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Alight
(NYSE:ALIT)
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Rating:47Neutral
Price Target:
$8.00
▼(-46.52% Downside)
Action:Reiterated
Date:09/29/26
The score is held down primarily by weak financial performance (contracting revenue and large losses) and bearish technicals (below key moving averages with negative momentum). Earnings-call commentary provides some offset via liquidity and free-cash-flow guidance, but near-term revenue and margin pressures remain prominent. Valuation is only modestly supportive because the negative P/E and dividend cancellation reduce confidence in yield-based attractiveness.
Positive Factors
Cash generation and liquidity
Positive operating and free cash flow provide internal funding despite reported losses, while substantial cash and revolver availability support liquidity. This financial cushion can help Alight execute its turnaround, invest in technology, and manage seasonal cash demands over the next several quarters.
Negative Factors
Recurring revenue contraction
Recurring revenue weakness directly pressures the stability of Alight’s core business model and indicates that prior commercial execution problems are still flowing through results. Management expects a 12–18 month lag before improvements translate into revenue, extending the recovery timeline.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation and liquidity
Positive operating and free cash flow provide internal funding despite reported losses, while substantial cash and revolver availability support liquidity. This financial cushion can help Alight execute its turnaround, invest in technology, and manage seasonal cash demands 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
$231.68M
Dividend Yield35.16%
Average Volume (3M)467.68K
Price to Earnings (P/E)―
Beta (1Y)1.79
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. Volume398,266
30 Day Avg. Volume467,683
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 Cap8.45
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit4.66
Enterprise Value/Ebitda-1.64
Forecast
1Y Price Target
$17.00Price Target Upside13.64% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)4.77
Revenue Forecast (FY)$2.09B
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....
Alight Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 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 | 138.00M | 392.00M | 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
Neutral
14.96
Price Trends
11.69
Negative
13.87
Negative
16.74
Negative
Market Momentum
-0.82
Negative
46.11
Neutral
58.45
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 14.96 is above the 20-day moving average (MA) of 9.24, above the 50-day MA of 11.69, and below the 200-day MA of 16.74, indicating a neutral trend. The MACD of -0.82 indicates Negative momentum. The RSI at 46.11 is Neutral, neither overbought nor oversold. The STOCH value of 58.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $142.00B | 17.59 | 26.77% | 2.75% | 6.47% | 11.19% | |
77 Outperform | $6.58B | 11.57 | 22.91% | 1.86% | 6.89% | 11.22% | |
76 Outperform | $6.19B | 25.80 | 28.49% | ― | 13.63% | 9.52% | |
74 Outperform | $30.71B | 14.92 | 14.94% | 1.87% | 5.64% | -5.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $2.34B | 20.26 | 4.06% | 5.60% | -2.42% | -65.01% | |
47 Neutral | $231.68M | -0.12 | -159.15% | 35.16% | -3.46% | -79.01% |
* Technology Sector Average
ALIT
Alight
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-51.32
-84.23%
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Alight Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Alight Releases Supplemental Financing Information Under Regulation FD
Neutral
Oct 14, 2026
Alight, Inc. has been in confidential talks with certain lenders and their advisers about possible refinancing or extensions related to its May 1, 2017 credit agreement, but has decided not to actively pursue a transaction at this time, noting tha...
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...
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.