ACI WORLDWIDE, INC. (ACIW): Results of Operations and Financial Condition
ACI WORLDWIDE, INC. (ACIW) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 ACI Worldwide Reports Strong Second Quarter 2026 Results and Raises Full-Year Guidance HIGHLIGHTS • Q2 revenue of $430 million, increased 7% (6% in constant currency) • Q2 GAAP net income of $32 million and adjusted EBITDA of $91 million, increased 12% (9% in constan
How this was made
The 30-second read
Why it matters
The key tradable update is the raised FY 2026 guidance alongside reported Q2 growth in revenue, GAAP net income, adjusted EBITDA, and EPS, plus continued share repurchases.
Market read
Traders can reprice ACI Worldwide’s forward expectations immediately based on the explicit guidance increase and the quarter’s margin and EPS improvements.
What to watch
Real-Time Payments revenue declined due to renewal timing, and trailing-twelve-month net new ARR fell 15%, so investors may focus on whether the pipeline timing is repeatable into H2.
ACI Worldwide Reports Strong Second Quarter 2026 Results and Raises Full-Year Guidance
Q2 revenue, adjusted EBITDA, adjusted diluted EPS, Payment Software profitability and operating cash flow increased, and the company raised full-year revenue and adjusted EBITDA guidance. Offsets included lower Biller net revenue and adjusted EBITDA, as well as declines in quarterly and trailing-twelve-month new ARR bookings.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q2 2026 total revenueGAAP | $430 million | – | up 7% from Q2 2025 |
| Q2 2026 total revenue constant currency growthother | up 6% on a constant currency basis | – | up 6% on a constant currency basis |
| Q2 2026 recurring revenueother | $336 million | – | up 5% from Q2 2025 |
| Q2 2026 recurring revenue constant currency growthother | up 4% on a constant currency basis | – | up 4% on a constant currency basis |
| Q2 2026 net incomeGAAP | $32 million | – | – |
| Q2 2026 diluted EPSGAAP | $0.31 | – | – |
| Q2 2026 adjusted diluted EPSnon-GAAP | $0.54 | – | up 54% from Q2 2025 |
| Q2 2026 total adjusted EBITDAnon-GAAP | $91 million | – | up 12% from Q2 2025 |
| Q2 2026 total adjusted EBITDA constant currency growthnon-GAAP | up 9% on a constant currency basis | – | up 9% on a constant currency basis |
| Q2 2026 net adjusted EBITDA marginnon-GAAP | 34% | – | up from 32% in Q2 2025 |
| Q2 2026 Payment Software adjusted EBITDAnon-GAAP | $94 million | – | up 12% from Q2 2025 |
| Q2 2026 Payment Software net adjusted EBITDA marginnon-GAAP | 48% | – | up from 46% in Q2 2025 |
| Q2 2026 Biller revenue, net of interchange feesother | $68 million | – | down 3% from Q2 2025 |
| Q2 2026 Biller adjusted EBITDAnon-GAAP | $35 million | – | down 13% from Q2 2025 |
| Q2 2026 Biller net adjusted EBITDA margin, net of interchange feesnon-GAAP | 51% | – | down from 56% in Q2 2025 |
| Year-to-date 2026 total revenueGAAP | $856 million | – | up 8% from year-to-date 2025 |
| Year-to-date 2026 recurring revenueother | $649 million | – | up 7% from year-to-date 2025 |
| Year-to-date 2026 net incomeGAAP | $70 million | – | – |
| Year-to-date 2026 GAAP diluted EPSGAAP | $0.69 | – | – |
| Year-to-date 2026 adjusted diluted EPSnon-GAAP | $1.16 | – | up 35% from year-to-date 2025 |
| Year-to-date 2026 total adjusted EBITDAnon-GAAP | $196 million | – | up 12% from year-to-date 2025 |
| Year-to-date 2026 net adjusted EBITDA marginnon-GAAP | 36% | – | up from 34% in year-to-date 2025 |
| Q2 2026 net new ARR bookingsother | $18 million | – | down 25% from Q2 2025 |
| Q2 2026 new license and services bookingsother | $59 million | – | up 2% from Q2 2025 |
| Trailing twelve months ended June 30, 2026 net new ARR bookingsother | $68 million | – | down 15% from 2025 |
| Trailing twelve months ended June 30, 2026 new license and services bookingsother | $255 million | – | down 12% from 2025 |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Payment SoftwareIssuing and Acquiring revenue increased 33% on a constant currency basis versus Q2 2025, driven by large expansions with renewing customers. Payments Intelligence and Merchant Payments revenue each increased 3% on a constant currency basis. | $196 million | – | up 9% from Q2 2025, or up 7% on a constant currency basis |
| BillerBiller revenue, net of interchange fees, was affected by a strong comparison with significant new onboarding and transactions in the same period last year. Current-period results also reflected certain discrete operating expenses and continued investments in Speedpay ONE. | $234 million | – | up 5% from Q2 2025 on a reported and constant currency basis |
Full-year 2026 and Q3 2026 outlook
- RevenueFull-year 2026 revenue of $1.895 billion to $1.925 billion; Q3 2026 revenue of $417 million to $427 million
- NoteFull-year 2026 adjusted EBITDA of $545 million to $560 million
- NoteQ3 2026 adjusted EBITDA of $90 million to $95 million
- NoteFor the second half of 2026, approximately 40% and 60% revenue weighting for Q3 and Q4, respectively
- NoteFull-year 2026 Biller revenue growth in the high single digits remains unchanged
- NoteThe company expects full year 2026 growth for both new ARR and new license and services bookings
- NoteThe company continues to expect to allocate 50-60% of operating cash flow to share repurchases for the full year, subject to market conditions
Capital returns
- During Q2 2026, the company repurchased approximately 948,000 shares for approximately $41 million at an average price of $43.75.
- Year-to-date 2026, repurchases totaled 2.5 million shares for approximately $107 million at an average price of $42.75.
- The company has approximately $349 million remaining available on the share repurchase authorization.
- The company continues to expect to allocate 50-60% of operating cash flow to share repurchases for the full year, subject to market conditions.
What drove it
- Total revenue growth was supported by Payment Software revenue growth and Biller revenue growth.
- Payment Software Issuing and Acquiring revenue growth was driven by large expansions with renewing customers.
- Payment Software adjusted EBITDA growth was driven by operating leverage and disciplined expense management, partially offset by ongoing growth investments.
- The company successfully enabled ACI Connetic across eight major U.S. payment networks and signed two U.S. customers.
- Biller ARR growth was cited as an offset to the timing of expected Payment Software contracts in quarterly new ARR bookings.
Concerns
- Biller revenue, net of interchange fees, declined 3% from Q2 2025.
- Biller adjusted EBITDA declined 13% from Q2 2025 and net adjusted EBITDA margin, net of interchange fees, declined from 56% in Q2 2025 to 51% in Q2 2026.
- Q2 2026 net new ARR bookings declined 25% from Q2 2025.
- Trailing-twelve-month net new ARR bookings declined 15% from 2025, while trailing-twelve-month new license and services bookings declined 12% from 2025.
- Real-Time Payments revenue was $23 million and was down from last year due to renewal timing.
- Year-to-date 2026 net income was $70 million versus $71 million for year-to-date 2025, which included a $22 million after-tax gain on the sale of the company's minority interest in Mindgate.
What to watch
- Execution of the expected Q3 and Q4 revenue weighting, driven by the timing of high margin Payment Software license renewals.
- Whether Payment Software contract timing converts into growth in net new ARR and new license and services bookings for full-year 2026.
- Biller revenue growth in the high single digits for full-year 2026 and the effect of transaction trends, onboarding comparisons, discrete operating expenses and Speedpay ONE investments on Biller profitability.
- Delivery against the increased full-year 2026 revenue and adjusted EBITDA ranges.
- Continued customer adoption of ACI Connetic following the signing of two U.S.-based customers.
Balance sheet and cash flow
- ACI ended Q2 2026 with $167 million in cash on hand.
- Debt balance was $826 million.
- Net debt leverage ratio was 1.2x adjusted EBITDA.
- ACI had total cash and available liquidity under its credit facility of $540 million.
- Operating cash flows for year-to-date 2026 were $135 million, up from $128 million for year-to-date 2025.
Analysis
ACI Worldwide reported Q2 2026 total revenue of $430 million, up 7% from Q2 2025, with recurring revenue of $336 million, up 5%. Total adjusted EBITDA was $91 million, up 12%, and net adjusted EBITDA margin expanded from 32% to 34%. GAAP net income increased to $32 million from $12 million, while adjusted diluted EPS was $0.54, up 54% from Q2 2025.
Payment Software was the principal source of reported growth. Segment revenue was $196 million, up 9%, and segment adjusted EBITDA was $94 million, up 12%, with net adjusted EBITDA margin improving from 46% to 48%. Issuing and Acquiring revenue increased 33% on a constant currency basis, attributed to large expansions with renewing customers. The company also cited progress for ACI Connetic, including enablement across eight major U.S. payment networks and two signed U.S. customers.
Biller revenue was $234 million, up 5%, but revenue net of interchange fees was $68 million, down 3%. Biller adjusted EBITDA declined 13% to $35 million, and net adjusted EBITDA margin, net of interchange fees, fell from 56% to 51%. Management attributed the outcome to a strong prior-year comparison that included significant new onboarding and transactions, certain discrete operating expenses, and continuing Speedpay ONE investments. Bookings were another area of attention: Q2 net new ARR bookings declined 25% to $18 million, as Biller strength was offset by timing of expected Payment Software contracts.
For year-to-date 2026, revenue was $856 million, up 8%, and adjusted EBITDA was $196 million, up 12%, with net adjusted EBITDA margin expanding from 34% to 36%. Year-to-date operating cash flow increased to $135 million from $128 million. The company repurchased 2.5 million shares for approximately $107 million year to date and ended Q2 with $167 million in cash on hand, a debt balance of $826 million, and total cash and available liquidity under its credit facility of $540 million.
Management raised full-year 2026 revenue guidance to $1.895 billion to $1.925 billion from $1.890 billion to $1.920 billion and adjusted EBITDA guidance to $545 million to $560 million from $540 million to $555 million. The guide retains the expectation for approximately 40% and 60% second-half revenue weighting in Q3 and Q4, respectively, driven by high margin Payment Software license renewals. Q3 revenue is expected to be $417 million to $427 million and adjusted EBITDA is expected to be $90 million to $95 million.
Management, verbatim
Signing two U.S.-based customers for ACI Connetic is a significant milestone and validates both the strength of our cloud-native payments platform and the growing demand for payments modernization in the world's largest banking market.
Thomas Warsop, President and CEO of ACI Worldwide
In the second quarter, we delivered 7% revenue growth, expanded EBITDA margins and continued to execute our balanced capital allocation strategy.
Thomas Warsop, President and CEO of ACI Worldwide
As a result of our strong first-half performance, we are increasing our full-year revenue and adjusted EBITDA guidance.
Thomas Warsop, President and CEO of ACI Worldwide
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- GAAP operating income or loss and operating margin
- GAAP operating expenses
- GAAP tax rate
- Free cash flow
- Dividend amount or dividend policy
- Prior-quarter comparisons for reported financial metrics
- Prior-year values for total revenue, recurring revenue, adjusted EBITDA, diluted EPS, adjusted diluted EPS, segment revenue, segment adjusted EBITDA, and bookings where only percentage changes were reported
- Prior outlook section from the company's previous earnings release for comparison of actual reported results with prior guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The article is an SEC Form 8-K (Item 2.02) with ACI Worldwide’s Q2 2026 results and an updated full-year 2026 outlook.
Ticker impact
ACI Worldwide reported Q2 results and raised full-year 2026 revenue to $1.895B-$1.925B and adjusted EBITDA to $545M-$560M.
Likely positive bias for the stock as the guidance range moves up, with upside sensitivity to continued Payment Software license renewals.
The filing is a primary disclosure (8-K with earnings release) and includes explicit, updated full-year guidance ranges and capital return activity.
Market effects
Reinforces demand for payments modernization and cloud-native payment platforms, potentially supporting sentiment across payments software peers.
Limited direct regional read-through; emphasis is on U.S. banking networks and U.S. customer wins.
Moderate, as results cite constant-currency growth and global payments technology execution.
Counterpoint
Biller segment adjusted EBITDA and net revenue were weaker year over year, and net new ARR bookings declined, which could cap multiple expansion despite the guidance raise.
Key entities
- companyACI Worldwide, Inc.
Provider of global payments technology; reported Q2 2026 results and raised full-year 2026 guidance in an 8-K.
- product/platformACI Connetic
Cloud-native payments platform referenced for customer wins across U.S. payment networks.
