Company: ALIT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001809104-25-000175
Chunk: 125

Company: Alight, Inc. / Delaware
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 125
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 change in fair value of financial instruments includes the impact of the revaluation to fair value at the end of each reporting period for the Seller Earnouts contingent consideration and the Additional Seller Note. 

(Gain) Loss from Change in Fair Value of Tax Receivable Agreement

(Gain) loss from change in fair value of Tax Receivable Agreement ("TRA") includes the impact of the revaluation to fair value at the end of each reporting period. 

Interest Expense

Interest expense primarily includes interest expense related to our outstanding debt.

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 March 31, 2025 Compared to the Three Months Ended March 31, 2024

Revenue 

Revenues were $548 million for the three months ended March 31, 2025 as compared to $559 million for the prior year period. The decrease of $11 million, or 2.0%, was driven by lower project revenue and Net Commercial Activity.

Recurring revenues for the three months ended March 31, 2025 decreased by $1 million, or 0.2%, from $521 million in the prior year period to $520 million, primarily driven by lower Net Commercial Activity.

Cost of Services, exclusive of Depreciation and Amortization 

Cost of services, exclusive of depreciation and amortization, decreased $5 million, or 1.4%, for the three months ended March 31, 2025 as compared to the prior year period. The decrease was primarily driven by lower revenues and savings realized in conjunction with productivity initiatives.

Depreciation and Amortization

Depreciation and amortization expenses increased by $5 million, or 23.8%, as compared to the prior year period, primarily driven by capitalized software.

Selling, General and Administrative

Selling, general and administrative expenses decreased $42 million, or 28.8%, for the three months ended March 31, 2025 as compared to the prior year period. The decrease was driven by a reduction in compensation expenses primarily 

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related to non-cash share-based awards, lower restructuring charges and lower professional fees incurred related to the sale and separation of the Divested business. 

Depreciation and Intangible Am