Alight, Inc. Reports $548 Million Revenue in Q1 2025, Net Loss of $25 Million

Alight, Inc. reported a revenue of $548 million for the first quarter of 2025, a decrease of 2% from $559 million in the same period last year. The decline was attributed to lower project revenues and a decrease in net commercial activity. Recurring revenues, which are a significant portion of the company's income, fell slightly by $1 million to $520 million. The company's gross profit also decreased to $171 million from $182 million, reflecting the impact of reduced revenues and increased costs associated with growth initiatives.

In terms of profitability, Alight recorded a net loss of $25 million for the quarter, compared to a loss of $116 million in the prior year. The loss from continuing operations before taxes improved to $20 million from $148 million, primarily due to lower selling, general, and administrative expenses, as well as gains from changes in the fair value of financial instruments. The effective tax rate for the quarter was 15%, down from 18% in the previous year, influenced by non-deductible expenses and tax credits.

Operationally, Alight has been focusing on restructuring efforts following the divestiture of its Professional Services segment in July 2024. The company is currently implementing a strategic transformation program aimed at optimizing its back-office infrastructure and reducing costs. This initiative has incurred approximately $140 million in expenses to date. Additionally, Alight has authorized a share repurchase program, with $261 million remaining for future buybacks, and paid a quarterly dividend of $0.04 per share, totaling $21 million.

As of March 31, 2025, Alight's total assets stood at $7.913 billion, down from $8.193 billion at the end of 2024. The company reported cash and cash equivalents of $223 million, a decrease from $343 million. The total liabilities decreased to $3.680 billion from $3.880 billion, reflecting a reduction in accounts payable and accrued liabilities. Alight's employee headcount remains stable, and the company continues to leverage its Alight Worklife platform to enhance employee engagement and deliver integrated human capital management solutions.

Looking ahead, Alight anticipates continued challenges in the market but remains focused on executing its strategic initiatives to drive growth and improve operational efficiency. The company expects to realize annual savings of over $75 million from its ongoing restructuring efforts, which are projected to be completed within the next fifteen months.