Alight (ALIT) AI Stock Analysis

• Market Cap: $409.55M
• Dividend Yield: 8.12%
• Average Volume (3M): 15.12M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -12.37%
• EPS Growth: -754.18%
• Country: US
• Employees: 9,500
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.18
• Shares Outstanding: 522,778,800
• 10 Day Avg. Volume: 25,018,878
• 30 Day Avg. Volume: 15,115,463
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 4.12
• Enterprise Value/Market Cap: 5.23
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 4.57
• Enterprise Value/Ebitda: -0.99
• 1Y Price Target: $2.00
• Price Target Upside: 153.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.34
• Revenue Forecast (FY): $2.13B

• Rating: 44 Neutral
• Price Target: $0.79 ▼(-0.63% Downside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is held down primarily by weak profitability and declining revenue alongside a strongly bearish technical setup. Solid free cash flow and liquidity provide some support, but cautious guidance (near-term revenue and margin pressure) and a negative-earnings profile limit valuation confidence.

Positive Factors

Durable Recurring Revenue

A very high recurring mix (recurring revenue comprised the majority in Q4) supports predictable cash flows and client stickiness. This durability cushions the business from project revenue volatility and provides a stable base to fund investments and margin recovery over the medium term.

Strong Cash Generation & Liquidity

Consistent positive operating and free cash flow, plus a sizable undrawn revolver and cash balances, give the company financial flexibility. This supports deleveraging, funding the $100M+ modernization plan, and absorbing near-term TRA and investment needs without external stress.

Planned Modernization & AI Pilot

A committed $100M+ investment program and early conversational AI pilots indicate a structural push to modernize platform and UX. If executed, these investments can improve operational efficiency, reduce service friction that drove churn, and strengthen long-term competitive positioning.

Negative Factors

Revenue Decline & Volatility

Sustained revenue declines and volatility weaken scale economics and limit reinvestment capacity. Over the medium term, shrinking top-line undermines margin leverage, amplifies sensitivity to client retention, and constrains the payoff period on planned modernization investments.

Contract Visibility & Renewal Risk

A materially smaller renewal cohort and lower contracted revenue entering 2026 reduce forward revenue visibility and raise churn risk. This impairs predictable recurring revenue growth, pressures future cash flow, and increases reliance on successful execution of retention and product-improvement initiatives.

Large Impairment & Persistent Losses

A major goodwill impairment and recurring net losses signal that prior goodwill and earnings expectations were not met, eroding equity economics and investor confidence. Persistent negative ROE and below-the-line charges limit free capital for growth and heighten scrutiny on future returns.

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

Cash generation is a key positive (2025 operating cash flow ~$360M; free cash flow ~$250M) and leverage appears improved, but fundamentals are weighed down by declining/volatile revenue and persistently negative net income, including an outsized 2025 loss that drove extremely negative shareholder returns.

Income Statement

Revenue has been volatile and is now declining (down ~12% in 2025 after a modest decline in 2024), which weighs on the growth profile. Gross margin has been relatively steady around the low-to-mid 30% range, showing decent pricing power/cost control. However, profitability is the key issue: the company has posted net losses every year, with a very large loss in 2025 (net margin deeply negative), despite EBITDA remaining positive—suggesting meaningful below-the-line charges and/or non-operating headwinds. Overall, the income statement reflects stable gross profitability but weak and inconsistent earnings power.

Balance Sheet

Leverage improved materially over time: debt-to-equity moved from very high in 2020 to moderate levels in 2021–2024, and appears exceptionally low in 2025. Equity remains positive, supporting balance-sheet resilience. The major concern is returns: return on equity is negative across all years and is extremely negative in 2025, consistent with the outsized net loss and indicating poor value creation for shareholders. In short, the balance sheet looks less levered than it used to, but the earnings drag keeps the overall quality mixed.

Cash Flow

Cash generation is a relative bright spot. Operating cash flow is consistently positive (ranging from ~$115M to ~$386M historically, and ~$360M in 2025), and free cash flow is positive in most years, with a strong rebound in 2023 and 2025 (about $250M in 2025). That said, free cash flow has been uneven (near breakeven in 2021 and down sharply in 2024), and cash flow does not consistently track reported losses—implying earnings quality/noise from non-cash items and/or working-capital movements. Overall, the company’s ability to produce cash offsets some income statement weakness, but variability remains a risk.

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

• Technical Analysis Sentiment: Negative
• Last Price: 0.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 0.79 is below the 20-day moving average (MA) of 1.30, below the 50-day MA of 1.60, and below the 200-day MA of 3.37, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 21.06 is Positive, neither overbought nor oversold. The STOCH value of 12.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALIT.

Alight Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CALX	68 Neutral	$3.51B	203.30	2.18%	―	4.89%	55.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GBTG	61 Neutral	$2.67B	24.47	0.76%	―	5.71%	―
BRZE	60 Neutral	$1.94B	-15.92	-22.05%	―	22.95%	3.12%
BLKB	56 Neutral	$2.17B	20.09	-78.53%	―	-1.17%	-597.89%
ALKT	51 Neutral	$1.64B	-38.49	-12.74%	―	30.72%	9.70%
ALIT	44 Neutral	$409.55M	-0.13	-114.93%	8.12%	-12.37%	-754.18%

Alight Corporate Events

Alight Shifts Capital Strategy After 2025 Impairment-Driven Loss

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 billion, while a $3.12 billion goodwill impairment drove a $3.08 billion net loss, even as adjusted EBITDA edged up to $561 million and recurring revenue remained above 93% of total sales.

The company highlighted strong cash generation, with $360 million in operating cash flow and $250 million in free cash flow for 2025, alongside reduced selling, general and administrative expenses following the 2024 sale of its Payroll & Professional Services business. On February 19, 2026, Alight also said it would replace its cash dividend with a focus on debt reduction and opportunistic share repurchases, signaling a shift in capital allocation to bolster its balance sheet and support long-term shareholder value after significant non-cash impairments.

The most recent analyst rating on (ALIT) stock is a Sell with a $1.40 price target. To see the full list of analyst forecasts on Alight stock, see the ALIT Stock Forecast page.

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.