Alight Revises FY25 Revenue Forecast Down Amid Deal Delays, Maintains EBITDA Guidance

Alight Inc. has revised its FY25 revenue forecast to $2.33-$2.82 bln, down from $2.32-$2.39 bln, citing slower deal closures. Despite this, the company reaffirms its adjusted EBITDA forecast of $620-$645 mln and maintains confidence in its operational capabilities and client retention rates. The business pipeline remains healthy, and Alight's focus on transformational strategies supports its profitability and cash flow. The company's valuation metrics suggest a potentially undervalued stock.

Alight Inc. (ALIT), a leading provider of technology and services to the workplace, has revised its FY25 revenue forecast downward, citing slower deal closures. The company now expects FY25 revenue to range between $2.33 billion and $2.82 billion, down from its previous estimate of $2.32 billion to $2.39 billion [1]. Despite this revision, Alight remains confident in its operational capabilities and client retention rates, reaffirming its adjusted EBITDA forecast of $620 million to $645 million.

The revenue decline is primarily attributed to extended deal closures, which Alight attributes to macroeconomic pressures and market valuation shifts. However, the company maintains a healthy business pipeline and continues to focus on transformational strategies to support its profitability and cash flow. Alight's operational resilience is evident in its margin expansion, cost discipline, and strategic pivots, as highlighted in its Q2 2025 earnings report [2].

Alight's valuation metrics suggest a potentially undervalued stock. The company's stock has lost about 25.9% since the beginning of the year, compared to the S&P 500's gain of 7.6% [1]. This underperformance may present an opportunity for investors, especially those who believe in Alight's long-term growth prospects.

Investors should closely monitor Alight's earnings call commentary for further insights into the company's strategy and future expectations. The company's ability to navigate the current economic climate and execute on its strategic initiatives will be key to determining its future performance.

References:
[1] https://www.nasdaq.com/articles/alight-inc-alit-meets-q2-earnings-estimates
[2] https://www.ainvest.com/news/alight-q2-earnings-reveal-strategic-adjustments-revenue-decline-revised-guidance-2508/