Yahoo Finance

• Total Revenue: $548 million.

• Adjusted EBITDA: $118 million.

• Free Cash Flow: $44 million for the quarter.

• Recurring Revenue: Comprised nearly 95% of total revenue.

• Non-Recurring Project Revenues: Down $10 million or 26%.

• Adjusted Gross Profit: $200 million for the quarter.

• Cash and Cash Equivalents: $223 million at quarter end.

• Total Debt: $2 billion.

• Net Leverage Ratio: 3.1 times.

• Shareholder Returns: $41 million returned via share buybacks and dividends.

• Share Buyback Authorization Remaining: $261 million.

• Interest Expense Reduction: $10 million annually due to term loan repricing.

• 2025 Revenue Under Contract: 92% or $2.2 billion.

• Full Year Revenue Outlook: $2.32 billion to $2.39 billion.

• Full Year Adjusted EBITDA Outlook: $620 million to $645 million.

• Full Year Adjusted EPS Outlook: $0.58 to $0.64.

• Full Year Free Cash Flow Outlook: $250 million to $285 million.

• Warning! GuruFocus has detected 2 Warning Sign with ALIT.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Alight Inc (NYSE:ALIT) reported first-quarter revenue of $548 million, in line with expectations and demonstrating strong execution of their strategy.

• The company reaffirmed its financial outlook for 2025, indicating confidence in achieving its revenue and profitability targets.

• Alight Inc (NYSE:ALIT) has a strong pipeline, up roughly 30%, reflecting robust opportunities in core admin space and solutions like leaves and navigation.

• The company successfully renewed contracts with several top clients, including Starbucks and Baxter, showcasing strong client retention and confidence.

• Alight Inc (NYSE:ALIT) is making significant progress in leveraging AI and automation, with nearly 80% of clients using AI in some capacity, enhancing client value and operational efficiency.

Negative Points

• Non-recurring project revenues were down by 26%, reflecting continued weakness in discretionary projects and M&A activities.

• Market volatility and macroeconomic uncertainties could elongate client decision-making processes, potentially impacting project timelines.

• Assets managed through financial advisors, which generate fees, could face pressure from a protracted market downturn, affecting a small portion of the wealth business.

• The company remains cautious about participant counts and volumes, which could be impacted by changes in employment levels, although historically these impacts have lagged.

• Alight Inc (NYSE:ALIT) is navigating a challenging macro environment, which could affect client behavior and decision-making, although no material shifts have been observed yet.