Alight, Inc. / DelawareALIT
Alight, Inc. / Delaware Segments Disclosure
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. Our previous Other nonreportable segment was comprised of our former Hosted business, which was wound down in 2023 and had no activity during the years ended December 31, 2025 and 2024.
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):
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Employer Solutions | Other | Total | Employer Solutions | Other | Total | Employer Solutions | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recurring | $ | 2,108 | $ | — | $ | 2,108 | $ | 2,135 | $ | — | $ | 2,135 | $ | 2,141 | $ | 26 | $ | 2,167 | |||||||||||||||||||||||||||||||||||
| Project | 154 | — | 154 | 197 | — | 197 | 219 | — | 219 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Revenue | $ | 2,262 | $ | — | $ | 2,262 | $ | 2,332 | $ | — | $ | 2,332 | $ | 2,360 | $ | 26 | $ | 2,386 | |||||||||||||||||||||||||||||||||||
Less (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales - Technology (2) | $ | 303 | $ | — | $ | 303 | $ | 313 | $ | — | $ | 313 | $ | 323 | $ | — | $ | 323 | |||||||||||||||||||||||||||||||||||
Cost of sales - Delivery, Customer Care and Other (3) | 1,076 | — | 1,076 | 1,115 | — | 1,115 | 1,125 | 26 | 1,151 | ||||||||||||||||||||||||||||||||||||||||||||
| Stock Based Compensation | 7 | — | 7 | 14 | — | 14 | 30 | — | 30 | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and Amortization | 111 | — | 111 | 96 | — | 96 | 70 | 2 | 72 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Gross Profit | $ | 765 | $ | — | $ | 765 | $ | 794 | $ | — | $ | 794 | $ | 812 | $ | (2) | $ | 810 | |||||||||||||||||||||||||||||||||||
Selling, General, and Administrative (4) | 368 | — | 368 | 460 | — | 460 | 408 | — | 408 | ||||||||||||||||||||||||||||||||||||||||||||
| Restructuring | 55 | — | 55 | 63 | — | 63 | 73 | — | 73 | ||||||||||||||||||||||||||||||||||||||||||||
| Stock Based Compensation | 12 | — | 12 | 62 | — | 62 | 109 | — | 109 | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and Intangible Amortization | 296 | — | 296 | 299 | — | 299 | 301 | — | 301 | ||||||||||||||||||||||||||||||||||||||||||||
| Goodwill impairment | 3,124 | — | 3,124 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 92 | — | 92 | 103 | — | 103 | 131 | — | 131 | ||||||||||||||||||||||||||||||||||||||||||||
Other segment items (5) | (104) | — | (104) | (53) | — | (53) | 105 | — | 105 | ||||||||||||||||||||||||||||||||||||||||||||
| Net Income (Loss) From Continuing Operations | $ | (3,078) | $ | — | $ | (3,078) | $ | (140) | $ | — | $ | (140) | $ | (315) | $ | (2) | $ | (317) | |||||||||||||||||||||||||||||||||||
(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.
Revenue by geographic location is as follows (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| United States | $ | 2,236 | $ | 2,304 | $ | 2,358 | |||||||||||
| International | 26 | 28 | 28 | ||||||||||||||
| Total | $ | 2,262 | $ | 2,332 | $ | 2,386 | |||||||||||
There was no single client who accounted for more than 10% of the Company’s revenues in any of the periods presented.
Long-lived assets, representing Fixed assets, net and Operating lease right of use assets, by geographic location is as follows (in millions):
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| United States | $ | 392 | $ | 429 | |||||||
| International | 22 | 9 | |||||||||
| Total | $ | 414 | $ | 438 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 10, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.