Company: ALIT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037820
Chunk: 86

Company: Alight, Inc. / Delaware
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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 for additional information.

Results of Continuing Operations for the Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024

Revenue 

Revenues were $1,076 million for the six months ended June 30, 2025, as compared to $1,097 million for the prior year period. The decrease of $21 million, or 1.9%, was driven by lower project revenue and Net Commercial Activity. We experienced lower than expected bookings in the first half of 2025 which is expected to impact revenue in the second half of 2025.

Recurring revenues for the six months ended June 30, 2025 decreased by $2 million, or 0.2%, from $1,014 million in the prior year period to $1,012 million, primarily driven by lower Net Commercial Activity.

Cost of Services, exclusive of Depreciation and Amortization 

Cost of services, exclusive of depreciation and amortization, decreased $25 million, or 3.6%, for the six months ended June 30, 2025 as compared to the prior year period. The decrease was primarily driven by lower revenues and savings realized in conjunction with productivity initiatives.

Depreciation and Amortization

Depreciation and amortization expenses increased by $6 million, or 12.8%, as compared to the prior year period, primarily driven by capitalized software.

Selling, General and Administrative

Selling, general and administrative expenses decreased $58 million, or 19.9%, for the six months ended June 30, 2025 as compared to the prior year period. The decrease was driven by a reduction in compensation expenses primarily related to non-cash share-based awards and lower professional fees incurred related to the sale and separation of the Divested business, partially offset by higher restructuring charges. 

Depreciation and Intangible Amortization

Depreciation and intangible amortization expenses decreased by $1 million, or 0.7%, and were consistent with the prior year period.

Goodwill Impairment

We identified an impairment in the Health Solutions reporting unit and recorded a $983 million non-cash goodwill impairment charge for the six months ended June 30, 2025. There was no impairment recognized for the six months ended June 30, 2024. 

Change in Fair Value of Financial Instruments

There was a $20 million loss related to the change in the fair value of financial instruments for the six months ended June