ACI Worldwide Reports Q2 Earnings Growth, Raises 2025 Guidance

ACI Worldwide reported Q2 2025 earnings with 7% YoY revenue growth and a 15% increase for H1 2025. ARR bookings surged 86% in Q2 and 71% in H1 2025. The Biller segment saw a 16% revenue growth in Q2, while the Payment Software segment experienced a 1% revenue decline. The company raised its full-year guidance to $1.71-$1.74 billion in revenue and $490-$505 million in adjusted EBITDA.

Title: ACI Worldwide Reports Strong Q2 2025 Earnings, Raises Full-Year Guidance

ACI Worldwide Inc. (ACIW) reported its second-quarter 2025 earnings, showcasing robust financial performance that exceeded analyst expectations. The company's earnings per share (EPS) of $0.35 far surpassed the forecast of $0.09, marking a 288.89% surprise. Revenue for the quarter reached $401 million, surpassing expectations of $380.59 million, indicating a 5.36% surprise [1].

The company's stock price responded positively to the earnings report, rising by 6.57% in pre-market trading to reach $44.92. This movement reflects investor confidence in ACI Worldwide's ability to outperform expectations and demonstrates the company's resilience and growth trajectory [1].

Key highlights of ACI Worldwide's Q2 2025 performance include:

- Revenue Growth: Revenue grew 7% year-over-year (YoY) to $411 million, with the first half of 2025 showing a 15% increase to $710 million.
- Recurring Revenue: Recurring revenue reached $322 million, up 13% YoY, demonstrating strong growth in subscription-based services.
- Adjusted EBITDA: Total adjusted EBITDA declined 13% to $181 million, despite the company's strong revenue growth.
- Cash from Operating Activities: Cash from operating activities increased to $128 million, compared to $178 million last year.
- Net Debt Leverage Ratio: The company maintained a healthy net debt leverage ratio of 1.4x, indicating strong financial health.

The company's strong performance was driven by the launch of "Kinetic," a new cloud-native payments platform, which has received positive feedback from potential customers. The platform offers enhanced capabilities such as automated decisioning, straight-through processing, declined transaction reduction, and AI-powered insights [1].

ACI Worldwide has raised its full-year 2025 revenue guidance to between $710 million and $740 million, with adjusted EBITDA expected to be in the range of $490 million to $505 million. The company expects high single-digit sustainable revenue growth moving forward [1].

Executive Commentary: CEO Tom Warsaw highlighted the company's strategic focus on digital currencies and stablecoins, noting that the company is well-positioned to benefit from stablecoin adoption. He also emphasized the company's commitment to returning capital to shareholders, with a significant share repurchase program in the first half of 2025 [1].

Risks and Challenges: The company acknowledged potential risks, including market volatility, regulatory changes, technological disruptions, economic uncertainty, and intense competition in the fintech sector [1].

Outlook: ACI Worldwide expects to continue its strong performance, with a focus on digital currencies and stablecoins, as well as expanding its pipeline of new business opportunities. The company's strategic initiatives and strong financial health position it well for sustained growth and value creation for shareholders [1].

References:
[1] https://za.investing.com/news/transcripts/earnings-call-transcript-aci-worldwide-q2-2025-beats-eps-forecast-stock-rises-93CH-3826934