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    ACIW
    Earnings call· Jun 2026(Q2 FY26)

    ACI WORLDWIDE Q2 FY26 earnings call ACIW

    Aug 6, 2026 Source

    Executive summary

    ACI Worldwide Q2 FY26 — Strong Financial Performance and Raised Full-Year Guidance

    ACI Worldwide delivered strong Q2 FY26 results, driven by robust financial performance and strategic progress in payments modernization. The company is seeing increased traction with its Connetic platform and disciplined expense management, leading to margin expansion and raised full-year guidance. Management continues to focus on capital allocation and innovation to drive long-term shareholder value.

    Highlights

    5

    • Revenue grew 7% on a reported basis and 6% in constant currency to $430 million.

    • Adjusted EBITDA increased 12% on a reported basis and 9% in constant currency to $91 million.

    • Adjusted diluted EPS grew 54% to $0.54.

    • Net adjusted EBITDA margin expanded to 34% from 32% in the prior year.

    • Signed the first U.S.-based Connetic customer in Q2, with another signed shortly after quarter-end.

    Concerns

    3

    • Biller segment adjusted EBITDA declined year-over-year due to challenging prior year comparisons and a one-time charge related to a terminated partnership.

    • Real-time payments revenue declined versus the prior year period.

    • Net new ARR bookings of $18 million were compared against a particularly strong prior year period.

    Guidance & targets

    8
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $1.895 billion to $1.925 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $545 million to $560 million
    high materiality
    High
    Q3 FY26 Revenue
    $417 million to $427 million
    medium materiality
    High
    Q3 FY26 Adjusted EBITDA
    $90 million to $95 million
    medium materiality
    High
    Second Half 2026 Revenue Weighting
    40% in Q3, 60% in Q4
    medium materiality
    High
    Biller Segment Full-Year Revenue Growth
    upper single-digit growth
    medium materiality
    High
    Share Repurchases
    50% to 60% of operating cash flow
    high materiality
    High
    Net New ARR Bookings and New License and Services Bookings Growth
    grow for the full year
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Payment Software
    Benefited from notable strength in issuing and acquiring, driven by large expansions with renewing customers. Margin expansion reflects inherent leverage of a highly recurring software model. Real-time payments retention and expansion remained strong despite revenue decline.
    Issuer acquiring growth: 33% constant currencyMerchant and fraud management growth: mid-single digitsReal-time payments revenue: declined versus prior year
    		$196 million9% reported, 7% constant currency—48% net adjusted EBITDA margin
    Biller
    Revenue and adjusted EBITDA were impacted by mix and difficult comparisons against unusually strong volume activity and certain credits in the prior year. Also impacted by a one-time charge related to a terminated partnership. Underlying customer demand remains healthy, with continued adoption of Speedpay One.
    		$234 million5% reported, 5% constant currency—Adjusted EBITDA declined year-over-year

    Operational metrics

    20
    Non-GAAP EPS
    $0.54up 54% from prior year
    Q2 FY26

    Reflecting strong operational performance and benefits of share repurchase program.

    Adjusted EBITDA
    $91 millionup 12% reported, up 9% constant currency
    Q2 FY26

    Driven by strong operating leverage and disciplined expense management.

    Adjusted EBITDA margin
    34%expanded from 32% last year
    Q2 FY26

    Even with R&D spending increasing by 17%.

    R&D spending growth
    17%
    Q2 FY26

    Increased to support innovation and future growth.

    Year-to-date Revenue
    $856 millionup 8% reported, up 6% constant currency
    YTD FY26

    Reflects strong first half performance.

    Year-to-date Adjusted EBITDA
    $196 millionup 12% reported, up 8% constant currency
    YTD FY26

    Reflects strong first half performance.

    Year-to-date Adjusted EBITDA margin
    36%expanded approximately 200 basis points
    YTD FY26

    Reflects strong first half performance.

    Cash and investments balance
    $167 million
    Q2 FY26 end

    Balance sheet position at quarter end.

    Net leverage ratio
    1.2x
    Q2 FY26 end

    Net leverage ratio against adjusted EBITDA.

    Share repurchases
    $41 million
    Q2 FY26

    Part of balanced and disciplined capital allocation.

    Share repurchases
    $107 million
    YTD FY26

    Year-to-date share repurchases.

    Remaining share repurchase authorization
    $349 million
    Q2 FY26 end

    Remaining under current authorization.

    Speedpay Net Promoter Score increase
    15-point
    past year

    Reflects improved customer experience and focus.

    Biller new logos
    3
    Q1 FY26

    New customer wins in the Biller segment.

    Biller new logos
    2
    Q2 FY26

    New customer wins in the Biller segment.

    Biller expansion customers
    70%
    Q1 FY26

    Expansion within existing customer base.

    Biller expansion bookings
    80%
    Q2 FY26

    Expansion within existing customer base, customers doubling/tripling relationships.

    AI mandate analyzer time reduction
    2-3 weeks to minutes or hours
    ongoing

    AI-powered tool for interpreting payment scheme mandates.

    AI-supported rearchitecture effort reduction
    50%
    ongoing

    Applied to a common product in the biller business.

    AI retrofit agent team automation
    85%
    ongoing

    Automating a previously manual process in customer support, piloted with a large European customer.

    Industry KPIs

    4
    MetricValueDetails
    Revenue growth$430 millionUSD
    Arr net new arr$18 millionUSD
    Bookings billings$59 millionUSD
    Operating FCF margin rule of 4034%%

    Orderbook & backlog

    2
    Net new ARR bookings$18 millionQ2 FY26

    compared against a particularly strong prior year period

    New license and services bookings$59 millionQ2 FY26

    Product announcements

    5
    ProductTypeDetails
    Conneticexpansion
    Speedpay Onemilestone
    Connetic AI-powered functionalityupdate
    Speedpay One AI-powered toolsupdate
    Agentic Commerce Solutionlaunch

    Deals & partnerships

    1
    UndisclosedTermination of a partnership

    A one-time charge related to a partnership that has since been terminated and is not expected to reoccur impacted the Biller segment's results.

    Risks & headwinds

    4
    Challenging year-over-year comparisons in Biller segmentQ2 FY26

    Adjusted EBITDA declined year-over-year

    Mitigation: Underlying customer demand remains healthy, and the company expects upper single-digit growth for the full year.

    Real-time payments revenue declineQ2 FY26

    Revenue declined versus the prior year period

    Mitigation: Retention and expansion performance remained strong, and the company expects real-time payments to contribute to growth in 2026, encouraged by customer demand and pipeline strength.

    Net new ARR bookings comparisonQ2 FY26

    $18 million in Q2 FY26

    Mitigation: Compared against a particularly strong prior year period; strong biller performance partially offset lower payment software bookings, with greater concentration of expected signings weighted towards the second half of the year. Expected to grow for the full year.

    One-time charge in Biller segmentQ2 FY26

    Impacted Q2 FY26 adjusted EBITDA

    Mitigation: Related to a terminated partnership and is not expected to reoccur.

    What to watch in Q3 FY26

    5

    Connetic U.S. Customer Conversion

    next few months
    CurrentOne existing customer signed in Q2, another in Q3
    TargetConversion of existing customer to Connetic in next few months

    Why it matters

    Validation of Connetic strategy and potential for broader adoption among existing customers.

    This particular one that we signed in the quarter was an existing -- is an existing customer and we will convert in the next few months⏳ from an existing solution to Connetic.

    Q&A highlights

    5

    Why is there a 40-60% revenue weighting between Q3 and Q4 this year, and was this expected?

    Management confirmed the 40-60 split was expected and communicated last quarter. It's driven by the timing of payment software license renewals, which provides high visibility. The higher skew to Q4 also implies an even higher skew for EBITDA due to the high-margin nature of the software business.

    “Last quarter, 90 days ago, I gave headlights into the Q3, Q4 guide as being more of a 40-60 split versus the last couple of years, it's been 50-50. You go back and you compare, call it, 3, 4, 5 years ago, you'll see that same 40-60 split, which is indicative of the types of customers and the concentration we see in Q4 this year, and we feel good about that.”

    asked by Jeffrey Cantwell · answered by Robert Leibrock

    2 min read5 chapters

    Detailed Narrative

    01

    Payments Modernization Opportunity

    ACI Worldwide is benefiting from a significant industry trend towards payments modernization. Financial institutions and merchants face increasing complexity with more payment types, real-time adoption, rising fraud, and evolving regulations. Many organizations operate on outdated infrastructure, making modernization a top strategic priority. This trend creates meaningful opportunities for ACI, positioning it as a strategic technology partner rather than just a software provider.

    02

    Connetic Platform Traction

    The Connetic platform is gaining significant traction, evidenced by the signing of the first U.S.-based customer in Q2 and a second shortly after quarter-end. These wins validate the Connetic strategy, as customers seek to simplify complex payment environments with a modern, cloud-native platform offering connectivity across payment types and intelligence for orchestration. The Connetic pipeline is expanding faster than any other solution set, and the platform is now enabled across eight different payment rails in the U.S.

    03

    AI Integration and Impact

    ACI is actively integrating AI into its solutions, including Connetic and Speedpay One, yielding tangible benefits. An AI mandate analyzer reduces payment scheme mandate interpretation from 2-3 weeks to minutes/hours, saving approximately one person-year of engineering capacity. AI-supported rearchitecture on a common product reduced effort by 50%, saving over 6,000 engineering hours. An AI retrofit agent team automates up to 85% of a manual customer support process, saving 10 hours per week per user.

    04

    Segment Performance Drivers

    The Payment Software segment delivered strong performance with 9% revenue growth, driven by a 33% constant currency increase in issuer acquiring. This strength was broad-based, including volume growth, pricing power on renewals, and new product launches. The Biller segment grew 5%, and despite challenging prior-year comparisons and a one-time📎 charge, its underlying health remains strong with growing adoption of the Speedpay One platform and healthy transaction growth.

    05

    Capital Allocation Strategy

    ACI maintains a balanced and disciplined capital allocation strategy. The company deployed $41 million to repurchase 948,000 shares in Q2, bringing year-to-date repurchases to $107 million (2.5 million shares). Management expects to allocate 50-60% of operating cash flow to share repurchases in 2026, balancing shareholder returns with flexibility for organic growth investments and strategic acquisitions, particularly those accelerating cloud-based payments modernization.

    AI-generated summary of the company’s earnings call. Not investment advice.