ACI Worldwide (ACIW) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 25% year-over-year to $395 million, with net income of $58.9 million versus a net loss of $7.8 million in Q1 2024, and adjusted EBITDA up 95% to $94 million, driven by net new business and strong segment performance.

• Payment Software and Biller segments both contributed to growth, with Payment Software revenue up 42% and Biller up 11%, supported by new business wins, especially in Asia-Pacific and Latin America.

• A $25.9 million gain was recognized from the sale of a 30% equity interest in an Indian payment technology company, contributing to profitability.

• Early contract signings de-risked full-year targets, and the launch of the cloud-native Payments Hub solution, Connetic, is expanding the addressable market.

• No material impacts observed from geopolitical or macroeconomic uncertainty; customer demand and modernization investments remain robust.

Financial highlights

• Q1 2025 revenue was $395 million, up 25% from Q1 2024, with recurring revenue at $285.7 million, representing 72% of total revenue.

• Adjusted EBITDA reached $94 million, up 95% year-over-year, with margin improving to 36% from 24% and net income at $58.9 million.

• Operating income rose to $58.5 million from $9.6 million year-over-year.

• Cash flow from operating activities was $78 million, down from $123 million in Q1 2024; ended Q1 with $230 million in cash and $853 million in debt.

• Diluted EPS was $0.55, up from $(0.07) in Q1 2024.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $1.69–$1.72 billion, with adjusted EBITDA expected at $480–$495 million.

• Q2 2025 revenue expected at $375–$385 million, with adjusted EBITDA of $55–$65 million.

• Approximately 46% of full-year revenue expected in the first half, up from 43% in 2024.

• Constant currency revenue growth for the year projected at 7–9%.

• Backlog at March 31, 2025, was $6.74 billion, supporting future revenue visibility.