ACI Worldwide (NASDAQ: ACIW) boosts 2026 guidance on 7% Q2 revenue growth
Rhea-AI Filing Summary
ACI Worldwide reported strong Q2 2026 results, with total revenue of $430.4 million, up 7% year over year (6% in constant currency). GAAP net income was $31.8 million versus $12.2 million a year ago, and adjusted EBITDA was $90.8 million, up 12%, yielding a net adjusted EBITDA margin of 34%. GAAP diluted EPS was $0.31, while adjusted diluted EPS rose 54% to $0.54. Recurring revenue reached $336.3 million, up 5%.
Payment Software revenue was $196.4 million, up 9%, with Issuing and Acquiring revenue up 33% in constant currency; segment adjusted EBITDA was $93.6 million with a 48% margin. Biller revenue was $234.1 million, up 5%, but revenue net of interchange declined 3% and segment adjusted EBITDA fell to $34.7 million, with margin net of interchange down to 51% from 56%. Net new ARR bookings were $18.3 million, down 25% year over year, and trailing‑twelve‑month ARR bookings declined 15%.
Cash on hand was $167.4 million and total debt $826 million, for a net debt leverage ratio of 1.2x adjusted EBITDA and total cash plus available liquidity of $540 million. Year‑to‑date operating cash flow was $135.0 million. The company repurchased 2.5 million shares year to date for $107 million, with $349 million remaining under authorization. Full‑year 2026 guidance was raised to $1.895–$1.925 billion in revenue and $545–$560 million in adjusted EBITDA, with Q3 2026 revenue expected at $417–$427 million and adjusted EBITDA at $90–$95 million.
Positive
- Adjusted diluted EPS increased 54% to $0.54 in Q2 2026, significantly outpacing the 7% revenue growth and reflecting higher profitability versus Q2 2025.
- Net adjusted EBITDA margin expanded to 34% in Q2 2026, up from 32% a year earlier, indicating improved operating leverage on revenue net of interchange.
- Full‑year 2026 guidance was raised to $1.895–$1.925 billion of revenue and $545–$560 million of adjusted EBITDA, supported by a strong first half and pipeline.
- Leverage remains conservative at 1.2x adjusted EBITDA, with $167.4 million in cash and $540 million of total cash and available liquidity providing financial flexibility.
- Capital returns are substantial, with 2.5 million shares repurchased year to date for $107 million and $349 million still available under the buyback authorization.
Negative
- Net new ARR bookings declined 25% to $18.3 million in Q2 2026, and trailing‑twelve‑month ARR bookings fell 15%, signaling softer near‑term subscription growth.
- Biller segment profitability weakened, as adjusted EBITDA fell to $34.7 million and net adjusted EBITDA margin, net of interchange, declined to 51% from 56% year over year.
Insights
Analyzing...
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Revenue: $430.4 million
Q2 2026 GAAP Net Income: $31.8 million
Q2 2026 Adjusted EBITDA: $90.8 million
+5 more
8 metrics
Q2 2026 Revenue
$430.4 million
Total revenues for the quarter ended June 30, 2026, up 7% year over year
Q2 2026 GAAP Net Income
$31.8 million
Net income for Q2 2026 versus $12.2 million in Q2 2025
Q2 2026 Adjusted EBITDA
$90.8 million
Adjusted EBITDA for Q2 2026, up 12% from Q2 2025 with a 34% margin
Q2 2026 Recurring Revenue
$336.3 million
Recurring revenue from SaaS, PaaS and maintenance in Q2 2026, up 5% year over year
2026 Revenue Guidance
$1.895–$1.925 billion
Raised full‑year 2026 revenue outlook from $1.890–$1.920 billion
2026 Adjusted EBITDA Guidance
$545–$560 million
Raised full‑year 2026 adjusted EBITDA outlook from $540–$555 million
Net Debt Leverage
1.2x adjusted EBITDA
Net debt leverage ratio at June 30, 2026 based on $826 million debt and cash on hand
YTD 2026 Share Repurchases
$107 million for 2.5 million shares
Total share repurchases year to date 2026 at an average price of $42.75
Key Terms
Adjusted EBITDA, Net Adjusted EBITDA Margin, Recurring Revenue, Annual recurring revenue (ARR), +2 more
6 terms
Adjusted EBITDA financial
"Certain non-GAAP measures include •Adjusted EBITDA: net income (loss) plus income tax expense..."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Net Adjusted EBITDA Margin financial
"Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass-through interchange revenue."
Net adjusted EBITDA margin is the percentage of sales that a company keeps as operating profit after removing routine operating costs and making adjustments for one-time items, reported on a net basis and before interest, taxes, depreciation and amortization. It matters to investors because it highlights the underlying, repeatable profit from core business activities—like judging the steady size of a pie slice after cutting away temporary gains or losses—making it easier to compare performance across companies and assess cash-generating strength.
Recurring Revenue financial
"Recurring Revenue: revenue from software as a service and platform as a service fees and maintenance fees."
Revenue that a company expects to receive on a regular, predictable basis from ongoing sources such as subscriptions, service contracts, or repeat customer purchases. It matters to investors because it provides steadier cash flow and makes future earnings easier to forecast—like a landlord collecting monthly rent instead of one-off sales—supporting higher valuations and lower risk when those payments are reliable and customers tend to stay.
Annual recurring revenue (ARR) financial
"ARR: New annual recurring revenue expected to be generated from new accounts, new applications, and add-on sales..."
Annual Recurring Revenue (ARR) is the predictable amount of money a company expects to earn in a year from its ongoing services or subscriptions. It helps businesses understand their steady income stream, much like knowing how much rent they can count on each year, which is important for planning and growth.
Interchange financial
"Revenue, net of interchange: Revenue less pass-through interchange revenue."
A fee paid between banks when a customer uses a payment card: the merchant’s bank pays an interchange fee to the cardholder’s bank each time a credit or debit card is accepted. For investors, interchange is important because it is a steady source of income for card issuers and payment networks—like a small toll collected on every card transaction—and changes in interchange rates or regulation can directly affect profit margins and volume forecasts.
net debt leverage ratio financial
"representing a net debt leverage ratio of 1.2x adjusted EBITDA."
Net debt leverage ratio measures how many years of a company’s core earnings would be needed to pay off its debt after accounting for cash on hand, calculated by dividing net debt (total debt minus cash) by annual operating earnings. Investors use it like a household debt-to-income check: a lower number means the company is in a stronger position to handle obligations and take risks, while a higher number signals greater financial strain and vulnerability to shocks.
Earnings Snapshot
Q2 2026 Revenue: $430.4 million · Guidance included
Quarter and six months ended June 30, 2026
Q2 2026 Revenue
$430.4 million
up 7% from Q2 2025 (6% in constant currency)
Q2 2026 GAAP Net Income
$31.8 million
up from $12.2 million in Q2 2025
Q2 2026 Adjusted EBITDA
$90.8 million
up 12% from Q2 2025 (9% in constant currency)
Q2 2026 GAAP Diluted EPS
$0.31
up from $0.12 in Q2 2025
Q2 2026 Adjusted Diluted EPS
$0.54
up 54% from Q2 2025
Q2 2026 Recurring Revenue
$336.3 million
up 5% from Q2 2025 (4% in constant currency)
Year-to-date 2026 Revenue
$856.2 million
up 8% from year-to-date 2025 (6% in constant currency)
2026 Revenue Guidance
$1.895–$1.925 billion
raised from $1.890–$1.920 billion
2026 Adjusted EBITDA Guidance
$545–$560 million
raised from $540–$555 million
Guidance
Company expects Q3 2026 revenue of $417–$427 million and adjusted EBITDA of $90–$95 million, with approximately 40% and 60% revenue weighting for Q3 and Q4, respectively.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were ACIW's key financial results for Q2 2026?
ACI Worldwide reported Q2 2026 revenue of $430.4 million, up 7% year over year, with GAAP net income of $31.8 million. Adjusted EBITDA was $90.8 million and GAAP diluted EPS was $0.31, while adjusted diluted EPS rose 54% to $0.54.
How did ACIW's Payment Software and Biller segments perform in Q2 2026?
Payment Software revenue was $196.4 million, up 9%, with segment adjusted EBITDA of $93.6 million and a 48% margin. Biller revenue was $234.1 million, up 5%, but revenue net of interchange fell 3% and adjusted EBITDA declined to $34.7 million, margin 51%.
What 2026 guidance did ACI Worldwide (ACIW) provide?
The company raised full‑year 2026 guidance to $1.895–$1.925 billion in revenue and $545–$560 million in adjusted EBITDA. For Q3 2026, it expects $417–$427 million of revenue and adjusted EBITDA of $90–$95 million, with a 40%/60% Q3/Q4 revenue split.
What is ACIW's balance sheet and liquidity position after Q2 2026?
ACI Worldwide ended Q2 2026 with $167.4 million in cash and $826 million of debt, for a net debt leverage ratio of 1.2x adjusted EBITDA. Total cash plus available liquidity under its credit facility was $540 million, supporting operations and capital returns.
How much stock did ACIW repurchase in 2026 year to date?
Year to date, ACI Worldwide repurchased 2.5 million shares for approximately $107 million at an average price of $42.75. In Q2 2026 alone, it bought about 948,000 shares for $41 million and still has $349 million remaining under its repurchase authorization.
What happened to ACIW's new ARR bookings in Q2 2026?
Net new ARR bookings were $18.3 million in Q2 2026, down 25% from Q2 2025, while trailing‑twelve‑month ARR bookings were $67.7 million, down 15%. The company nonetheless expects full‑year 2026 growth in both new ARR and license and services bookings.
How did ACIW's recurring revenue perform in Q2 and year‑to‑date 2026?
Recurring revenue reached $336.3 million in Q2 2026, up 5% year over year, and $649.2 million for the first six months of 2026, up 7%. This includes SaaS/PaaS fees of $546.7 million and maintenance fees of $102.5 million year to date.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 8-K
___________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2026
Commission File Number 0-25346
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
(402 ) 390-7600
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operation and Financial Condition.
On August 6, 2026, the Company issued a press release announcing its financial results for the three months ended June 30, 2026. A copy of this press release is attached hereto as Exhibit 99.1.
The foregoing information (including the exhibits hereto) is being furnished under “Item 2.02 – Results of Operations and Financial Condition” and “Item 7.01 – Regulation FD Disclosure.” Such information (including the exhibits hereto) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
The filing of this report and the furnishing of this information pursuant to Items 2.02 and 7.01 do not mean that such information is material or that disclosure of such information is required.
Item 7.01. Regulation FD Disclosure.
See “Item 2.02 – Results of Operation and Financial Condition” above.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 | Press Release dated August 6, 2026 | ||||
99.2 | Investor presentation materials dated August 6, 2026 | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
ACI WORLDWIDE, INC. (Registrant) | ||||||||
| Date: August 6, 2026 | By: | /s/ ROBERT W. LEIBROCK | ||||||
| Robert W. Leibrock | ||||||||
Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer) | ||||||||
Exhibit 99.1
ACI Worldwide Reports Strong Second Quarter 2026
Results and Raises Full-Year Guidance
HIGHLIGHTS
•Q2 revenue of $430 million, increased 7% (6% in constant currency)
•Q2 GAAP net income of $32 million and adjusted EBITDA of $91 million, increased 12% (9% in constant currency)
•Q2 GAAP diluted EPS of $0.31 and adjusted diluted EPS of $0.54, increased 54%
•Successfully enabled ACI Connetic across eight major U.S. payment networks and signed two U.S. customers
•2.5 million shares repurchased YTD for $107 million
•Raising full year 2026 financial guidance for revenue & adjusted EBITDA
Omaha, NE — August 6, 2026 — ACI Worldwide (NASDAQ: ACIW), a leading provider of global payments technology, today announced financial results for the second quarter ended June 30, 2026 and increased financial guidance for full-year 2026.
"Signing two U.S.-based customers for ACI Connetic is a significant milestone and validates both the strength of our cloud-native payments platform and the growing demand for payments modernization in the world's largest banking market," said Thomas Warsop, President and CEO of ACI Worldwide.
"In the second quarter, we delivered 7% revenue growth, expanded EBITDA margins and continued to execute our balanced capital allocation strategy. We continued to invest in ACI Connetic to support long-term organic growth and, at the same time, returned capital to shareholders through share repurchases. As a result of our strong first-half performance, we are increasing our full-year revenue and adjusted EBITDA guidance. We enter the second half of 2026 with strong momentum, a healthy pipeline and confidence in our ability to create long-term shareholder value."
Q2 2026 FINANCIAL SUMMARY
In Q2 2026, total revenue was $430 million, up 7% from Q2 2025, or up 6% on a constant currency basis. Recurring revenue was $336 million, up 5% from Q2 2025, or up 4% on a constant currency basis.
Net income of $32 million in Q2 2026 compares to net income of $12 million in Q2 2025. Total adjusted EBITDA in Q2 2026 was $91 million, up 12% from Q2 2025, or up 9% on a constant currency basis. Net adjusted EBITDA margin in Q2 2026 was 34%, up from 32% in Q2 2025.
GAAP diluted EPS in Q2 2026 was $0.31 and adjusted diluted EPS was $0.54, up 54% from Q2 2025.
PAYMENT SOFTWARE SEGMENT RESULTS
Payment Software revenue in Q2 2026 was $196 million, up 9% from Q2 2025, or up 7% on a constant currency basis. The segment saw particular strength from Issuing and Acquiring revenue, which increased 33% on a constant currency basis versus Q2 2025, driven by large expansions with renewing customers. Payments Intelligence and Merchant Payments revenue each increased 3% on a constant currency basis in the quarter. Real-Time Payments revenue was $23 million, down from last year due to renewal timing. Recurring revenue in the segment, which represents SaaS and Maintenance revenues, increased 3%, versus Q2 2025, or 2% on a constant currency basis.
Payment Software adjusted EBITDA in Q2 2026 was $94 million, up 12%, or up 9% on a constant currency basis from Q2 2025 driven by operating leverage and disciplined expense management, partially offset by ongoing growth investments. As a result, net adjusted EBITDA margin in Q2 2026 was 48%, up from 46% in Q2 2025.
BILLER SEGMENT RESULTS
Biller revenue in Q2 2026 was $234 million, up 5% from Q2 2025 on a reported and constant currency basis. Biller revenue, net of interchange fees, was $68 million, down 3%, from Q2 2025, driven by a strong comparison with significant new onboarding and transactions in the same period last year, as previously discussed. Based on new business wins and current transactions trends, the company’s expectation for full-year 2026 Biller revenue growth in the high single digits remains unchanged.
Biller adjusted EBITDA in Q2 2026 was $35 million, down 13%, from Q2 2025. Net adjusted EBITDA margin, net of interchange fees, was 51%, down from 56% in Q2 2025. Results in the current period reflected lower net revenue compared to the strong prior-year, the impact of certain discrete operating expenses and continued investments in Speedpay ONE.
YEAR-TO-DATE 2026 FINANCIAL SUMMARY
Year-to-date 2026 total revenue was $856 million, up 8% from year-to-date 2025, or up 6% on a constant currency basis. Recurring revenue was $649 million, up 7% from year-to-date 2025, or up 6% on a constant currency basis. Year-to-date 2026 net income of $70 million compares to net income of $71 million for year-to-date 2025, which included a $22 million after-tax gain on the sale of our minority interest in Mindgate. GAAP diluted EPS for year-to-date 2026 was $0.69 and adjusted diluted EPS was $1.16, up 35% from year-to-date 2025.
Total adjusted EBITDA for year-to-date 2026 was $196 million, up 12% from year-to-date 2025, or up 8% on a constant currency basis. Net adjusted EBITDA margin for year-to-date 2026 was 36%, up from 34% in year-to-date 2025.
NEW BOOKINGS
Net new ARR bookings in Q2 2026 were $18 million, down 25%, from Q2 2025, as strength in Biller segment ARR growth was offset by the timing of expected Payment Software contracts. New license and services bookings were $59 million in Q2 2026, up 2% from Q2 2025. Net new ARR bookings for the trailing twelve months ended June 30, 2026 were $68 million, down 15% from 2025. New license and services bookings for the trailing twelve months ended June 30, 2026 were $255 million down 12% from 2025. The company expects full year 2026 growth for both new ARR and new license and services bookings.
BALANCE SHEET AND LIQUIDITY, CASH FLOW, AND REPURCHASES
ACI ended Q2 2026 with $167 million in cash on hand and a debt balance of $826 million, representing a net debt leverage ratio of 1.2x adjusted EBITDA. ACI had total cash and available liquidity under its credit facility of $540 million. Operating cash flows for year-to-date 2026 were $135 million, up from $128 million for year-to-date 2025.
During Q2 2026, the company repurchased approximately 948,000 shares for approximately $41 million at an average price of $43.75. Year-to-date 2026, repurchases totaled 2.5 million shares for approximately $107 million at an average price of $42.75. The company has approximately $349 million remaining available on the share repurchase authorization and continues to expect to allocate 50-60% of operating cash flow to share repurchases for the full year, subject to market conditions.
RAISING 2026 GUIDANCE
Based on first half 2026 performance and the strength of its pipeline, the company is increasing its full-year 2026 guidance. The company now expects revenue in the range of $1.895 billion to $1.925 billion, up from the prior range of $1.890 billion to $1.920 billion, and adjusted EBITDA in the range of $545 million to $560 million, up from $540 million to $555 million. For the second half of 2026, the company continues to expect an approximately 40% and 60% revenue weighting for Q3 and Q4, respectively, driven by the timing of high margin Payment Software license renewals. This equates to revenue of $417 million to $427 million in Q3 2026. Adjusted EBITDA in Q3 2026 is expected to be $90 million to $95 million.
CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS
Today, management will host a conference call at 8:30 a.m. ET to discuss these results.
Webcast: http://investor.aciworldwide.com/
Pre-registration (recommended): https://events.q4inc.com/analyst/520999677?pwd=fAB3MTWf
Pre-registration provides a unique passcode to join without operator assistance.
Dial-in:
USA Toll-Free: 1 833 461 5787 or International Toll: 1 585 542 9983 Conference ID: 520999677
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 more than 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. 2026.
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay ONE and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties' trademarks referenced are the property of their respective owners.
For more information contact:
Investor Relations
John Kraft
SVP, Head of Strategy and Finance
305-894-2223 / john.kraft@aciworldwide.com
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).
•Adjusted Diluted EPS: diluted EPS plus tax effected significant transaction related items, amortization of acquired intangibles and software, and non-cash stock-based compensation. Adjusted diluted EPS 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) the growing demand for payments modernization in the world’s largest banking market, (ii) we enter the second half of 2026 with strong momentum, a healthy pipeline and confidence in our ability to create long-term shareholder value, (iii) based on new business wins and current transactions trends, the company’s expectation for full-year 2026 Biller revenue growth in the high single digits remains unchanged, (iv) the company expects full year 2026 growth for both new ARR and new license and services bookings, (v) our full‑year outlook including Q3 2026 and full-year 2026 revenue and adjusted EBITDA financial guidance, and (vi) expectations to allocate 50-60% of operating cash flow to share repurchases for the full year, subject to market conditions.
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, reliance on third-party cloud infrastructure and related services, reliance on third-parties, 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, 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, adoption of ACI Connetic, adverse changes in the global economy, compliance of our products with applicable legislation, governmental regulations and industry standards, the complexity of our products and services and the risk that they may contain hidden defects, legal and business risks from artificial intelligence technology incorporated into our products, risks to our business from the use of artificial intelligence by our workforce, complex regulations applicable to our payments business, our compliance with privacy and cybersecurity regulations, compliance with requirements of the payment card networks and Nacha, exposure to unknown tax liabilities, changes in tax laws and regulations, consolidations and failures in the financial services industry, volatility in our stock price, demand for our products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, changes in card association and debit network fees or products, impairment of our goodwill or intangible assets, the accuracy of management’s backlog estimates, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, restrictions and other financial covenants in our debt agreements, our existing levels of debt, incurring additional debt, events outside of our control including natural disasters, wars, and outbreaks of disease, and revenues or revenue mix below expectations. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.
ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
| June 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 167,398 | $ | 196,462 | |||||||
| Receivables, net of allowances | 459,253 | 445,866 | |||||||||
| Settlement assets | 447,171 | 397,346 | |||||||||
| Prepaid expenses | 43,995 | 29,876 | |||||||||
| Other current assets | 26,628 | 19,564 | |||||||||
| Total current assets | 1,144,445 | 1,089,114 | |||||||||
| Noncurrent assets | |||||||||||
| Accrued receivables, net | 357,813 | 391,719 | |||||||||
| Property and equipment, net | 38,041 | 37,363 | |||||||||
| Operating lease right-of-use assets | 24,687 | 28,733 | |||||||||
| Software, net | 67,896 | 77,523 | |||||||||
| Goodwill | 1,230,984 | 1,231,128 | |||||||||
| Intangible assets, net | 136,156 | 147,062 | |||||||||
| Deferred income taxes, net | 68,699 | 73,124 | |||||||||
| Other noncurrent assets | 26,549 | 29,141 | |||||||||
| TOTAL ASSETS | $ | 3,095,270 | $ | 3,104,907 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 66,457 | $ | 64,931 | |||||||
| Settlement liabilities | 444,734 | 396,034 | |||||||||
| Employee compensation | 38,318 | 56,142 | |||||||||
| Current portion of long-term debt | 40,973 | 40,941 | |||||||||
| Deferred revenue | 75,654 | 73,637 | |||||||||
| Other current liabilities | 57,296 | 73,958 | |||||||||
| Total current liabilities | 723,432 | 705,643 | |||||||||
| Noncurrent liabilities | |||||||||||
| Deferred revenue | 13,024 | 13,620 | |||||||||
| Long-term debt | 781,204 | 776,667 | |||||||||
| Deferred income taxes, net | 37,361 | 38,514 | |||||||||
| Operating lease liabilities | 18,562 | 22,609 | |||||||||
| Other noncurrent liabilities | 24,943 | 28,776 | |||||||||
| Total liabilities | 1,598,526 | 1,585,829 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity | |||||||||||
| Preferred stock | — | — | |||||||||
| Common stock | 702 | 702 | |||||||||
| Additional paid-in capital | 761,821 | 761,523 | |||||||||
| Retained earnings | 1,894,847 | 1,824,743 | |||||||||
| Treasury stock | (1,052,735) | (964,752) | |||||||||
| Accumulated other comprehensive loss | (107,891) | (103,138) | |||||||||
| Total stockholders’ equity | 1,496,744 | 1,519,078 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,095,270 | $ | 3,104,907 | |||||||
ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Software as a service and platform as a service | $ | 284,762 | $ | 271,258 | $ | 546,719 | $ | 508,341 | |||||||||||||||
| License | 68,795 | 56,711 | 156,836 | 141,204 | |||||||||||||||||||
| Maintenance | 51,558 | 50,421 | 102,476 | 99,063 | |||||||||||||||||||
| Services | 25,308 | 22,868 | 50,141 | 47,215 | |||||||||||||||||||
| Total revenues | 430,423 | 401,258 | 856,172 | 795,823 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Cost of revenue (1) | 248,850 | 234,800 | 477,309 | 448,178 | |||||||||||||||||||
| Research and development | 47,900 | 41,107 | 91,992 | 80,015 | |||||||||||||||||||
| Selling and marketing | 30,603 | 28,741 | 60,839 | 60,927 | |||||||||||||||||||
| General and administrative | 34,484 | 37,651 | 74,700 | 65,243 | |||||||||||||||||||
| Depreciation and amortization | 23,937 | 24,101 | 49,193 | 48,086 | |||||||||||||||||||
| Total operating expenses | 385,774 | 366,400 | 754,033 | 702,449 | |||||||||||||||||||
| Operating income | 44,649 | 34,858 | 102,139 | 93,374 | |||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||
| Interest expense | (11,979) | (14,527) | (24,177) | (29,210) | |||||||||||||||||||
| Interest income | 5,592 | 3,934 | 9,198 | 7,998 | |||||||||||||||||||
| Other, net | 662 | (6,393) | 2,188 | 17,347 | |||||||||||||||||||
| Total other income (expense) | (5,725) | (16,986) | (12,791) | (3,865) | |||||||||||||||||||
Income before income taxes | 38,924 | 17,872 | 89,348 | 89,509 | |||||||||||||||||||
Income tax expense | 7,126 | 5,670 | 19,244 | 18,437 | |||||||||||||||||||
Net income | $ | 31,798 | $ | 12,202 | $ | 70,104 | $ | 71,072 | |||||||||||||||
Income per common share | |||||||||||||||||||||||
| Basic | $ | 0.31 | $ | 0.12 | $ | 0.69 | $ | 0.68 | |||||||||||||||
| Diluted | $ | 0.31 | $ | 0.12 | $ | 0.69 | $ | 0.67 | |||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||
| Basic | 101,503 | 104,376 | 101,711 | 104,860 | |||||||||||||||||||
| Diluted | 101,676 | 105,103 | 102,256 | 105,960 | |||||||||||||||||||
(1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale.
| ACI WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||
| (unaudited and in thousands) | |||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 31,798 | $ | 12,202 | $ | 70,104 | $ | 71,072 | |||||||||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||||||||||||||||
| Depreciation | 3,595 | 3,189 | 6,995 | 6,345 | |||||||||||||||||||
| Amortization | 20,403 | 20,912 | 42,322 | 41,741 | |||||||||||||||||||
| Amortization of operating lease right-of-use assets | 2,324 | 2,407 | 4,661 | 4,842 | |||||||||||||||||||
| Amortization of deferred debt issuance costs | 407 | 620 | 819 | 1,270 | |||||||||||||||||||
| Deferred income taxes | (2,647) | (1,745) | 3,681 | (4,208) | |||||||||||||||||||
| Stock-based compensation expense | 18,662 | 16,411 | 35,619 | 28,038 | |||||||||||||||||||
Gain on sale of equity investment | — | — | — | (25,927) | |||||||||||||||||||
| Other | 413 | 1,591 | (177) | 873 | |||||||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||||||
| Receivables | 11,174 | 7,051 | 21,334 | 48,691 | |||||||||||||||||||
| Accounts payable | 7,820 | 4,932 | 8,757 | 12,411 | |||||||||||||||||||
| Accrued employee compensation | 6,642 | 8,980 | (17,647) | (16,202) | |||||||||||||||||||
| Deferred revenue | (3,569) | (3,193) | 1,334 | (7,841) | |||||||||||||||||||
| Other current and noncurrent assets and liabilities | (26,233) | (23,560) | (42,766) | (33,087) | |||||||||||||||||||
| Net cash flows from operating activities | 70,789 | 49,797 | 135,036 | 128,018 | |||||||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||||||
| Purchases of property and equipment | (6,852) | (2,156) | (9,855) | (4,326) | |||||||||||||||||||
| Purchases of software | (6,861) | (5,383) | (18,369) | (12,142) | |||||||||||||||||||
Proceeds from sale of equity investment | — | — | — | 46,021 | |||||||||||||||||||
| Net cash flows from investing activities | (13,713) | (7,539) | (28,224) | 29,553 | |||||||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||||||
| Proceeds from issuance of common stock | 861 | 819 | 1,766 | 1,632 | |||||||||||||||||||
| Proceeds from exercises of stock options | 1,288 | 214 | 1,352 | 796 | |||||||||||||||||||
| Repurchase of stock-based compensation awards for tax withholdings | (15,231) | (13,156) | (19,070) | (20,226) | |||||||||||||||||||
| Repurchases of common stock | (41,476) | (119,362) | (106,753) | (133,770) | |||||||||||||||||||
Redemption of 2026 Notes | — | (400,000) | — | (400,000) | |||||||||||||||||||
| Proceeds from revolving credit facility | 25,000 | 290,000 | 40,000 | 290,000 | |||||||||||||||||||
| Repayment of revolving credit facility | — | (30,000) | (15,000) | (100,000) | |||||||||||||||||||
| Proceeds from term portion of credit agreement | — | 200,000 | — | 200,000 | |||||||||||||||||||
| Repayment of term portion of credit agreement | (10,625) | (9,375) | (21,250) | (18,750) | |||||||||||||||||||
| Payments on or proceeds from other debt, net | (7,127) | (6,447) | (10,666) | (10,664) | |||||||||||||||||||
| Payments for debt issuance costs | — | (134) | — | (134) | |||||||||||||||||||
| Net (decrease) increase in settlement assets and liabilities | (24,724) | (26,751) | (6,598) | 61,573 | |||||||||||||||||||
| Net cash flows from financing activities | (72,034) | (114,192) | (136,219) | (129,543) | |||||||||||||||||||
| Effect of exchange rate fluctuations on cash | (2,711) | 4,118 | (5,130) | 5,909 | |||||||||||||||||||
| Net (decrease) increase in cash and cash equivalents | (17,669) | (67,816) | (34,537) | 33,937 | |||||||||||||||||||
| Cash and cash equivalents, including settlement deposits, beginning of period | 242,128 | 366,771 | 258,996 | 265,018 | |||||||||||||||||||
| Cash and cash equivalents, including settlement deposits, end of period | $ | 224,459 | $ | 298,955 | $ | 224,459 | $ | 298,955 | |||||||||||||||
| Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 167,398 | $ | 189,697 | $ | 167,398 | $ | 189,697 | |||||||||||||||
| Settlement deposits | 57,061 | 109,258 | 57,061 | 109,258 | |||||||||||||||||||
| Total cash and cash equivalents | $ | 224,459 | $ | 298,955 | $ | 224,459 | $ | 298,955 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Adjusted EBITDA (millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Net income | $ | 31.8 | $ | 12.2 | $ | 70.1 | $ | 71.1 | |||||||||||||||
| Plus: | |||||||||||||||||||||||
Income tax expense | 7.1 | 5.7 | 19.2 | 18.4 | |||||||||||||||||||
| Net interest expense | 6.4 | 10.6 | 15.0 | 21.2 | |||||||||||||||||||
| Net other (income) expense | (0.7) | 6.4 | (2.2) | (17.3) | |||||||||||||||||||
| Depreciation expense | 3.6 | 3.2 | 7.0 | 6.4 | |||||||||||||||||||
| Amortization expense | 20.4 | 20.9 | 42.3 | 41.7 | |||||||||||||||||||
| Non-cash stock-based compensation expense | 18.7 | 16.4 | 35.6 | 28.0 | |||||||||||||||||||
| Adjusted EBITDA before significant transaction-related expenses | $ | 87.3 | $ | 75.4 | $ | 187.1 | $ | 169.5 | |||||||||||||||
| Significant transaction-related expenses: | |||||||||||||||||||||||
| Cost reduction strategies | 0.4 | 5.1 | 5.8 | 5.1 | |||||||||||||||||||
| Other | 3.1 | 0.4 | 3.1 | 0.4 | |||||||||||||||||||
| Adjusted EBITDA | $ | 90.8 | $ | 80.9 | $ | 196.0 | $ | 175.0 | |||||||||||||||
| Revenue, net of interchange: | |||||||||||||||||||||||
| Revenue | $ | 430.4 | $ | 401.3 | $ | 856.2 | $ | 795.8 | |||||||||||||||
| Interchange | 165.6 | 151.1 | 311.9 | 281.9 | |||||||||||||||||||
| Revenue, net of interchange | $ | 264.8 | $ | 250.2 | $ | 544.3 | $ | 513.9 | |||||||||||||||
| Net Adjusted EBITDA Margin | 34 | % | 32 | % | 36 | % | 34 | % | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Segment Information (millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Revenue | |||||||||||||||||||||||
Payment Software | $ | 196.4 | $ | 179.3 | $ | 409.8 | $ | 380.1 | |||||||||||||||
Biller | 234.1 | 221.9 | 446.3 | 415.7 | |||||||||||||||||||
| Total | $ | 430.4 | $ | 401.3 | $ | 856.2 | $ | 795.8 | |||||||||||||||
| Recurring Revenue | |||||||||||||||||||||||
Payment Software | $ | 102.3 | $ | 99.8 | $ | 202.9 | $ | 191.6 | |||||||||||||||
Biller | 234.1 | 221.9 | 446.3 | 415.8 | |||||||||||||||||||
| Total | $ | 336.3 | $ | 321.7 | $ | 649.2 | $ | 607.4 | |||||||||||||||
| Segment Adjusted EBITDA | |||||||||||||||||||||||
Payment Software | $ | 93.6 | $ | 83.3 | $ | 206.9 | $ | 189.8 | |||||||||||||||
Biller | 34.7 | 39.8 | 68.7 | 70.7 | |||||||||||||||||||
Note: Amounts may not recalculate due to rounding.
| Three Months Ended June 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| 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 | $ | 0.31 | $ | 31.8 | $ | 0.12 | $ | 12.2 | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Significant transaction-related expenses | 0.03 | 2.7 | 0.04 | 4.1 | |||||||||||||||||||
| Amortization of acquisition-related intangibles | 0.04 | 4.2 | 0.04 | 4.2 | |||||||||||||||||||
| Amortization of acquisition-related software | 0.02 | 1.6 | 0.03 | 3.2 | |||||||||||||||||||
| Non-cash stock-based compensation | 0.14 | 14.7 | 0.12 | 13.0 | |||||||||||||||||||
| Total adjustments | $ | 0.23 | $ | 23.2 | $ | 0.23 | $ | 24.5 | |||||||||||||||
| Adjusted Diluted EPS | $ | 0.54 | $ | 55.0 | $ | 0.35 | $ | 36.7 | |||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| 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 | $ | 0.69 | $ | 70.1 | $ | 0.67 | $ | 71.1 | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
Gain on sale of equity investment | — | — | (0.20) | (21.7) | |||||||||||||||||||
| Significant transaction-related expenses | 0.07 | 6.8 | 0.04 | 4.1 | |||||||||||||||||||
| Amortization of acquisition-related intangibles | 0.08 | 8.4 | 0.08 | 8.3 | |||||||||||||||||||
| Amortization of acquisition-related software | 0.05 | 4.9 | 0.06 | 6.4 | |||||||||||||||||||
| Non-cash stock-based compensation | 0.27 | 28.1 | 0.21 | 22.2 | |||||||||||||||||||
| Total adjustments | $ | 0.47 | $ | 48.2 | $ | 0.19 | $ | 19.3 | |||||||||||||||
| Adjusted Diluted EPS | $ | 1.16 | $ | 118.3 | $ | 0.86 | $ | 90.4 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Recurring Revenue (millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| SaaS and PaaS fees | $ | 284.8 | $ | 271.3 | $ | 546.7 | $ | 508.3 | |||||||||||||||
| Maintenance fees | 51.6 | 50.4 | 102.5 | 99.1 | |||||||||||||||||||
| Recurring Revenue | $ | 336.3 | $ | 321.7 | $ | 649.2 | $ | 607.4 | |||||||||||||||
| New Bookings (millions) | Three Months Ended June 30, | TTM Ended June 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Annual recurring revenue (ARR) bookings | $ | 18.3 | $ | 24.3 | $ | 67.7 | $ | 79.5 | |||||||||||||||
| License and services bookings | 59.2 | 58.1 | 255.2 | 290.2 | |||||||||||||||||||
Note: Amounts may not recalculate due to rounding.
