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Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting
12. Segment Reporting
We currently operate under one reportable segment, Employer Solutions. Employer Solutions is driven by our Alight Worklife platform, and includes integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management and retiree healthcare.
The Company’s reportable segment has been determined using a management approach, which is consistent with the basis and manner in which the Company’s chief operating decision maker (“CODM”) uses financial information for the purposes of allocating resources and evaluating performance. The Company’s Chief Executive Officer is its CODM. The CODM evaluates the performance of the Company based on Revenue and Net Income (Loss) From Continuing Operations.
The CODM also uses Revenue and Net Income (Loss) From Continuing Operations to manage and evaluate our business, make planning decisions, and as performance measures for Company-wide incentive compensation plans. These key financial measures provide an additional view of our operational performance over the long-term and provide useful information that we use in order to maintain and grow our business. The Company does not report assets by reportable segments as this information is not reviewed by the CODM on a regular basis.
Information regarding the Company’s reportable segment is as follows (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Revenue
Recurring$492 $493 $1,012 $1,014 
Project36 45 64 83 
Total Revenue$528 $538 $1,076 $1,097 
Less (1)
Cost of sales - Technology (2)$76 $82 $152 $164 
Cost of sales - Delivery, Customer Care and Other (3)247 260 519 529 
Stock Based Compensation2 3 5 8 
Depreciation and Amortization27 26 53 47 
Total Gross Profit$176 $167 $347 $349 
Selling, General, and Administrative (4)91 111 188 219 
Restructuring36 18 40 33 
Stock Based Compensation3 17 6 40 
Depreciation and Intangible Amortization73 73 148 149 
Goodwill impairment983 — 983 — 
Interest expense22 33 44 64 
Other segment items (5)41 (81)28 (31)
Net Income (Loss) From Continuing Operations$(1,073)$(4)$(1,090)$(125)
(1) - The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2) - Cost of sales - Technology is primarily attributable to cost related to application development and client-related infrastructure.
(3) - Cost of sales - Delivery, Customer Care and Other is primarily attributable to costs related personnel and vendors providing services to support our client base and client participants.
(4) - Selling, General, and Administrative expenses excludes restructuring, stock based compensation and depreciation and intangible amortization and primarily include compensation-related costs for administrative and management employees, system and facilities expense, and costs for external professional and consulting services.
(5) - Other segment items - includes gain/loss from change in fair value of financial instruments, gain/loss from change in fair value of tax receivable agreement, other (income) expense, net and income taxes.
There was no single client who accounted for more than 10% of the Company’s revenues in any of the periods presented.