Alight Q2 revenue beats estimates

Alight

05/08/2025 12:47

Overview

Alight Q2 revenue falls 1.9% to $528 mln, beating analyst expectations

Adjusted EPS meets analyst expectations at $0.10, adjusted EBITDA misses

Co incurs $983 mln goodwill impairment charge, impacting net income

Outlook

Alight forecasts 2025 revenue of $2,282 mln to $2,329 mln

Company expects 2025 adjusted EBITDA of $620 mln to $645 mln

Alight anticipates 2025 adjusted diluted EPS of $0.58 to $0.64

Company projects 2025 free cash flow of $250 mln to $285 mln

Result Drivers

REVENUE DECLINE - Revenue decreased 1.9% to $528 mln due to lower project revenue and net commercial activity

PRODUCTIVITY SAVINGS - Gross profit improved to $176 mln, driven by productivity savings

GOODWILL IMPAIRMENT - $983 mln non-cash goodwill impairment charge related to Health Solutions unit impacted net income

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$528 mln
$525.10 mln (7 Analysts)
Q2 Adjusted EPS
Meet
$0.1
$0.1 (7 Analysts)
Q2 Net Income
-$1.07 bln
Q2 Adjusted EBITDA
Miss
$127 mln
$127.90 mln (7 Analysts)
Q2 Gross Profit
$176 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Alight Inc is $10.00, about 48.7% above its August 4 closing price of $5.13

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBw2lwVJTa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)