ACI Worldwide — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 total revenue was $427 million, down 12% from Q3 2025 (down 11% on a constant currency basis).
• Recurring revenue in Q3 2026 was $309 million, up 4% from Q3 2025.
• Year-to-date 2026 total revenue was $1.3 billion, in line with the same period last year.
• Year-to-date 2026 recurring revenue was $959 million, up 6% from year-to-date 2025 (up 5% on a constant currency basis).
• Q3 2026 net income was $33 million, compared to $91 million in Q3 2025.
• Year-to-date 2026 net income was $103 million, compared to $162 million in year-to-date 2025 (which included a $22 million after-tax gain on the sale of a minority interest in Mindgate).
• Q3 2026 GAAP diluted EPS was $0.32 and adjusted diluted EPS was $0.54, both down 50% from Q3 2025.
• Year-to-date 2026 GAAP diluted EPS was $1.01 and adjusted diluted EPS was $1.70, down 12% from year-to-date 2025.
• Q3 2026 total adjusted EBITDA was $98 million, down 43% from Q3 2025 (down 42% on a constant currency basis).
• Year-to-date 2026 total adjusted EBITDA was $294 million, down 15% from year-to-date 2025 (down 16% on a constant currency basis).
• Q3 2026 net adjusted EBITDA margin was 35%, down from 49% in Q3 2025.
• Year-to-date 2026 net adjusted EBITDA margin was 36%, down from 40% in year-to-date 2025.
• Year-to-date 2026 operating cash flow was $254 million, up 26% from $201 million in year-to-date 2025.
• ACI ended Q3 2026 with $219 million in cash on hand and a debt balance of $821 million, resulting in a net debt leverage ratio of 1.3x adjusted EBITDA.
• Total cash and available liquidity under the credit facility was $587 million.

Guidance and Future Outlook:

• The company reiterates full-year 2026 revenue guidance of $1.895 billion to $1.925 billion.
• The company raises full-year 2026 adjusted EBITDA guidance to a range of $550 million to $565 million (previously $545 million to $560 million).
• The company expects Q4 2026 revenue of $612 million to $642 million and adjusted EBITDA of $257 million to $272 million.
• Management expects upper-single-digit revenue growth for the full-year 2026 with margin expansion.
• The company expects upper-single-digit revenue growth for both the Payment Software and Biller segments for the full-year 2026.
• The company continues to expect growth for both full-year 2026 new ARR and new license and services bookings.
• Management expects to allocate 50-60% of 2026 operating cash flow to share repurchases, subject to market conditions.

Business Segments and Product Lines:

• Payment Software revenue in Q3 2026 was $216 million, down 24% from Q3 2025 (down 23% on a constant currency basis), reflecting the concentration of 2026 renewals in the fourth quarter.
• Payment Software recurring revenue decreased 1% on a reported and constant currency basis versus Q3 2025.
• Payment Software adjusted EBITDA in Q3 2026 was $107 million, down 41% from Q3 2025, resulting in a net adjusted EBITDA margin of 49% (down from 64% in Q3 2025).
• Biller revenue in Q3 2026 was $210 million, up 6% from Q3 2025 on a reported and constant currency basis.
• Biller revenue, net of interchange fees, was $66 million, up 5% from Q3 2025, benefiting from interchange optimization.
• Biller adjusted EBITDA in Q3 2026 was $34 million, up 4% from Q3 2025, with a net adjusted EBITDA margin of 51% (in line with Q3 2025).
• Net new ARR bookings in Q3 2026 were $24 million, up 86% from Q3 2025.
• New license and services bookings were $64 million in Q3 2026, down 21% from Q3 2025.
• Net new ARR bookings for the trailing 12 months ended September 30, 2026 were $79 million, down 3% from 2025.
• New license and services bookings for the trailing 12 months ended September 30, 2026 were $238 million, down 22% from 2025.
• The company announced the successful go-live of its first ACI Connetic customer and two additional ACI Connetic wins.
• The company advanced Speedpay ONE for bill pay customers.
• The company acquired Cranium Ventures to add multi-rail card switching microservices.

Market and Competitive Landscape:

• The press release does not contain specific data on market share, specific competitor names, or detailed market trend analysis beyond general references to "healthy demand" and "accelerated modernization."

Risks and Challenges:

• Q3 revenue decline was primarily due to the timing of license renewals.
• The press release lists numerous forward-looking risks including increased competition, cybersecurity incidents, reliance on third-party cloud infrastructure, currency exchange rate fluctuations, customer reluctance to switch vendors, and regulatory compliance risks.

Management Commentary and Tone:

• Thomas Warsop, President and CEO, stated the company "executed well in the third quarter, delivering results ahead of expectations."
• Management expressed confidence in the full-year outlook due to "high visibility into scheduled renewals."
• Management highlighted strong momentum in the innovation agenda, specifically regarding ACI Connetic and Speedpay ONE.
• Management emphasized a "balanced, disciplined approach to capital allocation" while investing to accelerate growth.

Other Key Points:

• During Q3 2026, the company repurchased approximately 935,000 shares for approximately $50 million.
• Year-to-date 2026 repurchases totaled 3.4 million shares for approximately $157 million at an average price of $45.69.
• The company has $299 million of availability under the existing repurchase authorization.
• The company has $299 million of availability under the existing repurchase authorization.
• The company has $299 million of availability under the existing repurchase authorization.