Alight shares up as revenue tops estimates despite profit miss

Published 05/08/2025, 13:54
Alight shares up as revenue tops estimates despite profit miss

Investing.com -- Alight, Inc. (NYSE:ALIT) saw its shares surge 5.3% after the cloud-based human capital services provider reported second-quarter revenue that exceeded analyst expectations, despite a slight earnings miss.

The company posted revenue of $528 million for the quarter ended June 30, 2025, surpassing the analyst consensus of $523.79 million, even as revenue declined 1.9% compared to the same period last year. Adjusted earnings per share came in at $0.10, slightly below the analyst estimate of $0.11. The company’s adjusted EBITDA improved to $127 million from $105 million in the year-ago quarter.

Alight’s stock jumped on the revenue beat and the company’s guidance for fiscal year 2025, which aligned with analyst expectations. The company forecasts full-year adjusted earnings of $0.58 to $0.64 per share, compared to the consensus estimate of $0.59. Revenue guidance was set at $2.28-2.33 billion, slightly below the consensus of $2.34 billion.

"Our underlying business operations continued to strengthen during the second quarter," said CEO Dave Guilmette. "We are making important strategic progress to accelerate our client management and delivery capabilities through automation, artificial intelligence, innovation and partnerships."

The quarter was marked by a $983 million non-cash goodwill impairment charge related to the company’s Health Solutions reporting unit, resulting in a net loss of $1.07 billion compared to a $4 million loss in the prior-year period.

Alight reported strong client retention and new business wins, including expanded relationships with Thermo Fisher Scientific (NYSE:TMO), Highmark Health, and Reinsurance Group (NYSE:RGA) of America. The company also announced a new partnership with Goldman Sachs Asset Management to enhance its wealth solutions offerings.

During the quarter, Alight repurchased $20 million of common stock and paid a $0.04 per share dividend. The company ended the quarter with $227 million in cash and cash equivalents and total debt of $2.02 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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