Alight (ALIT) AI Stock Analysis

• Market Cap: $847.79M
• Dividend Yield: 8.12%
• Average Volume (3M): 9.92M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• 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: 522,778,800
• 10 Day Avg. Volume: 11,396,984
• 30 Day Avg. Volume: 9,924,046
• 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: 3.11
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 3.20
• Enterprise Value/Ebitda: -1.88
• 1Y Price Target: $4.00
• Price Target Upside: 151.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.57
• Revenue Forecast (FY): $2.29B

• Rating: 47 Neutral
• Price Target: $1.50 ▼(-5.66% Downside)

Alight's overall stock score reflects significant financial and operational challenges, with profitability and revenue growth being major concerns. While technical indicators and valuation metrics suggest caution, strategic initiatives in AI and partnerships, along with a strong dividend yield, provide some optimism. The new CEO appointment is a positive development, but immediate improvements are necessary to enhance the company's financial health.

Positive Factors

Recurring, contractual revenue model

Alight’s core business is built on recurring administration, payroll and platform fees tied to client employee populations and multi-year contracts. That revenue stickiness provides predictable cash inflows, supports client retention, and cushions EBITDA against short-term project volatility over the next several months.

Strong free cash flow generation

Material free cash flow growth and a healthy FCF-to-net-income conversion give Alight financial flexibility to invest in automation, pay down obligations, and fund operations despite reported losses. Sustainable cash generation reduces refinancing risk and supports strategic initiatives over the medium term.

AI investments and partner ecosystem expansion

Strategic partnerships and AI-driven automation lower service delivery costs and improve client outcomes. Reduced call volumes and AI pilots demonstrate operational leverage potential, improving cost-to-serve and strengthening Alight’s value proposition to large employer clients over the coming quarters.

Negative Factors

Severe revenue decline

A drastic TTM revenue decline indicates loss of scale and persistent top-line pressure that undermines operating leverage. Even modest margin improvements may be eclipsed by shrinking revenue, reducing capacity to invest in sales, product development, or regain lost market share over the next several months.

Persistent negative profitability and ROE

Deeply negative margins and negative ROE signal structural profitability issues beyond one-off items. Continued losses erode equity and limit internal funding for growth initiatives, forcing dependence on cash generation or external financing and constraining strategic flexibility in the medium term.

Goodwill write-down and weaker project revenues

The large goodwill impairment reflects prior overvaluation and diminishes reported equity, while declining nonrecurring project work reveals reliance on volatile revenue streams. Together these factors weaken reported book value and increase earnings and cash-flow uncertainty over the medium term.

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 enable employees to enrich their health, wealth, and wellbeing, which helps organizations achieve a high-performance culture. It offers employer solutions comprising integrated benefits administration, healthcare navigation, financial health, employee wellbeing, and payroll; and professional services, including cloud deployment and consulting offerings that provides human capital and financial platforms, as well as cloud advisory and deployment, and optimization services for cloud platforms, such as Workday, SAP SuccessFactors, Oracle, and Cornerstone OnDemand. Alight, Inc. was founded in 2017 and is headquartered in Lincolnshire, Illinois.

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 substantial financial challenges, particularly in terms of profitability and revenue growth. The income statement shows negative net profit margins and a drastic revenue decline. The balance sheet indicates low leverage but negative return on equity. Cash flow improvements provide some optimism, with significant free cash flow growth, but overall financial health remains weak.

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	824.00M	794.00M	1.14B	996.00M	693.00M	834.00M
EBITDA	-1.40B	350.00M	186.00M	476.00M	481.00M	431.00M
Net Income	-2.16B	-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	246.00M	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: Neutral
• Last Price: 1.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALIT, the sentiment is Neutral. The current price of 1.59 is above the 20-day moving average (MA) of 1.59, below the 50-day MA of 1.87, and below the 200-day MA of 3.64, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 51.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALIT.

Alight Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLKB	71 Outperform	$2.29B	-9.19	-78.53%	―	-1.17%	-597.89%
CALX	68 Neutral	$3.33B	202.17	2.18%	―	4.89%	55.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GBTG	61 Neutral	$3.15B	268.30	0.76%	―	5.71%	―
ALKT	60 Neutral	$1.87B	-41.92	-12.74%	―	30.72%	9.70%
BRZE	60 Neutral	$2.18B	-17.62	-22.05%	―	22.95%	3.12%
ALIT	47 Neutral	$847.79M	-0.39	-66.86%	8.12%	-12.37%	-754.18%

Alight Corporate Events

Alight Engages Former Strategy Chief in Consulting Role

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 2025. Under the agreement, Tulsiani will provide advisory services to Alight starting January 22, 2026, for an initial three-month term that may be extended for an additional three months and thereafter continue on a month-to-month basis, with either party able to terminate on 30 days’ notice; he will receive a monthly retainer of $100,000 plus reimbursement of reasonable business expenses, underscoring the company’s continued reliance on his strategic expertise during the transition period.

The most recent analyst rating on (ALIT) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Alight stock, see the ALIT Stock Forecast page.

Alight Names Interim CFO Following Heaton’s Resignation

On December 15, 2025, Alight’s Chief Financial Officer Jeremy J. Heaton tendered his resignation, effective January 9, 2026, to pursue an opportunity outside the benefits administration industry, with the company stating his departure does not stem from any disagreement over operations, governance or financial reporting. On December 17, 2025, Alight appointed Senior Vice President and Head of Financial Planning and Analysis Greg Giometti as interim CFO effective the same date, leveraging his experience leading financial reporting, planning, technology transformation and key divestitures to support continuity in the finance function as the company searches for a permanent successor, a move aimed at preserving operational stability and the ongoing simplification and strengthening of Alight’s financial foundation.

The most recent analyst rating on (ALIT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Alight stock, see the ALIT Stock Forecast page.

Alight CEO Dave Guilmette to Step Down

Alight, Inc. has announced that Dave Guilmette will step down from his roles as CEO and Vice Chair of the Board of Directors at the end of 2025. In connection with his departure, a Separation Agreement was reached, which includes a potential three-month consultancy period for Guilmette to aid in the company’s 2026 business plan transition, with compensation and continued stock vesting.

The most recent analyst rating on (ALIT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Alight stock, see the ALIT Stock Forecast page.

Alight Announces New CEO Appointment Effective January 2026

On November 24, 2025, Alight, Inc. announced that Rohit Verma will succeed Dave Guilmette as Chief Executive Officer and a member of the Board, effective January 1, 2026. Verma, who has a proven track record of delivering growth and service excellence at Crawford & Company, is expected to lead Alight through enhanced innovation and client partnership. Guilmette’s departure is amicable and not due to any disagreements with the company, and his leadership has strengthened Alight’s operations and product innovations.

The most recent analyst rating on (ALIT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Alight stock, see the ALIT Stock Forecast page.

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.