ACI Worldwide (NASDAQ: ACIW), a prominent player in global payments technology, has released its financial results for the first quarter of 2026, showcasing impressive growth across key business segments. The company reported total revenue of $426 million, reflecting an 8% increase from the previous year, or a 6% increase when adjusted for constant currency fluctuations. Notably, recurring revenue rose to $313 million, marking a 10% increase year-over-year.

Key Performance Metrics

Net Income: The net income for Q1 2026 stood at $38 million, a decrease from $59 million in Q1 2025, primarily due to a $22 million after-tax gain on the sale of a minority interest in Mindgate reported last year.

Earnings Per Share: GAAP diluted EPS was recorded at $0.37, while adjusted diluted EPS reached $0.61, up 20% from Q1 2025.

Adjusted EBITDA: Total adjusted EBITDA for the quarter was $105 million, a 12% increase compared to the same quarter last year, yielding a net adjusted EBITDA margin of 38%, up from 36% in Q1 2025.

2. Segment Performance Highlights

Payment Software Segment

The Payment Software segment generated $214 million in revenue, up 6% year-over-year. This segment exhibited strong performance from its Real Time Payments and Merchant services, which experienced growth rates of 22% and 21%, respectively, on a constant currency basis. However, Payments Intelligence revenue saw a decline of 3%, while Issuing and Acquiring revenue fell by 6%, impacted by a high-growth comparison from the previous year.

Recurring Revenue: Increased by 9% year-over-year, with SaaS revenue growing 15% to $50 million.

Adjusted EBITDA: Improved to $113 million, maintaining a robust net adjusted EBITDA margin of 53%.

Biller Segment

The Biller segment also performed well, achieving $212 million in revenue, a 10% increase from Q1 2025. This growth was driven by higher transaction volumes from existing customers and the acquisition of new clients.

Biller Revenue (Net of Interchange Fees): Increased to $66 million, reflecting a 5% year-over-year growth.

Adjusted EBITDA: Rose to $34 million, with a net adjusted EBITDA margin of 51%, up from 49% in the prior year.

3. New Bookings and Future Outlook

ACI Worldwide reported net new annual recurring revenue (ARR) bookings of $12 million, representing a significant 39% increase compared to the first quarter of 2025. The company maintained consistent new license and services bookings of $50 million.

Raising Full-Year Guidance

Encouraged by its strong first-quarter performance and an expanding pipeline, ACI Worldwide has raised its full-year guidance for 2026. The new revenue expectations are projected to be between $1.89 billion and $1.92 billion, an upward revision from the previous range of $1.88 billion to $1.91 billion. Adjusted EBITDA is now expected to fall between $540 million and $555 million, up from the earlier range of $530 million to $550 million.

4. Balance Sheet and Shareholder Returns

As of March 31, 2026, ACI Worldwide reported $162 million in cash and a debt balance of $812 million, resulting in a net debt leverage ratio of 1.3x adjusted EBITDA. The company has available liquidity of $560 million, with operating cash flows reported at $64 million for the quarter.

In Q1 2026, ACI repurchased 1.5 million shares for approximately $65 million. Since the beginning of 2025, the company has repurchased a total of 5.7 million shares, equating to over 5% of total shares outstanding. ACI plans to allocate 50-60% of its operating cash flow towards share repurchases throughout the year, contingent on market conditions.

5. Conclusion

ACI Worldwide's strong performance in the first quarter of 2026 reflects its ongoing commitment to payments modernization and showcases its strategic focus on organic growth and shareholder returns. With the raised revenue and EBITDA guidance, the company is well-positioned to capitalize on the increasing demand for its cloud-native payments platform, ACI Connetic, and continue driving its growth trajectory in the coming quarters.

Original press release