Third Quarter 2026
Filed Nov 3, 2026Alight Reports Third Quarter 2026 Results – Raises 2026 full year business outlook
Third-quarter revenue decreased 6.2% to $500 million and gross profit, adjusted EBITDA and their margins declined from the prior year, while the company raised its full-year business outlook and reported $181 million of year-to-date cash provided by operating activities.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30GAAP | $500M | – | decreased 6.2% |
| Revenue, nine months ended September 30GAAP | $1.54B | – | – |
| Recurring revenue, three months ended September 30other | $458M | – | – |
| Project revenue, three months ended September 30other | $42M | – | – |
| Recurring revenue, nine months ended September 30other | $1.43B | – | – |
| Project revenue, nine months ended September 30other | $118M | – | – |
| Gross profit, three months ended September 30GAAP | $135M | – | – |
| Gross profit margin, three months ended September 30GAAP | 27.0% | – | – |
| Adjusted gross profit, three months ended September 30non-GAAP | $168M | – | – |
| Adjusted gross profit margin, three months ended September 30non-GAAP | 33.6% | – | – |
| Gross profit, nine months ended September 30GAAP | $433M | – | – |
| Gross profit margin, nine months ended September 30GAAP | 28.0% | – | – |
| Adjusted gross profit, nine months ended September 30non-GAAP | $533M | – | – |
| Adjusted gross profit margin, nine months ended September 30non-GAAP | 34.5% | – | – |
| Selling, general and administrative expenses, three months ended September 30GAAP | $122M | – | increased by $35 million |
| Total operating expenses, three months ended September 30GAAP | $196M | – | – |
| Operating income (loss) from continuing operations, three months ended September 30GAAP | −$61M | – | – |
| Income (loss) from continuing operations before taxes, three months ended September 30GAAP | −$70M | – | – |
| Net income (loss) from continuing operations, three months ended September 30GAAP | −$51M | – | – |
| Net income (loss), three months ended September 30GAAP | −$51M | – | – |
| Net income (loss) attributable to Alight, Inc., three months ended September 30GAAP | −$51M | – | – |
| Diluted net income (loss) per share, three months ended September 30GAAP | $(1.93) | – | – |
| Adjusted EBITDA from continuing operations, three months ended September 30non-GAAP | $86M | – | – |
| Adjusted EBITDA margin from continuing operations, three months ended September 30non-GAAP | 17.2% | – | – |
| Adjusted net income from continuing operations, three months ended September 30non-GAAP | $19M | – | – |
| Adjusted diluted earnings per share from continuing operations, three months ended September 30non-GAAP | $0.66 | – | – |
| Net income (loss) attributable to Alight, Inc., nine months ended September 30GAAP | −$80M | – | – |
| Diluted net income (loss) per share, nine months ended September 30GAAP | $(3.04) | – | – |
| Adjusted EBITDA from continuing operations, nine months ended September 30non-GAAP | $282M | – | – |
| Adjusted EBITDA margin from continuing operations, nine months ended September 30non-GAAP | 18.3% | – | – |
| Adjusted net income from continuing operations, nine months ended September 30non-GAAP | $80M | – | – |
| Adjusted diluted earnings per share from continuing operations, nine months ended September 30non-GAAP | $2.80 | – | – |
| Cash provided by operating activities - continuing operations, nine months ended September 30GAAP | $181M | – | – |
| Free cash flow from continuing operations, nine months ended September 30non-GAAP | $108M | – | – |
Full Year 2026 outlook
- Revenue$2,115 million to $2,125 million
- NoteAdjusted EBITDA in the range of $410 million to $420 million
Capital returns
- Dividend payments: $(1) million for the nine months ended September 30, 2026; $(65) million for the nine months ended September 30, 2025.
- Repurchase of shares: $— for the nine months ended September 30, 2026; $(65) million for the nine months ended September 30, 2025.
What drove it
- Revenue decreased primarily due to lower net commercial activity.
- Recurring revenues were 91.6% of total revenue.
- The decrease in gross profit was primarily attributable to lower revenues and an increase in compensation expense, partially offset by cost savings initiatives.
- Selling, general and administrative expenses increased primarily due to higher severance and other restructuring costs, compensation expense and professional fees.
- The company cited improved retention metrics, new-logo wins, expansion with existing clients, AI roadmap features and the acquisition of Abett.
Concerns
- Revenue decreased 6.2% to $500 million.
- Adjusted EBITDA from continuing operations was $86 million, compared with $138 million in the prior year.
- Adjusted EBITDA margin from continuing operations was 17.2%, compared with 25.9% in the prior year.
- Gross profit margin was 27.0%, compared with 33.4% in the prior year.
- Total debt net of cash and cash equivalents was $1,779 million as of September 30, 2026.
- The company reported a net loss attributable to Alight, Inc. of $(51) million.
What to watch
- Execution toward full-year revenue guidance of $2,115 million to $2,125 million.
- Execution toward full-year adjusted EBITDA guidance of $410 million to $420 million.
- Net commercial activity and retention metrics.
- Progress of transformation initiatives, operational and service enhancements, and cost savings initiatives.
- Margin recovery following the third-quarter decline in gross profit and adjusted EBITDA margins.
- Liquidity, debt refinancing-related professional fees and payments on tax receivable agreements.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $212 million; $273 million as of December 31, 2025.
- Total debt as of September 30, 2026: $1,991 million.
- Total debt net of cash and cash equivalents as of September 30, 2026: $1,779 million.
- Long-term debt, net as of September 30, 2026: $1,971 million; $1,985 million as of December 31, 2025.
- Current portion of long-term debt, net as of September 30, 2026: $20 million; $20 million as of December 31, 2025.
- Capital expenditures for the nine months ended September 30, 2026: $(73) million; $(85) million for the nine months ended September 30, 2025.
- Net cash used in financing activities for the nine months ended September 30, 2026: $(180) million; $(288) million for the nine months ended September 30, 2025.
- Payments on tax receivable agreements for the nine months ended September 30, 2026: $(136) million; $(100) million for the nine months ended September 30, 2025.
Analysis
Alight reported third-quarter revenue of $500 million, down 6.2% from $533 million in the prior year. The company attributed the decline primarily to lower net commercial activity. Recurring revenue was $458 million and represented 91.6% of total revenue, while project revenue was $42 million. For the nine months ended September 30, revenue was $1,545 million, compared with $1,609 million in the prior-year period.
Profitability weakened year over year. Third-quarter gross profit was $135 million, or 27.0% of revenue, versus $178 million, or 33.4% of revenue. Adjusted gross profit was $168 million and adjusted gross profit margin was 33.6%, compared with $206 million and 38.6%. The company cited lower revenue and increased compensation expense, partly offset by cost savings initiatives. Selling, general and administrative expenses were $122 million, compared with $87 million, with higher severance and other restructuring costs, compensation expense and professional fees identified as drivers.
The GAAP loss narrowed materially because the prior-year period included a $1,338 million non-cash goodwill impairment charge. Net loss attributable to Alight, Inc. was $(51) million, compared with $(1,067) million, and diluted net loss per share was $(1.93), compared with $(40.52). Core non-GAAP earnings also declined: adjusted EBITDA from continuing operations was $86 million versus $138 million, adjusted EBITDA margin was 17.2% versus 25.9%, and adjusted diluted earnings per share from continuing operations was $0.66 versus $2.32.
Cash generation remained positive but was below the prior-year period. Cash provided by operating activities from continuing operations was $181 million for the nine months ended September 30, compared with $236 million, and free cash flow from continuing operations was $108 million, compared with $151 million. Cash and cash equivalents were $212 million as of September 30, 2026, while total debt net of cash and cash equivalents was $1,779 million. Financing uses included $(136) million of payments on tax receivable agreements.
Management raised its full-year 2026 business outlook to revenue of $2,115 million to $2,125 million and adjusted EBITDA of $410 million to $420 million. The filing does not provide prior outlook ranges, so the magnitude of the increase cannot be assessed from the supplied documents. The key operating question is whether improved retention, new-logo activity, account coverage and transformation initiatives can reverse lower net commercial activity while restoring gross profit and adjusted EBITDA margins.
Management, verbatim
We are pleased to have surpassed revenue and adjusted EBITDA expectations for the third consecutive quarter, reflecting our continued execution of our long-term strategy to bolster Alight’s leadership position in the market and return to positive commercial momentum.
Rohit Verma, Chief Executive Officer of Alight
Our demonstrated progress with our transformation initiatives has enabled us to win several new logos and expand our relationships with existing clients.
Rohit Verma, Chief Executive Officer of Alight
Not in the filing
stated, not guessed- Prior-quarter comparisons for third-quarter revenue, profitability, earnings per share and cash flow metrics.
- Quarterly cash provided by operating activities and quarterly free cash flow.
- Prior full-year 2026 guidance ranges needed to assess the stated outlook increase.
- Full-year guidance for gross margin, operating expenses and tax rate.
- A reported GAAP or non-GAAP tax rate.
- Reportable operating segment revenue and profitability.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.