Company: ALIT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037820
Chunk: 6

Company: Alight, Inc. / Delaware
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 6
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ated Statement of Comprehensive Income (Loss).

35

Income (Loss) From Continuing Operations Before Taxes

Loss from continuing operations before taxes was $1,076 million for the three months ended June 30, 2025 as compared to loss from continuing operations before taxes of $2 million for the three months ended June 30, 2024. The increase in loss was primarily attributable to the $983 million non-cash goodwill impairment charge, the non-operating fair value remeasurements of financial instruments and the change in fair value of the TRA, partially offset by lower selling, general and administrative expenses, lower interest expense as a result of the debt pay down and other income recorded in conjunction with the TSA entered into with the purchaser of the Divested Business.

Income Tax Expense (Benefit)

Income tax benefit was $3 million for the three months ended June 30, 2025, as compared to an income tax expense of $2 million for the prior year period. The effective tax rate of 0% for the three months ended June 30, 2025 was lower than the 21% U.S. statutory corporate income tax rate primarily due to the Company’s non-deductible expenses, tax credits, changes in valuation allowance, and certain non-recurring items including non-deductible goodwill impairment. The effective tax rate of (100)% for the three months ended June 30, 2024 was lower than the 21% U.S. statutory corporate income tax rate primarily due to the Company’s non-deductible expenses, tax credits, and changes in valuation allowance. See Note 7 “Income Taxes” within the Condensed Consolidated Financial Statements 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