Overview

* ACI Worldwide ( ACIW ) 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/Mis Actual Consensu

s s

Estimate

Q2 Beat $401.26 $380.50

Revenue mln mln (6

Analysts

)

Q2 EPS $0.12

Q2 Net Beat $12.20 $10 mln

Income mln (6

Analysts

)

Q2 Beat $81 mln $61 mln

Adjusted (6

EBITDA Analysts

)

Q2 Beat $34.86 $23.70

Operatin mln mln (6

g income Analysts

)

Q2 Beat $17.87 $13.10

Pretax mln mln (6

Profit 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 ( ACIW ) 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:

(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.)