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/Mis Actual Consensu

s s

Estimate

Q2 Beat $528 mln $525.10

Revenue mln (7

Analysts

)

Q2 Meet $0.1 $0.1 (7

Adjusted Analysts

EPS )

Q2 Net -$1.07

Income bln

Q2 Miss $127 mln $127.90

Adjusted mln (7

EBITDA Analysts

)

Q2 Gross $176 mln

Profit

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 ( ALIT ) 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:

(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.)