📊 ALIT Key Takeaways
Is Alight, Inc. / Delaware (ALIT) a Good Investment?
Alight is unprofitable with negative operating (-$22M) and net income (-$19M), declining revenue (-3.0% YoY), and dangerously high leverage (1.95x Debt/Equity) with inability to service debt from operations (negative 0.8x interest coverage). While the company generates positive free cash flow ($53M), this is insufficient to offset deteriorating fundamentals and structural profitability challenges.
Alight's fundamentals are pressured by declining revenue, deeply negative reported profitability, and elevated leverage, which together weaken the quality of the earnings profile. While operating cash flow and free cash flow remain positive and liquidity is adequate, the gap between cash generation and massive GAAP losses suggests reliance on adjustments or potential one-time charges rather than durable profit strength.
Alight, Inc. / Delaware Key Strengths (ALIT)
- Positive operating cash flow of $79M demonstrates underlying cash generation despite reported losses
- Free cash flow of $53M (9.9% FCF margin) provides liquidity buffer for near-term obligations
- Gross margin of 29.2% shows viable unit economics before operating expenses
- Adequate short-term liquidity with 1.42x current and quick ratios
- Positive operating cash flow and $250M of free cash flow provide some financial flexibility
- Current and quick ratios of 1.31x indicate near-term liquidity is manageable
- Gross margin of 33.8% suggests the core service model still retains underlying gross profitability
ALIT Stock Risks: Alight, Inc. / Delaware Investment Risks
- Persistent unprofitability with negative operating margin (-4.1%) and net margin (-3.6%) indicating structural cost issues
- Revenue contraction of 3.0% YoY signals declining customer demand or market headwinds
- Unsustainable debt burden ($2.0B long-term debt) with negative interest coverage ratio (-0.8x) creating refinancing and solvency risk
- Negative return metrics (ROE -1.9%, ROA -0.4%) destroying shareholder value
- High insider trading activity (29 Form 4 filings in 90 days) may signal distribution concerns
- Revenue declined 3.0% year over year, indicating weak top-line momentum
- Operating margin of -136.6% and net margin of -136.9% reflect severe profitability deterioration
- Debt/equity of 1.92x and negative interest coverage indicate meaningful balance sheet and refinancing risk
Key Metrics to Watch
- Path to operating profitability and quarterly operating margin improvement
- Revenue stabilization and return to growth trajectory
- Debt reduction progress and debt-to-EBITDA ratio improvement toward sustainable levels
- Sustenance of positive free cash flow and conversion to net income improvement
- Operating margin normalization and whether losses narrow meaningfully without heavy adjustments
- Revenue growth and free cash flow durability relative to debt obligations
Alight, Inc. / Delaware (ALIT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Alight, Inc. / Delaware presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ALIT Profit Margin, ROE & Profitability Analysis
ALIT vs Services Sector: How Alight, Inc. / Delaware Compares
How Alight, Inc. / Delaware compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Alight, Inc. / Delaware Stock Overvalued? ALIT Valuation Analysis 2026
Based on fundamental analysis, Alight, Inc. / Delaware shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Alight, Inc. / Delaware Balance Sheet: ALIT Debt, Cash & Liquidity
ALIT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Alight, Inc. / Delaware's revenue has declined by 13% over the 5-year period, indicating business contraction. The most recent EPS of $-0.70 indicates the company is currently unprofitable.
ALIT Revenue Growth, EPS Growth & YoY Performance
ALIT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $534.0M | -$19.0M | $-0.04 |
| Q3 2025 | $533.0M | -$74.0M | $-0.14 |
| Q2 2025 | $528.0M | $23.0M | $0.04 |
| Q1 2025 | $548.0M | -$25.0M | $-0.05 |
| Q3 2024 | $555.0M | -$48.0M | $-0.10 |
| Q2 2024 | $538.0M | $23.0M | $0.04 |
| Q1 2024 | $559.0M | -$68.0M | $-0.14 |
| Q3 2023 | $750.0M | $3.0M | $-0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Alight, Inc. / Delaware Dividends, Buybacks & Capital Allocation
ALIT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Alight, Inc. / Delaware (CIK: 0001809104)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ALIT
What is the AI rating for ALIT?
Alight, Inc. / Delaware (ALIT) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 83% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALIT's key strengths?
Claude: Positive operating cash flow of $79M demonstrates underlying cash generation despite reported losses. Free cash flow of $53M (9.9% FCF margin) provides liquidity buffer for near-term obligations. ChatGPT: Positive operating cash flow and $250M of free cash flow provide some financial flexibility. Current and quick ratios of 1.31x indicate near-term liquidity is manageable.
What are the risks of investing in ALIT?
Claude: Persistent unprofitability with negative operating margin (-4.1%) and net margin (-3.6%) indicating structural cost issues. Revenue contraction of 3.0% YoY signals declining customer demand or market headwinds. ChatGPT: Revenue declined 3.0% year over year, indicating weak top-line momentum. Operating margin of -136.6% and net margin of -136.9% reflect severe profitability deterioration.
What is ALIT's revenue and growth?
Alight, Inc. / Delaware reported revenue of $534.0M.
Does ALIT pay dividends?
Alight, Inc. / Delaware does not currently pay dividends.
Where can I find ALIT SEC filings?
Official SEC filings for Alight, Inc. / Delaware (CIK: 0001809104) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ALIT's EPS?
Alight, Inc. / Delaware has a diluted EPS of $-0.04.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ALIT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Alight, Inc. / Delaware has a C grade with 83% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ALIT stock overvalued or undervalued?
Valuation metrics for ALIT: ROE of -1.9% (sector avg: 16%), net margin of -3.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ALIT's AI grade for 2026?
Our dual AI analysis gives Alight, Inc. / Delaware a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ALIT's free cash flow?
Alight, Inc. / Delaware's operating cash flow is $79.0M, with capital expenditures of $26.0M. FCF margin is 9.9%.
How does ALIT compare to other Services stocks?
Vs Services sector averages: Net margin -3.6% (avg: 10%), ROE -1.9% (avg: 16%), current ratio 1.42 (avg: 1.5).
Is Alight, Inc. / Delaware carrying too much debt?
ALIT has a debt-to-equity ratio of 1.95x, which is above the Services sector average of 0.7x. However, the current ratio of 1.42 suggests adequate short-term liquidity.