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/Mis Actual Consensu

s s

Estimate

Q3 Miss $533 mln $544.60

Revenue mln (7

Analysts

)

Q3 Miss $0.12 $0.13 (7

Adjusted Analysts

EPS )

Q3 Net -$1.05

Income bln

Q3 Beat $138 mln $137.80

Adjusted mln (7

EBITDA Analysts

)

Q3 Gross $178 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 $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:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(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.)