Company: ALIT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-049916
Chunk: 4

Company: Alight, Inc. / Delaware
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 4
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 outstanding debt and, is net of interest rate swap derivative gains recognized and interest income. 

Other (Income) Expense, net

Other (income) expense, net includes non-operating expenses and income, including realized (gains) and losses from remeasurement of foreign currency transactions, and Transition Services Agreement (the "TSA") income for providing various corporate services to the Divested Business. 

Results of Continuing Operations for the Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024

Revenue 

Revenues were $533 million for the three months ended September 30, 2025 as compared to $555 million for the prior year period. The decrease of $22 million, or 4.0%, was driven by lower Net Commercial Activity, lower project revenue and  an approximately $4 million impact from the finalization of the commercial agreement related to the Transaction. The Company experienced lower than expected bookings and larger than anticipated losses from contract renewals during the first nine months of 2025, which impacted revenue growth and is also expected to impact revenue growth in the fourth quarter of 2025 and fiscal year 2026.

Recurring revenues for the three months ended September 30, 2025 decreased by $15 million, or 3.0%, from $504 million in the prior year period to $489 million, primarily driven by lower Net Commercial Activity.

35

Cost of Services, exclusive of Depreciation and Amortization 

Cost of services, exclusive of depreciation and amortization, decreased $31 million, or 8.7%, for the three months ended September 30, 2025 as compared to the prior year period. The decrease was primarily driven by lower compensation expenses, savings realized in conjunction with productivity initiatives and lower revenues.

Depreciation and Amortization

Depreciation and amortization expenses increased by $5 million, or 21.7%, as compared to the prior year period, primarily driven by capitalized software.

Selling, General and Administrative

Selling, general and administrative expenses decreased $55 million, or 38.7%, for the three months ended September 30, 2025 as compared to the prior year period. The decrease was driven by lower professional fees incurred related to the sale and separation of the Divested Business, a reduction in compensation and severance expenses and productivity savings. 

Depreciation and Intangible Amortization

Depreciation and intangible amortization expenses were consistent with the