Alight reported third quarter 2026 revenue of $500 million, missing analyst estimates of $608.2 million as the company navigated lower net commercial activity following its strategic transformation. Despite the quarterly revenue decline of 6.2% year-over-year, management raised its full-year 2026 guidance and reported adjusted diluted EPS of $0.66, which exceeded the anticipated loss.
Key Highlights
- Revenue fell to $500 million from $533 million in the prior year, primarily impacted by lower commercial volume, though recurring revenue remained high at 91.6% of the total.
- Adjusted EBITDA decreased to $86 million compared to $138 million last year, with margins contracting to 17.2% from 25.9% due to higher restructuring costs and compensation expenses.
- The company raised its full-year 2026 revenue guidance to a range of $2,115 million to $2,125 million, while targeting adjusted EBITDA between $410 million and $420 million.
- Year-to-date free cash flow reached $108 million, reflecting improved operational efficiency despite a $35 million increase in SG&A expenses driven by restructuring initiatives.