NYSE$ALIT

Alight Solutions Inc. · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Alight reported a slight revenue decline but improved profitability in Q4 2024.

Alight's Q4 2024 revenue declined slightly by 0.3% to $680 million. However, net income turned positive at $29 million compared to a $121 million loss in the prior year period. Adjusted EBITDA increased to $217 million from $206 million, and adjusted EPS improved to $0.24 from $0.13. The company repurchased $12 million in stock and paid a $0.04 per share dividend.

  • Revenue slightly declined by 0.3% to $680 million.
  • Net income improved to $29 million from a $121 million loss in Q4 2023.
  • Adjusted EPS increased to $0.24 from $0.13.
  • BPaaS revenue grew 9.8% to $146 million, representing 21.5% of total revenue.

Headline financials

Total Revenue

$680M

Previous: $960M-29.2%
EPS (adj)

$0.24

Previous: $0.30-20.0%
Adjusted Gross Profit

$300M

No prior period
Adjusted Gross Profit Margin

44.1%

No prior period
Adjusted EBITDA

$217M

No prior period
Adjusted EBITDA Margin

31.9%

No prior period
Net Income

$29M

Previous: -$86M+133.7%
Operating Income

$44M

Previous: $21M+109.5%
Gross Profit

$271M

Previous: $369M-26.6%

Revenue & EPS history

Alight · Revenue · Quarterly

$680M

Q4 2024-29.2%vs Q4 2023
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Alight · $179M total across 1 segment · Q2 2023

  • BPaaS Revenue
    $179M+39.8%

Forward guidance

Alight expects improved revenue growth, profitability, and cash flow in 2025, despite prior contract losses.

Tailwinds

  • Projected revenue growth in the second half of 2025.
  • Adjusted EBITDA expected to increase to $620M - $645M.
  • Adjusted diluted EPS projected between $0.58 and $0.64.
  • Free cash flow expected between $250M - $285M.
  • Improved client retention rates up 8 percentage points from prior year.

Headwinds

  • Revenue growth initially impacted by contract losses from 2023 and early 2024.
  • Full benefits of retention improvements will only be realized later in 2025.
  • Macroeconomic uncertainties may impact business operations.
  • Higher restructuring costs may continue in the short term.
  • Potential fluctuations in professional service demand affecting revenue mix.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-1.5%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-3.2%

Avg return

30 days after

57%

13 / 23 earnings

Positive

+12.9%

Q3 2024

Best reaction

-39.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.7%+14.7%-9.4%
Q4 2025-39.4%-41.4%-47.9%
Q3 2025-7.1%-15.9%-24.4%
Q1 2025+7.1%+12.6%+4.4%
Q4 2024+3.7%+4.3%-9.3%
Q3 2024+12.9%+3.6%-3.4%
Q2 2024-1.6%-0.3%+4.2%
Q1 2024-17.2%-19.9%-19.3%
Q4 2023-6.9%-3.8%+3.7%
Q3 2023+10.7%+7.8%+19.7%
Q2 2023-12.6%-13.3%-21.9%
Q1 2023-5.6%-8.6%-0.6%
Q4 2022+4.5%+2.7%-9.2%
Q3 2022+11.9%+20.5%+14.8%
Q2 2022+4.4%+8.9%+1.6%
Q1 2022-8.9%-0.6%+4.3%
Q4 2021+0.3%+3.4%-0.6%
Q3 2021+6.1%-0.4%-6.5%
Q2 2021+7.1%+1.6%+25.0%
Q1 2021+1.5%+3.1%+0.2%
Q4 2020+0.3%-4.2%-2.2%
Q3 2020+1.5%+0.5%+3.2%
Q2 2020-0.9%+1.2%-0.9%
Q1 2020
Q4 2018
Q4 2017

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