Alight Inc logo

Alight Inc(ALIT)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$11.87
09/15/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for ALIT

09/15/2026: ALIT (1-star) is currently NOT-A-BUY. Pass it for now.

Alight Inc is a professional services and HR technology company that specializes in benefits administration, payroll, and employee well-being platforms. Its core strength lies in its deep expertise in complex HR regulatory environments and a stable, recurring revenue stream from large enterprise clients. The main growth opportunity resides in the successful scale of its Alight Worklife software platform and the use of AI to drive operational efficiencies. However, the company faces risks from high debt levels, intense competition from well-capitalized software firms, and integration challenges. Alight may suit growth-oriented investors who are comfortable with execution risk and a company currently focused on long-term digital transformation rather than immediate dividend payouts.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitWhile the platform transition offers growth potential, execution risks and high debt temper the upside.
Momentum investorWeak fitCurrent stock performance often lacks consistent upward trend signals required by momentum strategies.
Value investorMixed fitThe valuation may appear attractive to some, but high debt levels require a careful look at intrinsic value.
Dividend investorWeak fitThe company does not pay a dividend and focuses on debt reduction instead.
Low-risk investorWeak fitThe company's debt profile and operational transition contribute to higher volatility than low-risk investors typically prefer.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock has experienced significant fluctuations related to its SPAC origins and operational transformation.
Valuation riskMediumMarket expectations for SaaS-like multiples are balanced against the reality of a service-heavy business model.
Competition risk (enterprise software)HighCompetition from larger, well-capitalized software firms like Workday poses a constant threat to market share.
Business qualityMediumThe business has strong recurring revenue characteristics but faces challenges in scaling margins efficiently.
Dividend incomeLow / noneInvestors should not expect income, as capital is prioritized for debt and R&D.
Execution riskHighSuccessful integration of technology and service delivery is critical for long-term margin improvement.

Price Behavior

Steep Decline
PRICE PATH

Steep Decline

The stock price has dropped sharply with strong downward pressure.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit -49.57%
Avg. Invested days 24
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 1.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/15/2026

Upturn Scorecard

Upturn Star Rating

ALIT receives a 3-star rating, supported by solid analyst coverage. The rating is constrained by weak unit economics, and weak price momentum.

Company Fundamentals

ALIT has moderate overall fundamentals (3 stars), with moderate financial health, moderate growth momentum, and strong ownership. In FY2025 versus FY2024, solid cash generation (FCF margin 11.1%) is partially offset by negative earnings growth (-1872.6%), slightly negative revenue growth (-3.0%), soft profitability (net margin -136.9%).

Financial Health Rating

ALIT's financial health is supported by moderate liquidity, including working-capital and asset support (WC/assets 5.9%). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

Free-cash-flow growth is ALIT's strongest growth driver at +90.8% FY2025 versus FY2024 (strong, 5 stars). By comparison, while revenue growth (-3.0%, slightly negative) and earnings growth (-1872.6%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

Institutional ownership is 76.3% and approximately 81.9% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 5.54% supports management-shareholder alignment.

Top 5 Institutional Investors

D. E. Shaw & Co LP 97.09%
Fidelity National Title Group, Inc. 84.41%
AQR Capital Management LLC 80.06%
Two Sigma Investments LLC 79.74%
Vanguard Capital Management, LLC 73.12%

Unit Economics (Per $1K Revenue)

ALIT generates approximately $207 of gross profit, $15 of operating income, and $111 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

Effective Tax Rate: -0.52% (Tax Credit)

Quantitative Style Profile

ALIT has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

High VolatilitySmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 455.39M USD
Price to earnings Ratio -
1Y Target Price 40.25
Price to earnings Ratio -
1Y Target Price 40.25
Volume (30-day avg) 503.2K shares
Beta 1.57
52 Weeks Range 9.58 - 70.56
Updated Date 09/15/2026
52 Weeks Range 9.58 - 70.56
Updated Date 09/15/2026
Dividends yield (FY) 13.38%
Basic EPS (TTM) -76.3

How Company Makes Money

Business areaWhat it includesRetail investor read
Employer SolutionsBenefits administration, payroll processing, and HR technology licensing.This is the primary revenue engine relying on long-term client contracts.
Professional ServicesConsulting and advisory projects for health and wealth management.This provides specialized expertise that creates deeper ties to the client's HR leadership.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE -
Forward PE 1.32
Enterprise Value 2.21B
Price to Sales(TTM) 0.2
Enterprise Value 2.21B
Price to Sales(TTM) 0.2
Enterprise Value to Revenue 0.99
Enterprise Value to EBITDA 29.05
Shares Outstanding 26.42M
Shares Floating 21.63M
Shares Outstanding 26.42M
Shares Floating 21.63M
Percent Insiders 5.54
Percent Institutions 76.27

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Alight Inc

Exchange NYSE
Headquarters Chicago, IL, United States
IPO Launch date 2020-07-17
CEO & Director Mr. Rohit Verma
Sector Technology
Industry Software - Application
Full time employees 9500
Full time employees 9500

Alight, Inc. a technology-enabled services company worldwide. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its platform services include integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, and retiree healthcare; and operates AI-led capabilities software. In addition, it offers a full-service customer care center helping them manage the full life cycle of their health, wealth, and wellbeing. Alight, Inc. was founded in 2020 and is headquartered in Chicago, Illinois.