Company: ALIT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037820
Chunk: 93

Company: Alight, Inc. / Delaware
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 93
---
 months ended June 30, 2025 as compared to $1,097 million for the prior year period. The overall decrease of $21 million was primarily driven by decreases in project revenue and Net Commercial Activity.

Gross Profit to Adjusted Gross Profit Reconciliation for the Three and Six Months Ended June 30, 2025 Compared to the Three and Six Months Ended June 30, 2024

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 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 June 30,Six Months Ended June 30,(in millions)2025202420252024Gross Profit$176 $167 $347 $349 Add: stock-based compensation2 3 5 8 Add: depreciation and amortization27 26 53 47 Adjusted Gross Profit$205 $196 $405 $404 Gross Profit Margin33.3 %31.0 %32.2 %31.8 %Adjusted Gross Profit Margin38.8 %36.4 %37.6 %36.8 %

Employer Solutions gross profit was $176 million for the three months ended June 30, 2025 compared to $167 million for the prior year period. The increase of $9 million was driven by lower expenses related to productivity initiatives. Employer Solutions adjusted gross profit for the three months ended June 30, 2025 increased $9 million to $205 million from $196 million in the prior year period, primarily driven by lower expenses related to productivity initiatives.

Employer Solutions gross profit was $347 million for the six months ended June 30, 2025 compared to $349 million for the prior year period. The decrease of $2 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 remained consistent for the six months ended June 30, 2025, increasing $1 million to $405 million from $404 million in the prior year period