Alight's Q3 revenue falls on lower net commercial activity

Alight

03/11/2026 21:16

Overview
U.S. benefits administration provider's Q3 revenue fell 6.2% but beat analyst expectations
Adjusted EBITDA for Q3 declined yr/yr 
Company raised its 2026 full-year revenue and adjusted EBITDA outlook

Outlook
Alight raises 2026 full-year revenue outlook to $2.115 bln-$2.125 bln
Company lifts 2026 full-year adjusted EBITDA forecast to $410 mln-$420 mln

Result Drivers
LOWER COMMERCIAL ACTIVITY - Revenue decline was primarily due to lower net commercial activity
HIGHER COMPENSATION AND RESTRUCTURING COSTS - Gross profit fell mainly due to lower revenues and an increase in compensation expense, partially offset by cost savings initiatives
INCREASED SG&A EXPENSES - Selling, general and administrative expenses rose due to higher severance, restructuring costs, compensation expense and professional fees

Company press release: ID:nBw2ckPkta

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$500 mln
$473.83 mln (4 Analysts)
Q3 Gross Profit
 
$135 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Alight Inc is $16.00, about 61.9% above its November 2 closing price of $9.88
The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 3 three months ago

Reuters Recommended Reads
Nov 2 - HealthStream Q3 revenue, adjusted EBITDA beat estimates; raises 2026 outlook
Nov 2 - CBIZ Benefits & Insurance Services launches as New Mountain-backed standalone company
Nov 2 - EverQuote Q3 results beat estimates on insurance carrier demand, growth in key verticals

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)