Alight, Inc. Class A (ALIT)

Alight, Inc.'s stock price has experienced a significant decline over the past year and within the last six months. As of January 7, 2026, the share price was $1.75, a substantial drop from $6.64 on January 8, 2025, representing a 73.64% decline over that period. Key events impacting the stock include the Q3 2025 results, where Alight reported mixed financial results with a revenue shortfall and a significant non-cash goodwill impairment charge. Q2 2025 results showed revenue topping market expectations, but sales still fell year-on-year, and a non-cash goodwill impairment charge impacted the operating margin. The company has faced declining revenue and customer attrition, expecting a revenue decline partly due to a loss from non-renewing customers. Management changes and strategic transformation, including divesting its payroll and professional services business, have also impacted the stock.

Alight, Inc. generates primarily all of its revenue from fees for services provided from contracts across all solutions, which is highly recurring. These fees are typically based on a contracted fee charged per participant per period. The company's contracts usually have three to five-year terms for ongoing services with mutual renewal options. While the revenue model is recurring, the provided information does not explicitly detail any specific demand seasonality for Alight's products and services. However, the nature of benefits administration and human capital management services often aligns with annual enrollment periods and corporate budgeting cycles, which could introduce some underlying seasonality.

Alight, Inc. is a technology-enabled services company providing cloud-based integrated digital human capital and business solutions globally. It operates in the Technology sector, specifically within the Software - Application industry, and also falls under Professional Services. Alight's core offering is the Alight Worklife platform, an employee engagement platform that delivers integrated benefits administration, healthcare navigation, financial well-being, leave of absence management, and retiree healthcare. The company was founded in 2020 and is headquartered in Chicago, Illinois.

Alight, Inc. has a global presence, serving 4,300 clients and over 35 million employees and their dependents worldwide. The company supports multinational clients across borders, leveraging global resources and localized knowledge through delivery centers located around the world. Alight aims to meet the needs of its clients' people wherever they are located, whether they have a concentrated presence or multinational operations.

In the past year, Alight has focused on enhancing client and participant experience, reporting record levels of participant satisfaction since the completion of its technology transformation. The company has emphasized its investments in AI and automation, as well as expanding partner collaborations. However, the company's financial performance, including declining revenue and significant goodwill impairment charges, could indirectly impact its brand reputation among investors. Alight's revenue retention rate was about 93.5% in 2025, down from a historical best of 98%, suggesting some customer churn.

Alight, Inc. has a diverse ownership structure, with institutional investors holding a significant portion of the company's stock. Approximately 86.42% of the company's stock is owned by Institutional Investors, 2.91% by Insiders, and 10.67% by Public Companies and Individual Investors. Major institutional owners include Starboard Value LP, Vanguard Group Inc., and Cannae Holdings, Inc. Jeffrey Smith owns the most shares of Alight among individual investors.