ACI Worldwide(US:ACIW)2025-11-06 15:26Revenue Performance - Total revenues for Q3 2025 reached $482.4 million, a 6.5% increase from $451.8 million in Q3 2024[17] - Software as a service and platform as a service revenues grew to $246.9 million, up 10.6% from $223.4 million year-over-year[17] - For the three months ended September 30, 2025, total revenue was $482,359,000, an increase from $451,752,000 for the same period in 2024, representing a growth of 6.0%[98] - For the nine months ended September 30, 2025, total revenue reached $1,278,182,000, compared to $1,141,250,000 for the same period in 2024, marking a significant increase of 12.0%[100] - The Biller segment generated revenue of $198,337,000 for the three months ended September 30, 2025, up from $179,601,000 in the same period of 2024, reflecting an increase of 10.4%[98] - The Payment Software segment's revenue for the nine months ended September 30, 2025, was $664,090,000, up from $594,974,000 in 2024, representing a growth of 11.6%[100] Income and Profitability - Net income for Q3 2025 was $91.3 million, compared to $81.4 million in Q3 2024, reflecting a 12.3% increase[19] - Operating income for the nine months ended September 30, 2025, was $221.1 million, a 19.0% increase from $185.8 million in the same period of 2024[17] - Net income for the nine months ended September 30, 2025, was $162,322,000, compared to $104,563,000 for the same period in 2024, representing a 55% increase[29] - Basic income per share for Q3 2025 was $0.88, compared to $0.78 in Q3 2024, representing a 12.8% increase[17] - The company reported a comprehensive income of $86.9 million for Q3 2025, compared to $90.5 million in Q3 2024[19] Expenses and Costs - Research and development expenses for the nine months ended September 30, 2025, were $122.6 million, an increase of 13.5% from $108.1 million in 2024[17] - Total operating expenses for the nine months ended September 30, 2025, were $1,057.1 million, an increase of 10.7% from $955.4 million in the same period of 2024[17] - Interchange costs for the nine months ended September 30, 2025, totaled $417,144,000, compared to $353,648,000 in the same period of 2024, an increase of approximately 17.9%[100] - Global technology and innovation costs for the nine months ended September 30, 2025, were $236,946,000, up from $215,108,000 in 2024, reflecting an increase of about 10.2%[100] - Corporate and unallocated expenses for the nine months ended September 30, 2025, were $135,546,000, compared to $123,901,000 in 2024, an increase of approximately 9.0%[100] Assets and Liabilities - Total assets increased to $3.16 billion as of September 30, 2025, up from $3.03 billion at the end of 2024, representing a 4.5% growth[14] - Total stockholders' equity increased to $1.48 billion as of September 30, 2025, from $1.42 billion at the end of 2024[14] - The company’s long-term debt decreased to $826.9 million from $889.6 million as of December 31, 2024[14] - Total debt amounted to $867.8 million, a decrease from $924.6 million as of December 31, 2024[68] - Total current assets increased to $1,163,539 thousand as of September 30, 2025, from $990,822 thousand at the end of 2024, indicating a growth of 17.4%[106] Cash Flow and Investments - Net cash flows from operating activities for the nine months ended September 30, 2025, were $201,056,000, down from $232,266,000 in 2024, a decrease of about 13.4%[29] - The company’s cash flows from investing activities showed a net inflow of $19,648,000 for the nine months ended September 30, 2025, contrasting with a net outflow of $31,641,000 in 2024[29] - Total cash and cash equivalents, including settlement deposits, decreased to $253,411,000 as of September 30, 2025, from $268,670,000 at the end of the previous year, a decline of approximately 5.5%[31] - Cash and cash equivalents at the beginning of the period were $265.0 million, compared to $238.8 million at the beginning of September 2024, an increase of 10.9%[29] Shareholder Activities - The company repurchased 3,073,321 shares of common stock for $150,975,000 during the nine months ended September 30, 2025[25] - The company repurchased 359,522 shares of common stock in Q3 2025, totaling $16.3 million[21] - The company repurchased 3,946,537 shares of common stock, totaling $128.7 million, during the nine months ended September 30, 2025[29] - The company has a remaining authorized amount of $207.1 million for stock repurchases as of September 30, 2025[83] Segment Performance - Segment Adjusted EBITDA for the Payment Software segment was $181,666,000 for the three months ended September 30, 2025, compared to $180,655,000 for the same period in 2024, indicating a slight increase of 0.6%[98] - The Biller segment's revenue for the nine months ended September 30, 2025, was $614,092,000, compared to $546,276,000 in 2024, indicating an increase of 12.4%[100] - The company reassessed its segment reporting structure in 2025, now reporting based on Payment Software and Biller segments, focusing on Segment Adjusted EBITDA for performance assessment[90] Tax and Compliance - The effective tax rate for the three months ended September 30, 2025, was 23%, down from 24% in the same period of 2024[107][108] - The company maintained compliance with its financial debt covenants as of September 30, 2025[67] Future Expectations - Revenue allocated to remaining performance obligations was $753.7 million as of September 30, 2025, with an expectation to recognize approximately 55% over the next 12 months[53] - The company expects to recognize unrecognized compensation expense of $76.4 million related to RSUs over a weighted average period of 2.2 years[80]