Alight reported third‑quarter 2025 revenue of $533 million, a 4.0 % decline from $555 million in the same period last year. Recurring revenue represented 91.7 % of total sales, underscoring the company’s focus on subscription‑based services. The decline was driven by a 12 % drop in project‑based revenue, reflecting a weaker commercial pipeline.
Gross profit rose to $178 million, or 33.4 % of revenue, an improvement over the 31.4 % margin reported a year earlier. The company posted a loss from continuing operations before tax of $1.253 billion, largely due to a $1.338 billion non‑cash goodwill impairment related to the divestiture of its Payroll and Professional Services unit. Cash and cash equivalents stood at $205 million, while total debt was $2.010 billion, leaving a net debt position of $1.805 billion.
Alight’s adjusted earnings per share were $0.12, missing the consensus estimate of $0.13 by $0.01. The company also reported a diluted loss per share of $2.00, a significant deviation from the positive estimate. CEO Dave Guilmette said the company remains focused on delivering enhanced outcomes for clients, citing investments in AI and automation. CFO Jeremy Heaton noted that project revenue had reached its lowest level in years, prompting a downward revision of the 2025 revenue outlook to $2.25 billion–$2.28 billion and adjusted EBITDA guidance to $595 million–$620 million.
The goodwill impairment follows a $983 million write‑down recorded in the second quarter, indicating a pattern of asset valuation adjustments. Compared with the $44 million net loss reported in Q3 2024, the current quarter’s $1.055 billion net loss signals a sharp deterioration in profitability, largely attributable to the large impairment and a decline in project revenue.
Investors reacted negatively to the results, citing the revenue miss and the sizable goodwill impairment as key concerns. The market’s response reflected worries about the company’s valuation and the sustainability of its growth trajectory.
Alight continues to emphasize AI and automation as strategic priorities, while managing debt with a structured profile that extends maturities beyond 2028. The company’s guidance signals caution amid a weak project pipeline, but management remains confident that cost discipline and recurring revenue will support profitability in the long term.
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