Alight Inc. (ALIT), a provider of human capital and business solutions, now calculates segment profit as earnings before everything except cost of sales. Previously, Alight reported its measure of segment profit as earnings before interest, taxes, depreciation and intangible amortization adjusted for the impact of certain non-cash and other items the Company does not consider in the evaluation of ongoing operational performance.

In its latest quarterly filing, Alight disclosed a new segment profitability metric that took effect January 1, 2023:

“...the Company's measure of segment profit is gross profit, which is defined as revenue less cost of services.”

The change inflates segment profitability.

In the prior year’s first quarter, Alight reported total segment profit of $142 million. In its Q1 2023 filing, according to DuDil, Alight’s prior year quarterly result appears much more profitable:

—Alight increased total segment profitability $81 million to $223 million, or 57%

In the company’s latest annual report, Alight reported total segment profitability in 2022 (the Successor company) of $659 million. In the latest quarterly report, Alight recast total segment profitability (Gross profit) in 2022 higher by $337 million to $996 million, or 51.1%.