Company: ALIT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-049916
Chunk: 159

Company: Alight, Inc. / Delaware
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 159
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 adjusted gross profit margin percent is useful to investors as it eliminates the impact of certain non-cash expenses and allows a direct comparison between periods.

Three Months Ended September 30,Nine Months Ended September 30,(in millions)2025202420252024Gross Profit$178 $174 $525 $523 Add: stock-based compensation— 3 5 11 Add: depreciation and amortization28 23 81 70 Adjusted Gross Profit$206 $200 $611 $604 Gross Profit Margin33.4 %31.4 %32.6 %31.7 %Adjusted Gross Profit Margin38.6 %36.0 %38.0 %36.6 %

Employer Solutions gross profit was $178 million for the three months ended September 30, 2025 compared to $174 million for the prior year period. The increase of $4 million was driven by lower compensation expenses and productivity savings. Employer Solutions adjusted gross profit for the three months ended September 30, 2025 increased $6 million to $206 million from $200 million in the prior year period, primarily driven by lower compensation expenses and productivity savings.

Employer Solutions gross profit was $525 million for the nine months ended September 30, 2025 compared to $523 million for the prior year period. The increase of $2 million was driven by lower expenses related to productivity initiatives. Employer Solutions adjusted gross profit increased $7 million for the nine months ended September 30, 2025, to $611 million from $604 million in the prior year period, primarily driven 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.

Nine Months Ended(in millions)September 30,2025September 30,2024Non-GAAP free cash flow reconciliation:Cash provided by operating activities - continuing operations$236 $75 Capital expenditures(85)(95)Non-GAAP free cash flow$151 $(20)

Net cash provided by operating activities was $236 million for the nine months ended September 30, 2025 as compared to $75 million for the nine months ended