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Alight Inc. (NYSE:ALIT) just lit up Wall Street, with its stock surging 16.5% after the company delivered a Q3 performance that smashed expectations. Revenue clocked in at $555 million, and its high-margin Business Process as a Service (BPaaS) segment exploded with 18.6% growth. CEO Dave Guilmette didn't hold back, calling the results a testament to Alight's sharpened strategy and market leadership in employee benefits and wellbeing. Big-name wins with Hewlett Packard Enterprise, Nokia, and Siemens didn't hurt the narrative either, further cementing Alight as a go-to partner for corporate heavyweights.
Here's the kicker: Alight isn't just talking the talk; it's putting its money where its mouth is. The company launched a $75 million stock buyback program and dropped a fresh quarterly dividend of $0.04 per share. And while total revenue dipped slightly year-over-year, profitability told a different story. Adjusted EBITDA jumped to $118 million, and gross margins climbed to 36%, signaling smarter, leaner operations. Looking ahead, Alight is raising its revenue guidance for Q4 to $665$685 million, with ambitious plans to hit up to a 35% EBITDA margin. This kind of outlook screams confidenceand Wall Street is clearly paying attention.
For investors, Alight's transformation into a high-growth, capital-efficient juggernaut is impossible to ignore. Its pivot towards recurring revenue streams and high-margin services like BPaaS is reshaping the company's trajectory. Add in its growing influence with Fortune 500 companies and a commitment to shareholder returns, and you've got a stock that's poised to keep climbing. Today's rally is just a glimpse of the upside Alight could deliver as it continues to scale its game-changing solutions.
This article first appeared on GuruFocus.