ACI Worldwide, Inc. Reports Financial Results for the Quarter Ending March 31, 2025
Q1 2025 HIGHLIGHTS
-
Revenue up
25% versus Q1 2024 -
Net income of
$59 million $8 million -
Adjusted EBITDA up
95% versus Q1 2024 -
Repurchased 1 million shares for
$52 million - Raising guidance range for full-year 2025
"We are happy to report Q1 results that were again ahead of our expectations," said Thomas Warsop, president and CEO of ACI Worldwide. “Our newly formed Payment Software segment, which is the combination of our former Bank and Merchant segments, grew revenue
Warsop continued, “We had a strong start to the year and our financial position continues to improve. This strong start makes us even more confident in our full-year financial expectations. We remain focused on the execution of our strategy, delivering transformative software solutions that power intelligent payment orchestration in real time.”
Q1 2025 FINANCIAL SUMMARY
In Q1 2025, revenue was
-
Payment Software segment revenue grew
42% and segment-adjusted EBITDA increased104% versus Q1 2024. -
Biller segment revenue grew
11% and segment-adjusted EBITDA increased1% versus Q1 2024.
ACI ended Q1 2025 with
RAISING 2025 GUIDANCE
Given our strong start to the year and to account for the impact of changes in foreign currency rates, we are raising our revenue guidance for the full year of 2025. We now expect revenue to be in the range of
CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS
Today, management will host a conference call at 8:30 a.m. ET to discuss these results. Interested persons may access a real-time teleconference webcast at http://investor.aciworldwide.com/. To join the live audio call, please dial +1 (800) 715-9871, provide your name, the conference name of ACI Worldwide, Inc. and conference ID 88945; alternatively, to reduce operator assisted delays joining the call, we invite you to register in advance by visiting https://registrations.events/direct/Q4I88945397. This process will provide you with a unique passcode allowing you to join the call without operator assistance.
About ACI Worldwide
ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers, and merchants can drive growth, while continuously modernizing their payment infrastructures, simply and securely. With nearly 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities.
© Copyright ACI Worldwide, Inc. 2025.
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction-related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP.
We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include:
- Adjusted EBITDA: net income (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization and stock-based compensation, as well as significant transaction-related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income (loss).
- Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass-through interchange revenue. Net Adjusted EBITDA Margin should be considered in addition to, rather than as a substitute for, net income (loss).
- Diluted EPS adjusted for non-cash and significant transaction related items: diluted EPS plus tax effected significant transaction related items, amortization of acquired intangibles and software, and non-cash stock-based compensation. Diluted EPS adjusted for non-cash and significant transaction related items should be considered in addition to, rather than as a substitute for, diluted EPS.
- Recurring Revenue: revenue from software as a service and platform as a service fees and maintenance fees. Recurring revenue should be considered in addition to, rather than as a substitute for, total revenue.
- ARR: New annual recurring revenue expected to be generated from new accounts, new applications, and add-on sales bookings contracts signed in the period.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements in this press release include, but are not limited to: (i) we continue to see strength in our Issuing and Acquiring solutions driven by large financial institutions’ modernization efforts, (ii) our financial position continues to improve, (iii) this strong start makes us even more confident in our full-year financial expectations, (iv) we remain focused on the execution of our strategy, delivering transformative software solutions that power intelligent payment orchestration in real time, and (v) Q2 2025 and full-year 2025 revenue and adjusted EBITDA financial guidance.
All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, business interruptions, cybersecurity incidents or failure of our information technology and communication systems, security breaches, our ability to attract and retain senior management personnel and skilled technical employees, future acquisitions, strategic partnerships and investments, divestitures and other restructuring activities, implementation and success of our strategy, impact if we convert some or all on-premise licenses from fixed-term to subscription model, anti-takeover provisions, exposure to credit or operating risks arising from certain payment funding methods, loss caused by theft or fraud, customer reluctance to switch to a new vendor, our ability to adequately defend our intellectual property, litigation, consent orders and other compliance agreements, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, events in eastern
ACI WORLDWIDE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited and in thousands) |
|||||||
|
March 31,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
230,057 |
|
|
$ |
216,394 |
|
Receivables, net of allowances |
|
386,083 |
|
|
|
414,399 |
|
Settlement assets |
|
543,245 |
|
|
|
318,871 |
|
Prepaid expenses |
|
35,885 |
|
|
|
29,218 |
|
Other current assets |
|
13,430 |
|
|
|
11,940 |
|
Total current assets |
|
1,208,700 |
|
|
|
990,822 |
|
Noncurrent assets |
|
|
|
||||
Accrued receivables, net |
|
353,767 |
|
|
|
360,079 |
|
Property and equipment, net |
|
33,712 |
|
|
|
35,069 |
|
Operating lease right-of-use assets |
|
26,460 |
|
|
|
28,864 |
|
Software, net |
|
83,738 |
|
|
|
92,893 |
|
Goodwill |
|
1,226,026 |
|
|
|
1,226,026 |
|
Intangible assets, net |
|
160,716 |
|
|
|
165,377 |
|
Deferred income taxes, net |
|
76,681 |
|
|
|
72,713 |
|
Other noncurrent assets |
|
33,462 |
|
|
|
53,450 |
|
TOTAL ASSETS |
$ |
3,203,262 |
|
|
$ |
3,025,293 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
52,521 |
|
|
$ |
45,422 |
|
Settlement liabilities |
|
542,092 |
|
|
|
317,484 |
|
Employee compensation |
|
30,780 |
|
|
|
55,567 |
|
Current portion of long-term debt |
|
34,945 |
|
|
|
34,928 |
|
Deferred revenue |
|
72,449 |
|
|
|
75,419 |
|
Other current liabilities |
|
71,727 |
|
|
|
73,808 |
|
Total current liabilities |
|
804,514 |
|
|
|
602,628 |
|
Noncurrent liabilities |
|
|
|
||||
Deferred revenue |
|
18,437 |
|
|
|
19,304 |
|
Long-term debt |
|
810,906 |
|
|
|
889,649 |
|
Deferred income taxes, net |
|
40,942 |
|
|
|
39,920 |
|
Operating lease liabilities |
|
20,934 |
|
|
|
22,592 |
|
Other noncurrent liabilities |
|
24,929 |
|
|
|
26,873 |
|
Total liabilities |
|
1,720,662 |
|
|
|
1,600,966 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
702 |
|
|
|
702 |
|
Additional paid-in capital |
|
735,751 |
|
|
|
731,927 |
|
Retained earnings |
|
1,656,955 |
|
|
|
1,598,085 |
|
Treasury stock |
|
(797,214 |
) |
|
|
(784,914 |
) |
Accumulated other comprehensive loss |
|
(113,594 |
) |
|
|
(121,473 |
) |
Total stockholders’ equity |
|
1,482,600 |
|
|
|
1,424,327 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
3,203,262 |
|
|
$ |
3,025,293 |
|
ACI WORLDWIDE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except per share amounts) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2025 |
|
|
|
2024 |
|
Revenues |
|
|
|
||||
Software as a service and platform as a service |
$ |
237,083 |
|
|
$ |
215,732 |
|
License |
|
84,493 |
|
|
|
29,973 |
|
Maintenance |
|
48,642 |
|
|
|
47,754 |
|
Services |
|
24,347 |
|
|
|
22,560 |
|
Total revenues |
|
394,565 |
|
|
|
316,019 |
|
Operating expenses |
|
|
|
||||
Cost of revenue (1) |
|
213,378 |
|
|
|
191,107 |
|
Research and development |
|
38,908 |
|
|
|
34,993 |
|
Selling and marketing |
|
32,186 |
|
|
|
26,750 |
|
General and administrative |
|
27,592 |
|
|
|
26,000 |
|
Depreciation and amortization |
|
23,985 |
|
|
|
27,609 |
|
Total operating expenses |
|
336,049 |
|
|
|
306,459 |
|
Operating income |
|
58,516 |
|
|
|
9,560 |
|
Other income (expense) |
|
|
|
||||
Interest expense |
|
(14,683 |
) |
|
|
(19,010 |
) |
Interest income |
|
4,064 |
|
|
|
4,009 |
|
Other, net |
|
23,740 |
|
|
|
(2,025 |
) |
Total other income (expense) |
|
13,121 |
|
|
|
(17,026 |
) |
Income (loss) before income taxes |
|
71,637 |
|
|
|
(7,466 |
) |
Income tax expense (benefit) |
|
12,767 |
|
|
|
285 |
|
Net income (loss) |
$ |
58,870 |
|
|
$ |
(7,751 |
) |
Income (loss) per common share |
|
|
|
||||
Basic |
$ |
0.56 |
|
|
$ |
(0.07 |
) |
Diluted |
$ |
0.55 |
|
|
$ |
(0.07 |
) |
Weighted average common shares outstanding |
|
|
|
||||
Basic |
|
105,350 |
|
|
|
106,799 |
|
Diluted |
|
106,827 |
|
|
|
106,799 |
|
(1) The cost of revenue excludes charges for depreciation and amortization. |
|||||||
ACI WORLDWIDE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) |
|||||||
|
Three Months Ended March 31, |
||||||
|
|
2025 |
|
|
|
2024 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
58,870 |
|
|
$ |
(7,751 |
) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: |
|
|
|
||||
Depreciation |
|
3,156 |
|
|
|
3,631 |
|
Amortization |
|
20,829 |
|
|
|
23,978 |
|
Amortization of operating lease right-of-use assets |
|
2,435 |
|
|
|
2,568 |
|
Amortization of deferred debt issuance costs |
|
650 |
|
|
|
936 |
|
Deferred income taxes |
|
(2,463 |
) |
|
|
1,006 |
|
Stock-based compensation expense |
|
11,627 |
|
|
|
8,099 |
|
Gain on sale of equity investment |
|
(25,927 |
) |
|
|
— |
|
Other |
|
(718 |
) |
|
|
(1,311 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables |
|
41,640 |
|
|
|
127,269 |
|
Accounts payable |
|
7,479 |
|
|
|
(448 |
) |
Accrued employee compensation |
|
(25,182 |
) |
|
|
(26,453 |
) |
Deferred revenue |
|
(4,648 |
) |
|
|
13,907 |
|
Other current and noncurrent assets and liabilities |
|
(9,527 |
) |
|
|
(22,190 |
) |
Net cash flows from operating activities |
|
78,221 |
|
|
|
123,241 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(2,170 |
) |
|
|
(3,208 |
) |
Purchases of software and distribution rights |
|
(6,759 |
) |
|
|
(14,582 |
) |
Proceeds from sale of equity investment |
|
46,021 |
|
|
|
— |
|
Net cash flows from investing activities |
|
37,092 |
|
|
|
(17,790 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of common stock |
|
813 |
|
|
|
693 |
|
Proceeds from exercises of stock options |
|
582 |
|
|
|
475 |
|
Repurchase of stock-based compensation awards for tax withholdings |
|
(7,070 |
) |
|
|
(3,302 |
) |
Repurchases of common stock |
|
(14,408 |
) |
|
|
(62,515 |
) |
Proceeds from revolving credit facility |
|
— |
|
|
|
164,000 |
|
Repayment of revolving credit facility |
|
(70,000 |
) |
|
|
(152,000 |
) |
Proceeds from term portion of credit agreement |
|
— |
|
|
|
500,000 |
|
Repayment of term portion of credit agreement |
|
(9,375 |
) |
|
|
(529,073 |
) |
Payments for debt issuance costs |
|
— |
|
|
|
(5,141 |
) |
Payments on or proceeds from other debt, net |
|
(4,217 |
) |
|
|
(2,694 |
) |
Net increase (decrease) in settlement assets and liabilities |
|
88,324 |
|
|
|
(18,933 |
) |
Net cash flows from financing activities |
|
(15,351 |
) |
|
|
(108,490 |
) |
Effect of exchange rate fluctuations on cash |
|
1,791 |
|
|
|
2,314 |
|
Net increase (decrease) in cash and cash equivalents |
|
101,753 |
|
|
|
(725 |
) |
Cash and cash equivalents, including settlement deposits, beginning of period |
|
265,018 |
|
|
|
238,821 |
|
Cash and cash equivalents, including settlement deposits, end of period |
$ |
366,771 |
|
|
$ |
238,096 |
|
Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets |
|
|
|
||||
Cash and cash equivalents |
$ |
230,057 |
|
|
$ |
183,393 |
|
Settlement deposits |
|
136,714 |
|
|
|
54,703 |
|
Total cash and cash equivalents |
$ |
366,771 |
$ |
238,096 |
|||
|
Three Months Ended March 31, |
||||||
Adjusted EBITDA (millions) |
|
2025 |
|
|
|
2024 |
|
Net income (loss) |
$ |
58.9 |
|
|
$ |
(7.8 |
) |
Plus: |
|
|
|
||||
Income tax expense |
|
12.8 |
|
|
|
0.3 |
|
Net interest expense |
|
10.6 |
|
|
|
15.0 |
|
Net other (income) expense |
|
(23.7 |
) |
|
|
2.0 |
|
Depreciation expense |
|
3.2 |
|
|
|
3.6 |
|
Amortization expense |
|
20.8 |
|
|
|
24.0 |
|
Non-cash stock-based compensation expense |
|
11.6 |
|
|
|
8.1 |
|
Adjusted EBITDA before significant transaction-related expenses |
$ |
94.1 |
|
|
$ |
45.2 |
|
Significant transaction-related expenses: |
|
|
|
||||
Cost reduction strategies |
$ |
— |
|
|
$ |
2.6 |
|
Other |
|
— |
|
|
|
0.3 |
|
Adjusted EBITDA |
$ |
94.1 |
|
|
$ |
48.1 |
|
Revenue, net of interchange: |
|
|
|
||||
Revenue |
$ |
394.6 |
|
|
$ |
316.0 |
|
Interchange |
|
130.8 |
|
|
|
112.4 |
|
Revenue, net of interchange |
$ |
263.8 |
|
|
$ |
203.6 |
|
|
|
|
|
||||
Net Adjusted EBITDA Margin |
|
36 |
% |
|
|
24 |
% |
|
Three Months Ended March 31, |
||||
Segment Information (millions) |
|
2025 |
|
|
2024 |
Revenue |
|
|
|
||
Payment Software |
$ |
200.7 |
|
$ |
141.1 |
Biller |
|
193.9 |
|
|
174.9 |
Total |
$ |
394.6 |
|
$ |
316.0 |
Recurring Revenue |
|
|
|
||
Payment Software |
$ |
91.9 |
|
$ |
88.6 |
Biller |
|
193.8 |
|
|
174.9 |
Total |
$ |
285.7 |
|
$ |
263.5 |
Segment Adjusted EBITDA |
|
|
|
||
Payment Software |
$ |
106.6 |
|
$ |
52.3 |
Biller |
|
30.9 |
|
|
30.7 |
Note: Amounts may not recalculate due to rounding. |
|||||
|
Three Months Ended March 31, |
||||||||||||||
|
2025 |
|
|
2024 |
|
||||||||||
EPS Impact of Non-cash and Significant Transaction-related Items (millions) |
EPS Impact |
|
$ in Millions (Net of Tax) |
|
EPS Impact |
|
$ in Millions (Net of Tax) |
||||||||
GAAP net income (loss) |
$ |
0.55 |
|
|
$ |
58.9 |
|
|
$ |
(0.07 |
) |
|
$ |
(7.8 |
) |
Adjusted for: |
|
|
|
|
|
|
|
||||||||
Gain on sale of equity investment |
|
(0.20 |
) |
|
|
(21.7 |
) |
|
|
— |
|
|
|
— |
|
Significant transaction-related expenses |
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
2.2 |
|
Amortization of acquisition-related intangibles |
|
0.04 |
|
|
|
4.1 |
|
|
|
0.06 |
|
|
|
6.4 |
|
Amortization of acquisition-related software |
|
0.03 |
|
|
|
3.2 |
|
|
|
0.03 |
|
|
|
3.4 |
|
Non-cash stock-based compensation |
|
0.09 |
|
|
|
9.2 |
|
|
|
0.06 |
|
|
|
6.2 |
|
Total adjustments |
$ |
(0.04 |
) |
|
$ |
(5.2 |
) |
|
$ |
0.17 |
|
|
$ |
18.2 |
|
Diluted EPS adjusted for non-cash and significant transaction-related items |
$ |
0.51 |
|
|
$ |
53.7 |
|
|
$ |
0.10 |
|
|
$ |
10.4 |
|
|
Three Months Ended March 31, |
||||
Recurring Revenue (millions) |
|
2025 |
|
|
2024 |
SaaS and PaaS fees |
$ |
237.1 |
|
$ |
215.7 |
Maintenance fees |
|
48.6 |
|
|
47.8 |
Recurring Revenue |
$ |
285.7 |
|
$ |
263.5 |
New Bookings (millions) |
Three Months Ended March 31, |
|
TTM Ended March 31, |
||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
Annual recurring revenue (ARR) bookings |
$ |
8.9 |
|
$ |
6.4 |
|
$ |
68.3 |
|
$ |
68.4 |
License and services bookings |
|
50.0 |
|
|
27.2 |
|
|
312.8 |
|
|
243.4 |
Note: Amounts may not recalculate due to rounding. |
|||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250508052824/en/
For more information contact:
Investor Relations
John Kraft
SVP, Head of Strategy and Finance
305-894-2223 / john.kraft@aciworldwide.com
Source: ACI Worldwide
