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Alight
(NYSE:ALIT)
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Rating:47Neutral
Price Target:
$0.55
▼(-9.51% Downside)
Action:Reiterated
Date:07/01/26
The score is weighed down primarily by weak profitability and a clear bearish price trend (trading below all key moving averages). These are partially offset by strong and improving free cash flow, solid liquidity, and management actions highlighted on the earnings call, but near-term guidance and recurring revenue decline keep the overall outlook restrained.
Positive Factors
Free Cash Flow & Liquidity
Consistent positive operating cash flow and improving free cash flow provide durable funding for operations, investments, and debt servicing. Strong available liquidity (> $500M) reduces refinancing risk and gives management flexibility to invest in growth or stabilize margins over the next several quarters.
Negative Factors
Profitability Weakness
Sustained margin compression and large net losses signal structural profitability issues rather than cyclical noise. Lower gross margins reduce the firm's ability to self-fund investments and amplify sensitivity to revenue pressure, making durable margin recovery essential for long‑term value creation.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow & Liquidity
Consistent positive operating cash flow and improving free cash flow provide durable funding for operations, investments, and debt servicing. Strong available liquidity (> $500M) reduces refinancing risk and gives management flexibility to invest in growth or stabilize margins over the next several quarters.
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
$504.40M
Dividend Yield8.12%
Average Volume (3M)28.49M
Price to Earnings (P/E)―
Beta (1Y)1.63
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. Volume32,457,337
30 Day Avg. Volume28,490,680
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 Cap3.99
Enterprise Value/Revenue0.89
Enterprise Value/Gross Profit4.43
Enterprise Value/Ebitda-0.93
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
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 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 | -2.17B | -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
0.61
Price Trends
14.80
Negative
15.68
Negative
31.37
Negative
Market Momentum
-1.01
Negative
52.14
Neutral
43.60
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 12.75, below the 50-day MA of 14.80, and below the 200-day MA of 31.37, indicating a neutral trend. The MACD of -1.01 indicates Negative momentum. The RSI at 52.14 is Neutral, neither overbought nor oversold. The STOCH value of 43.60 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 | $2.58B | -20.47 | -20.29% | ― | 26.95% | -11.66% | |
63 Neutral | $1.38B | 10.03 | 179.00% | ― | -0.66% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $2.37B | 71.75 | 4.25% | ― | 28.38% | ― | |
60 Neutral | $4.88B | 55.81 | 5.79% | ― | 20.67% | ― | |
59 Neutral | $1.57B | ― | -13.96% | ― | 32.73% | -27.71% | |
47 Neutral | $504.40M | -0.12 | -171.94% | 8.12% | -3.15% | -6679.57% |
* Technology Sector Average
ALIT
Alight
13.73
-102.59
-88.20%
BLKB
Blackbaud
30.10
-35.65
-54.22%
CALX
Calix
37.09
-16.84
-31.23%
GBTG
Global Business Travel Group
9.40
2.93
45.29%
ALKT
Alkami Technology
18.72
-11.92
-38.90%
BRZE
Braze
22.93
-5.85
-20.33%
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.