Company: ALIT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001809104-25-000175
Chunk: 76

Company: Alight, Inc. / Delaware
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 76
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171 million for the three months ended March 31, 2025 compared to $182 million for the prior year period. The decrease of $11 million was driven by a decrease in revenue and increases in costs associated with funding growth of current and future revenues, partially offset by lower expenses related to productivity initiatives. Employer Solutions adjusted gross profit for the three months ended March 31, 2025 decreased $8 million to $200 million from $208 million in the prior year period, primarily driven by a decrease in revenue and increases in costs associated with funding growth of current and future revenues, partially offset by lower expenses related to productivity initiatives.

Free Cash Flow Reconciliation

Free Cash Flow is defined as cash provided by operating activities net of capital expenditures. Management believes that free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to repay debt obligations, make strategic acquisitions and investments and for certain other activities such as dividends and stock repurchases.

Three Months Ended(in millions)March 31,2025March 31,2024Non-GAAP free cash flow reconciliation:Cash provided by operating activities - continuing operations$73 $92 Capital expenditures(29)(31)Non-GAAP free cash flow$44 $61 

Net cash provided by operating activities was $73 million for the three months ended March 31, 2025 as compared to $92 million for the three months ended March 31, 2024. The decrease in cash provided by operating activities was primarily due to an increase in our net working capital requirements. 

Free cash flow was $44 million for the three months ended March 31, 2025 compared to $61 million from the prior period. The decrease in free cash flow was primarily due to a decrease in cash provided from operations, partially offset by lower capital expenditures. 

LIQUIDITY AND CAPITAL RESOURCES

Executive Summary

Our primary sources of liquidity include our existing cash and cash equivalents, cash flows from operations and availability under our revolving credit facility. Our primary uses of liquidity are operating expenses, funding of our debt requirements and capital expenditures. 

We believe that our available cash and cash equivalents, cash flows from operations and availability under our revolving credit facility will be sufficient to meet our liquidity needs, including principal and interest payments on debt obligations, capital expenditures, anticipated quarterly dividend payments, payments on our TRA and anticipated working capital requirements for the foreseeable future. We believe our liquidity position at March 31,