ACI Worldwide (NASDAQ:ACIW) delivered second-quarter results that came in well ahead of Wall Street forecasts, fueled by robust recurring revenue growth and improved organizational execution. The positive results pushed the company’s shares up 1.23% in after-hours trading on Thursday.
The payments technology provider posted adjusted earnings per share of $0.35, handily beating the analyst consensus of $0.09. Revenue climbed to $401 million, outperforming expectations of $380.59 million and growing 7% compared to the same period last year. Recurring revenue was a key driver, increasing 13% year-over-year to reach $322 million—accounting for 80% of total revenue.
“We delivered solid second quarter and first half results, reflecting the organizational improvements we have invested in and the momentum we generated by signing renewals and new business early in the year,” said Thomas Warsop, president and CEO of ACI.
Despite a 13% decline in second-quarter adjusted EBITDA to $81 million, which the company attributed to the timing of higher-margin license contracts, first-half adjusted EBITDA rose 24% year-over-year. The Biller segment was a standout performer, with Q2 revenue jumping 16%.
On the back of strong momentum, ACI raised its full-year 2025 forecast. It now anticipates revenue in the range of $1.71 billion to $1.74 billion, slightly ahead of consensus expectations. The adjusted EBITDA projection was also lifted to a range of $490 million to $505 million, up from the prior guidance of $480 million to $495 million.
The company continued to return capital to shareholders, repurchasing around 2.4 million shares during the quarter for $119 million, equivalent to approximately 2.4% of total shares outstanding. ACI ended the second quarter with $190 million in cash and $904 million in debt.
“Given the robust performance across the business, we are raising our full-year outlook for both revenue and adjusted EBITDA for 2025,” said Robert Leibrock, Chief Financial Officer of ACI.
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