compared to the year ended December 31, 2023, please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025, which is incorporated herein by reference. The following table sets forth our historical results of operations for the periods indicated below: [[GREPCENT_TABLE]] [["","","","Year Ended December 31,"],["(in millions)","","","","","2025","","2024","","2023"],["Revenue","","","","","$","2,262","","","$","2,332","","","$","2,386"],["Cost of services, exclusive of depreciation and amortization","","","","","1,386","","","1,442","","","1,504"],["Depreciation and amortization","","","","","111","","","96","","","72"],["Gross Profit","","","","","765","","","794","","","810"],["Operating Expenses"],["Selling, general and administrative","","","","","435","","","585","","","590"],["Depreciation and intangible amortization","","","","","296","","","299","","","301"],["Goodwill impairment","","","","","3,124","","","\u2014","","","\u2014"],["Total Operating expenses","","","","","3,855","","","884","","","891"],["Operating Income (Loss) From Continuing Operations","","","","","(3,090)","","","(90)","","","(81)"],["Other (Income) Expense"],["(Gain) Loss from change in fair value of financial instruments","","","","","(1)","","","(57)","","","10"],["(Gain) Loss from change in fair value of tax receivable agreement","","","","","(93)","","","34","","","118"],["Interest expense","","","","","92","","","103","","","131"],["Other (income) expense, net","","","","","(26)","","","(22)","","","(3)"],["Total Other (income) expense, net","","","","","(28)","","","58","","","256"],["Income (Loss) From Continuing Operations Before Taxes","","","","","(3,062)","","","(148)","","","(337)"],["Income tax expense (benefit)","","","","","16","","","(8)","","","(20)"],["Net Income (Loss) From Continuing Operations","","","","","(3,078)","","","(140)","","","(317)"],["Net Income (Loss) From Discontinued Operations, Net of Tax","","","","","(21)","","","(19)","","","(45)"],["Net Income (Loss)","","","","","(3,099)","","","(159)","","","(362)"],["Net income (loss) attributable to noncontrolling interests","","","","","(2)","","","(2)","","","(17)"],["Net Income (Loss) Attributable to Alight, Inc.","","","","","$","(3,097)","","","$","(157)","","","$","(345)"]] [[/GREPCENT_TABLE]] REVIEW OF RESULTS Key Components of Our Continuing Operations Revenue Our clients’ demand for our services ultimately drives our revenues. We generate primarily all of our revenue, which is highly recurring, from fees for services provided from contracts across all solutions, which is primarily based on a contracted fee charged per participant per period (e.g., monthly or annually, as applicable). Our contracts typically have three to five-year terms for ongoing services with mutual renewal options. The majority of the Company’s revenue is recognized over time when control of the promised services is transferred, and the customers simultaneously receive and consume the benefits of our services. Payment terms are consistent with industry practice. We calculate growth rates for each of our solutions in relation to recurring revenues and revenues from project work. One of the components of our growth in recurring revenues is the increase in net commercial activity which reflects items such as client wins and losses (“Net Commercial Activity”). We define client wins as sales to new clients and sales of new solutions to existing clients. 33 We define client losses as instances where clients do not renew or terminate their arrangements in relation to individual solutions or all of the solutions that we provide. We use annual revenue retention rates as an important measure to manage our business. We calculate annual revenue retention on a gross basis by identifying the clients from whom we generated revenue in the prior year and determining what percentage of that revenue is generated from those same clients for the same solutions in the subsequent year. Cost of Services, exclusive of Depreciation and Amortization Cost of services, exclusive of depreciation and amortization includes compensation-related and vendor costs directly attributable to client-related services and costs related to application development and client-related infrastructure. Depreciation and Amortization Depreciation and amortization expenses include the depreciation and amortization related to our hardware, software and application development. Depreciation and amortization may increase or decrease in absolute dollars in future periods depending on the future level of capital investments in hardware, software and application development. Selling, General and Administrative Selling, general and administrative expenses include compensation-related costs for administrative and management employees, system and facilities expenses, and costs for external professional and consulting services. Depreciation and Intangible Amortization Depreciation and intangible amortization expenses consist of charges relating to the depreciation of the property and equipment used in our business and the amortization of acquired customer-related and contract based intangible assets and technology related intangible assets. Depreciation and intangible amortization may increase or decrease in absolute dollars in future periods depending on the future level of capital investments in hardware and other equipment as well as amortization expense associated with future acquisitions. Goodwill impairment Goodwill impairment consists of charges relating to Goodwill. We review goodwill for impairment annually on October 1st and more frequently if events or changes in circumstances indicate that an impairment may exist. If the carrying value of the reporting unit exceeds its fair value, the fair value of the reporting unit’s goodwill is calculated and an impairment loss equal to the excess is recorded. (Gain) Loss from Change in Fair Value of Financial Instruments (Gain) loss from change in fair value of financial instruments includes the impact of the revaluation to fair value at the end of each reporting period for the Seller Earnouts contingent consideration and the Additional Seller Note. ( [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/ALIT/mda/fy2025/ All MD&A years: /company/ALIT/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/ALIT/mda/fy2024/): filed 2025-02-27; accession 0001809104-25-000062 (https://www.sec.gov/Archives/edgar/data/1809104/000180910425000062/alit-20241231.htm) - [FY 2023 MD&A](/company/ALIT/mda/fy2023/): filed 2024-02-29; accession 0000950170-24-022978 (https://www.sec.gov/Archives/edgar/data/1809104/000095017024022978/alit-20231231.htm) - [FY 2022 MD&A](/company/ALIT/mda/fy2022/): filed 2023-03-01; accession 0000950170-23-005480 (https://www.sec.gov/Archives/edgar/data/1809104/000095017023005480/alit-20221231.htm) - [FY 2021 MD&A](/company/ALIT/mda/fy2021/): filed 2022-03-10; accession 0000950170-22-003360 (https://www.sec.gov/Archives/edgar/data/1809104/000095017022003360/alit-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 7389 Services-Business Services, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/ALIT.md · JSON record: /company/ALIT.json · verified financials: /company/ALIT/financials.json / /company/ALIT/financials.csv · machine TOC for the whole site: /llms.txt