Alight (ALIT) Financials

Alight, Inc. (NYSE: ALIT) has experienced notable fluctuations in financial performance over the last several years, as seen in its quarterly financial statements through Q1 2025. Here are the key trends and drivers observed from the income statements, cash flow statements, and balance sheets from Q3 2022 to Q1 2025:

• Operating revenue showed solid quarterly figures, peaking above $680 million in Q4 2024, and remains around $540 million-$550 million in recent quarters, indicating stable top-line operations.
• Gross profit levels consistently remain strong, typically around $170 million to $270 million per quarter, reflecting effective cost management relative to revenue.
• Net cash from continuing operating activities has generally been positive in recent quarters, with robust inflows of $73 million in Q1 2025 and over $100 million in prior quarters, supporting operational liquidity.
• The company has maintained a sizable asset base in the range of $7.9 billion to $10.7 billion over recent years, primarily driven by goodwill and intangible assets, indicating substantial investments in acquisitions or intellectual property.

• Depreciation and amortization expenses remain sizable (often around $70 million to $80 million for depreciation and $60 million to $79 million for amortization), showing ongoing capital usage and asset amortization consistent with company scale.
• Interest expenses fluctuate but mostly remain at around $20 million to $33 million per quarter, reflecting the company’s leverage and debt servicing costs.
• The company’s share count has been stable with weighted average basic and diluted shares outstanding consistently around 530 to 560 million, implying no major stock issuance or buyback impacts on a per-share basis recently.
• Cash and equivalents have ranged from $183 million to $304 million historically but fell to $223 million in Q1 2025, which could indicate some cash drawdown after financing or investing activities.

• The company has recorded net losses in many recent quarters, including a $25 million loss in Q1 2025 and significant past quarterly net losses exceeding $100 million, reflecting ongoing profitability challenges.
• Operating income turned negative in Q1 2025 (-$8 million), and several quarters also showed negative operating income, suggesting rising operating costs or margin pressures despite stable revenues.
• Net income attributable to common shareholders was negative in multiple quarters, including Q1 2025 (-$25 million) and prior periods with losses over $100 million, indicating continued bottom-line weakness affecting shareholder returns.
• Total liabilities have been substantial, often between $3.6 billion and $6.2 billion, supported by long-term debt nearing $2 billion, demonstrating high leverage which may present financial risk, especially with ongoing losses.
• Net cash used in financing activities was significant in Q1 2025 (-$176 million) and other quarters, often reflecting debt repayments, equity repurchases, and dividend payments that reduce cash reserves.
• The company’s cash flows from investing activities often show substantial outflows (e.g., -$29 million in Q1 2025), which may indicate ongoing capital expenditures or acquisitions requiring significant cash resources.

Summary: Alight is generating solid revenue and gross profits but continues to struggle with profitability and incurs net losses across many quarters. While operational cash flow is positive and the asset base strong, high liabilities and persistent losses highlight financial challenges. Investors should monitor trends in operating margins, net income, and cash flow management going forward to assess the company's ability to return to profitability and maintain financial stability.