Kevin McVeigh

Kevin McVeigh asked about clients shifting from 'insight to operational deployment' and how this impacts the workflow and consumption of NIQ data, seeking insights into behavioral changes. He also requested clarification on the free cash flow guidance, specifically if the $55 million-$65 million restructuring cost is already included, implying a higher underlying free cash flow.

Answer

Jim Peck, Executive Chairman and CEO of NIQ, explained that NIQ is working with its largest 'AI builder' clients to deeply integrate data into their workflows, helping them unlock more value across their operations by connecting innovation to supply chain and pricing. Mike Burwell, CFO of NIQ, confirmed that the free cash flow guidance is inclusive of the restructuring costs, and that the additional cash flow inflection will continue into 2027 and beyond.

Kevin McVeigh asked about clients shifting from 'insight to operational deployment' and how this impacts the workflow or consumption of NIQ data, seeking insights into behavioral changes. He also inquired about the free cash flow guidance, specifically how it would look if the $55 million-$65 million restructuring costs were excluded.

Answer

Jim Peck (Executive Chairman and CEO, NIQ) explained that NIQ is working with 'builder' clients to deeply integrate data into their workflows, connecting innovation to supply chain and pricing, thereby embedding NIQ more profoundly across their operations. Mike Burwell (CFO, NIQ) confirmed that the free cash flow guidance is inclusive of restructuring costs, and excluding them would result in a higher free cash flow, with additional inflection expected in 2027 and beyond.

Kevin McVeigh asked about the drivers behind the slipped renewals and lower retention in 2025, and why Alight is still making a significant TRA payment in 2026 despite business changes and impairment charges.

Answer

CEO Rohit Verma attributed slipped renewals to clients' requests for operational excellence, modern user interfaces, and deeper relationships. Interim CFO Greg Giometti explained that the 2026 TRA payment relates to 2024 tax returns, specifically including the gain on the sale of Strata, and that 2025 impairment charges will impact 2027 and 2028 payments due to a two-year lag.

Kevin McVeigh asked about the primary drivers behind the slippage in Alight's 2025 renewal and retention rates. He also questioned the necessity of a significant TRA payment in 2026 and whether the recent impairment charges impact this calculation.

Answer

CEO Rohit Verma attributed the renewal slippage to client demands for operational excellence, modern user interfaces, and stronger relationships, which are now key priorities. Interim CFO Greg Giometti clarified that the 2026 TRA payment relates to 2024 tax returns, including the gain from the Strada divestiture, due to a two-year lag. He confirmed that 2025 impairment charges affect the 2025 tax year, impacting 2027 and 2028 payments, not 2026.