Investment Thesis
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.
ALIT 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
ALIT 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
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
ALIT Financial Metrics
ALIT Profitability Ratios
ALIT Balance Sheet & Liquidity
ALIT 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 Growth Metrics (YoY)
ALIT Quarterly 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.
ALIT Capital Allocation
ALIT SEC Filings
Access official SEC EDGAR filings for Alight, Inc. / Delaware (CIK: 0001809104)