ACI's Q2 2025: Navigating Contradictions in Macroeconomic Impact, Stablecoin Strategy, and M&A Focus

Macroeconomic uncertainties and their impact on modernization investments, stablecoin positioning and revenue potential, M&A strategy and capital allocation, stablecoin and real-time payments position, and midsized bank opportunity are the key contradictions discussed in ACI's latest 2025Q2 earnings call.



Revenue and Financial Performance:
- ACI Worldwide reported revenue of $401 million for Q2 2025, growing 7% year-over-year, and 15% for the first half of 2025 compared to the first half of 2024.
- The growth was driven by strength in both the Biller and Payment Software segments, with notable contributions from new ARR bookings and the timing of contracts and renewals.

Segment Performance and ARR Bookings:
- The Biller segment grew 16% in Q2 and 13% for the first half of 2025, while the Payment Software segment remained flat in Q2 but grew 18% in the first half of 2025.
- ARR bookings increased by 86% in Q2, contributing to a first-half 2025 growth of 71% in new ARR bookings.

Strategic Investments and Platform Launch:
- The company launched Connetic, its next-generation payments hub platform, and has seen strong interest, particularly in real-time payments and wire transfers, with live opportunities in progress.
- The strategic investment in Connetic is aimed at enhancing value for customers through automated decisioning, straight-through processing, and AI-powered insights.

Capital Management and Share Repurchase:
- ACI repurchased 2.4 million shares in Q2, representing approximately 2.4% of its outstanding common shares, reflecting a significant commitment to shareholder returns.
- The strong cash balance and low net leverage ratio provide flexibility for strategic investments and capital allocation.