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Alight
(NYSE:ALIT)
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Rating:54Neutral
Price Target:
$17.50
▲(16.98% Upside)
Action:Reiterated
Date:08/05/26
ALIT’s score is held back primarily by weak financial performance (steep TTM revenue contraction and deep unprofitability), partially offset by positive operating/free cash flow and solid liquidity. Technicals are mixed with only tentative stabilization signals, and valuation is difficult to rely on given losses despite an unusually high headline dividend yield. Earnings call guidance supports cash generation but underscores ongoing recurring-revenue decline and near-term margin pressure.
Positive Factors
Recurring employer-services model
Multi-year employer contracts and recurring administration fees can support revenue visibility, deepen client relationships and create opportunities to expand accounts through payroll, benefits and related HR services.
Negative Factors
Severe revenue contraction
The sharp top-line decline indicates sustained commercial and execution problems rather than a single weak period. Lower recurring revenue can weaken client momentum, reduce operating leverage and make a turnaround dependent on multi-quarter recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring employer-services model
Multi-year employer contracts and recurring administration fees can support revenue visibility, deepen client relationships and create opportunities to expand accounts through payroll, benefits and related HR services.
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
$403.01M
Dividend Yield22.33%
Average Volume (3M)1.20M
Price to Earnings (P/E)―
Beta (1Y)1.67
Revenue Growth-3.46%
EPS Growth-79.01%
CountryUS
Employees9,500
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-77.18
Shares Outstanding26,419,410
10 Day Avg. Volume618,120
30 Day Avg. Volume1,195,174
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$14.50Price Target Upside-3.07% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)4.8
Revenue Forecast (FY)$2.10B
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 employers outsourced and technology-enabled services that run critical HR and employee benefit processes. Its revenue model is largely recurring and comes from (1) ongoing service fees for administering bene...
Alight Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational and strategic progress (leadership hires, insourcing, strong liquidity, AI and technology roadmap, project revenue growth, positive client feedback) against material near-term financial headwinds (recurring revenue decline, significant EBITDA and EPS compression, seasonal Q3 pressure). Management emphasized a multi-year turnaround plan with expected momentum in 2027 and stronger growth in 2028, but near-term results remain challenged by prior commercial execution and seasonality.Positive Updates
Beat Street Expectations on Q2 Results
Reported Q2 2026 revenue of $511 million and adjusted EBITDA of $92 million (18% margin) — both described as exceeding market expectations; year-to-date free cash flow of $101 million and Q2 free cash flow of $48 million.
Negative Updates
Recurring Revenue Decline
Recurring revenue was $471 million in Q2, down ~4% year-over-year (CEO cited a 4.3% decline), attributed to weaker commercial execution in 2024–2025 and a 12–18 month lag from commercial activity to revenue realization.
Read all updates
Q2-2026 Updates
Positive
Negative
Beat Street Expectations on Q2 Results
Reported Q2 2026 revenue of $511 million and adjusted EBITDA of $92 million (18% margin) — both described as exceeding market expectations; year-to-date free cash flow of $101 million and Q2 free cash flow of $48 million.
Read all positive updates
Company Guidance
Alight guided full-year 2026 revenue of $2.078 billion to $2.098 billion and adjusted EBITDA of $400 million to $415 million, noting Q3 seasonality from annual enrollment with Q3 revenue expected at $469 million–$479 million and adjusted EBITDA of $55 million–$61 million (and a significant EBITDA/cash rebound implied for Q4); management expects full-year free cash flow conversion of roughly 40%–43%, highlighted year-to-date free cash flow of $101 million (including $48 million in Q2) and exiting Q2 with $545 million total liquidity (cash $215 million, $330 million undrawn revolver). For context, Q2 actuals were revenue $511 million (recurring $471 million, down ~4.3% YoY; project $40 million, +11% YoY), adjusted gross profit $176 million (down $29 million, -440 bps), adjusted EBITDA $92 million (18% margin), adjusted net income $26 million, and adjusted EPS $0.91.Alight Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
40
Negative
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.23B | 2.26B | 2.33B | 3.41B | 2.21B | 2.92B |
| Gross Profit | 420.00M | 469.00M | 794.00M | 1.14B | 686.00M | 693.00M |
| EBITDA | -1.19B | -2.56B | 350.00M | 186.00M | 347.00M | 481.00M |
| Net Income | -2.03B | -3.10B | -157.00M | -345.00M | -62.00M | -60.00M |
Balance Sheet | ||||||
| Total Assets | 4.27B | 4.57B | 8.19B | 10.78B | 11.23B | 10.99B |
| Cash, Cash Equivalents and Short-Term Investments | 215.00M | 273.00M | 343.00M | 358.00M | 250.00M | 372.00M |
| Total Debt | 2.06B | 2.12B | 2.16B | 2.92B | 3.00B | 3.11B |
| Total Liabilities | 3.24B | 3.52B | 3.88B | 6.04B | 6.15B | 6.06B |
| Stockholders Equity | 1.02B | 1.04B | 4.31B | 4.46B | 4.44B | 4.14B |
Cash Flow | ||||||
| Free Cash Flow | 249.00M | 250.00M | 131.00M | 246.00M | 138.00M | 1.00M |
| Operating Cash Flow | 353.00M | 360.00M | 252.00M | 386.00M | 286.00M | 115.00M |
| Investing Cash Flow | -117.00M | -123.00M | 836.00M | -159.00M | -235.00M | -1.91B |
| Financing Cash Flow | -229.00M | -298.00M | -1.07B | -231.00M | 54.00M | 2.34B |
Alight Technical Analysis
Negative
14.96
Price Trends
15.98
Negative
15.40
Negative
22.87
Negative
Market Momentum
-0.82
Negative
44.62
Neutral
65.78
Neutral
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 14.96 is below the 20-day moving average (MA) of 15.01, below the 50-day MA of 15.98, and below the 200-day MA of 22.87, indicating a bearish trend. The MACD of -0.82 indicates Negative momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 65.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $114.39B | 14.37 | 25.00% | 4.44% | 6.74% | -0.66% | |
81 Outperform | $6.26B | 10.85 | 22.91% | 2.29% | 6.89% | 11.22% | |
77 Outperform | $5.68B | 23.58 | 28.49% | ― | 13.63% | 9.52% | |
68 Neutral | $28.41B | 13.32 | 14.94% | 2.82% | 5.64% | -5.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $403.01M | -0.19 | -159.15% | 16.96% | -3.46% | -79.01% | |
54 Neutral | $1.74B | 13.88 | 4.06% | ― | -2.42% | -65.01% |
* Technology Sector Average
ALIT
Alight
14.33
-61.33
-81.06%
ACN
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181.38
-66.55
-26.84%
CTSH
Cognizant
62.09
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EXLS
Exlservice Holdings
37.50
-6.09
-13.97%
G
Genpact
36.88
-7.27
-16.47%
DXC
DXC Technology
10.55
-3.64
-25.65%
Alight Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresStock Split
Alight adjusts executive equity incentives to support growth
Neutral
Aug 4, 2026
On August 3, 2026, Alight’s board compensation committee lowered the stock price hurdles on previously granted performance-vesting restricted stock units issued on March 25, 2026, for CEO Rohit Verma and other key executives, aiming to bette...
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...
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.