Software firm ACI Worldwide beats Q2 revenue  estimates; raises FY guidance

ACI Worldwide

07/08/2025 11:09

Overview

ACI Worldwide Q2 revenue up 7%, beating analyst expectations, per LSEG data

Net income for Q2 beats analyst estimates despite year-over-year decline

Company repurchased 2.4 mln shares, raising full-year 2025 guidance

Outlook

ACI raises 2025 revenue guidance to $1.710 bln-$1.740 bln

ACI expects 2025 adjusted EBITDA of $490 mln-$505 mln

Q3 2025 revenue forecasted at $460 mln-$470 mln

Q3 2025 adjusted EBITDA expected between $155 mln-$165 mln

Result Drivers

RECURRING REVENUE - Recurring revenue increased 13% in Q2, driven by growth in the Biller segment

BILLER SEGMENT - Biller segment revenue grew 16% in Q2, contributing to overall revenue growth

LICENSE CONTRACT TIMING - Adjusted EBITDA decreased due to timing of higher-margin license contracts

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$401.26 mln
$380.50 mln (6 Analysts)
Q2 EPS
$0.12
Q2 Net Income
Beat
$12.20 mln
$10 mln (6 Analysts)
Q2 Adjusted EBITDA
Beat
$81 mln
$61 mln (6 Analysts)
Q2 Operating income
Beat
$34.86 mln
$23.70 mln (6 Analysts)
Q2 Pretax Profit
Beat
$17.87 mln
$13.10 mln (6 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the financial technology (fintech) peer group is "buy"

Wall Street's median 12-month price target for ACI Worldwide Inc is $60.00, about 29.8% above its August 6 closing price of $42.15

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw4GT8Tka

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)