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Alight
(NYSE:ALIT)
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Rating:58Neutral
Price Target:
$17.50
▼(-7.26% Downside)
Action:Reiterated
Date:07/08/26
ALIT scores in the middle primarily due to a sharp profitability and margin deterioration and balance-sheet risk signals, partially offset by consistently strong operating/free cash flow and solid liquidity. Technically, the stock shows improving short-term trend but remains in a weak longer-term downtrend. Valuation is supported by a very high dividend yield, but the negative P/E underscores ongoing earnings pressure, and guidance suggests headwinds will persist over the next few quarters.
Positive Factors
High recurring revenue under contract
A large, multi-year contracted book (~$2.0B with ~94% recurring) provides durable revenue visibility and predictable cash flows. That high recurring mix reduces exposure to one-off sales, supports multi-quarter planning, and improves the ability to cross-sell services across an existing client base.
Negative Factors
Recurring revenue decline
A sustained decline in the recurring revenue base erodes the company’s core annuity business and undermines long-term cash flow predictability. Multi-quarter commercial execution headwinds and a sizable portion of the book up for renewal increase the risk that declines persist and pressure contract renewals and pricing.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring revenue under contract
A large, multi-year contracted book (~$2.0B with ~94% recurring) provides durable revenue visibility and predictable cash flows. That high recurring mix reduces exposure to one-off sales, supports multi-quarter planning, and improves the ability to cross-sell services across an existing client base.
Read all positive factors
Alight Key Performance Indicators (KPIs)
Any
Revenue by Type
Analyzes revenue streams by type, highlighting which services or products drive the most income and indicating areas of potential growth or vulnerability.
Analyzes revenue streams by type, highlighting which services or products drive the most income and indicating areas of potential growth or vulnerability.
Data provided by:
The Fly
The FlyAlight (ALIT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$456.12M
Dividend Yield18.85%
Average Volume (3M)1.20M
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth-3.15%
EPS Growth-6679.57%
CountryUS
Employees9,500
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-117.40
Shares Outstanding26,342,352
10 Day Avg. Volume618,120
30 Day Avg. Volume1,195,174
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.99
Price to Sales (P/S)0.45
P/FCF Ratio4.12
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$40.00Price Target Upside111.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.62
Revenue Forecast (FY)$2.15B
Alight Business Overview & Revenue Model
Company Description
Alight, Inc. engages in the provision of cloud-based integrated digital human capital and business solutions. The company was founded on June 01, 2017 and is headquartered in Chicago, IL....
How the Company Makes Money
Alight primarily makes money by selling employers outsourced and technology-enabled services that run critical HR and employee benefit processes. Its revenue model is largely recurring and comes from (1) ongoing service fees for administering bene...
Alight Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call presented a balanced view: the company outperformed near-term expectations, delivered stronger free cash flow, improved commercial activity, expanded account coverage, and made key leadership hires — all positive signs. However, recurring revenue declined (‑4% YoY), adjusted net income and margins compressed, and management flagged multi‑quarter headwinds from prior commercial execution along with project-revenue volatility. Guidance for Q2 is conservative, reflecting these ongoing pressures.Positive Updates
Beat Guidance and Outperformed Expectations
Company exceeded guidance for Q1 2026 on revenue, adjusted EBITDA, and free cash flow; consolidated revenue decline was only ~3% versus prior expectation of high single digits.
Negative Updates
Recurring Revenue Decline
Recurring revenue was $498M, down 4% year-over-year, reflecting ongoing commercial execution headwinds that management expects will take several quarters to fully resolve.
Read all updates
Q1-2026 Updates
Positive
Negative
Beat Guidance and Outperformed Expectations
Company exceeded guidance for Q1 2026 on revenue, adjusted EBITDA, and free cash flow; consolidated revenue decline was only ~3% versus prior expectation of high single digits.
Read all positive updates
Company Guidance
Management guided Q2 revenue of $490–$505 million, adjusted EBITDA of $80–$90 million, and free cash flow of $35–$45 million, noting that prior commercial execution headwinds will continue to work through the P&L over the coming quarters; they also cited a long‑run free cash flow conversion range of roughly 44–50%. In Q1 the company reported revenue of $534 million (‑3% YoY) made up of $498 million recurring (‑4%) and $36 million project (+29%), adjusted gross profit of $189 million (down $11 million, −110 bps margin), adjusted EBITDA of $104 million (~20% margin vs ~22% a year ago), adjusted net income of $35 million, and free cash flow of $53 million (+20% YoY). Liquidity remained strong at >$500 million (cash $178 million and $330 million revolver availability), revenue under contract at the start of Q1 was about $2.0 billion (≈94% recurring, ~ $1.97 billion recurring under contract), and management said roughly 25–30% of the book is up for renewal this year.Alight Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
42
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.25B | 2.26B | 2.33B | 3.41B | 2.21B | 2.92B |
| Gross Profit | 454.00M | 469.00M | 794.00M | 1.14B | 686.00M | 693.00M |
| EBITDA | -2.17B | -2.56B | 350.00M | 186.00M | 347.00M | 481.00M |
| Net Income | -3.09B | -3.10B | -157.00M | -345.00M | -62.00M | -60.00M |
Balance Sheet | ||||||
| Total Assets | 4.34B | 4.57B | 8.19B | 10.78B | 11.23B | 10.99B |
| Cash, Cash Equivalents and Short-Term Investments | 417.00M | 273.00M | 343.00M | 358.00M | 250.00M | 372.00M |
| Total Debt | 2.11B | 2.12B | 2.16B | 2.92B | 3.00B | 3.11B |
| Total Liabilities | 3.31B | 3.52B | 3.88B | 6.04B | 6.15B | 6.06B |
| Stockholders Equity | 1.03B | 1.04B | 4.31B | 4.46B | 4.44B | 4.14B |
Cash Flow | ||||||
| Free Cash Flow | 259.00M | 250.00M | 131.00M | 246.00M | 138.00M | 1.00M |
| Operating Cash Flow | 366.00M | 360.00M | 252.00M | 386.00M | 286.00M | 115.00M |
| Investing Cash Flow | -120.00M | -123.00M | 836.00M | -159.00M | -235.00M | -1.91B |
| Financing Cash Flow | -278.00M | -298.00M | -1.07B | -231.00M | 54.00M | 2.34B |
Alight Technical Analysis
Positive
18.87
Price Trends
16.45
Positive
15.26
Positive
26.50
Negative
Market Momentum
0.79
Positive
55.18
Neutral
33.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALIT, the sentiment is Positive. The current price of 18.87 is below the 20-day moving average (MA) of 19.77, above the 50-day MA of 16.45, and below the 200-day MA of 26.50, indicating a neutral trend. The MACD of 0.79 indicates Positive momentum. The RSI at 55.18 is Neutral, neither overbought nor oversold. The STOCH value of 33.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALIT.
Alight Risk Analysis
Alight disclosed 46 risk factors in its most recent earnings report. Alight reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alight Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.14B | 21.34 | 28.49% | ― | 13.63% | 9.52% | |
76 Outperform | $101.53B | 13.15 | 25.00% | 4.44% | 6.74% | -0.66% | |
76 Outperform | $24.93B | 11.88 | 14.94% | 2.82% | 5.64% | -5.39% | |
71 Outperform | $5.96B | 10.66 | 22.44% | 2.29% | 6.47% | 10.82% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $456.12M | -0.14 | -171.94% | 16.96% | -3.15% | -6679.57% | |
54 Neutral | $1.82B | 14.79 | 3.97% | ― | -2.42% | -65.01% |
* Technology Sector Average
ALIT
Alight
19.63
-80.15
-80.33%
ACN
Accenture
165.76
-84.69
-33.82%
CTSH
Cognizant
55.17
-14.61
-20.94%
EXLS
Exlservice Holdings
34.24
-8.33
-19.57%
G
Genpact
35.16
-6.62
-15.84%
DXC
DXC Technology
10.97
-2.37
-17.77%
Alight Corporate Events
Business Operations and StrategyRegulatory Filings and ComplianceShareholder MeetingsStock Split
Alight Executes Reverse Stock Split and Governance Changes
Neutral
Jul 1, 2026
At its June 10, 2026 annual meeting, Alight stockholders approved several charter amendments, including declassification of the board and the extension of Delaware-style exculpation protections to certain officers, and authorized a reverse stock s...
Business Operations and StrategyDelistings and Listing ChangesShareholder MeetingsStock Split
Alight Announces 1-for-20 Reverse Stock Split Plan
Neutral
Jun 18, 2026
On June 18, 2026, Alight announced that its board had approved a 1-for-20 reverse stock split of all classes of its common stock, following shareholder approval at the June 10, 2026 annual meeting. The reverse split, which is expected to take effe...
Business Operations and StrategyExecutive/Board ChangesShareholder MeetingsStock Split
Alight Stockholders Approve Governance Changes and Board Declassification
Positive
Jun 11, 2026
At its 2026 Annual Meeting of Stockholders held on June 10, 2026, Alight, Inc. stockholders re-elected Class II directors Russell P. Fradin, Robert A. Lopes Jr. and Richard N. Massey to terms expiring at the 2029 annual meeting. Investors also rat...
Executive/Board Changes
Alight Appoints Steve Lasher as New Chief Financial Officer
Positive
Jun 4, 2026
On June 3, 2026, Alight’s board appointed Stephen A. (Steve) Lasher as chief financial officer, effective June 15, 2026, succeeding Susan Davies as the company’s principal financial officer while she remains chief accounting officer an...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Alight Reports Q1 2026 Results, Names Interim CFO
Negative
May 5, 2026
Alight, Inc., a leading benefits administration provider of health, wealth, leave and point solutions for large organizations and more than 30 million people, reported first-quarter 2026 results on May 5, 2026, with revenue of $534 million and fre...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.