Company: ALIT
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001809104-25-000062
Chunk: 347

Company: Alight, Inc. / Delaware
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1A
Chunk 347
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Adjusted EBITDA From Continuing Operations and Adjusted EBITDA Margin From Continuing Operations

Adjusted EBITDA From Continuing Operations is defined as earnings before interest, taxes, depreciation and intangible amortization adjusted for the impact of certain non-cash and other items that we do not consider in the evaluation of ongoing operational performance. Adjusted EBITDA Margin From Continuing Operations is defined as Adjusted EBITDA From Continuing Operations divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margin From Continuing Operations are non-GAAP financial measures used by management and our stakeholders to provide useful supplemental information that enables a better comparison of our performance across periods as well as to evaluate our core operating performance. A reconciliation of Adjusted EBITDA From Continuing Operations to Net Income (Loss) From Continuing Operations is as follows:

Year Ended December 31,(in millions)202420232022Net Income (Loss) From Continuing Operations (1)$(140)$(317)$(140)Interest expense103 131 121 Income tax expense (benefit)(8)(20)16 Depreciation115 92 72 Intangible amortization280 281 278 EBITDA From Continuing Operations350 167 347 Share-based compensation76 139 164 Transaction and integration expenses (2)82 29 19 Restructuring63 73 46 (Gain) Loss from change in fair value of financial instruments(57)10 (38)(Gain) Loss from change in fair value of tax receivable agreement34 118 (41)Other8 1 (1)Adjusted EBITDA From Continuing Operations$556 $537 $496 Revenue$2,332 $2,386 $2,207 Adjusted EBITDA Margin From Continuing Operations (3)23.8 %22.5 %22.5 %

(1)Adjusted EBITDA excludes the impact of discontinued operations. Comparable periods have been recast to exclude these impacts.

(2)Transaction and integration expenses primarily relate to acquisition and divestiture activities.

(3)Adjusted EBITDA Margin From Continuing Operations is defined as Adjusted EBITDA From Continuing Operations as a percentage of revenue.

Revenue Disaggregation and Gross Profit

Adjusted gross profit is defined as revenue less cost of services adjusted for depreciation, amortization and share-based compensation. Adjusted gross profit margin percent is defined as adjusted gross profit divided by revenue. Management uses adjusted gross profit and adjusted gross