Is Alight's (ALIT) Goodwill Write-Down a Turning Point for Its Long-Term Growth Story?

• Alight, Inc. reported second quarter 2025 results that included US$528 million in sales and a net loss of US$1.07 billion, driven by a US$983 million goodwill impairment and softer revenues compared to the prior year.
• Alongside returning US$42 million to shareholders through buybacks and dividends, the company was also recognized as a Great Place to Work® for a seventh straight year, underscoring its focus on employee engagement amid financial challenges.
• We'll examine how Alight's significant US$983 million goodwill impairment impacts its future investment narrative and growth assumptions.

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Alight Investment Narrative Recap

To invest in Alight, it's essential to believe in the company’s ability to turn around its commercial performance through technology-driven efficiency and expansion of recurring revenue streams. The Q2 2025 results, marked by a US$983 million goodwill impairment and continued revenue softness, place sharper focus on execution in the sales pipeline as the most important short-term catalyst, while extended sales cycles and project delays remain the primary risk; these results reinforce rather than materially change that risk-reward balance.

Alight’s completion of a significant share repurchase, US$20 million in Q2, underscores ongoing efforts to return capital to shareholders, but does not directly address core revenue or profitability headwinds. As the company actively manages its capital allocation, the biggest near-term opportunity and risk remain rooted in commercial execution and client demand recovery.

By contrast, the prolonged softness in project revenues is an area investors should pay extra attention to amid recent financial pressures...

Read the full narrative on Alight (it's free!)

Alight's outlook anticipates $2.5 billion in revenue and $142.2 million in earnings by 2028. This is based on a projected annual revenue growth rate of 3.1% and a $1.24 billion increase in earnings from the current $-1.1 billion.

Uncover how Alight's forecasts yield a $8.50 fair value, a 119% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community fall between US$8.50 and US$14.22 per share. With project revenue softness still unresolved, investors may want to review these contrasting outlooks from their peers.

Explore 3 other fair value estimates on Alight - why the stock might be worth over 3x more than the current price!

Build Your Own Alight Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Alight research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Alight research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alight's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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