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Here are 1-2 brief analogies for Alight (ALIT):

• A super-sized ADP, but also handling all employee benefits administration and HR cloud services for large enterprises.
• Like an Accenture or Deloitte, but specialized in managing and implementing a company's entire HR, payroll, and employee benefits ecosystem.

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• Health Solutions: Administers comprehensive employee health benefits, including medical, dental, vision, and wellness programs.
• Wealth Solutions: Manages retirement plans, financial wellbeing programs, and other employee wealth-building benefits.
• Payroll Solutions: Offers global payroll processing, tax filing, and compliance services for organizations.
• Cloud Solutions: Provides implementation, optimization, and ongoing management services for leading HR and financial cloud platforms like Workday and SAP SuccessFactors.
• Professional Services: Delivers consulting, technology integration, and managed services for HR, benefits, and payroll transformation.

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Alight (symbol: ALIT) primarily sells its services to other companies (B2B).

Alight provides cloud-based human capital and benefits solutions to employers. Its customer base is highly diversified and consists of thousands of large enterprises, mid-market companies, and governmental entities across various industries globally. According to Alight's most recent SEC filings (10-K), no single client accounted for 10% or more of its consolidated revenues for the years ended December 31, 2023, 2022, and 2021.

Therefore, while Alight serves a significant portion of the Fortune 100 and Fortune 500 companies, it does not identify specific "major customers" by name in its public disclosures due to their diversified revenue stream where no single customer represents a significant concentration of revenue. Its customers are broadly:

• Large multinational corporations
• Mid-market companies
• Governmental organizations

These customers utilize Alight's services for their employees' health, wealth, HR, and payroll management.

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• Workday, Inc. (WDAY)
• SAP SE (SAP)
• Oracle Corporation (ORCL)
• Microsoft Corporation (MSFT)

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Dave Guilmette, Chief Executive Officer
Dave Guilmette was appointed Chief Executive Officer of Alight in August 2024 and also serves as Vice Chair of the Board. He previously held the role of CEO of Global Health Solutions, a multi-billion-dollar division of Aon, where he was responsible for driving growth and profitability. He also acted as a Strategic Advisor at Global Health Solutions, providing counsel on innovation, large-scale solution development, commercial partnerships, and M&A strategy. Before his time at Aon, Guilmette spent nearly a decade at Cigna as President of the Global Employer Segment and Private Exchanges. He also accumulated 20 years of experience at Towers Perrin (now Willis Towers Watson), holding leadership positions including Managing Director of the global Health and Welfare business. He has served as a board member of Cigna Ventures and various non-profit organizations. Alight itself was formed through a private equity acquisition by Blackstone in 2017, and Guilmette's appointment aligns with the company's strategic direction after divesting its payroll and professional services segment.

Jeremy Heaton, Chief Financial Officer
Jeremy Heaton became Alight's Chief Financial Officer in May 2024. He brings over two decades of financial experience, primarily from his more than 20 years at General Electric in global financial management. Prior to his CFO role, Heaton served as Alight's Operating Chief Financial Officer and Executive Vice President of Global FP&A and Business Finance. At GE, his extensive career included serving as Transition Leader for GE Healthcare, where he oversaw the $21 billion sale of the Biopharma business. He also held positions such as CFO of GE Capital Canada, CFO within the Office of the Board, and spent six years with GE's Corporate Audit Staff, culminating as Executive Audit Manager.

Allison Bassiouni, Chief Delivery Officer
Allison Bassiouni will be promoted to Chief Delivery Officer, effective January 1, 2025. She has over 25 years of experience in benefits delivery and customer experience, having held various roles within Alight and its predecessors since joining in 1998. Bassiouni is recognized for her leadership in enhancing client satisfaction and operational excellence. She also serves on the Board of The GLP Foundation, a non-profit supporting individuals with mental illness and homelessness.

Deepika Duggirala, Chief Technology Officer
Deepika Duggirala will assume the role of Chief Technology Officer, effective January 1, 2025. She joined Alight in 2023 as Executive Vice President of Technology and leads the company's technology organization, focusing on innovation in artificial intelligence, automation, and digital transformation. With over 25 years of experience, her background includes leadership positions such as SVP of Global Technology Platforms at TransUnion, Vice President of Development for the SAP Mobile Platform at SAP Labs, and various roles at Motorola Inc., from Software Engineer to Engineering Project Manager. She also served as CTO and VP of Engineering at Yello and SVP of Engineering at SPINS.

Donna Dorsey, Chief Human Resources Officer
Donna Dorsey was appointed Chief Human Resources Officer of Alight in June 2025. She brings over two decades of leadership experience in human resources, legal strategy, and organizational culture. Before joining Alight, she served as Executive Vice President, Chief People and Culture Officer at International Motors (formerly Navistar), where she was responsible for enterprise-wide HR strategy. Dorsey's career encompasses leadership roles across HR, legal, and compliance functions, and she is an advocate for equity and culture-building. She is also a member of the board of directors for Root Inc.

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1. Intense Competition and Economic Sensitivity

   The Human Capital Management (HCM) market in which Alight operates is fiercely competitive, with numerous players including industry giants like Workday, Oracle, ADP, Paychex, Ceridian, and Accenture. This intense competition can exert pressure on pricing and profitability. Furthermore, Alight's business is highly susceptible to macroeconomic fluctuations. Economic downturns or uncertainty can lead to budget cuts in HR spending by clients, significantly impacting demand for Alight's services, particularly its higher-margin, non-recurring project revenue. Recent financial reports indicate a contraction in project revenue and a tightened revenue outlook, reflecting cautious client sentiment and slower project execution.

2. Significant Debt Burden

   Alight carries a substantial long-term debt load, which poses a financial risk to the company. As of Q3 2025, Alight reported a massive net loss primarily driven by a non-cash goodwill impairment charge, and its overall debt structure includes liabilities due within 12 months and beyond. Its net debt was approximately US$2.53 billion as of March 2024. This level of debt and high leverage ratios, with a net debt to EBITDA ratio of 5.4, can constrain Alight's financial resources, limit its ability to raise additional capital at attractive rates, and impact its overall financial flexibility and resilience, particularly in a high-interest-rate environment.

3. Client Concentration Risk

   Alight exhibits a notable concentration in its client base. The top 10 clients account for 45% of its total revenue, with the top 5 clients representing 32% of revenue. While Alight benefits from long-term contracts and a high client retention rate, this reliance on a small number of large clients exposes the company to significant revenue volatility. Should any of these major clients reduce their engagement, delay projects, or terminate contracts, Alight's revenue stability and financial performance could be materially and adversely affected.

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Alight (ALIT) operates within several large addressable markets for its cloud-based human capital technology and services, primarily focusing on health, wealth, and employee experience solutions since the divestiture of its Payroll and Professional Services business in mid-2024.

• The **Global Human Capital Management (HCM) market**, which encompasses many of Alight's offerings, is projected to grow from $24.4 billion in 2023 to $35.0 billion by 2030.

• The broader **Global HR technology market** was valued at $144 billion and is expected to reach $237 billion by 2030.

• For its cloud-based solutions, the **Global cloud-based HR software market** was valued at $22.4 billion in 2022 and is projected to reach $39.8 billion by 2027.

• The **Global HR outsourcing market**, which aligns with Alight's technology-enabled services model, was valued at $37.4 billion in 2022 and is expected to reach $65.3 billion by 2027.

• Given Alight's increasing focus on artificial intelligence, the **AI in HR market** is expected to grow from $4.3 billion in 2022 to $17.6 billion by 2027.

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Alight (ALIT) anticipates several key drivers to fuel its revenue growth over the next two to three years, focusing on expanding client relationships, leveraging advanced technology, enhancing client retention, and growing strategic partnerships.

1. Expansion of Client Relationships and New Bookings: Alight is strategically focused on expanding its client base and increasing Annual Recurring Revenue (ARR) through new client wins. The company highlighted recent successes with major clients such as Hewlett Packard Enterprise, Nokia, and Siemens in the third quarter of 2024, indicating a positive outlook for growth. Management emphasizes that improving sales pipeline momentum, particularly in core benefits administration and leave management, is crucial for a return to robust growth. Bullish analysts also point to Alight's continued backlog growth as a sign of strong underlying demand for its services.

2. Increased Adoption and Utilization of AI and Automation: Alight is heavily investing in AI-driven automation and insourcing delivery functions to enhance operational efficiency and improve service delivery. These efforts are expected to reduce call center expenses, increase productivity, and ultimately drive revenue growth. The implementation of automated voice response, for example, contributed to a 13% decline in call volumes in Q3 2025. Alight is actively accelerating its technology roadmap, including expanding AI collaboration with IBM to advance benefits administration and employee experiences.

3. Enhanced Client Retention and Cross-Sell Opportunities through the "Renew Everyday" Program: A significant focus for Alight is on maintaining high renewal rates among its large client base to mitigate revenue attrition. The company achieved strong renewal rates among large clients from 2024 into 2025, and expects a more than 30% reduction in renewal dollars for 2026. The "Renew Everyday" program is central to this strategy, aiming to decrease revenue at risk and identify cross-sell opportunities within existing client relationships as an incremental source of growth.

4. Strategic Partnerships and Ecosystem Expansion: Alight views the expansion of its partner ecosystem as a driver for incremental revenue growth. Recent collaborations include partnerships with Sword Health and a new guaranteed income solution offered through MetLife. The integration of Goldman Sachs Asset Management into Alight Worklife is also underway, with the first client already signed. These partnerships are expected to broaden Alight's offerings and reach, though contract ramp-up times may delay immediate revenue recognition.

5. Growth in Business Process as a Service (BPaaS) Revenue: The Business Process as a Service (BPaaS) segment has demonstrated strong growth for Alight. In the third quarter of 2024, BPaaS revenue increased by 18.6% to $121 million, accounting for 21.8% of the total revenue. Continued expansion and innovation within its BPaaS offerings are expected to contribute significantly to future revenue streams.

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[1] Share Repurchases

• Alight initiated an equity buyback plan on August 3, 2022.
• From July 1, 2025, to September 30, 2025, the company repurchased 6,580,136 shares for $25.07 million.
• As of September 30, 2025, Alight completed repurchases of 42,636,987 shares totaling $284.47 million under the buyback plan announced in August 2022.
• In the second quarter of 2025, Alight repurchased $20 million worth of its common stock, with $241 million remaining in its share buyback authorization.

[2] Share Issuance

• Alight's net common equity issued/repurchased activity from 2020 to 2025 indicates a net reduction in outstanding shares.
• The number of shares outstanding decreased by -1.16% over one year, with approximately 523.11 million shares outstanding.

[4] Outbound Investments

• The company mentioned "the addition of ReedGroup" as a factor driving revenue growth in the Q4 2022 earnings, indicating an acquisition.
• Alight also referenced "investments in key resources and recent acquisitions" in its 2022 annual report.

[5] Capital Expenditures

• In the last 12 months, capital expenditures for Alight were -$111.00 million.
• The company's capital expenditures contributed to a free cash flow of $243.00 million in the last 12 months, based on an operating cash flow of $354.00 million.
• Alight is investing in its platform strategy and AI and automation initiatives to enhance client management, delivery capabilities, and competitive advantages.