ACI Worldwide Inc. Reports Strong Q3 Results and Raises Full-Year Outlook

In the third quarter of 2025, ACI reported revenue of $482 million, representing a 7% increase from the same period in 2024. Notably, recurring revenue accounted for 62% of total revenue, amounting to $298 million, which marks a 10% year-over-year growth. The company also reported a net income of $91 million, up from $81 million in Q3 2024, reflecting a healthy increase in profitability.

Adjusted EBITDA for the quarter was $171 million, a 2% increase from Q3 2024, while cash flow from operating activities rose to $73 million, compared to $54 million in the prior year. ACI saw significant growth in its bookings, with net new Annual Recurring Revenue (ARR) bookings increasing 14% to $13 million, and new license and service bookings soaring 21% to $81 million.

For the first nine months of 2025, ACI's total revenue reached $1.28 billion, reflecting a 12% increase from the same period in 2024. Recurring revenue for the year-to-date was $906 million, contributing to 71% of total revenue. The net income for the year-to-date was $162 million, bolstered by a $22 million after-tax gain from the sale of ACI's minority interest in Mindgate, an India-based firm. Adjusted EBITDA for the year-to-date stood at $346 million, also up by 12% from the previous year.

Both the Payment Software and Biller segments showed impressive performance, with revenues increasing 12% and adjusted EBITDA rising 13% in the Payment Software segment, while the Biller segment experienced a 12% revenue growth and 4% increase in adjusted EBITDA.

ACI's president and CEO, Thomas Warsop, expressed enthusiasm over the launch of ACI Connetic, the company’s cloud-native payments platform, which attracted its first customer during the quarter. This initiative reflects ACI's commitment to innovation and industry leadership. Warsop noted the positive reception of the recently held Payments Unleashed summit, which featured discussions on emerging topics like stablecoins and real-time payments.

In a move to enhance shareholder value, ACI's Board of Directors has authorized an expanded share repurchase program of $500 million. This decision aligns with the company's balanced approach to capital allocation and reflects its focus on long-term value creation for investors.

Amidst this strong performance, ACI has raised its full-year 2025 revenue guidance to a range of $1.730 billion to $1.754 billion, surpassing the prior forecast of $1.710 billion to $1.740 billion. Additionally, the company expects adjusted EBITDA for the year to fall between $495 million and $510 million, up from the previous guidance of $490 million to $505 million.

ACI Worldwide's third-quarter results underscore the company's robust growth trajectory and its strategic initiatives aimed at enhancing operational excellence and shareholder value. With a strong financial performance, an emphasis on innovation, and a revised optimistic outlook, ACI is well-positioned to navigate the evolving landscape of global payments technology and continue delivering growth in the months ahead.

Management will provide further insights during a conference call scheduled for 8:30 a.m. ET today, offering stakeholders an opportunity to delve deeper into these results and the company's future strategies.