Company: ALIT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001809104-25-000175
Chunk: 75

Company: Alight, Inc. / Delaware
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 75
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Transaction and integration expenses (2)3 17 Restructuring4 15 (Gain) Loss from change in fair value of financial instruments(8)21 (Gain) Loss from change in fair value of tax receivable agreement9 55 Other1 — Adjusted EBITDA From Continuing Operations$118 $116 Revenue$548 $559 Adjusted EBITDA Margin From Continuing Operations (3)21.5 %20.8 %

(1)Adjusted EBITDA excludes the impact of discontinued operations. Comparable periods have been recast to exclude these impacts.

(2)Transaction and integration expenses primarily relate to acquisition and divestiture activities.

(3)Adjusted EBITDA Margin From Continuing Operations is defined as Adjusted EBITDA From Continuing Operations as a percentage of revenue.

Employer Solutions Results of Operations for the Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024

Revenue Disaggregation

Three Months Ended March 31,($ in millions)20252024Employer Solutions RevenueRecurring$520 $521 Project28 38 Total Employer Solutions Revenue$548 $559 

Employer Solutions revenue was $548 million for the three months ended March 31, 2025 as compared to $559 million for the prior year period. The overall decrease of $11 million was primarily driven by decreases in recurring revenues from lower project revenue and Net Commercial Activity.

Gross Profit to Adjusted Gross Profit Reconciliation

Adjusted gross profit is defined as revenue less cost of services adjusted for depreciation, amortization and share-based compensation. Adjusted gross profit margin percent is defined as adjusted gross profit divided by revenue. Management uses adjusted gross profit and adjusted gross profit margin percent as key measures in making financial, operating and planning decisions and in evaluating our performance. We believe that presenting adjusted gross profit and 

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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(in millions)March 31, 2025March 31, 2024Gross Profit$171 $182 Add: stock-based compensation3 5 Add: depreciation and amortization26 21 Adjusted Gross Profit$200 $208 Gross Profit Margin31.2 %32.6 %Adjusted Gross Profit Margin36.5 %37.2 %

Employer Solutions gross profit was $