Company: ALIT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037820
Chunk: 141

Company: Alight, Inc. / Delaware
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 141
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1,186 219 1,365 441 Operating Income (Loss) From Continuing Operations(1,010)(52)(1,018)(92)Other (Income) Expense(Gain) Loss from change in fair value of financial instruments28 (52)20 (31)(Gain) Loss from change in fair value of tax receivable agreement23 (31)32 24 Interest expense22 33 44 64 Other (income) expense, net(7)— (18)1 Total Other (income) expense, net66 (50)78 58 Income (Loss) From Continuing Operations Before Taxes(1,076)(2)(1,096)(150)Income tax expense (benefit)(3)2 (6)(25)Net Income (Loss) From Continuing Operations(1,073)(4)(1,090)(125)Net Income (Loss) From Discontinued Operations, Net of Tax(1)27 (9)32 Net Income (Loss)(1,074)23 (1,099)(93)Net income (loss) attributable to noncontrolling interests(1)— (1)(2)Net Income (Loss) Attributable to Alight, Inc.$(1,073)$23 $(1,098)$(91)

REVIEW OF RESULTS

Key Components of Our Continuing Operations

Revenue

Our clients’ demand for our services ultimately drives our revenues. We generate primarily all of our revenue, which is highly recurring, from fees for services provided from contracts across all solutions, which is primarily based on a contracted fee charged per participant per period (e.g., monthly or annually, as applicable). Our contracts typically have three to five-year terms for ongoing services with mutual renewal options. The majority of the Company’s revenue is recognized over time when control of the promised services is transferred, and the customers simultaneously receive and consume the benefits of our services. Payment terms are consistent with industry practice. We calculate growth rates for each of our solutions in relation to recurring revenues and revenues from project work. One of the components of our growth in recurring revenues is the increase in net commercial activity which reflects items such as client wins and losses (“Net Commercial Activity”). We define client wins as sales to new clients and sales of new solutions to existing clients. We define client losses as instances where clients do not renew or terminate their arrangements in relation to individual solutions or all of the solutions that we provide. We use annual revenue retention rates as an