Aug. 12 at 4:48 PM
$ALIT To say that 'massive free cash flow wins every time' is not really accurate. If that were the case, all the CEO would need to say during ER is, “Free Cash Flow was
$XXX. Good night !“ FCF is important, to be sure. But you must look at FCF together with other items on the balance sheet. In ALIT’s case, they’ve had good FCF over the years. FCF in 2023 was
$246 Mil, 2024 was
$221 Mil, 2025 was
$250 Mil, and the first half of 2026 was
$101 Mil. Yet, ALIT's revenues and profitability have gone down each year from 2023 to 2026. The good news is their AI-native software framework is ready for a phased roll out in 2027. Hopefully this will help lower expenses. They are also working on Client retention and gaining new Clients to boost revenues. BTW, the 'pre-reverse split' stock price on 1/1/2023 was
$10.07 and by 6/30/2026 it was
$0.56. If FCF was the main focus, the stock price shouldn't have collapsed as it did. If ALIT successfully executes their plan, the stock may rally again.
