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ACI Worldwide (ACIW)
NASDAQ:ACIW
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ACI Worldwide (ACIW) AI Stock Analysis

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ACIW

ACI Worldwide

(NASDAQ:ACIW)

Rating:74Outperform
Price Target:
$53.00
▲(5.47% Upside)
ACI Worldwide's strong financial performance and positive earnings call are the primary drivers of its score. The company's strategic initiatives and raised guidance enhance its outlook. Technical indicators show positive momentum, though caution is advised due to potential overbought conditions. The valuation is reasonable but lacks a dividend yield, which may deter some investors.
Positive Factors
Earnings
ACIW reported 25% year-over-year growth in total revenue, surpassing forecasts and consensus expectations.
Shareholder Value
ACIW bought back 2.4 million shares or 2.4% of the outstanding shares in 2Q reflecting its shareholder friendly capital allocation priorities.
Negative Factors
Future Guidance
Despite strong quarterly results, the shares pulled back, potentially due to investors expecting a larger revision to future guidance.
License Sales
The risk-reward is viewed as neutral given the lumpy nature of license sales and bookings.

ACI Worldwide (ACIW) vs. SPDR S&P 500 ETF (SPY)

ACI Worldwide Business Overview & Revenue Model

Company DescriptionACI Worldwide, Inc., a software company, develops, markets, installs, and supports a range of software products and solutions for facilitating digital payments to banks, merchants, and billers worldwide. The company offers ACI Acquiring, a merchant management system to deliver digital innovation, improve fraud prevention, and reduce interchange fees; ACI Issuing, a digital payments issuing solution; and ACI Enterprise Payments Platform that provides payment processing and orchestration capabilities for digital payments. It also provides ACI Low Value Real-Time Payments, a platform for processing real-time payments; and ACI High Value Real-Time Payments, a payments engine that offers multi-bank, multi-currency, 24x7 payment processing, and SWIFT messaging. In addition, the company offers ACI Omni Commerce, a scalable, omni-channel payment processing platform; ACI Secure eCommerce solution; ACI Fraud Management, a real-time approach to fraud management; ACI Digital Business Banking, a cloud-based digital banking platform; and ACI Speedpay, an integrated suite of digital billing, payment, disbursement, and communication services. The company offers electronic bill presentment and payment services to consumer finance, insurance, healthcare, higher education, utility, government, and mortgage sectors; implementation services, including product installations and configurations, and custom software modifications; and business and technical consultancy, on-site support, product education, and testing services, as well as distributes or acts as a sales agent for software developed by third parties. It markets its products under the ACI Worldwide brand. The company was formerly known as Transaction Systems Architects, Inc. and changed its name to ACI Worldwide, Inc. in July 2007. The company was founded in 1975 and is based in Coral Gables, Florida.
How the Company Makes MoneyACI Worldwide generates revenue primarily through software licensing, maintenance, and transaction fees. The company offers its products on a subscription basis, providing a steady stream of recurring revenue. Additionally, ACI earns money from professional services, which include consulting, implementation, and support for its software solutions. Significant partnerships with banks and payment processors enhance ACI's market reach and drive revenue growth, as these partnerships often involve long-term contracts that provide ongoing service fees. The increasing demand for real-time payment solutions and fraud prevention services, particularly in the digital commerce space, further contributes to ACI's earnings potential.

ACI Worldwide Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call emphasized strong revenue growth, increased ARR bookings, and successful product launches, which led to a raise in guidance for the year. Despite some challenges in the Payment Software segment and reduced cash flow, the company's overall position and outlook remain positive.
Q2-2025 Updates
Positive Updates
Revenue Growth and Increased Guidance
Revenue was up 7% year-over-year in Q2 2025 and 15% for the first half of 2025. The company raised full year guidance for revenue and adjusted EBITDA.
Significant Increase in ARR Bookings
ARR bookings in Q2 2025 were up 86%, bringing first half 2025 new ARR bookings growth to 71%.
Launch of Connetic Platform
Official launch of Connetic, a next-generation payments hub platform, which is cloud-native and offers enhanced capabilities such as automated decisioning and AI-powered insights.
Strong Cash Position and Share Repurchases
Finished Q2 2025 with $190 million in cash and a net leverage ratio of 1.4x adjusted EBITDA. Repurchased 2.4 million shares, approximately 2.4% of ACI's common shares outstanding.
Industry Recognition
ACI received recognition as one of CNBC's world's top fintech companies and Time's America's best midsized companies in 2025.
Negative Updates
Decline in Payment Software Segment
Payment Software segment revenue in Q2 2025 declined 1% and segment adjusted EBITDA decreased 12% compared to last year.
Reduced Cash Flow from Operations
Cash flow from operating activities in the first 6 months of 2025 was $128 million compared to $178 million last year, largely due to the timing of receivables.
Company Guidance
During ACI Worldwide, Inc.'s Q2 2025 earnings call, the company reported a 7% year-over-year revenue growth and a 15% increase from the first half of 2024, with specific highlights including a 16% rise in the Biller segment and an 18% increase in Payment Software revenue for the first half of 2025. Additionally, ACI raised its full-year guidance for 2025, projecting total revenue between $1.71 billion and $1.74 billion, up from the previous guidance of $1.69 billion to $1.72 billion. The adjusted EBITDA is expected to range from $490 million to $505 million, higher than the earlier forecast of $480 million to $495 million. ACI's ARR bookings rose 86% in Q2, contributing to a 71% growth in new ARR bookings for the first half of the year. The company's strategic initiatives, including the launch of the Connetic platform and a focus on early contract signings, have bolstered its financial outlook, supporting its goal of sustainable high single-digit revenue growth.

ACI Worldwide Financial Statement Overview

Summary
ACI Worldwide demonstrates consistent revenue growth and strong profitability metrics. The company effectively manages leverage and generates robust cash flow, despite minor concerns about margin trends and cash flow volatility.
Income Statement
78
Positive
ACI Worldwide has demonstrated consistent revenue growth over the years, with a notable increase in the TTM period. The company maintains healthy gross and net profit margins, indicating strong profitability. However, there is a slight decline in gross profit margin over time, which could be a concern if it continues.
Balance Sheet
72
Positive
The company's debt-to-equity ratio has improved over the years, indicating better leverage management. Return on equity has shown positive growth, reflecting efficient use of equity. However, the equity ratio is moderate, suggesting a balanced approach to financing with both debt and equity.
Cash Flow
75
Positive
ACI Worldwide has shown impressive free cash flow growth, especially in the TTM period. The operating cash flow to net income ratio is strong, indicating good cash generation relative to earnings. However, fluctuations in free cash flow growth in previous years suggest potential volatility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.70B1.59B1.45B1.42B1.37B1.29B
Gross Profit855.00M802.50M733.37M725.83M731.73M671.86M
EBITDA484.65M443.55M360.11M398.19M364.03M319.02M
Net Income251.05M203.12M121.51M142.18M127.79M72.66M
Balance Sheet
Total Assets3.14B3.03B3.44B3.21B3.16B3.39B
Cash, Cash Equivalents and Short-Term Investments189.70M216.39M164.24M124.98M122.06M165.37M
Total Debt946.28M956.43M1.08B1.12B1.11B1.19B
Total Liabilities1.74B1.60B2.12B2.02B1.91B2.18B
Stockholders Equity1.39B1.42B1.32B1.19B1.24B1.21B
Cash Flow
Free Cash Flow311.01M343.35M130.74M103.49M175.10M289.67M
Operating Cash Flow313.51M358.75M168.52M143.38M220.47M336.30M
Investing Cash Flow8.48M-45.05M-37.78M60.25M-45.37M-30.70M
Financing Cash Flow-252.47M-288.20M-111.55M-171.06M-256.88M-261.57M

ACI Worldwide Technical Analysis

Technical Analysis Sentiment
Positive
Last Price50.25
Price Trends
50DMA
45.82
Positive
100DMA
47.31
Positive
200DMA
50.40
Negative
Market Momentum
MACD
1.25
Negative
RSI
68.60
Neutral
STOCH
82.21
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACIW, the sentiment is Positive. The current price of 50.25 is above the 20-day moving average (MA) of 47.81, above the 50-day MA of 45.82, and below the 200-day MA of 50.40, indicating a neutral trend. The MACD of 1.25 indicates Negative momentum. The RSI at 68.60 is Neutral, neither overbought nor oversold. The STOCH value of 82.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACIW.

ACI Worldwide Risk Analysis

ACI Worldwide disclosed 43 risk factors in its most recent earnings report. ACI Worldwide reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ACI Worldwide Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$5.94B21.9122.19%-1.62%36.57%
75
Outperform
$3.73B12.4625.94%8.71%25.75%
75
Outperform
$2.21B16.1325.17%0.58%12.92%101.57%
74
Outperform
$5.12B21.2719.09%11.22%40.85%
74
Outperform
$3.47B34.6730.36%26.12%28.03%
56
Neutral
$4.48B8.73-8.77%-20.82%-154.29%
54
Neutral
$291.06M3.16-13.34%2.78%5.71%-76.50%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACIW
ACI Worldwide
50.25
2.58
5.41%
EEFT
Euronet Worldwide
91.16
-7.49
-7.59%
WEX
WEX
171.19
-21.34
-11.08%
EVTC
Evertec
34.47
2.49
7.79%
STNE
Stoneco
17.30
6.12
54.74%
ODD
ODDITY Tech Ltd. Class A
63.00
29.87
90.16%

ACI Worldwide Corporate Events

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
ACI Worldwide Reports Strong Q2 2025 Financial Performance
Positive
Aug 7, 2025

ACI Worldwide reported a strong financial performance for the quarter ending June 30, 2025, with a 7% increase in Q2 revenue and a 15% rise in year-to-date revenue compared to the previous year. The company also saw significant growth in its Payment Software and Biller segments, and repurchased 2.4 million shares, enhancing shareholder value. ACI raised its full-year 2025 guidance for revenue and adjusted EBITDA, reflecting the positive impact of organizational improvements and strategic opportunities, while continuing to focus on developing its Connetic payments hub platform.

Private Placements and Financing
ACI Worldwide Secures $200M Loan Agreement with BofA
Positive
Jun 20, 2025

On June 18, 2025, ACI Worldwide, Inc. and its subsidiaries entered into an agreement with Bank of America to supplement their existing credit agreement, allowing for incremental term loans totaling $200 million. The funds were used to fully redeem $400 million of senior notes due in 2026, improving the company’s financial positioning by managing its debt obligations.

Executive/Board ChangesBusiness Operations and Strategy
ACI Worldwide Appoints New CFO Robert Leibrock
Neutral
Jun 9, 2025

On June 9, 2025, ACI Worldwide, Inc. announced the appointment of Robert Leibrock as its new Chief Financial Officer and Chief Accounting Officer, effective July 1, 2025. Leibrock, who previously held senior roles at Red Hat and IBM, is expected to bring valuable experience in financial strategy and operational excellence to ACI Worldwide. This appointment marks a significant leadership transition as Scott Behrens will step down from his current roles but will remain with the company until the end of 2025. The change is poised to impact ACI Worldwide’s financial operations and strategic direction.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025