ACI Worldwide(US:ACIW)2025-11-06 13:03Financial 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].