Alight Inc (ALIT)
NYSE:ALIT
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Alight
(NYSE:ALIT)
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Rating:50Neutral
Price Target:
$0.81
▲(32.46% Upside)
Action:Reiterated
Date:05/09/26
The score is held down primarily by deteriorating profitability and margin compression, plus balance-sheet uncertainty despite improving cash generation. Offsetting this, technicals show improving short-term momentum and the earnings call highlighted guidance beats and strong free cash flow, but continued recurring-revenue decline and conservative Q2 guidance limit upside confidence.
Positive Factors
Cash generation & free cash flow
Consistent positive operating cash flow and improving free cash flow in 2025 and TTM provide durable liquidity and internal funding. That cash conversion supports operations, working capital, deleveraging or selective reinvestment even while GAAP profitability lags, giving management runway to execute turnarounds.
Negative Factors
Margin compression and deep net losses
Sustained gross margin compression to roughly 20% and large net losses undermine the firm's ability to generate returns and finance growth internally. Persistently weak margins reduce reinvestment capacity, pressure profitability recovery timelines, and make long-term shareholder value creation uncertain.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & free cash flow
Consistent positive operating cash flow and improving free cash flow in 2025 and TTM provide durable liquidity and internal funding. That cash conversion supports operations, working capital, deleveraging or selective reinvestment even while GAAP profitability lags, giving management runway to execute turnarounds.
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
$434.20M
Dividend Yield8.12%
Average Volume (3M)22.66M
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth-3.15%
EPS Growth-6679.56%
CountryUS
Employees9,500
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-5.87
Shares Outstanding526,847,050
10 Day Avg. Volume25,887,455
30 Day Avg. Volume22,658,910
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 Cap4.90
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit4.69
Enterprise Value/Ebitda-0.97
Forecast
1Y Price Target
$0.50Price Target Upside-18.03% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.28
Revenue Forecast (FY)$2.15B
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 employer-facing subscriptions and services that help organizations run HR, payroll, and benefits programs. A major revenue stream comes from recurring fees for administering benefits and HR processes on beha...
Alight Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 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 | -2.19B | -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 | 2.00B | 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
0.61
Price Trends
0.70
Positive
1.03
Negative
1.96
Negative
Market Momentum
0.03
Positive
53.60
Neutral
57.17
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 0.61 is below the 20-day moving average (MA) of 0.81, below the 50-day MA of 0.70, and below the 200-day MA of 1.96, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 57.17 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $4.92B | 13.76 | 5.79% | ― | 20.67% | ― | |
68 Neutral | $1.36B | 14.12 | 179.00% | ― | -0.66% | ― | |
63 Neutral | $2.62B | -17.88 | -22.84% | ― | 24.40% | -20.43% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $2.45B | 73.55 | 4.25% | ― | 28.38% | ― | |
59 Neutral | $1.81B | -41.83 | -13.96% | ― | 32.73% | -27.71% | |
50 Neutral | $434.20M | -4.02 | -171.94% | 8.12% | -3.15% | -6679.56% |
* Technology Sector Average
ALIT
Alight
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-84.28%
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Alight Corporate Events
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...
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...
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.