Alight, Inc. Q1 FY2026 earnings call

• Rohit Verma, CEO, shared that first quarter financial performance was solid, exceeding prior guidance. Outperformance was due to higher project revenue and better partner revenue performance. Intently focused on improving commercial execution by retaining and winning new clients. - Made key hires across the organization, announced new CTO and President of Employer Solutions. - Launched initiatives to maximize operational excellence, expanded strategic coverage to top 400 accounts. - Provide market-leading solutions in health, wealth, and leaves. Leveraging enterprise AI to capture efficiencies and improve service excellence. - Committed to three operating principles: deliver service and operational excellence, innovate products, build enduring trusted partnerships.

First quarter revenue was $534 million, with $498 million in recurring revenue and $36 million in project revenue. Project revenue was up 29% compared to Q1-25, while recurring revenue was 4% below last year, resulting in a consolidated revenue decrease of 3%. Adjusted EBITDA was $104 million. Exited the first quarter with more than $500 million in total liquidity, $178 million in cash on the balance sheet, $330 million available on the revolver, and generated free cash flow of $53 million in the quarter.

• Expect second quarter 2026 revenue in the range of 490 to 505, adjusted EBITDA between 80 and $90 million, and free cash flow ranging from 35 to $45 million. - Believes will continue to see solid free cash flow generation for the year. - Guidance reflects impact of prior commercial execution working through P&L over coming quarters.

• Q: Commentary on RFP season, working capital dynamic, and renewal book percent.

A: Good new business and renewal activity in Q1, better than last year. Saw working capital benefits in first quarter. Renewal book percent between 25 to 30% of total book. - Q: Expectations for cadence of recurring revenue, partner revenue impact, free cash flow for year.

A: Recurring revenue under contract at start of quarter was about $1.97 billion, ended just over $2 billion. Partner revenue was about $4 to $5 million in first quarter. Expect solid free cash flow generation for the year. - Q: EBITDA range for second quarter, factors.

A: Second quarter guide relatively in line with expectations, muted project revenue in second quarter, some expense timing shifts. - Q: Momentum from new team and impacts.

A: Excited about team building, increased account coverage to 400 accounts covering 90+% of ARR, good renewal and commercial execution in Q1, building on momentum.