ACI Worldwide Q1 2025 slides: revenue surges 25%, EBITDA nearly doubles

Introduction & Market Context

ACI Worldwide Inc. (NASDAQ:ACIW) presented its first quarter 2025 earnings results on May 8, 2025, showcasing substantial growth across key financial metrics. The payment software provider’s stock rose 2.22% in premarket trading to $56.10, approaching its 52-week high of $59.71, as investors responded positively to the strong results.

The company, which positions itself as a leader in the global payments ecosystem with nearly 50 years of experience, continues to build on the momentum established in 2024, when it delivered a 62% stock return and successfully launched its cloud-native Kinetic Payments Hub platform.

As shown in the following company overview slide, ACI provides transformative software solutions for intelligent payments orchestration, enabling banks, billers, and merchants to modernize their payment infrastructures:

Quarterly Performance Highlights

ACI Worldwide reported impressive financial results for Q1 2025, with total revenue reaching $395 million, a 25% increase compared to Q1 2024. Even more notably, adjusted EBITDA nearly doubled, growing 95% year-over-year to $94 million. The company’s net adjusted EBITDA margin expanded significantly from 24% to 36%, reflecting improved operational efficiency.

The quarter also marked a substantial profitability improvement, with GAAP net income of $58.9 million ($0.55 per diluted share), compared to a net loss of $7.8 million (-$0.07 per diluted share) in the same period last year. Adjusted diluted EPS increased to $0.51 from $0.10 in Q1 2024.

The following slide summarizes the key financial highlights for the quarter:

Cash flow from operating activities totaled $78 million, lower than the $123 million generated in Q1 2024, though the company maintained a strong cash position of $230 million. ACI continued its share repurchase program, buying back 1 million shares year-to-date, with $320 million still available for future repurchases.

Segment Performance

ACI Worldwide’s results revealed particularly strong performance in its Payment Software (ETR:SOWGn) segment (previously called Bank and Merchant segments), which grew revenue by 42% year-over-year to $200.7 million. The segment’s adjusted EBITDA more than doubled, increasing 104% to $106.6 million.

The Biller segment also showed growth, with revenue increasing 11% to $193.8 million and adjusted EBITDA rising slightly by 1% to $30.9 million.

The company’s recurring revenue streams, which include SaaS/PaaS and maintenance, reached $285.7 million, up from $263.5 million in Q1 2024, providing a stable foundation for future growth.

The following slide provides a detailed breakdown of segment performance:

New bookings data indicates healthy future growth potential, with Annual Recurring Revenue (ARR) bookings of $8.9 million for the quarter, up from $6.4 million in Q1 2024. License and services bookings nearly doubled to $50 million from $27.2 million in the prior year period.

As shown in the following supplemental financial data slide:

Financial Position and Capital Allocation

ACI Worldwide continues to strengthen its balance sheet, reducing its debt to $853 million, down from $932 million reported at the end of 2024. The company’s net debt ratio stands at a healthy 1.2x, providing financial flexibility for future investments and capital returns to shareholders.

The improvement in profitability is clearly illustrated in the reconciliation of net income to adjusted EBITDA:

The company also benefited from a $21.7 million gain on the sale of an equity investment during the quarter, which contributed to the strong bottom-line performance. When adjusted for this and other non-cash items, the adjusted EPS was $0.51, still representing significant growth from $0.10 in Q1 2024.

Forward Guidance

Based on the strong Q1 performance, ACI Worldwide has increased its full-year 2025 revenue guidance. The company now expects revenue between $1,690 million and $1,720 million, up from the previous guidance of $1,685 million to $1,715 million. The adjusted EBITDA guidance remains unchanged at $480 million to $495 million.

For the second quarter of 2025, ACI projects revenue between $375 million and $385 million and adjusted EBITDA between $55 million and $65 million.

The following slide details the updated guidance:

This revised outlook suggests continued confidence in the company’s growth trajectory, building on the strong performance in recent quarters. The increased revenue guidance, while modest, indicates management’s optimism about business momentum throughout the remainder of the year.

Conclusion

ACI Worldwide’s Q1 2025 presentation reveals a company experiencing robust growth and significantly improved profitability. The 25% revenue increase and 95% adjusted EBITDA growth demonstrate successful execution of the company’s strategy, particularly in its Payment Software segment.

With a strengthened balance sheet, increased guidance, and continued investment in share repurchases, ACI appears well-positioned to maintain its positive momentum throughout 2025. The stock’s approach toward its 52-week high reflects investor confidence in the company’s direction and financial performance.

As competition in the payments industry remains intense and technology continues to evolve rapidly, ACI’s ability to sustain this growth rate and further expand margins will be closely watched by investors in upcoming quarters.

Full presentation:

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