-- Revenue of $511 million --
-- Year to date Cash From Operations of $152 million and Free Cash Flow of $101 million --
CHICAGO--(BUSINESS WIRE)--August 04, 2026--
Alight, Inc. (NYSE: ALIT), a leading benefits administration provider of health, wealth and leave solutions, today reported results for the second quarter ended June 30, 2026.
Rohit Verma, Chief Executive Officer of Alight, commented, "Our second quarter results once again exceeded expectations for both total revenue and adjusted EBITDA and our business remained highly cash generative. These results continue to give us a platform to build and execute our long-term strategy for profitable growth and strengthening our leadership position in the benefits market.
"During the quarter, we continued strengthening our management ranks, created significant market traction on modernization initiatives we have underway, and completed the important step of insourcing critical client service functions that had been outsourced. Our investment focus remained on leveraging AI to further improve user experience and service excellence, which we believe will ultimately drive client retention and growth.
"As we move through our operational transformation, we expect that the back half of the year will be impacted by the commercial execution experienced in 2025 and seasonally higher expenses in Q3. That said, our liquidity remains strong to support the continued implementation of our strategy to achieve long-term sustainable growth. We are encouraged by the early results from our enhanced customer engagement and account management efforts. These improvements are helping us build deeper, more strategic client partnerships that we believe will support stronger retention and contribute to future performance."
Summary of Second Quarter 2026 Results
Three Months Ended June 30,
-----------------------------------------------------
in millions 2026 2025 Change
-------- ------------ -------------
Revenue $ 511 $ 528 $ (17)
Gross Profit 142 176 (34)
Adjusted Gross
Profit 176 205 (29)
Net Income (Loss) (10) (1,073) 1,063
Adjusted EBITDA 92 127 (35)
NOTE: the information contained in this earnings release reflects the
impact of the previously announced 1-for-20 reverse stock split of the
Company's Class A common stock, Class B non-voting common stock
(including the Class B-1 common stock and Class B-2 common stock) and
Class V common stock (including treasury shares), effective on June 30,
2026. All share and per share amounts contained in this earnings release
have been retroactively adjusted to reflect the reverse stock split for
all periods presented.
Revenue decreased 3.2% to $511 million, as compared to $528 million in the prior year. The change was primarily due to lower net commercial activity, partially offset by an increase in project revenue. Recurring revenues were 92.2% of total revenue.
Gross profit was $142 million, or 27.8% of revenue, compared to $176 million, or 33.3% of revenue in the prior year. The decrease in gross profit was primarily attributable to lower revenues.
Selling, general and administrative expenses decreased by $21 million compared to the prior year, primarily due to lower severance and other restructuring costs.
Interest expense of $24 million increased $2 million from the prior year. The increase was due to higher interest expense net of swaps.
The Company's loss from continuing operations before income tax was $19 million compared to a loss from continuing operations before income tax of $1,076 million in the prior year. The improvement was primarily attributable to the $983 million non-cash goodwill impairment in the prior year and the non-operating fair value remeasurements of the tax receivable agreement and financial instruments.
Balance Sheet Highlights
As of June 30, 2026, the Company's cash and cash equivalents balance was $215 million, total debt was $1,996 million and total debt net of cash and cash equivalents was $1,781 million.
2026 Business Outlook
Third Quarter
-- Revenues in the range of $469 million to $479 million -- Adjusted EBITDA in the range of $55 million to $61 million
Full Year
-- Revenues in the range of $2,078 million to $2,098 million -- Adjusted EBITDA in the range of $400 million to $415 million
Reconciliations of the historical financial measures used in this earnings release that are not recognized under U.S. generally accepted accounting principles ("GAAP") are included below. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.
Earnings Conference Call and Webcast Information
A conference call to discuss the Company's second quarter 2026 financial results is scheduled for today, August 4, 2026 at 3:30 p.m. Central Time (4:30 p.m. Eastern Time). Interested parties can access the live webcast and accompanying presentation materials by logging on to the Investor Relations section on the Company's website at http://investor.alight.com. A replay of the conference call and the accompanying presentation materials will be available on the investor relations website for approximately 90 days.
About Alight Solutions
Alight is a leading benefits administration provider of health, wealth, leave and point solutions for many of the world's largest organizations and over 30 million people. Through the administration of employee benefits, Alight helps clients gain a benefits advantage while building a healthy and financially secure workforce by unifying the benefits ecosystem across health, wealth, wellbeing, absence management and navigation. Our Alight Worklife$(R)$ platform empowers employers to gain a deeper understanding of their workforce and engage them throughout life's most important moments with personalized benefits management and data-driven insights, leading to increased employee wellbeing, engagement and productivity. Learn more at alight.com.
Forward-Looking Statements
This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our leadership position, strategy for profitable and long-term growth, our ability to improve the member experience and service excellence, client retention and growth, and outlook for Alight's business, financial results, liquidity and capital resources, including statements in the "Business Outlook" section of this earnings release. In some cases, these forward-looking statements can be identified by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may, " "will," "would," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties including, among others, risks associated with competition, our ability to successfully execute the next phase of our strategic transformation, an inability to successfully execute on operational and technological enhancements designed to drive value for our clients or drive internal efficiencies, issues relating to the use of new and evolving technologies, such as Artificial Intelligence ("AI") and Machine Learning ("ML"), we may not achieve our financial projections, which could have an adverse effect on our business, operating results, and financial condition, cyber-attacks and security vulnerabilities and other significant disruptions in our information technology systems and networks that could expose us to legal liability, impair its reputation or have a negative effect on our results of operations, our handling of confidential, personal or proprietary data, actions or proposals from activist stockholders, the precision of assumptions underlying certain reported measures, and compliance with applicable laws or regulations, including changes thereto. Additional factors that could cause Alight's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Risk Factors" of Alight's Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on February 24, 2026, as such factors may be updated from time to time in Alight's filings with the SEC, which are, or will be, accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be considered along with other factors noted in this earnings release and in Alight's filings with the SEC. Alight undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Non-GAAP Financial Measures and Other Information
Comments