ACI Worldwide Q2 2025 slides: Raises guidance after strong first half

Introduction & Market Context

ACI Worldwide Inc (NASDAQ:ACIW) presented its second quarter 2025 earnings results on August 7, 2025, highlighting solid performance in the first half of the year despite some mixed results in the second quarter. The global payments technology provider, which has nearly 50 years of experience in the industry, raised its full-year guidance on the back of strong first-half numbers.

The company’s stock closed at $42.15 on August 6, 2025, up 1.47% for the day. This represents a significant recovery from its 52-week low of $40.45, though still well below its 52-week high of $59.71. The market’s reaction to ACI’s Q1 results earlier this year had been cautious, with the stock dropping 7.3% despite beating earnings forecasts.

Quarterly Performance Highlights

ACI Worldwide reported Q2 2025 revenue of $401.3 million, representing a 7% increase compared to the same period in 2024. Recurring revenue, a key focus area for the company, grew by 13% year-over-year to $321.7 million. However, adjusted EBITDA for the quarter declined by 13% to $80.9 million compared to Q2 2024.

CEO Thomas W. Warsop, III emphasized the company’s solid performance in his commentary: "We delivered solid second quarter and first half results, reflecting our organizational improvements and momentum."

As shown in the following financial results summary:

The first half of 2025 showed particularly strong results, with total revenue reaching $795.8 million, up 15% compared to the first half of 2024. Adjusted EBITDA for the six-month period increased by 24% to $175 million, resulting in a net adjusted EBITDA margin of 34%, up from 31% in the first half of 2024.

The company’s key financial metrics demonstrate its improved financial position:

Detailed Financial Analysis

ACI Worldwide’s performance varied across its business segments. The Payment Software (ETR:SOWGn) segment saw a 1% revenue decline in Q2 2025 compared to Q2 2024, although segment recurring revenue increased by 8%. The segment’s adjusted EBITDA decreased by 12% year-over-year. In contrast, the Biller segment demonstrated strong growth with revenue up 16% and adjusted EBITDA increasing by 6% compared to Q2 2024.

For the first half of 2025, both segments showed positive momentum. Payment Software revenue increased by 18%, with segment recurring revenue up 6% and segment adjusted EBITDA up 29% versus the first half of 2024. Biller revenue rose by 13% with segment adjusted EBITDA up 4% compared to the same period last year.

The comprehensive breakdown of ACI’s financial performance is illustrated in the following slide:

The company maintained a strong balance sheet with $190 million in cash and a net debt leverage ratio of 1.4x as of June 30, 2025. ACI also reported that it retired $400 million in senior unsecured notes with an incremental term loan under its credit facility that matures in February 2029, indicating proactive debt management.

CFO Robert Leibrock highlighted the company’s financial achievements: "Payment Software segment revenue grew 18% and Biller segment grew 13% over the first half of 2024. Adjusted EBITDA for the first half of 2025 increased by 24% compared to the prior year."

Strategic Initiatives

ACI Worldwide continued its share repurchase program, buying back approximately 2.4 million shares in Q2 2025, representing 2.4% of shares outstanding. For the first half of 2025, the company repurchased a total of 2.7 million shares for $134 million. As of June 30, 2025, $223 million remained available on the share repurchase authorization.

The company also highlighted its ongoing investment in Connetic, its cloud-native payments hub, noting that it is building pipeline and momentum with this strategic initiative. This investment aligns with ACI’s positioning as a global payments technology innovator delivering transformative software solutions.

The key takeaways from the quarter emphasize these strategic priorities:

Forward-Looking Statements

In a significant development, ACI Worldwide raised its full-year 2025 guidance for both revenue and adjusted EBITDA. The company now expects annual revenue between $1,710 million and $1,740 million, up from the previous guidance of $1,690 million to $1,720 million. Adjusted EBITDA guidance was also increased to between $490 million and $505 million, compared to the prior range of $480 million to $495 million.

For the third quarter of 2025, ACI projects revenue between $460 million and $470 million, with adjusted EBITDA between $155 million and $165 million.

The updated guidance reflects management’s confidence in the company’s growth trajectory:

The raised outlook suggests that ACI Worldwide expects its positive momentum from the first half of 2025 to continue, despite the mixed results in Q2. The company’s focus on growing recurring revenue and improving margins appears to be yielding results, as evidenced by the 34% net adjusted EBITDA margin in the first half of 2025.

With its strong financial position, ongoing strategic investments in cloud-native solutions, and active capital management through share repurchases and debt refinancing, ACI Worldwide is positioning itself for continued growth in the global payments ecosystem. However, investors will likely be watching the third quarter results closely to see if the company can maintain its positive trajectory and deliver on its raised guidance.

Full presentation:

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