Core Insights - Flywire Corporation has enhanced its Student Financial Software (SFS) solution with real-time integration into leading ERP systems Unit4 (Agresso) and Banner, aimed at improving the U.K. higher education sector [1][4] - The new SFS implementations provide real-time student account information and payment capabilities, addressing the unmet needs of U.K. institutions for a unified student portal [2][3] Group 1: SFS Solution Enhancements - Flywire's SFS solution now features real-time account presentment and payment capabilities, allowing U.K. institutions to automate and manage U.S. loan disbursement processes [1][4] - The solution addresses challenges faced by U.K. institutions, such as providing accurate account balances and flexible payment plans, while reducing manual administrative tasks [2][10] Group 2: Client Implementations and Feedback - Kingston University successfully deployed Flywire's SFS solution, enhancing the student payment experience and improving back-office efficiencies [5][6] - The implementation led to increased student satisfaction and allowed staff to focus on more meaningful engagement with students [6][7] Group 3: U.S. Loan Management Solution - Flywire introduced an enhanced solution for managing U.S. loans for students in the U.K., automating complex workflows for inbound loan funds [8][9] - The updated solution provides comprehensive capabilities for institutions to securely receive and reconcile U.S. loan payments, improving efficiency and transparency [11][12]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 7% year over year and 15% compared to the full year 2024, reflecting strong business momentum [5][10] - Adjusted EBITDA for Q2 was $181 million, down 13% year over year, primarily due to the timing of license-based contracts [20] - Recurring revenue grew to $322 million, accelerating to 13% growth compared to last year [20] Business Segment Data and Key Metrics Changes - The biller segment revenue grew by 16% in Q2 and 13% for the first half of 2025, driven by strong performance in government, consumer finance, and utility markets [20][22] - Payment software segment revenue was roughly flat in Q2 but grew by 18% for the first half of 2025, with adjusted EBITDA increasing by 29% [21][22] Market Data and Key Metrics Changes - The company signed notable new contracts, with annual recurring revenue (ARR) bookings in Q2 up 86%, bringing first half 2025 new ARR bookings growth to 71% [6][20] - The estimated sixty-month backlog exceeded $7 billion for the first time, indicating strong future revenue potential [12][73] Company Strategy and Development Direction - The company is focused on enhancing its technology leadership and innovation, particularly with the launch of Kinetic, a next-generation payments hub platform [6][7] - ACI Worldwide is committed to returning capital to shareholders, having repurchased approximately 2.4% of its common shares outstanding [8][24] - The company is well-positioned to benefit from the adoption of stablecoins, which could drive cross-border real-time payments [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving upper single-digit revenue growth targets for 2025, supported by a strong pipeline and business momentum [10][26] - The leadership highlighted the importance of early contract signings to improve sales efficiency and revenue recognition [11][19] Other Important Information - ACI Worldwide was recognized as one of CNBC's World's Top Fintech Companies for 2025 and one of Time's America's Best Midsize Companies in 2025 [15] - The company plans to host an event called "Payments Unleashed" in October 2023 to celebrate its 50th anniversary and discuss emerging trends in payments [27] Q&A Session Summary Question: Update on stablecoins and bank customer conversations - Management indicated readiness for stablecoin transactions and emphasized the potential for cross-border real-time payments facilitated by stablecoins [32][34] Question: Acceleration in the Biller segment - Management noted strong performance in the Biller segment, particularly from government contracts, and expects continued strong performance for the rest of the year [38] Question: Areas of strength in ARR bookings - Management reported a diverse mix of deals contributing to ARR growth, with no single deal dominating the performance [43][44] Question: Trends in government investment and backlog strength - Management stated that there hasn't been a fundamental change in customer investment strategies, but ACI is better positioned to capitalize on existing demand [68][69] Question: Capital allocation strategy and buybacks - Management confirmed a flexible capital allocation strategy, focusing on growth investments and share buybacks, while remaining open to M&A opportunities [78][80] Question: Unit economics of stablecoin transactions - Management explained that real-time payments generate significantly more revenue than debit transactions, with stablecoin transactions expected to follow a similar trend [88][90] Question: Q3 EBITDA guidance - Management provided insights into the factors influencing Q3 EBITDA guidance, including expected revenue growth from payment software and the timing of new deals [92][96]