Alight Sets 2026 Outlook After Third-Quarter Revenue Drop

The Tip Desk · November 3, 2026 · 2 min read

The benefits administrator reported $500 million of third-quarter revenue and set full-year 2026 revenue at $2,115 million to $2,125 million.

Alight, Inc. (ALIT), a benefits administration provider of health, wealth and leave solutions, reported third-quarter revenue of $500 million, a 6.2% decline from $533 million a year earlier, and set its full-year 2026 outlook.

The year-over-year drop was steeper than the 3.2% decline to $511 million in the second quarter. The company said the change was primarily due to lower net commercial activity. Recurring revenue was $458 million, or 91.6% of the total.

Chief Executive Officer Rohit Verma said the company had surpassed revenue and adjusted EBITDA expectations for the third consecutive quarter. He cited improved retention metrics, the addition of Bruce Wolfe as Wealth leader, features on an AI roadmap and the acquisition of Abett. Verma said the company expanded account coverage to relationships representing over 95% of recurring revenue.

Gross profit was $135 million, or 27.0% of revenue, compared with $178 million, or 33.4% of revenue, a year earlier. The company attributed the decrease primarily to lower revenues and an increase in compensation expense, partially offset by cost savings initiatives. Adjusted gross profit was $168 million.

Adjusted EBITDA from continuing operations was $86 million, down from $138 million a year earlier, with an adjusted EBITDA margin of 17.2%. Sequentially, adjusted EBITDA was $86 million versus $92 million in the second quarter.

Selling, general and administrative expenses were $122 million, up from $87 million a year earlier, primarily due to higher severance and other restructuring costs, compensation expense and professional fees. Restructuring charges were $25 million in the quarter, compared with $4 million a year earlier. Interest expense was $25 million.

The company recorded a $51 million net loss, compared with a $1,068 million net loss a year earlier. The improvement was primarily attributable to a $1,338 million non-cash goodwill impairment in the prior-year period, partially offset by non-operating fair-value remeasurements of the tax receivable agreement and financial instruments. Loss from continuing operations before income tax was $70 million. Adjusted diluted earnings from continuing operations were $0.66 a share.

Cash and cash equivalents were $212 million as of September 30, 2026. Total debt was $1,991 million, and total debt net of cash was $1,779 million. For the nine months ended September 30, cash from operations was $181 million and free cash flow was $108 million.

Alight set its 2026 full-year outlook at revenue of $2,115 million to $2,125 million and adjusted EBITDA of $410 million to $420 million.