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Alight (ALIT)
NYSE:ALIT
Earnings Data
Report Date
May 13, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.04Last Year’s EPS
0.1Same Quarter Last Year
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Negative
The call conveyed a mix of constructive strategic actions and severe near-term financial and operational challenges. Positively, Alight generated strong free cash flow ($250M), maintains liquidity, piloted promising conversational AI with tangible efficiency gains, and management has outlined a focused capital reallocation and a $100M+ investment plan to modernize the business. Negatively, the company missed 2025 targets, experienced recurring and project revenue declines (recurring down ~2.2%, project down ~22%), saw Q4 gross profit and EBITDA decline, recorded a substantial $803M goodwill impairment, and provided cautious near-term guidance (Q1 revenue down high single-digits; margin pressure of 500–750 bps). Given the material impairment, visible declines in revenue and margins, and guidance that 2026 will initially reflect lingering weakness, the negatives meaningfully offset the positives despite clear remediation plans and financial flexibility.Company Guidance
Full-year revenue and adjusted EBITDA
Generated approximately $2.3 billion in revenue for 2025 with full-year adjusted EBITDA of $561 million and an adjusted EBITDA margin of ~24.8% (management reported ~25%).
Strong free cash flow and liquidity position
The business generated $250 million of free cash flow in 2025; ended the year with $273 million in cash and equivalents and a $330 million fully undrawn revolving credit facility, providing financial flexibility.
Q4 revenue and recurring mix
Fourth quarter revenue was $653 million with recurring revenue of $607 million, demonstrating a durable recurring base (recurring represented the majority of revenue despite modest declines).
Capital reallocation and buyback authorization
Company announced a strategic shift away from the regular dividend toward debt reduction and opportunistic share repurchases; remaining buyback authorization of $216 million noted as a deployment lever.
Piloted conversational AI with early positive results
Piloted conversational AI with two large clients during annual enrollment and reported a significant reduction in channel jumping, suggesting improved participant efficiency and service delivery potential.
Plan to invest in growth and modernization
Management intends to deploy more than $100 million of capital in 2026 to strengthen foundations, product innovation (AI-enabled experiences), sales/account coverage and long-term growth initiatives.
Client engagement and market opportunity
New CEO reported meeting with 35+ clients who expressed desire to continue working with Alight; management highlighted a substantial market opportunity and white space within existing clients.
TRA outlook improving beyond 2026
Estimated TRA payment for 2026 is ~$156 million related to prior transactions, and due to tax reform, management does not expect significant TRA payments in 2027 or 2028, improving medium-term cash flow flexibility.
ALIT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ALIT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 19, 2026 | $1.31 | $0.81 | -38.24% |
Nov 05, 2025 | $2.65 | $2.47 | -7.05% |
Aug 05, 2025 | $4.99 | $4.07 | -18.34% |
May 08, 2025 | $5.05 | $5.42 | +7.27% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Alight (ALIT) report earnings?
Alight (ALIT) is schdueled to report earning on May 13, 2026, Before Open (Confirmed).
What is Alight (ALIT) earnings time?
Alight (ALIT) earnings time is at May 13, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ALIT EPS forecast?
ALIT EPS forecast for the fiscal quarter 2026 (Q1) is 0.04.