Core Insights - The discussion at the ICR Conference 2026 highlighted NCR Voyix's commitment to leveraging AI and technology to enhance partner support and drive innovation in the restaurant industry [1] Company Overview - NCR Voyix Corporation (NYSE: VYX) is a prominent global provider of digital commerce solutions specifically tailored for the retail and restaurant sectors, with a strong emphasis on platform-led SaaS and service capabilities [7] - The company is headquartered in Atlanta, Georgia, and serves customers in over 30 countries worldwide [7] Leadership Profile - Benny Tadele, as Executive Vice President and President of Restaurants at NCR Voyix, has a proven track record in transitioning traditional business models to innovative SaaS solutions, significantly enhancing growth and operational efficiency [2] - Prior to his role at NCR Voyix, Tadele played a crucial role at ACI Worldwide, where he implemented SaaS models that improved customer value and drove substantial revenue growth [3] - Tadele holds advanced degrees in computational science and engineering from the Georgia Institute of Technology, equipping him with a strong foundation in tech-driven business models [4] Leadership Philosophy - Tadele is dedicated to mentorship and leadership development, advocating for transformational leadership to unlock potential and foster collective success [5] - He promotes a culture of continuous improvement and strategic risk-taking within teams, encouraging exploration of new growth avenues [5] Community Engagement - Residing in Atlanta, Tadele balances his professional life with community involvement, applying his leadership skills to promote growth and resilience in local initiatives [6]

Core Insights - The mobile payments landscape is rapidly evolving, driven by the adoption of smartphones and fintech innovations, leading to a decline in cash reliance and ATMs [2][3][4] - The global mobile payments market is projected to grow from $3.84 trillion in 2024 to $26.53 trillion by 2032, reflecting a 27% CAGR, indicating significant long-term potential [4] Industry Overview - Mobile payments are reshaping financial transactions globally, integrating digital wallets and technologies like NFC and QR codes to enhance consumer and business interactions [2][3] - The rise of super apps, such as WeChat Pay and Alipay, is changing consumer behavior by combining various services into unified platforms [3] - E-commerce growth and improved digital infrastructure are further propelling the mobile payments sector, benefiting small businesses through faster settlements and better cash flow visibility [4] Competitive Landscape - Competition is intensifying as companies like Nu Holdings, ACI Worldwide, and Bread Financial expand their services through partnerships with banks and merchants [5] - Regulatory frameworks are evolving to enhance security, data privacy, and financial inclusion, with initiatives like FedNow in the U.S. and UPI in India [5] Company Highlights - **Nu Holdings**: Offers mobile payment capabilities through its Nubank platform, serving over 127 million customers, with a strong presence in Latin America [9][10] - **ACI Worldwide**: Provides the infrastructure for mobile payments, enabling real-time transactions and supporting over 200 digital wallets across 70 countries [11][14] - **Bread Financial**: Focuses on embedded financing solutions, allowing merchants to integrate buy now, pay later options into mobile checkouts, enhancing consumer flexibility [15][18]

Summary of ACI's Earnings Call Company Overview - ACI is a $1.7 billion software and SaaS company that has been a key player in the global payments ecosystem for over 50 years, serving 19 of the top 20 global banks and providing mission-critical payment software for banks, merchants, and billers worldwide [1][4][5] Key Financial Metrics - ACI generates approximately $500 million in EBITDA, with about two-thirds realized in cash [4] - The company has posted a 12% growth in its bill pay segment through nine months, with a strong backlog indicating continued double-digit growth [15][18] - ACI has a revenue growth target of 7%-9%, with actual growth exceeding this target [14][15] Strategic Focus and Innovation - ACI is focusing on high single-digit growth and investing in innovation to meet customer demands [8][56] - The company is developing a new platform called Kinetic, which is a cloud-native payments hub aimed at providing intelligent payment orchestration, enhancing the capabilities of banks [11][42] - ACI is also enhancing its SpeedPay platform, consolidating legacy systems into a new cloud-native solution to improve customer experience and operational efficiency [51][52] Market Trends and Opportunities - The shift towards real-time payments and cross-border modernization is seen as a significant growth opportunity for ACI, with real-time payments being the fastest-growing new payment type [27][30] - ACI is positioned to capitalize on the increasing complexity in payment systems, which is driving demand for its solutions [14][24] - The company is exploring the potential of stablecoin, viewing it as an opportunity to add complexity to existing banking systems rather than a threat to its revenue [36][39] Customer Relationships and Retention - ACI has a high customer retention rate in the upper 90s, indicating strong customer loyalty and satisfaction [24][70] - The company emphasizes the importance of its mission-critical software, which is essential for customers to avoid negative impacts on their credit scores due to missed payments [15][16] Capital Allocation and Financial Strategy - ACI has been active in share buybacks, repurchasing 3 million shares for about $150 million in the first nine months of the year, with an increased authorization for $500 million [60][61] - The company has reduced its leverage from a target of 2.5x to 1.3x, prioritizing debt repayment before returning capital to shareholders [60][61] Conclusion - ACI is positioned for sustained growth through innovation, strategic partnerships, and a focus on customer needs, with a clear roadmap for the future that includes the rollout of new platforms and enhancements to existing services [56][58][59]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if ad-blockers are enabled, indicating a need to disable them for proper access [1]

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article emphasizes that users may be blocked from proceeding if an ad-blocker is enabled [1]

Revenue 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]

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].