Company: ALIT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001809104-25-000175
Chunk: 131

Company: Alight, Inc. / Delaware
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 131
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 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 $171 million for the three months ended March 31, 2025 compared to $182 million for the prior year period. The decrease of $11 million was driven by a decrease in revenue and increases in costs associated with funding growth of current and future revenues, partially offset by lower expenses related to productivity initiatives. Employer Solutions adjusted gross profit for the three months ended March 31, 2025 decreased $8 million to $200 million from $208 million in the prior year period, primarily driven by a decrease in revenue and increases in costs associated with funding growth of current and future revenues, partially offset 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