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ACI WORLDWIDE, INC.

ACIW
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Business Summary

ACI Worldwide develops, markets, installs, and supports a broad line of software solutions that deliver intelligent payments orchestration to banks, merchants, and billers. The company's solutions support any channel, any network, and any payment type, and are used globally by banks of all sizes, central banks, intermediaries, merchants, and billers, as well as third-party digital payment processors, payment associations, switch interchanges, and a wide range of transaction-generating endpoints including ATMs, merchant point-of-sale terminals, bank branches, mobile phones, tablets, corporations, and internet commerce sites. ACI serves thousands of organizations, including nearly all of the top 10 banks worldwide as measured by asset size, and 80,000+ merchants, with customers in approximately 90 countries on six continents.

The digital payments market is highly competitive and subject to rapid change. Key competitors by solution area include Fidelity National Information Service, Inc. (FIS), Finastra, Fiserv, Inc., Mastercard, NCR, OpenWay Group, Total System Services, Inc. (Global Payments), Volante, and Worldline for issuing, acquiring, and account-to-account payments; Adyen, Cybersource (Visa Acceptance Solutions), Fiserv, Ingenico Group, NCR, Square, Inc., Tender Retail Inc., VeriFone Systems, Inc., Worldpay Inc. (FIS), and Worldline for merchant payments; Accertify (American Express), BAE Systems, Cybersource (Visa), Fair Isaac Corporation (FICO), Featurespace, Feedzai, FIS, Fiserv, Forter, Kount, NCR, NICE LTD, and SAS Institute, Inc. for payments intelligence and risk management; and Alacriti, FIS, Fiserv, InvoiceCloud, Kubra, One Inc., Paymentus, PayNearMe, and Repay for bill payments. ACI believes it has one of the most diverse and robust digital payment solution portfolios in the industry with application software spanning the entire payments value chain.

ACI generates revenue through software license fees, maintenance fees, services fees, and SaaS and PaaS fees. The company's solutions are offered through traditional term software license arrangements where the software is installed and operated on the customer premises or in a cloud environment, through on-demand arrangements where the solution is maintained and delivered through the public cloud or ACI's private cloud via its global data centers, or a combination of both. Pricing and payment terms depend on which solutions the customer requires and their transaction volumes. Generally, customers are required to commit to a minimum contract of five years, or three years in the case of certain SaaS and PaaS contracts.

ACI's strategic solution areas include Issuing and Acquiring, Account-to-Account Real-Time Payments, Merchant Payments (ACI Payments Orchestration Platform), Payments Intelligence and Risk Management, and Bill Payments. ACI Connetic brings a modern, flexible payment solution to the market that enables banks and intermediaries to build and intelligently orchestrate payment services. ACI Acquiring helps merchant acquirers and ATM acquirers process credit, debit, and prepaid card transactions. ACI Issuing is a digital payments issuing solution that helps issuers process card transactions. ACI real-time payments provides connectivity to instant payment rails, including origination, processing, orchestration, clearing and settlement, and fraud detection. ACI Payments Orchestration Platform serves more than 80,000 merchants worldwide and is powering payments for seven of the top 10 retailers globally. ACI Fraud Management for merchants and billers provides a combination of patented AI technology, referred to as incremental machine learning models. ACI Fraud Management for financial institutions offers a solution that uses a combination of sophisticated AI powered algorithms, data orchestration capabilities, network intelligence, and advanced predictive analytics. Speedpay ONE is a modern, scalable, and flexible payments platform for billers. For the year ended December 31, 2025, Payment Software segment revenue was $942.053 million and Biller segment revenue was $817.729 million . Within Payment Software, Issuing and Acquiring generated $579.830 million , Merchant Payments generated $170.670 million , Real-Time Payments generated $138.283 million , and Payments Intelligence generated $53.270 million in revenue for the year ended December 31, 2025.

In October 2025, the Board approved the repurchase of the Company's common stock for up to $500.0 million , in place of the remaining purchase amounts previously authorized. During the year ended December 31, 2025, the Company repurchased 4,179,747 shares for $203.8 million under the stock repurchase program. On June 18, 2025, the Company redeemed in full the Company's outstanding 2026 Notes, which had a principal amount of $400.0 million . In March 2025, the Company sold its 30% interest in a payment technology and services company in India for $46.0 million , recognizing a gain on the sale of $25.9 million . The Company entered into a Lender Addition and Acknowledgement Agreement on June 18, 2025 for an Incremental Term Loan of $200.0 million . The Company also completed an acquisition in October 2025, resulting in $5.1 million of goodwill.

Total revenue for the year ended December 31, 2025, was $1,759.782 million , an increase of $165.5 million , or 10% , compared to $1,594.288 million in 2024. Net income was $226.658 million for 2025, compared to $203.118 million in 2024. Diluted EPS was $2.16 for 2025 versus $1.91 in 2024. Operating income was $329.914 million in 2025, compared to $308.135 million in 2024. Cash provided by operating activities was $322.831 million for 2025, compared to $358.748 million in 2024.

Business Outlook

ACI's strategy focuses on investments in real-time payments, large sophisticated global banks and merchants, and fast-growing emerging markets. The company's real-time payments solution enables banks and intermediaries to connect to global real-time payment schemes, including the U.S. FedNow Services and RTP from The Clearing House, the UK Faster Payments, European TIPS, Australia NPP, South Africa RPP, the Payments Network Malaysia (PayNe), and Real-time Retail Payments Platform (RPP). ACI supports 44 global payment schemes and provides the central infrastructure to 11 central banks directly operating the scheme using ACI software. With the launch of ACI Connetic, a comprehensive cloud-native payments hub solution available as a SaaS solution, participating in this growth is now accessible to banks of all sizes, significantly increasing ACI's addressable market for software solutions. ACI solutions regularly process more than two-thirds of Fedwire payments traffic and approximately 15% of Swift payments traffic globally.

ACI has recognized the industry's technical inflection point as financial institutions transition from traditional on-premises infrastructure to private and public cloud environments. ACI Connetic, the fully cloud-native banking platform launched in 2025, conforms fully to Cloud Native Computing Foundation principles and is deployable across public cloud environments such as Microsoft Azure and Amazon Web Services, as well as customers' private clouds. The company is working closely with key hardware and software partners including IBM and Red Hat to ensure ACI Connetic can operate at scale in public, private, and multi-cloud deployments. Cloud-native, multi-tenant SaaS solutions expand ACI's reach to smaller institutions by providing scalable, easy-to-integrate offerings at accessible price points. With the passage of the 2025 GENIUS Act in the United States, stablecoins gained international attention, and ACI already plays a significant role in enabling stablecoin workflows as fiat currency funds are transferred to and from issuers and stablecoins are minted and burned.

Total operating expenses for the year ended December 31, 2025, increased $143.7 million , or 11% , as compared to the same period in 2024. Adjusted for the impact of cost reduction strategies, significant transaction-related expenses, and foreign currency, total operating expenses for the year ended December 31, 2025, increased $142.0 million , or 11% , as compared to the same period in 2024. Cost of revenue increased $105.9 million , or 13% , during the year ended December 31, 2025, as compared to the same period in 2024, primarily due to higher payment card interchange and processing fees of $85.2 million .

As of December 31, 2025, ACI had 2,930 employees worldwide, with 1,335 employees in the Americas, 819 employees in EMEA, and 776 employees in Asia Pacific. The company's voluntary regrettable turnover through December 31, 2025 was 5% , which compares favorably to industry turnover rates. ACI continues to maintain centers of expertise in Timisoara, Romania, and Pune and Bangalore in India, as well as key operational centers in Cape Town, South Africa and in multiple locations in the United States.

Research and development expense increased $20.9 million , or 14% , during the year ended December 31, 2025, as compared to the same period in 2024. Capital expenditures for purchases of property and equipment were $12.907 million in 2025, and purchases of software and distribution rights were $20.445 million . During the year ended December 31, 2025, the Company repurchased 4,179,747 shares for $203.8 million under the stock repurchase program. As of December 31, 2025, the maximum remaining amount authorized for purchase under the stock repurchase program was approximately $456.4 million . The Company has never declared nor paid cash dividends on its common stock and does not presently anticipate paying cash dividends.

Adverse or uncertain macroeconomic conditions, including inflation, interest rate volatility, recessionary pressures, reduced consumer spending, banking stress, and foreign currency fluctuations, may lead customers to delay or reduce spending, extend sales and implementation cycles, pressure pricing and renewals, impair collections, increase operating costs, and limit access to capital. Geopolitical instability and related government actions (such as sanctions and export controls) can disrupt financial markets and payment networks, depress transaction volumes, restrict cross-border activity, and increase operational risks. The company currently has one employee in Russia, a dormant customer in Russia, and customers located in the Middle East. The U.S. and other global governments have placed restrictions on how companies may transact with, and provide services or solutions to certain countries, including Russia.

Risk Factors

The markets in which ACI competes are rapidly changing and highly competitive, with many competitors that are significantly larger and have greater financial, technical, and marketing resources. ACI faces intense competition from in-house information technology departments of existing and potential customers, as well as third-party digital payment processors. The company's business could be materially harmed by cybersecurity incidents or failures of its information technology and communication systems, as ACI electronically receives, processes, stores, and transmits personal information and sensitive business information of its customers. ACI relies on third-party cloud infrastructure providers Microsoft Azure and Amazon Web Services to deliver and operate its platform, and any disruption, limitation, or change in these cloud services could adversely affect its business. The company's balance sheet includes significant goodwill of $1.231 billion and intangible assets of $147.1 million as of December 31, 2025, and the impairment of a significant portion of these assets could negatively affect financial results. ACI's existing debt level of $822.5 million outstanding under its Credit Facility as of December 31, 2025, could have adverse consequences including limiting operational flexibility and requiring a large portion of operating cash flow to pay principal and interest.

Management Priorities

Management's message emphasizes ACI's role as a global software company delivering intelligent payments orchestration to banks, merchants, and billers, with 50 years of trusted payments expertise. Key themes include the acceleration of digital payment transaction volumes, the adoption of cloud technology with the launch of ACI Connetic in 2025, the importance of ISO 20022 and enhanced payment standards, and the role of payments intelligence and artificial intelligence in fraud prevention. Management highlights that ACI solutions regularly process more than two-thirds of Fedwire payments traffic and approximately 15% of Swift payments traffic globally. The strategic priorities emphasized for the period ahead include investments in real-time payments, large sophisticated global banks and merchants, and fast-growing emerging markets, as well as the continued development and commercialization of ACI Connetic as a cloud-native payments hub solution. Management also notes the passage of the 2025 GENIUS Act and the importance of stablecoins to global value transfer, positioning ACI Connetic as the ideal platform for initiating, managing, and receiving those transfers.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Segment Results; Note 9, Segment Information
  2. [2] Item 7, MD&A — Segment Results; Note 9, Segment Information
  3. [3] Note 9, Segment Information
  4. [4] Note 9, Segment Information
  5. [5] Note 9, Segment Information
  6. [6] Note 9, Segment Information
  7. [7] Item 5, Market for Registrant's Common Equity; Item 7, MD&A — Liquidity and Capital Resources; Note 6, Common Stock and Treasury Stock
  8. [8] Item 7, MD&A — Liquidity and Capital Resources; Note 6, Common Stock and Treasury Stock
  9. [9] Item 7, MD&A — Liquidity and Capital Resources; Note 6, Common Stock and Treasury Stock
  10. [10] Item 7, MD&A — Results of Operations; Note 3, Debt
  11. [11] Note 1, Nature of Business and Summary of Significant Accounting Policies — Equity Method Investment
  12. [12] Note 1, Nature of Business and Summary of Significant Accounting Policies — Equity Method Investment
  13. [13] Item 7, MD&A — Results of Operations; Note 1, Nature of Business and Summary of Significant Accounting Policies — Equity Method Investment
  14. [14] Note 3, Debt
  15. [15] Note 1, Nature of Business and Summary of Significant Accounting Policies — Goodwill and Other Intangibles
  16. [16] Item 7, MD&A — Results of Operations; Consolidated Statements of Operations
  17. [17] Item 7, MD&A — Results of Operations
  18. [18] Item 7, MD&A — Results of Operations
  19. [19] Item 7, MD&A — Results of Operations; Consolidated Statements of Operations
  20. [20] Consolidated Statements of Operations
  21. [21] Consolidated Statements of Operations
  22. [22] Consolidated Statements of Operations
  23. [23] Consolidated Statements of Operations
  24. [24] Consolidated Statements of Operations
  25. [25] Consolidated Statements of Operations
  26. [26] Consolidated Statements of Cash Flows
  27. [27] Consolidated Statements of Cash Flows
  28. [28] Item 7, MD&A — Results of Operations
  29. [29] Item 7, MD&A — Results of Operations
  30. [30] Item 7, MD&A — Results of Operations
  31. [31] Item 7, MD&A — Results of Operations
  32. [32] Item 7, MD&A — Results of Operations
  33. [33] Item 7, MD&A — Results of Operations
  34. [34] Item 7, MD&A — Results of Operations
  35. [35] Item 1, Business — Human Capital
  36. [36] Item 1, Business — Human Capital
  37. [37] Item 1, Business — Human Capital
  38. [38] Item 1, Business — Human Capital
  39. [39] Item 1, Business — Human Capital
  40. [40] Item 7, MD&A — Results of Operations
  41. [41] Item 7, MD&A — Results of Operations
  42. [42] Consolidated Statements of Cash Flows
  43. [43] Consolidated Statements of Cash Flows
  44. [44] Item 7, MD&A — Liquidity and Capital Resources; Note 6, Common Stock and Treasury Stock
  45. [45] Item 7, MD&A — Liquidity and Capital Resources; Note 6, Common Stock and Treasury Stock
  46. [46] Item 5, Market for Registrant's Common Equity; Item 7, MD&A — Liquidity and Capital Resources; Note 6, Common Stock and Treasury Stock
  47. [47] Consolidated Balance Sheets; Note 1, Nature of Business and Summary of Significant Accounting Policies — Goodwill and Other Intangibles
  48. [48] Consolidated Balance Sheets; Note 4, Software and Other Intangible Assets
  49. [49] Note 3, Debt
  50. [50] Consolidated Statements of Operations
  51. [51] Consolidated Statements of Operations
  52. [52] Consolidated Statements of Operations
  53. [53] Consolidated Statements of Operations
  54. [54] Consolidated Statements of Operations
  55. [55] Consolidated Statements of Operations
  56. [56] Consolidated Statements of Operations
  57. [57] Consolidated Statements of Operations
  58. [58] Item 7, MD&A — Results of Operations
  59. [59] Item 7, MD&A — Results of Operations
  60. [60] Consolidated Statements of Cash Flows
  61. [61] Consolidated Statements of Cash Flows
  62. [62] Consolidated Balance Sheets
  63. [63] Note 3, Debt
  64. [64] Note 3, Debt
  65. [65] Note 3, Debt
  66. [66] Item 7, MD&A — Results of Operations; Note 10, Income Taxes
  67. [67] Item 7, MD&A — Results of Operations
  68. [68] Item 7, MD&A — Results of Operations; Note 8, Other, net
  69. [69] Item 7, MD&A — Results of Operations; Note 8, Other, net
  70. [70] Item 7, MD&A — Segment Results; Note 9, Segment Information
  71. [71] Item 7, MD&A — Segment Results; Note 9, Segment Information
  72. [72] Item 7, MD&A — Segment Results; Note 9, Segment Information
  73. [73] Item 7, MD&A — Segment Results; Note 9, Segment Information

Analysis on 6/21/2026