ACI Worldwide (ACIW) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 7% year-over-year to $401.3M, with recurring revenue up 13% and representing 80% of total revenue; first half revenue rose 15% to $796M, and net income surged 207% to $71.1M, aided by a $22M after-tax gain on an equity sale.

• Adjusted EBITDA for the first half grew 24% year-over-year to $175M, reflecting strong business momentum and organizational improvements.

• Both Biller and Payment Software segments contributed to growth, with Biller Q2 revenue up 16% and Payment Software up 18% for the first half; segment realignment in 2025 combined Banks and Merchants into Payment Software.

• Launched and continued investment in Connetix/Connetic, a next-generation cloud-native payments hub, with strong pipeline interest and positive feedback.

• Recognized as one of CNBC's world's top fintech companies and TIME's America's best midsize companies for 2025.

Financial highlights

• Q2 2025 revenue was $401M, up 7% year-over-year; recurring revenue was $322M, up 13%; Q2 net income was $12M, down from $31M in Q2 2024.

• First half 2025 revenue grew 15% to $796M, recurring revenue up 11% to $607M, and adjusted EBITDA up 24% to $175M.

• Q2 adjusted EBITDA was $81M, down 13% year-over-year due to timing of license-based contracts; net adjusted EBITDA margin for Q2 was 32%, down from 37% in Q2 2024.

• Cash flow from operations in the first half was $128M, down from $178M last year, mainly due to timing of receivables and higher taxes.

• Ended Q2 with $190M in cash and $900M in total debt; net leverage ratio at 1.4x adjusted EBITDA.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $1.71–$1.74B; adjusted EBITDA guidance increased to $490–$505M.

• Q3 2025 revenue expected at $460–$470M; adjusted EBITDA at $155–$165M.

• Company targets sustainable high single-digit revenue growth long-term, with focus on SaaS/PaaS and international markets.

• Backlog as of June 30, 2025, was $7.05B, up from $6.71B at year-end 2024, supporting future revenue visibility.