What ACI Worldwide (ACIW) Said on Its Q3 Earnings Call

Key Points

• ACI raised its 2026 adjusted EBITDA outlook to $550 million–$565 million, while keeping its revenue forecast at $1.895 billion–$1.925 billion. Third-quarter revenue fell 12% year over year to $427 million and adjusted EBITDA fell 43% to $98 million, largely due to the timing of high-margin software renewals.
• The company expects a heavily weighted fourth quarter: more than 95% of its full-year revenue outlook is signed, contracted, or tied to licenses due to renew before year-end. ACI expects the renewal schedule to drive significant year-over-year fourth-quarter growth in revenue, adjusted EBITDA, and margin.
• New annual recurring revenue bookings rose 86% in the quarter to about $24 million, while new license and services bookings declined 21%. ACI’s Connetic cloud platform has its first customer live, but management said it is not yet a material contributor; most signed customers are expected to go live in 2027.

ACI Worldwide NASDAQ: ACIW raised its full-year adjusted EBITDA outlook after reporting third-quarter revenue and earnings above its expectations, even as both measures declined from a year earlier because of the timing of software license renewals.

The payments software company reported revenue of $427 million, down 12% year over year, and adjusted EBITDA of $98 million, down 43%. Chief Financial Officer Bobby Leibrock said the comparisons reflected the timing of high-margin Payment Software renewals, with more of this year’s second-half revenue expected in the fourth quarter.

ACI reiterated its 2026 revenue forecast of $1.895 billion to $1.925 billion and raised its adjusted EBITDA range to $550 million to $565 million from $545 million to $560 million. Leibrock attributed the higher earnings outlook to performance through the third quarter, productivity and expense discipline.

Renewals set up a heavily weighted fourth quarter

Leibrock said more than 95% of the company’s full-year revenue outlook was already signed and contracted or associated with license contracts due to renew before year-end. He said the company was focused on completing those renewals, converting new business and managing expenses.

Net income fell to $33 million from $91 million in the prior-year quarter. Diluted earnings per share were $0.32 on a GAAP basis and $0.54 on an adjusted basis. Recurring revenue rose 4% to $309 million.

For the first nine months of 2026, revenue was approximately $1.28 billion, essentially unchanged from a year earlier, while adjusted EBITDA fell 15% to $294 million. Leibrock said the remaining renewal schedule was expected to drive significant year-over-year growth in fourth-quarter revenue, adjusted EBITDA and margin.

ACI did not provide specific 2027 guidance. Leibrock said the company was still planning for next year, and President and CEO Tom Warsop said guidance would be provided on the year-end call in February.

Connetic wins and bookings

New annual recurring revenue bookings rose 86% year over year to approximately $24 million in the third quarter, with growth in both Payment Software and Biller. New license and services bookings fell 21% to $64 million. On a trailing 12-month basis, new ARR bookings were down 3% and new license and services bookings were down 22%.

Leibrock said more customers were choosing cloud and consumption-based delivery instead of traditional license contracts. Those hosted contracts generally provide less revenue upfront but generate ratable revenue over time, making customer launches important for converting bookings into recurring revenue.

Warsop said Solaris had gone live as the first customer on ACI Connetic, the company’s cloud-native payments platform. ACI also signed two U.S. financial institutions for Connetic during the third quarter and, early in the fourth quarter, signed a large African bank that it expects to go live in 2027. Warsop said the African bank was an existing ACI customer purchasing Connetic for a new line of business.

Connetic has begun generating small amounts of revenue from its live customer, Warsop said. He expects most of the other signed customers to go live next year, bringing more meaningful revenue during 2027. Leibrock cautioned that Connetic was not currently a material standalone financial contributor.

ACI also acquired Cranium Ventures to accelerate its card payments roadmap. Leibrock said the acquisition was not material to the company’s financial results; Warsop said it brought software and talent that would help develop Connetic’s card capabilities.

Biller growth and cash returns

Payment Software revenue fell 24% to $216 million in the third quarter, while segment adjusted EBITDA declined 41% to $107 million. Biller revenue rose 6% to $210 million, and revenue net of interchange fees increased 5% to $66 million. Biller adjusted EBITDA was $34 million.

Warsop said the Biller sales team exceeded its full-year target before the end of the third quarter. He credited improvements to the Speedpay ONE platform and changes in sales and account management leadership. More than 100 customers were using Speedpay ONE, he said.

Operating cash flow rose 63% to $119 million in the quarter and reached $254 million for the first nine months, up 26%. ACI repurchased $50 million of shares during the third quarter, bringing year-to-date repurchases to approximately $157 million. The company had about $299 million remaining under its repurchase authorization at quarter-end.

About ACI Worldwide (NASDAQ:ACIW)

ACI Worldwide, Inc NASDAQ: ACIW develops and provides electronic payment software and services for merchants, banks, financial institutions, billers and other organizations. Its technology is designed to support payment acceptance, transaction processing, fraud prevention and the movement of money across digital and traditional channels.

The company's offerings include payment orchestration and acquiring solutions, real-time payments, bill payment and electronic bill presentment, fraud management, and software for retail and enterprise payment operations.

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