Alight, Inc. Reports Revenue Decline and Operating Loss in Q2 2025

Alight, Inc. reported a decline in financial performance for the second quarter of 2025, with revenues of $528 million, down from $538 million in the same period last year. For the first half of 2025, total revenues reached $1.076 billion, a decrease from $1.097 billion in the prior year. The company attributed this decline primarily to lower project revenues and reduced net commercial activity, which reflects client wins and losses. The gross profit for the quarter was $176 million, compared to $167 million in the previous year, while the gross profit margin improved to 33.3% from 31.0%.

Significant changes in the company's financials included a non-cash goodwill impairment charge of $983 million related to its Health Solutions reporting unit, which contributed to an operating loss of $1.01 billion for the quarter. This marked a stark contrast to the operating loss of $52 million reported in the same quarter of 2024. The company also experienced a loss from continuing operations before taxes of $1.076 billion, compared to a loss of $2 million in the prior year. The effective tax rate for the quarter was 0%, influenced by non-deductible expenses and the impact of the goodwill impairment.

In terms of strategic developments, Alight completed the divestiture of its Professional Services segment in July 2024, which has since been reported as discontinued operations. The company has been providing transition services to the buyer, generating $8 million in revenue for the quarter. Additionally, Alight has initiated a Post-Separation Plan aimed at optimizing operations following the divestiture, with expected restructuring costs of approximately $65 million.

Operationally, Alight's customer base remains stable, with recurring revenues for the second quarter of 2025 at $492 million, slightly down from $493 million in the previous year. The company reported a total employee headcount of approximately 6,000 as of June 30, 2025. Alight's cash and cash equivalents stood at $227 million, a decrease from $343 million at the end of 2024, while fiduciary assets were reported at $215 million.

Looking ahead, Alight anticipates challenges in achieving revenue growth due to lower-than-expected bookings in the first half of 2025, which may impact performance in the latter half of the year. The company remains focused on enhancing its operational efficiency and leveraging its Alight Worklife platform to drive better outcomes for clients and their employees.