Alight

Company profile

Technology-enabled services firm delivering human capital management (HCM) solutions to large, complex organizations.
Core focus on implementation and administration of employee benefits (health, wealth, leaves) and related services.
Client-facing platform: Alight Worklife, a cloud-based employee engagement platform that provides a unified experience for employees and employers.
Positioning: aims to be the pre-eminent employee experience partner by offering personalized, data-driven insights and services to improve health, wealth, and wellbeing outcomes and to support employer productivity and retention.

Primary revenue comes from highly recurring fees for services across solutions, typically under long-term contracts.
Contracts generally run three to five years with mutual renewal options; revenue is primarily recognized over time as control and benefits are transferred.
Pricing is typically a contracted fee charged per participant per period (e.g., monthly or annually), with payment terms aligned to industry practice.
Employer Solutions (anchored by Alight Worklife) includes:
- Integrated benefits administration
- Healthcare navigation
- Financial wellbeing
- Leave of absence management
- Retiree healthcare
Platform and data capabilities:
- Data and access across multiple human capital solutions support AI and machine learning–enabled, omnichannel engagement.
- Predictive analytics and machine learning tailor employee experiences and improve client outcomes.
Technology strategy (four layers, all under a security framework):
- Omnichannel customer experience layer (front end)
- AI and analytics layer (insights from transactional, client, and third‑party data)
- Core transaction layer (records participant decisions)
- Infrastructure layer (security, stability, performance)

Serves a broad range of clients, including Fortune 500 companies, public institutions, and mid‑market organizations.
Emphasizes long‑term client relationships and ongoing client feedback to guide R&D, services, and improvement efforts.
Revenue base is predominantly recurring and contract‑driven rather than ad hoc or project‑based.

Prior to mid‑2024, the company operated with multiple segments. On July 12, 2024, Alight completed the divestiture of the Professional Services segment and the Payroll & HCM Outsourcing business within Employer Solutions (the Divested Business).
Post‑divestiture, Alight operates under a single reportable segment: Employer Solutions.

Closing: July 12, 2024
Consideration received at closing:
- $1.0 billion in cash
- A seller note with principal of $50 million
- Contingent consideration: up to $150 million principal, with an initial fair value of $43 million
See Note 4, “Discontinued Operations,” in the Consolidated Financial Statements for additional detail.

Post‑Separation Plan (PSP) announced May 6, 2025:
- Objectives: simplify the post‑divestiture operating model, rationalize technology spend, expand use of AI and automation, and optimize real estate.
- Expected restructuring costs: approximately $65 million in pre‑tax costs, incurred over roughly 15 months from mid‑2025.
- The company acknowledges that benefits may take longer than anticipated to realize.

Headcount: as of December 31, 2025, more than 9,500 employees, with about 80% located in North America.
U.S. gender and diversity: 67% of U.S. employees identify as female; 42% identify as a minority group.
Goodwill impairment: aggregate non‑cash goodwill impairment charges of $3,124 million recorded in the year ended December 31, 2025.
Dividend and capital allocation: as of December 31, 2025, about $216 million remained under the existing share repurchase authorization. On February 19, 2026, the company announced replacement of cash dividends with other capital allocation activities.
Tax receivable agreement (TRA) and holding structure: the company has TRA obligations tied to tax benefits and related distributions from the parent; these obligations can be substantial and are sensitive to timing and tax outcomes.