Company: ALIT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037820
Chunk: 14

Company: Alight, Inc. / Delaware
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 14
---
 of certain non-cash expenses and allows a direct comparison between periods.

Three Months Ended June 30,Six Months Ended June 30,(in millions)2025202420252024Gross Profit$176 $167 $347 $349 Add: stock-based compensation2 3 5 8 Add: depreciation and amortization27 26 53 47 Adjusted Gross Profit$205 $196 $405 $404 Gross Profit Margin33.3 %31.0 %32.2 %31.8 %Adjusted Gross Profit Margin38.8 %36.4 %37.6 %36.8 %

Employer Solutions gross profit was $176 million for the three months ended June 30, 2025 compared to $167 million for the prior year period. The increase of $9 million was driven by lower expenses related to productivity initiatives. Employer Solutions adjusted gross profit for the three months ended June 30, 2025 increased $9 million to $205 million from $196 million in the prior year period, primarily driven by lower expenses related to productivity initiatives.

Employer Solutions gross profit was $347 million for the six months ended June 30, 2025 compared to $349 million for the prior year period. The decrease of $2 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 remained consistent for the six months ended June 30, 2025, increasing $1 million to $405 million from $404 million in the prior year period.

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.

41

Six Months Ended(in millions)June 30,2025June 30,2024Non-GAAP free cash flow reconciliation:Cash provided by operating activities - continuing operations$159 $93 Capital expenditures(57)(67)Non-GAAP free cash flow$102 $26 

Net cash provided by operating activities was $159 million for the six months ended June 30, 2025 as compared to $93 million for the six