ACI Worldwide (ACIW) Q1 2026 earnings summary

Executive summary

• Revenue grew 8% year-over-year to $426 million in Q1 2026, with strong performance in Real Time Payments, Merchant, and Biller segments, and recurring revenue up 10% to $313 million.

• Adjusted EBITDA rose 12% to $105 million, with margin improving to 38% from 36% year-over-year.

• Net income declined 35% to $38 million, primarily due to higher operating expenses and the absence of a prior-year investment gain.

• 1.5 million shares were repurchased for $65 million in Q1 2026, with plans to allocate 50–60% of operating cash flow to further repurchases.

• Full-year 2026 guidance for both revenue and adjusted EBITDA was raised, citing strong execution and momentum.

Financial highlights

• Total Q1 revenue was $426 million, up 8% year-over-year; recurring revenue reached $313 million, up 10%.

• Adjusted EBITDA was $105 million, up 12% year-over-year, with a 38% margin.

• Operating income was $57.5 million, nearly flat year-over-year.

• Cash flow from operations was $64 million, with $162 million cash on hand and net leverage at 1.3x adjusted EBITDA.

• Adjusted diluted EPS was $0.61, up from $0.51 in Q1 2025; GAAP EPS was $0.37.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $1.89–$1.92 billion, with adjusted EBITDA expected at $540–$555 million.

• Q2 2026 revenue expected at $420–$440 million; adjusted EBITDA at $85–$95 million.

• Both Payment Software and Biller segments projected to grow upper single digits for the year.

• Capital expenditures expected at $45 million, cash taxes $80–90 million, and effective tax rate at 25%.

• Plan to allocate 50–60% of operating cash flow to share repurchases in 2026.