Alight Q3 revenue misses estimates

Alight

05/11/2025 12:40

Overview

Alight Q3 2025 revenue decreased 4%, missing analyst expectations

Adjusted EPS for Q3 2025 missed analyst expectations

Adjusted EBITDA for Q3 2025 exceeded analyst expectations

Outlook

Company expects 2025 revenue between $2,252 mln and $2,282 mln

Alight forecasts 2025 adjusted EBITDA of $595 mln to $620 mln

Company anticipates 2025 adjusted diluted EPS of $0.54 to $0.58

Result Drivers

REVENUE DECLINE - Revenue decreased 4% due to lower project revenue, net commercial activity, and a $4 mln impact from a commercial agreement finalization

GROSS PROFIT MARGIN - Improved to 33.4% from 31.4% due to reduced compensation expenses and productivity savings

GOODWILL IMPAIRMENT - Net loss driven by a $1,338 mln non-cash goodwill impairment charge

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$533 mln
$544.60 mln (7 Analysts)
Q3 Adjusted EPS
Miss
$0.12
$0.13 (7 Analysts)
Q3 Net Income
-$1.05 bln
Q3 Adjusted EBITDA
Beat
$138 mln
$137.80 mln (7 Analysts)
Q3 Gross Profit
$178 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 $7.00, about 61.4% above its November 4 closing price of $2.70

The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw11YK4Ma

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)