Alight Inc. (NYSE:ALIT) is one of the best penny stocks under $1 to buy right now. On February 19, Alight reported full-year 2025 revenue of $2.3 billion, though Q4 results highlighted several operational hurdles. The company fell short of internal financial targets as both recurring and project revenues declined in Q4. A significant non-cash goodwill impairment charge of $803 million was recognized during the quarter, and adjusted EBITDA margins were pressured by increased compensation expenses intended to drive future execution.

The company’s CEO attributed the recent underperformance to execution challenges rather than strategy, emphasizing a need for better client management and technological innovation. To address these gaps, Alight plans to invest $100 million in 2026 to modernize its business foundations and systems. Despite these investments, the company anticipates a difficult start to the 2026 fiscal year, forecasting a high single-digit decline in Q1 revenue and significant pressure on EBITDA margins due to lower-than-expected renewals from the previous year.

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The leadership also clarified that while the renewal cohort for 2026 is 30%–40% smaller than in 2025, the company has not seen significant client loss due to in-house AI adoption. Alight Inc. (NYSE:ALIT) remains focused on using its proprietary data lake to provide predictive employee experiences, which remains a key competitive advantage. With $273 million in cash and a $330 million undrawn credit facility, the company maintains a solid liquidity position as it undergoes a cultural and operational shift to restore sustainable growth.

Alight Inc. (NYSE:ALIT) is a technology-enabled services company worldwide. The company provides Alight Worklife, which is an intuitive, cloud-based employee engagement platform.

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