In This Article:
Human capital management provider Alight (NYSE:ALIT) beat Wall Street’s revenue expectations in Q1 CY2025, but sales fell by 2% year on year to $548 million. The company expects the full year’s revenue to be around $2.35 billion, close to analysts’ estimates. Its non-GAAP profit of $0.10 per share was in line with analysts’ consensus estimates.
Is now the time to buy Alight? Find out in our full research report.
Alight (ALIT) Q1 CY2025 Highlights:
-
Revenue: $548 million vs analyst estimates of $541.4 million (2% year-on-year decline, 1.2% beat)
-
Adjusted EPS: $0.10 vs analyst estimates of $0.10 (in line)
-
Adjusted EBITDA: $118 million vs analyst estimates of $115.4 million (21.5% margin, 2.3% beat)
-
The company reconfirmed its revenue guidance for the full year of $2.35 billion at the midpoint
-
Adjusted EPS guidance for Q2 CY2025 is $0.61 at the midpoint, above analyst estimates of $0.11
-
EBITDA guidance for the full year is $632.5 million at the midpoint, above analyst estimates of $627.2 million
-
Operating Margin: -1.5%, up from -7.2% in the same quarter last year
-
Free Cash Flow Margin: 8%, down from 11.4% in the same quarter last year
-
Market Capitalization: $2.78 billion
“Our first quarter performance met expectations and we are off to a strong start to the year,” said CEO Dave Guilmette.
Company Overview
Born from a corporate spinoff in 2017 to focus on employee experience technology, Alight (NYSE:ALIT) provides human capital management solutions that help companies administer employee benefits, payroll, and workforce management systems.
Sales Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $2.32 billion in revenue over the past 12 months, Alight is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale.
As you can see below, Alight’s revenue declined by 1.9% per year over the last five years, a tough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Alight’s recent performance shows its demand remained suppressed as its revenue has declined by 11.9% annually over the last two years.
This quarter, Alight’s revenue fell by 2% year on year to $548 million but beat Wall Street’s estimates by 1.2%.
Looking ahead, sell-side analysts expect revenue to grow 2.1% over the next 12 months. Although this projection implies its newer products and services will fuel better top-line performance, it is still below the sector average.