📊 ALIT Key Takeaways
Is Alight, Inc. / Delaware (ALIT) a Good Investment?
Alight is experiencing severe operational distress with a -136.6% operating margin and -$3.1B operating loss on $2.3B revenue, indicating fundamental business deterioration. While positive free cash flow of $250M provides short-term liquidity relief, the company's negative ROE of -296.6% and ROA of -67.8% demonstrate value destruction. The high debt-to-equity ratio of 1.92x combined with negative interest coverage of -24.3x creates significant financial risk despite adequate current liquidity.
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.
Why Buy Alight, Inc. / Delaware Stock? ALIT Key Strengths
- Positive operating cash flow of $360M provides near-term liquidity buffer
- Free cash flow of $250M (11.1% FCF margin) shows some cash generation despite losses
- Current ratio of 1.31x indicates adequate short-term liquidity coverage
- Gross margin of 33.8% demonstrates underlying unit economics remain viable
- 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
- Operating loss of -$3.1B and -136.6% operating margin indicate severe operational failure
- Negative ROE of -296.6% and ROA of -67.8% reflect catastrophic shareholder value destruction
- Debt-to-equity of 1.92x with negative interest coverage (-24.3x) creates imminent refinancing risk
- Revenue declining 3.0% YoY while losses accelerate signals deteriorating competitive position
- High insider trading activity (26 Form 4 filings in 90 days) may indicate distress signaling
- 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
- Operating margin trend - critical indicator of whether operational losses are stabilizing
- Interest coverage ratio - watch for continued deterioration creating default risk
- Cash burn rate and runway - despite positive FCF, assess how long liquidity lasts
- Revenue stabilization - monitor if declining sales can be arrested
- Debt refinancing activities - assess ability to service or restructure $2.0B long-term debt
- 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $715.0M | $40.0M | $0.07 |
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
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775162568.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775162529.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775162504.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775162479.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775162445.xml | View → |
❓ Frequently Asked Questions about ALIT
What is the AI rating for ALIT?
Alight, Inc. / Delaware (ALIT) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALIT's key strengths?
Claude: Positive operating cash flow of $360M provides near-term liquidity buffer. Free cash flow of $250M (11.1% FCF margin) shows some cash generation despite losses. 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: Operating loss of -$3.1B and -136.6% operating margin indicate severe operational failure. Negative ROE of -296.6% and ROA of -67.8% reflect catastrophic shareholder value destruction. 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 $2.3B.
Does ALIT pay dividends?
Alight, Inc. / Delaware pays dividends, with $86.0M distributed to shareholders in the trailing twelve months.
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 $-5.87.
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 rating reflects both perspectives for balanced insights.
Is ALIT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Alight, Inc. / Delaware has a SELL rating with 90% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ALIT stock overvalued or undervalued?
Valuation metrics for ALIT: ROE of -296.6% (sector avg: 16%), net margin of -136.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ALIT stock in 2026?
Our dual AI analysis gives Alight, Inc. / Delaware a combined SELL rating 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 $360.0M, with capital expenditures of $110.0M. FCF margin is 11.1%.
How does ALIT compare to other Services stocks?
Vs Services sector averages: Net margin -136.9% (avg: 10%), ROE -296.6% (avg: 16%), current ratio 1.31 (avg: 1.5).
Is Alight, Inc. / Delaware carrying too much debt?
ALIT has a debt-to-equity ratio of 1.92x, which is above the Services sector average of 0.7x. However, the current ratio of 1.31 suggests adequate short-term liquidity.