v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
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,
2026202520262025
Revenue
Recurring$471 $492 $969 $1,012 
Project40 36 76 64 
Total Revenue$511 $528 $1,045 $1,076 
Less (1)
Cost of services - Technology (2)
$75 $76 $145 $152 
Cost of services - Delivery, Customer Care and Other (3)
260 247 535 519 
Stock Based Compensation2 2 4 5 
Depreciation and Amortization32 27 63 53 
Total Gross Profit$142 $176 $298 $347 
Selling, General, and Administrative (4)
88 91 179 188 
Restructuring16 36 28 40 
Stock Based Compensation5 3 7 6 
Depreciation and Intangible Amortization73 73 146 148 
Goodwill impairment— 983 — 983 
Interest expense24 22 48 44 
Other segment items (5)
(54)41 (81)28 
Net Income (Loss) From Continuing Operations$(10)$(1,073)$(29)$(1,090)

(1)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)     Cost of services - Technology is primarily attributable to cost related to application development and client-related infrastructure.
(3)    Cost of services - 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 exclude 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 - include (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.