XVARY Composite Score
53
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
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What it is
Alight runs benefits, healthcare, leave, and retirement admin for big employers through a cloud platform and service teams.
How it gets paid
Last year Alight made $2.26B in revenue. integrated benefits administration was the main engine at $0.79B, or 35% of sales.
Why it's growing
Revenue grew 3.0% last year. The impairment charge dominates GAAP — for operating trends.
What just happened
Q4 2025 revenue $653M · adjusted EPS $0.18.
At a Glance
B balance sheet — gets the job done, barely
$0.04/sh quarterly dividend (verify sustainability vs leverage)
$0.50 FY2025 adjusted diluted EPS
$2.26B FY2025 revenue
N/a operating margin
XVARY composite: 53/100 — below average
What They Do
Alight runs benefits, healthcare, leave, and retirement admin for big employers through a cloud platform and service teams.
Alight sits inside messy HR plumbing that employers hate replacing. The company has 9,500 employees and a digital platform, Alight Worklife, so your benefits, leave, and healthcare workflows stay in one place. Switching costs → changing core employee systems → so what: leaving is painful even when the numbers look ugly.
How They Make Money
$2.26B
FY2025 revenue · their business shrank ~3.0% last year (company reported $2,262M)
integrated benefits administration
$0.79B
healthcare navigation
$0.45B
financial wellbeing
$0.34B
leaves solutions
$0.29B
retiree healthcare
$0.23B
total employee wellbeing
$0.16B
The Products That Matter
Employee benefits platform
Alight Worklife
employer-facing benefits & wellbeing hub
This is the main front-end employees touch. It matters because the software layer is supposed to make the admin engine stickier. Company revenue still declined ~3% in 2025 — better workflow does not automatically fix a slowing client base.
core platform
Health and wealth administration
Health & Wealth Administration
~$1.8B · roughly 90% of sales
This segment carries most of the revenue base. It is recurring in the sense that employers do not rip these systems out every quarter. The catch is simple: recurring revenue only feels safe when it is at least stable. Here, it was down 3%.
revenue base
Key Numbers
81%
debt share
Long-term debt is 81% of capital. Plain English: creditors matter a lot more here than you want in a shaky turnaround.
41.7%
adjusted gross margin (Q4’25)
From the Feb 19, 2026 release — down from 44.1% prior-year quarter; shows pricing/mix pressure even before goodwill noise.
$2.26B
annual revenue
Reported $2,262M for FY2025, off ~3%. Scale is real; GAAP profitability is not, until impairments and leverage are under control.
$0.50
FY2025 adj. diluted EPS
Versus $0.48 in 2024 per the release — modest adjusted earnings despite ugly GAAP from impairment.
Financial Health
B
Strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $2.1B (81% of capital)
B — functional but not a standout on the balance sheet.
Total Return vs. Market
source: institutional data · return history unavailable
What Just Happened
mixed vs. expectations
Q4 2025 revenue $653M · adjusted EPS $0.18
Down from $680M and $0.24 in Q4 2024. GAAP net loss was driven by an ~$803M goodwill impairment (total net loss ~$933M). Adjusted EBITDA $178M vs $217M prior-year quarter.
$653M
Q4 revenue
$0.18
adj. diluted EPS
41.7%
adj. gross margin
the number that mattered
The impairment charge dominates GAAP — for operating trends, revenue trajectory and adjusted margins matter more than a single distorted GAAP EPS print.
source: Alight Q4 & FY2025 release (Feb 19, 2026)
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What Could Go Wrong
The biggest risk is not the accounting charge by itself. It is a debt-heavy company with falling revenue trying to rebuild trust at the same time. That combination gives management very little room for another mistake.
Med
The write-down reset trust
An $803M impairment on a company worth about $489M in the market tells you earlier acquisition assumptions were too generous. Noncash does not mean harmless.
You now need cleaner execution just to get back to neutral with investors. Every future guide and every quarter gets judged against that credibility gap.
Med
Revenue is still shrinking
Q4 revenue fell to $653M from $680M, and management guided for another 3–4% decline. Cost cuts can protect margins for a while. They do not create a durable growth story.
If the top line keeps sliding, the stock keeps trading like a runoff asset instead of a recovery candidate.
Med
$2.1B of debt makes bad news hit harder
Long-term debt is $2.1B, equal to 81% of capital, against a market value of about $489M. That is a lot of balance-sheet weight on a small equity base.
Another operating miss, a weaker outlook, or a payout change would likely hit the equity harder because debt magnifies the downside for shareholders.
Med
The dividend may be more signal than support
A high forward dividend yield on a distressed equity often signals skepticism, not a gift — verify cash coverage versus $2.1B debt.
If the dividend is cut, income-focused holders leave and one of the few remaining reasons to stay long disappears with them.
$2.1B of debt, a small quarterly dividend the market may not trust, and another year of revenue pressure is not a diversified risk set. It is one balance-sheet and credibility story told three ways.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Revenue
Whether the next report is better than the guided 3–4% decline
This is the main operating tell. A turnaround can survive a write-down. It usually does not survive a revenue base that keeps leaking.
Earnings
The first quarterly print after the $653M Q4 result
You want stabilization, not another explanation for why the decline is temporary. The longer the repair takes, the less patience the market gives you.
Legal
Whether investigations turn into filed cases
The legal overhang matters less for immediate cash than for the narrative. If you are waiting for trust to rebuild, lawsuits move in the opposite direction.
Dividend
Whether the dividend survives the leverage story
If management protects the payout, that signals confidence. If management cuts it, the stock will treat that as confirmation that preservation matters more than appearances.
Analyst Rankings
short-term outlook
below average
in human-speak, analysts think the stock needs to earn back trust before it earns a real rebound.
risk profile
elevated
$2.1B of debt, legal noise, and a shrinking revenue base make this a fragile setup.
chart momentum
weak
A stock that fell 38% in one day does not get the benefit of the doubt from technical traders.
earnings predictability
low
Write-downs, guidance resets, and renewal questions make the model messy. Messy rarely gets a premium multiple.
Source: institutional data
Institutional Activity
institutional ownership data for ALIT is being compiled.
Source: institutional data
Price Targets
3-5 year target range
$2
Current price
Target midpoint · from current
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