Alight, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a slight decline in revenue and ongoing challenges in profitability. For the third quarter, the company generated revenue of $555 million, a decrease of $2 million or 0.4% compared to $557 million in the same period of 2023. For the nine months, revenue totaled $1,652 million, down 3.1% from $1,704 million in the prior year. The decline in revenue was attributed to lower volumes and project revenue in the Employer Solutions segment, alongside the wind-down of Hosted business operations, although this was partially offset by an 18.6% increase in BPaaS revenue.

Gross profit for the third quarter increased to $174 million from $166 million year-over-year, while for the nine months, it decreased to $523 million from $540 million. Operating losses from continuing operations improved slightly to $(42) million for the third quarter, compared to $(45) million in the previous year, but worsened for the nine months, with losses of $(134) million compared to $(121) million in 2023. Net income from continuing operations for the third quarter was $(44) million, compared to $(40) million in 2023, while for the nine months, it improved to $(169) million from $(196) million.

Alight's total current assets decreased significantly to $1,201 million as of September 30, 2024, from $2,776 million at the end of 2023, while total assets fell to $8,271 million from $10,782 million. Total liabilities also decreased to $3,945 million from $6,040 million, contributing to a slight decline in stockholders' equity to $4,322 million from $4,462 million.

Strategically, Alight completed the sale of its Professional Services segment and Payroll & HCM Outsourcing business to Axiom Buyer, LLC on July 12, 2024, for up to $1.2 billion, which included $1 billion in cash at closing. This divestiture is expected to streamline operations and focus on core business areas. The company has also initiated a two-year strategic transformation program aimed at reducing costs, with total expenses incurred to date amounting to $133 million.

In terms of share repurchase activity, Alight repurchased 10,563,306 shares of Class A Common Stock for $75 million during the third quarter, as part of an accelerated share repurchase agreement. The company continues to maintain a strong liquidity position, with cash and cash equivalents totaling $300 million as of September 30, 2024.