Alight wrote off 97% of its goodwill in one year — $3.1B gone

Alight administers health and retirement benefits for large employers — over 30 million people on its platform and $1.7 trillion of assets under administration — after selling its payroll business in July 2024. On 19 February 2026 its full-year 2025 results carried a $3,124 million non-cash goodwill impairment, $803 million of it in the fourth quarter alone. Goodwill fell from $3.21 billion at the start of the year to $83 million — 97% of it written off in twelve months — and the company posted a $3,078 million net loss against $2,262 million of revenue, which fell 3%.

The business underneath still generated cash: adjusted EBITDA of $561 million, operating cash flow of $360 million, free cash flow of $250 million, and 93% recurring revenue. What it could not carry was the balance sheet: $2,005 million of debt against $273 million of cash, and stockholders' equity that fell 76% over the year. Shares dropped more than 29% in premarket trading after the release.

The response redirected every available dollar: the cash dividend was eliminated in favour of deleveraging and buybacks — the payout had cost about $86 million a year — and the company planned over $100 million of AI investment for 2026. But the guidance admitted the reset: revenue under contract for 2026 was projected to fall 5%. The growth once paid for in goodwill is not coming back on schedule.