Alight (ALIT) AI Stock Analysis

• Market Cap: $1.46B
• Dividend Yield: 5.93%
• Average Volume (3M): 7.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -19.48%
• EPS Growth: -398.43%
• Country: US
• Employees: 9,500
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.12
• Shares Outstanding: 528,867,900
• 10 Day Avg. Volume: 7,973,541
• 30 Day Avg. Volume: 7,868,490
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $6.67
• Price Target Upside: 147.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $2.50 ▼(-7.41% Downside)

Alight's overall stock score reflects significant financial and technical challenges. The company's declining revenues and profitability issues weigh heavily on its financial performance score. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. While the dividend yield is attractive, the negative P/E ratio highlights ongoing profitability concerns. Despite some positive developments in AI and strategic partnerships, the overall outlook remains cautious.

Positive Factors

AI and Technology Advancements

Investments in AI and automation enhance operational efficiency and client satisfaction, providing a competitive edge and supporting long-term growth.

Strong Free Cash Flow

Robust free cash flow growth strengthens financial stability, enabling reinvestment in strategic initiatives and cushioning against market volatility.

Expansion of Partner Ecosystem

Expanding partnerships enhance service offerings and market reach, supporting revenue diversification and long-term client retention.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in market demand or competitive positioning, potentially impacting long-term financial performance.

Guidance Reduction

Reduced guidance reflects potential difficulties in achieving growth targets, possibly due to market conditions or operational inefficiencies.

Non-Cash Goodwill Impairment

Significant impairment charges can indicate overvaluation of past acquisitions, affecting balance sheet strength and future investment capacity.

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 significant challenges with declining revenues and profitability, as evidenced by negative margins and a substantial net loss. The balance sheet shows a stable capital structure with low leverage, but profitability remains a concern with negative ROE. Cash flow performance is a relative strength, with positive growth in free cash flow, providing some financial stability. Overall, while there are areas of concern, particularly in profitability, the company maintains a stable cash flow position.

Income Statement

Alight's income statement shows declining revenue with a negative growth rate of -43.1% in the TTM period. The company has a negative net profit margin of -49.46%, indicating significant losses. Gross profit margin remains moderate at 34.27%, but the EBIT and EBITDA margins are negative, reflecting operational challenges. Overall, the income statement indicates financial stress with declining revenues and profitability issues.

Balance Sheet

The balance sheet reveals a relatively low debt-to-equity ratio of 0.64 in the TTM period, suggesting manageable leverage. However, the return on equity is negative at -29.14%, indicating inefficiencies in generating returns for shareholders. The equity ratio stands at 45.99%, showing a stable capital structure. While leverage is under control, the negative ROE highlights profitability concerns.

Cash Flow

Alight's cash flow statement shows a positive free cash flow growth rate of 27.93% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.22, suggesting some cash flow stability despite net losses. The free cash flow to net income ratio is 0.43, reflecting a decent conversion of cash flows relative to net income. Overall, cash flow performance is relatively stable, with positive growth in free cash flow.

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	796.00M	794.00M	1.14B	996.00M	693.00M	834.00M
EBITDA	-2.04B	350.00M	186.00M	476.00M	481.00M	431.00M
Net Income	-2.15B	-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	20.00M	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	226.00M	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: Negative
• Last Price: 2.70
• 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 2.7 is below the 20-day moving average (MA) of 2.97, below the 50-day MA of 3.28, and below the 200-day MA of 4.96, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 23.55 is Positive, neither overbought nor oversold. The STOCH value of 12.95 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
BLKB	67 Neutral	$2.97B	―	-78.53%	―	-1.17%	-597.89%
GBTG	65 Neutral	$3.67B	―	-4.72%	―	3.61%	-44.99%
CALX	63 Neutral	$4.34B	―	-0.91%	―	4.89%	55.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BRZE	60 Neutral	$3.03B	―	-20.67%	―	22.16%	11.65%
ALKT	60 Neutral	$2.05B	―	-12.74%	―	30.72%	9.70%
ALIT	45 Neutral	$1.46B	―	-29.09%	5.93%	-19.48%	-398.43%

Alight Corporate Events

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.

Alight Inc. Reports Q2 2025 Results and Strategic Wins

Alight Inc., a prominent cloud-based human capital and technology-enabled services provider, specializes in administering employee benefits to enhance workforce wellbeing and productivity. In its second quarter of 2025, Alight reported a revenue of $528 million, with 95% of its projected annual revenue already under contract. The company announced significant partnerships, including a new wealth solutions relationship with Goldman Sachs Asset Management.

Alight Inc’s Earnings Call: Strategic Gains Amid Challenges

Alight Inc’s recent earnings call painted a mixed picture of the company’s financial health and strategic direction. While there were positive developments in revenue growth, strategic advancements, and partnerships, the call also highlighted significant challenges, including delays in deal closures, project revenue declines, and a substantial goodwill impairment charge. The company maintains a strong pipeline and is pursuing strategic initiatives, but the immediate financial outlook remains cautious.