Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $482 million, reflecting a 7% year-over-year increase and a 6% increase when adjusted for foreign exchange [13] - Recurring revenue reached $298 million, up 10%, representing 62% of total revenue [13] - Adjusted EBITDA was $171 million, a 2% increase year-over-year [13] - Year-to-date total revenue and adjusted EBITDA both increased by 12% compared to the previous year [14] Business Line Data and Key Metrics Changes - The biller business generated $198 million in revenue, up 10% year-over-year, with segment-adjusted EBITDA increasing by 4% to $32 million [13] - Payment software revenue grew by 4% to $284 million, with adjusted EBITDA at $182 million, up 1% [13] - Year-to-date payment software revenue increased by 12%, while adjusted EBITDA grew by 13% [14] Market Data and Key Metrics Changes - Strong demand was noted from traditional banks, established payment processors, and emerging fintechs [6] - The company reported a healthy growth in its $7.1 billion, 60-month backlog, with double-digit growth across both payment software and biller business [26] Company Strategy and Development Direction - The company is focused on reducing variability in its historic term license software business model by closing deals earlier and moving towards more ratable pricing structures [5] - ACI Kinetic platform is a key focus, with the signing of its first customer, Solaris, indicating a commitment to modernizing payment infrastructure [6][34] - The company made a strategic acquisition of a European-based fintech payment component to enhance its AI-first initiatives and accelerate the ACI Kinetic development roadmap [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025, highlighting a robust pipeline and consistent execution across the business [12] - The company raised its full-year guidance for total revenue to a range of $1.73 billion to $1.754 billion and adjusted EBITDA to $495 million to $510 million [17] - Management emphasized the importance of transparency and proactive dialogue with the investment community [19] Other Important Information - The company repurchased 3.1 million shares for $150 million year-to-date and increased its share repurchase authorization to $500 million [9][16] - ACI Worldwide is committed to returning capital to shareholders while maintaining operational excellence and technology leadership [12] Q&A Session All Questions and Answers Question: Pricing as a lever for long-term growth - Management indicated that pricing remains an important lever for growth, with expectations to continue adding value through new software versions and features [22][24] Question: Renewal cadence for payment software - Management noted a healthy backlog and expects balanced renewals throughout 2026, maintaining a high single-digit growth model [25][26] Question: Progression and pipeline for ACI Kinetic - Management expressed excitement about the growing pipeline for ACI Kinetic, with revenue conversion expected to occur after implementation is completed [34][35] Question: Payments components acquisition and BitPay partnership - The acquisition was aimed at enhancing capabilities for ACI Kinetic, while the BitPay partnership is expected to improve service offerings in the crypto and stablecoin space [39][40] Question: Growth drivers in the biller segment - Management highlighted new customer acquisition and retention as key drivers of growth in the biller segment, with a focus on the SpeedPay One platform [50][52]

Q3 2025 November 6, 2025 Earnings Presentation This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Private Securities Litigation Reform Act of 1995 Safe Harbor for Forward-Looking Statements With over 50 years of trusted payments expertise, we combine our global footprint with a local presence to ...

Core Insights - ACI Worldwide reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $0.99 per share, and showing an increase from $0.97 per share a year ago, resulting in an earnings surprise of +10.10% [1] - The company achieved revenues of $482.36 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.16% and up from $451.75 million year-over-year [2] - ACI Worldwide has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - The earnings surprise of +10.10% indicates strong performance relative to expectations, while the previous quarter also saw a significant surprise of +29.63% [1] - The company has reported a total revenue increase of approximately 6.5% year-over-year [2] Stock Performance and Outlook - ACI Worldwide shares have declined about 7.1% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.07, with projected revenues of $473.8 million, and for the current fiscal year, the EPS estimate is $2.90 on revenues of $1.74 billion [7] Industry Context - The Computer - Software industry, to which ACI Worldwide belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The performance of ACI Worldwide may be influenced by the overall industry trends, as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Q3 2025 revenue was $482 million, up 7% from Q3 2024, with recurring revenue of $298 million, up 10% and representing 62% of total revenue [5]. - Year-to-date 2025 revenue reached $1.28 billion, a 12% increase from year-to-date 2024, with recurring revenue of $906 million, up 11% and accounting for 71% of total revenue [6]. - Q3 2025 net income was $91 million, compared to $81 million in Q3 2024, while adjusted EBITDA was $171 million, up 2% from Q3 2024 [5]. - Year-to-date 2025 net income was $162 million, including a $22 million after-tax gain from the sale of a minority interest, compared to $105 million for year-to-date 2024 [6]. - Total revenues for Q3 2025 reached $482,359, an increase of 6.7% compared to $451,752 in Q3 2024 [23]. - Operating income for the nine months ended September 30, 2025, was $221,080, representing a 19.0% increase from $185,847 in the prior year [23]. - Net income for Q3 2025 was $91,250, a 12.4% increase compared to $81,427 in Q3 2024 [23]. - Total revenue for Q3 2025 was $482.4 million, representing a 6.0% increase compared to $451.8 million in Q3 2024 [26]. - Total revenue for the nine months ended September 30, 2025, was $1,278.2 million, a 12.0% increase from $1,141.3 million in the same period of 2024 [26]. Cash Flow and Assets - Q3 2025 cash flow from operating activities was $73 million, compared to $54 million in Q3 2024 [5]. - The company reported a net cash flow from operating activities of $73,038 for Q3 2025, compared to $54,008 in Q3 2024, indicating a growth of 35.2% [25]. - Cash and cash equivalents decreased to $199,268 from $216,394 at the end of Q4 2024, reflecting a decline of 7.5% [21]. - Total assets increased to $3,160,903, up from $3,025,293 at the end of Q4 2024, marking a growth of 4.5% [21]. - Total liabilities rose to $1,681,721, an increase of 5.0% from $1,600,966 in the previous quarter [21]. - ACI ended Q3 2025 with $199 million in cash and a debt balance of $873 million, resulting in a net debt leverage ratio of 1.3x adjusted EBITDA [7]. Revenue Segmentation - Software as a service and platform as a service revenues grew to $246,916, up 10.6% from $223,367 in the same quarter last year [23]. - Payment Software segment revenue for Q3 2025 was $284.0 million, an increase of 4.6% from $272.2 million in Q3 2024 [26]. - Biller segment revenue for Q3 2025 was $198.3 million, up 10.4% from $179.6 million in Q3 2024 [26]. - Recurring revenue for Q3 2025 was $298.3 million, up 10.2% from $270.9 million in Q3 2024 [27]. Guidance and Future Outlook - The full-year 2025 revenue guidance is raised to a range of $1.730 billion to $1.754 billion, up from the previous range of $1.710 billion to $1.740 billion [9]. - Adjusted EBITDA guidance for the full-year 2025 is raised to a range of $495 million to $510 million, up from the previous range of $490 million to $505 million [9]. Shareholder Actions - ACI announced a $500 million share repurchase authorization, reflecting a balanced approach to capital allocation [8]. Customer and Product Development - The company signed its first customer for ACI Connetic, its new cloud-native payments hub, indicating strong early interest and demand [4]. Earnings Per Share - Basic income per common share for Q3 2025 was $0.88, an increase from $0.78 in Q3 2024, reflecting a growth of 12.8% [23]. - Adjusted diluted EPS for Q3 2025 was $1.09, compared to $0.97 in Q3 2024, reflecting a 12.4% increase [27]. Research and Development - Research and development expenses for Q3 2025 were $42,567, up 13.5% from $37,660 in Q3 2024 [23]. Bookings - Annual recurring revenue (ARR) bookings for Q3 2025 were $12.6 million, a 13.5% increase from $11.1 million in Q3 2024 [27]. - License and services bookings for Q3 2025 totaled $81.4 million, up 21.9% from $67.0 million in Q3 2024 [27].

Core Insights - ACI Worldwide reported strong third-quarter and year-to-date results, indicating continued growth in its Payment Software and Biller segments [1] - The company raised its full-year 2025 outlook for revenue and adjusted EBITDA, reflecting positive momentum in its financial performance [1] - An updated share repurchase authorization was announced, signaling confidence in the company's future prospects [1] Financial Performance - The third-quarter results showed strong revenue growth, with significant increases in adjusted EBITDA and bookings [1] - The company’s performance in Q3 is characterized by continued positive momentum, as stated by CEO Thomas Warsop [1]

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Core Insights - The commentary discusses the performance of the London Company SMID Cap relative to the Russell 2500 index for Q3 2025, highlighting the impact of sector exposures on investment performance [2] Sector Influence - The company employs a bottom-up stock picking strategy, but acknowledges that sector exposures have influenced relative performance [3] - The company has an overweight position in certain sectors that contributed positively to performance [3]

Core Insights - ACI Worldwide has acquired Payment Components, enhancing its capabilities in AI-powered financial messaging and Open Banking solutions [1][2] - The integration of Payment Components' technology into ACI Connetic aims to accelerate the development of a cloud-native unified payments platform [1][2] - Payment Components is recognized for its innovative software solutions that streamline transaction orchestration and enhance back-office connectivity [2] Company Overview - ACI Worldwide specializes in intelligent payments orchestration, providing software solutions that enable banks, billers, and merchants to modernize their payment infrastructures [2] - Payment Components, founded in 2014 in Greece, focuses on A2A payments, API management, and financial messaging, serving over 65 banks and institutions across 25 countries [2][3] - The acquisition includes Payment Components' technology, intellectual property, talent, and customer relationships, with a collaborative effort to enhance ACI Connetic's messaging features [2] Technology and Innovation - Payment Components leverages generative AI to simplify and accelerate payment processes, delivering more agile payment services [2] - The company aims to replace complex financial processes with AI-assisted components, reflecting a shift towards more efficient fintech solutions [3] - ACI Worldwide's strategy combines an international footprint with local presence to address evolving payment challenges and opportunities [2]

Core Insights - ACI Worldwide has acquired Payment Components, a Greek fintech specializing in AI-driven financial messaging and open banking solutions, with the acquisition not expected to be financially material to ACI [1][3] - The technology from Payment Components will enhance ACI Connetic, ACI's cloud-based payments platform, which supports card processing, account-to-account transactions, and AI-driven fraud prevention [2][3] - The integration aims to streamline payment processing and improve back-office integration, leveraging generative AI and enhancing the capabilities of ACI's offerings [4][5] Company Strategy - ACI's acquisition is intended to set a new standard for payment transformation in the digital economy, emphasizing the importance of innovation and talent from Payment Components [3][5] - The acquired technology will facilitate the launch of local payment schemes and improve the overall efficiency of payment operations [4][5] - ACI's strategic partnership with BitPay in October 2025 aims to enhance digital asset capabilities for merchants and payment service providers [6]

Company Acquisition - ACI Worldwide has acquired Payment Components, a provider of financial messaging and open banking solutions [1][2] - The acquisition aims to integrate Payment Components technology into ACI Connetic, ACI's cloud-native unified payments platform [2] Strategic Impact - ACI's CEO, Thomas Warsop, stated that the acquisition will enhance ACI Connetic's capabilities and set a new standard for banks in payment transformation within the digital economy [3] - Payment Components, founded in Greece in 2014, serves 65 banks and institutions across 25 countries and utilizes generative AI to improve payment processes [3] Open Banking Insights - Recent research indicates that a significant knowledge gap exists among U.S. consumers regarding open banking payments, with 56% unaware of the option [4] - The report suggests that the pay by bank method could gain traction in sectors where consumers already link accounts directly, such as betting and ridesharing [5] - Younger consumers, particularly Generation Z and millennials, show a strong interest in using pay by bank for transferring funds, with over 40% expressing willingness [6]