ACI Worldwide (ACIW) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 25% year-over-year to $395 million, with net income of $58.9 million, a turnaround from a net loss in Q1 2024.

• Adjusted EBITDA rose 95% to $94 million, with margin improving to 36% from 24% year-over-year.

• Early new business wins and renewals de-risked full-year targets and shifted revenue into Q1.

• Organizational restructuring combined bank and merchant segments into Payment Software, driving operational synergies and pipeline growth.

• A $22–$25.9 million after-tax gain was recognized from the sale of a minority interest in an Indian payment company.

Financial highlights

• Recurring revenue for Q1 2025 was $285.7 million, up 8% year-over-year, representing 72% of total revenue.

• Operating income was $58.5 million, up from $9.6 million in Q1 2024.

• Diluted EPS was $0.55, up from $(0.07) in Q1 2024; adjusted diluted EPS was $0.51, up from $0.10.

• Cash flow from operating activities was $78 million, down from $123 million in Q1 2024.

• Ended Q1 2025 with $230 million in cash and $853 million in total debt; net debt leverage ratio at 1.2x.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $1.69–$1.72 billion; adjusted EBITDA expected at $480–$495 million.

• Q2 2025 revenue expected at $375–$385 million; adjusted EBITDA at $55–$65 million.

• Approximately 46% of full-year revenue expected in the first half, up from 43% in 2024.

• Backlog at March 31, 2025, was $6.74 billion, supporting future revenue visibility.

• Constant currency revenue growth for the year projected at 7–9%.