Company: ALIT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001809104-25-000175
Chunk: 123

Company: Alight, Inc. / Delaware
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 123
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 the transactions (the “Closing”) contemplated by the Purchase Agreement, (2) a note with an aggregate principal amount of $50 million, and an initial fair value of $35 million as of July 12, 2024 issued at Closing (the “Seller Note”) by an indirect parent of Buyer (the “Note Issuer”) and (3) contingent upon the financial performance of the Divested Business for the 2025 fiscal year, a note with an aggregate principal amount of up to $150 million (the “Additional Seller Note”) and an initial fair value of $43 million as of July 12, 2024 to be issued by the Note Issuer. The Seller Note has a stated interest rate of 8.0%. The Company incurred higher operating expenses in 2024 as a result of professional fees paid in conjunction with the Transaction. 

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EXECUTIVE SUMMARY OF FINANCIAL RESULTS

The following table sets forth our historical results of operations for the periods indicated below:

Three Months Ended March 31,(in millions)20252024Revenue$548 $559 Cost of services, exclusive of depreciation and amortization351 356 Depreciation and amortization26 21 Gross Profit171 182 Operating ExpensesSelling, general and administrative104 146 Depreciation and intangible amortization75 76 Total Operating expenses179 222 Operating Income (Loss) From Continuing Operations(8)(40)Other (Income) Expense(Gain) Loss from change in fair value of financial instruments(8)21 (Gain) Loss from change in fair value of tax receivable agreement9 55 Interest expense22 31 Other (income) expense, net(11)1 Total Other (income) expense, net12 108 Income (Loss) From Continuing Operations Before Taxes(20)(148)Income tax expense (benefit)(3)(27)Net Income (Loss) From Continuing Operations(17)(121)Net Income (Loss) From Discontinued Operations, Net of Tax(8)5 Net Income (Loss)(25)(116)Net income (loss) attributable to noncontrolling interests— (2)Net Income (Loss) Attributable to Alight, Inc.$(25)$(114)

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