Alight Inc (ALIT)
NYSE:ALIT
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Alight
(NYSE:ALIT)
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Rating:47Neutral
Price Target:
$0.53
▼(-7.93% Downside)
Action:ReiteratedDate:03/28/26
The score is held down primarily by weak profitability and declining revenue/contract visibility, reinforced by very bearish technicals (price far below major moving averages with negative MACD). Solid cash generation and liquidity provide some offset, but valuation support is limited given losses and the paused dividend.
Positive Factors
Strong free cash flow and liquidity
Consistently positive operating cash flow and a $250M free cash flow result in 2025, plus $273M cash and a $330M undrawn revolver, give Alight durable financing flexibility. This supports funding the $100M+ modernization plan, covering TRA obligations, deleveraging, and strategic investments without relying on external equity.
Negative Factors
Weaker contract visibility and smaller renewal cohort
A materially smaller renewal cohort and lower starting contracted revenue materially reduce future revenue visibility and increase churn risk. This structural deterioration in bookings undermines the predictability of the recurring base, forcing heavier investment in sales and retention to stabilize long-term organic growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow and liquidity
Consistently positive operating cash flow and a $250M free cash flow result in 2025, plus $273M cash and a $330M undrawn revolver, give Alight durable financing flexibility. This supports funding the $100M+ modernization plan, covering TRA obligations, deleveraging, and strategic investments without relying on external equity.
Read all positive factors
Alight (ALIT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$309.21M
Dividend Yield8.12%
Average Volume (3M)42.33M
Price to Earnings (P/E)―
Beta (1Y)1.30
Revenue Growth-12.37%
EPS Growth-754.18%
CountryUS
Employees9,500
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.18
Shares Outstanding524,107,850
10 Day Avg. Volume27,056,059
30 Day Avg. Volume42,334,123
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 Cap6.58
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit4.34
Enterprise Value/Ebitda-0.94
Forecast
1Y Price Target
$2.00Price Target Upside244.83% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.3
Revenue Forecast (FY)$2.10B
Alight Business Overview & Revenue Model
Company Description
Alight, Inc. operates as a cloud-based provider of integrated digital human capital and business solutions worldwide. It operates through three segments: Employer Solutions, Professional Services, and Hosted Business. The company's solutions enabl...
How the Company Makes Money
Alight primarily makes money by selling HR and payroll-related services to employer clients under contractual arrangements. Key revenue streams typically include: (1) recurring fees for administering benefits (e.g., health and welfare, retirement)...
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 Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
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.Positive Updates
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%).
Negative Updates
Missed 2025 targets and weaker bookings/renewals
Management acknowledged that 2025 failed to meet internal financial targets; new bookings and renewals underperformed, causing the company to miss prior market guidance multiple times.
Read all updates
Q4-2025 Updates
Positive
Negative
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%).
Read all positive updates
Company Guidance
Management's near‑term guidance called for Q1 2026 revenue to be down in the high single‑digit percent range and for adjusted EBITDA margin to be pressured by roughly 500–750 basis points year‑over‑year as the company invests in sales, account management and user experience; they plan to deploy more than $100 million of capital in 2026 (including ~$100M for product innovation), will pause the quarterly dividend in favor of deleveraging and opportunistic buybacks (with $216M remaining authorization), and expect these investments to be funded from strong liquidity (2025 free cash flow $250M, cash $273M, $330M undrawn revolver) while covering an estimated 2026 TRA payment of $156M—noting revenue under contract entering 2026 is ~5% lower and the 2026 renewal cohort is 30–40% smaller than 2025.Alight Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
45
Neutral
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.26B | 2.33B | 3.41B | 3.13B | 2.92B |
| Gross Profit | 469.00M | 794.00M | 1.14B | 996.00M | 693.00M |
| EBITDA | -2.56B | 350.00M | 186.00M | 476.00M | 481.00M |
| Net Income | -3.10B | -157.00M | -345.00M | -62.00M | -60.00M |
Balance Sheet | |||||
| Total Assets | 4.57B | 8.19B | 10.78B | 11.23B | 10.99B |
| Cash, Cash Equivalents and Short-Term Investments | 273.00M | 343.00M | 358.00M | 250.00M | 372.00M |
| Total Debt | 2.00B | 2.16B | 2.92B | 3.00B | 3.11B |
| Total Liabilities | 3.52B | 3.88B | 6.04B | 6.15B | 6.06B |
| Stockholders Equity | 1.04B | 4.31B | 4.46B | 4.44B | 4.14B |
Cash Flow | |||||
| Free Cash Flow | 250.00M | 131.00M | 246.00M | 138.00M | 1.00M |
| Operating Cash Flow | 360.00M | 252.00M | 386.00M | 286.00M | 115.00M |
| Investing Cash Flow | -123.00M | 836.00M | -159.00M | -235.00M | -1.91B |
| Financing Cash Flow | -298.00M | -1.07B | -231.00M | 54.00M | 2.34B |
Alight Technical Analysis
Negative
0.58
Price Trends
0.94
Negative
1.43
Negative
2.66
Negative
Market Momentum
-0.12
Negative
36.82
Neutral
40.40
Neutral
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 0.58 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.94, and below the 200-day MA of 2.66, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 36.82 is Neutral, neither overbought nor oversold. The STOCH value of 40.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.13B | 197.73 | 2.22% | ― | 4.89% | 55.80% | |
63 Neutral | $2.93B | 36.75 | 7.99% | ― | 5.71% | ― | |
63 Neutral | $2.15B | -17.11 | -22.84% | ― | 22.95% | 3.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $1.57B | 26.26 | 146.36% | ― | -1.17% | -597.89% | |
53 Neutral | $1.71B | -52.37 | -13.71% | ― | 30.72% | 9.70% | |
47 Neutral | $309.21M | -0.33 | -119.20% | 8.12% | -12.37% | -754.18% |
* Technology Sector Average
ALIT
Alight
0.58
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-88.26%
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Alight Corporate Events
Delistings and Listing ChangesRegulatory Filings and ComplianceShareholder MeetingsStock Split
Alight Addresses NYSE Listing Noncompliance, Considers Reverse Split
Negative
Mar 27, 2026
On March 24, 2026, Alight, Inc. received notice from the New York Stock Exchange that it was out of compliance with the NYSE’s minimum share price rule after its Class A common stock traded below an average of $1.00 over a 30‑day perio...
Business Operations and StrategyExecutive/Board Changes
Alight Adopts Long-Term Performance-Based Equity Incentive Plan
Positive
Mar 26, 2026
Effective March 25, 2026, Alight’s board-level Compensation Committee approved significant performance-vesting restricted stock unit awards for chief executive Rohit Verma and general counsel Martin Felli, along with other key staff, under i...
Executive/Board Changes
Alight Announces Upcoming Departure of Interim Chief Financial Officer
Neutral
Feb 27, 2026
Alight, Inc. reported that Interim Chief Financial Officer Gregory Giometti informed the company on February 25, 2026, that he would depart to pursue other opportunities, while agreeing to remain in the interim role until May 8, 2026, or until a p...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Alight Shifts Capital Strategy After 2025 Impairment-Driven Loss
Negative
Feb 19, 2026
On February 19, 2026, Alight reported fourth-quarter 2025 revenue of $653 million, down 4% year on year, and a net loss of $933 million, largely due to an $803 million non-cash goodwill impairment. For full year 2025, revenue declined 3% to $2.26 ...
Business Operations and StrategyExecutive/Board Changes
Alight Engages Former Strategy Chief in Consulting Role
Neutral
Jan 22, 2026
On January 21, 2026, Alight, Inc. and its subsidiary Alight Solutions LLC entered into a consulting agreement with former Chief Strategy Officer Dinesh Tulsiani, who previously held that role from September 2017 until his departure in February 202...
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.