Free cash flow remains highly volatile, fluctuating between -9.4% and 15.2% margins, while the company continues to prioritize dividends and buybacks despite reporting significant net losses.
| Cash from Operations | 366M | 360M | 252M | 386M | 286M | 115M | 233M | 268M | 196M | 303M |
| Operating CF Margin % | - | 15.92% | 10.81% | 11.32% | 12.96% | 3.95% | 8.54% | 10.5% | 8.24% | 13.17% |
| Operating CF Growth % | 482.41% | 42.86% | -34.72% | 34.97% | 148.7% | -50.64% | -13.06% | 36.73% | -35.31% | - |
| Net Income | -3.09B | -3.08B | -138M | -317M | -72M | -60M | -103M | 22M | -21M | 41M |
| Depreciation & Amortization | 410M | 407M | 395M | 373M | 395M | 354M | 291M | 253M | 229M | 192M |
| Stock-Based Compensation | 12M | 19M | 76M | 139M | 181M | 0 | 5M | 9M | 14M | 10M |
| Deferred Taxes | 5M | 8M | 14M | 108M | -46M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 3.05B | 3.05B | 10M | 162M | -14M | 106M | 61M | 35M | 32M | 143M |
| Working Capital Changes | -34M | -50M | -105M | -79M | -158M | -285M | -21M | -51M | -58M | -83M |
| Change in Receivables | 79M | 84M | -37M | -20M | -136M | 23M | 133M | -39M | 57M | -76M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100M | 0 | 0 |
| Change in Payables | -68M | -90M | 31M | 0 | 72M | 11M | 0 | -61M | 0 | 0 |
| Cash from Investing | -120M | -123M | 836M | -159M | -235M | -1.91B | -142M | -604M | -130M | -4.3B |
| Capital Expenditures | -107M | -110M | -121M | -140M | -148M | -114M | -90M | -77M | -80M | -57M |
| CapEx % of Revenue | 4.76% | 4.86% | 5.19% | 4.11% | 6.71% | 3.91% | 3.3% | 3.02% | 3.36% | 2.48% |
| Acquisitions | -13M | -13M | 968M | 1M | -87M | -1.79B | -52M | -527M | -75M | -4.25B |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | -11M | -20M | 0 | 0 | 0 | 0 | 25M | 1M |
| Cash from Financing | -278M | -298M | -1.07B | -231M | 54M | 2.34B | 463M | 420M | -538M | 4.19B |
| Debt Issued (Net) | -32M | -42M | -792M | -50M | -67M | 454M | 260M | 350M | -39M | 3.54B |
| Equity Issued (Net) | -45M | -65M | -167M | -40M | -20M | 1.67B | 0 | -16M | 3M | -399M |
| Dividends Paid | -65M | -86M | -21M | 0 | 0 | 0 | -3M | -10M | 0 | -69M |
| Share Repurchases | -45M | -65M | -167M | -40M | -12M | -144M | 0 | -4M | 0 | -399M |
| Other Financing | -136M | -105M | -94M | -141M | 141M | 213M | 206M | 96M | -502M | 1.12B |
| Net Change in Cash | -281M | -309M | 12M | 308M | 107M | -134M | 551M | 85M | -478M | 193M |
| Free Cash Flow | 259M | 250M | 131M | 246M | 138M | 1M | 143M | 191M | 116M | 246M |
| FCF Margin % | 11.52% | 11.05% | 5.62% | 7.21% | 6.25% | 0.03% | 5.24% | 7.48% | 4.88% | 10.69% |
| FCF Growth % | 133.33% | 90.84% | -46.75% | 78.26% | 13700% | -99.3% | -25.13% | 64.66% | -52.85% | - |
| FCF per Share | 0.49 | 0.47 | 0.24 | 0.50 | 0.30 | 0.00 | 0.32 | 0.43 | 0.26 | 1.98 |
| FCF Conversion (FCF/Net Income) | -0.08x | -0.12x | -1.61x | -1.12x | -4.61x | -1.92x | -2.26x | 12.18x | -9.33x | 12.63x |
| Interest Paid | 0 | 0 | 108M | 128M | 126M | 0 | 210M | 204M | 192M | 0 |
| Taxes Paid | 0 | 0 | 50M | 46M | 17M | 0 | 19M | 9M | 21M | 0 |
Persistent GAAP Net Losses
According to the provided financial data, Alight exhibits a profound divergence between GAAP net income and operating cash flow, with the OCF/NI ratio frequently turning negative, suggesting that reported losses are heavily influenced by non-cash charges rather than immediate operational cash burn.
The persistent gap between net income and operating cash flow indicates that the company's bottom-line performance is significantly impacted by non-cash items, likely related to historical acquisition-related impairments. Investors should interpret this as a signal that GAAP profitability metrics currently fail to capture the underlying cash-generating capacity of the core business.
As reported in recent quarterly filings, free cash flow margins have fluctuated between -9.4% and 15.2%, indicating that the company's ability to generate sustainable cash remains highly sensitive to the timing of project-based revenue and the ongoing costs of its platform transition.
The inconsistency in FCF generation suggests that the business model is not yet producing the predictable cash flows expected of a mature software entity. This volatility warrants further investigation into whether the current FCF levels are sustainable or if they are being artificially supported by the deferral of necessary operational expenditures.
Based on the reported figures, Alight maintains a consistent capital intensity with CapEx/Revenue ratios hovering around 5%, which appears to be a necessary investment to support the ongoing development and maintenance of the Worklife platform infrastructure.
The sustained level of capital expenditure suggests that the company is still in a heavy investment phase, likely prioritizing platform scalability over immediate cash preservation. Analysts should monitor whether these investments are successfully driving the intended transition toward higher-margin software revenue or if they represent a permanent, high-cost burden.
As indicated by the cash flow statements, Alight has continued to allocate capital toward dividends and share repurchases despite reporting significant net losses, a strategy that appears to prioritize investor sentiment over the retention of cash for internal growth or debt reduction.
The decision to return capital to shareholders while the company is undergoing a difficult business transformation may indicate management's confidence in future cash flow stability. However, this approach may also be viewed as aggressive given the current negative net margins and the potential need for liquidity to fund the ongoing platform pivot.
Quick answers to the most common questions about buying ALIT stock.
Alight, Inc. (ALIT) generated $360.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alight, Inc. (ALIT) generated $250.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Alight, Inc. (ALIT) spent $110.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Alight, Inc. (ALIT) returned $86.0M to shareholders via cash dividends and spent $65.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.