Alight (ALIT) AI Stock Analysis

• Market Cap: $1.27B
• Dividend Yield: 5.93%
• Average Volume (3M): 8.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -12.37%
• EPS Growth: -754.18%
• Country: US
• Employees: 9,500
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.12
• Shares Outstanding: 528,867,900
• 10 Day Avg. Volume: 12,103,887
• 30 Day Avg. Volume: 8,734,678
• PEG Ratio: 0.41
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 28.85
• Enterprise Value/Market Cap: 2.70
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 4.30
• Enterprise Value/Ebitda: -1.90
• 1Y Price Target: $5.75
• Price Target Upside: 144.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.57
• Revenue Forecast (FY): $2.27B

• Rating: 43 Neutral
• Price Target: $2.50 ▲(6.38% Upside)

Alight's overall stock score reflects significant financial and technical challenges, with negative profitability and bearish market sentiment. While the earnings call provided some positive insights into strategic initiatives and cash flow improvements, these are overshadowed by declining revenues and reduced guidance. The high dividend yield offers some compensation for the risks involved.

Positive Factors

Free Cash Flow Growth

Strong free cash flow growth indicates effective cash management and provides the company with resources to invest in growth opportunities or reduce debt.

AI and Technology Advancements

Investments in AI and technology enhance operational efficiencies and client satisfaction, positioning the company to better compete in a tech-driven market.

Partnership Expansion

Expanding partnerships can diversify service offerings and strengthen market position, potentially leading to increased client acquisition and retention.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining market share or client engagement, which could impact long-term growth prospects.

Guidance Reduction

Reduced revenue guidance reflects potential difficulties in achieving growth targets, possibly due to market conditions or operational inefficiencies.

Goodwill Impairment

Significant goodwill impairment indicates past overvaluation of acquisitions, affecting balance sheet strength and future financial flexibility.

Alight Business Overview & Revenue Model

Company Description

Alight (ALIT) is a leading provider of technology-enabled health, wealth, and human capital solutions. The company specializes in delivering comprehensive benefits administration, cloud-based HR and payroll services, and workforce management solutions. Alight serves a diverse range of clients, including large enterprises and government organizations, by leveraging data analytics and innovative technology to enhance employee engagement and optimize operational efficiencies.

How the Company Makes Money

Alight generates revenue primarily through its service offerings, which include benefits administration, payroll processing, and human capital management services. The company operates on a subscription-based model, charging clients a recurring fee for access to its platforms and services. Additionally, Alight earns revenue from consulting services related to workforce and benefits strategy. Key partnerships with technology providers and integrations with major HR systems enhance its service delivery, while ongoing client relationships contribute to stable revenue streams. The company's focus on scaling its digital solutions and expanding its service offerings also plays a crucial role in driving growth and profitability.

Alight Financial Statement Overview

Summary

Alight faces significant financial challenges, with negative net profit margins and declining revenue growth. Despite a stable gross profit margin, the company struggles with profitability, as indicated by negative EBIT and EBITDA margins. The balance sheet shows low leverage but negative return on equity, while cash flow improvements provide some optimism.

Income Statement

Alight's income statement reveals significant challenges, with negative net profit margins and declining revenue growth. The TTM (Trailing-Twelve-Months) data shows a drastic revenue decline of 95.2%, and the net profit margin is severely negative at -93.7%. Despite a stable gross profit margin around 34%, the company struggles with profitability, as indicated by negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.01 in the TTM period, indicating low leverage. However, the return on equity is negative, reflecting ongoing profitability issues. The equity ratio is not explicitly calculated, but the company maintains a significant equity base compared to its total assets.

Cash Flow

Cash flow analysis indicates some positive trends, with a significant free cash flow growth of 71.1% in the TTM period. The operating cash flow to net income ratio is 0.43, suggesting some ability to generate cash from operations despite negative net income. The free cash flow to net income ratio is 0.69, indicating a relatively strong cash position compared to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.29B	2.33B	3.41B	3.13B	2.92B	2.73B
Gross Profit	796.00M	794.00M	1.14B	996.00M	693.00M	834.00M
EBITDA	-1.80B	350.00M	186.00M	476.00M	481.00M	431.00M
Net Income	-2.15B	-157.00M	-345.00M	-62.00M	-60.00M	-103.00M
Balance Sheet
Total Assets	5.54B	8.19B	10.78B	11.23B	10.99B	6.96B
Cash, Cash Equivalents and Short-Term Investments	205.00M	343.00M	358.00M	250.00M	372.00M	506.00M
Total Debt	2.01B	2.16B	2.92B	3.00B	3.11B	4.36B
Total Liabilities	3.53B	3.88B	6.04B	6.15B	6.06B	6.27B
Stockholders Equity	2.00B	4.31B	4.46B	4.44B	4.14B	683.00M
Cash Flow
Free Cash Flow	243.00M	131.00M	226.00M	138.00M	1.00M	143.00M
Operating Cash Flow	354.00M	252.00M	386.00M	286.00M	115.00M	233.00M
Investing Cash Flow	-128.00M	836.00M	-159.00M	-235.00M	-1.91B	-142.00M
Financing Cash Flow	-356.00M	-1.07B	-231.00M	54.00M	2.34B	463.00M

Alight Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALIT, the sentiment is Negative. The current price of 2.35 is below the 20-day moving average (MA) of 2.90, below the 50-day MA of 3.22, and below the 200-day MA of 4.92, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 20.22 is Positive, neither overbought nor oversold. The STOCH value of 9.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALIT.

Alight Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GBTG	65 Neutral	$3.72B	―	-4.72%	―	3.61%	-44.99%
CALX	63 Neutral	$4.27B	―	-0.91%	―	4.89%	55.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BRZE	60 Neutral	$3.03B	―	-20.67%	―	22.16%	11.65%
ALKT	60 Neutral	$2.00B	―	-12.74%	―	30.72%	9.70%
BLKB	52 Neutral	$2.73B	―	-78.53%	―	-1.17%	-597.89%
ALIT	43 Neutral	$1.27B	―	-66.86%	5.93%	-12.37%	-754.18%

Alight Corporate Events

Alight, Inc. Reports Q3 2025 Earnings and Strategic Wins

Alight, Inc. is a leading provider of cloud-based human capital and technology-enabled services, helping organizations manage employee benefits and enhance workforce engagement. In its third-quarter 2025 earnings report, Alight reported a revenue of $533 million, marking a 4% decrease from the previous year. Despite the revenue dip, the company secured significant contracts with MetLife, Cintas, and Mass General Brigham, highlighting its strategic growth in client relationships.

Alight Inc’s Earnings Call: Mixed Sentiments and Strategic Moves

Alight Inc’s recent earnings call presented a mixed sentiment, reflecting both optimism and challenges. The company showcased significant advancements in AI and technology, strong free cash flow, and successful client renewals. However, these positive developments were tempered by a decline in overall revenue, reduced guidance, and a substantial non-cash goodwill impairment charge, indicating the current market challenges Alight is facing.

Alight Seeks Approval to Declassify Board

On November 5, 2025, Alight announced its Board of Directors’ decision to seek stockholder approval for declassifying the Board at the 2026 annual meeting. In its third quarter 2025 results, Alight reported a 4% revenue decrease to $533 million, primarily due to lower project revenue and the finalization of a commercial agreement related to a past divestiture. Despite a significant non-cash goodwill impairment charge impacting net loss, the company improved its adjusted EBITDA and expanded relationships with major clients like MetLife and Cintas. The announcement reflects Alight’s strategic focus on enhancing client outcomes and strengthening its competitive position through AI and automation investments.

The most recent analyst rating on (ALIT) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Alight stock, see the ALIT Stock Forecast page.

Alight Inc. Reports Q2 2025 Results and Strategic Wins

Alight Inc., a prominent cloud-based human capital and technology-enabled services provider, specializes in administering employee benefits to enhance workforce wellbeing and productivity. In its second quarter of 2025, Alight reported a revenue of $528 million, with 95% of its projected annual revenue already under contract. The company announced significant partnerships, including a new wealth solutions relationship with Goldman Sachs Asset Management.

Alight Inc’s Earnings Call: Strategic Gains Amid Challenges

Alight Inc’s recent earnings call painted a mixed picture of the company’s financial health and strategic direction. While there were positive developments in revenue growth, strategic advancements, and partnerships, the call also highlighted significant challenges, including delays in deal closures, project revenue declines, and a substantial goodwill impairment charge. The company maintains a strong pipeline and is pursuing strategic initiatives, but the immediate financial outlook remains cautious.