ACI Worldwide (NASDAQ:ACIW) shares advanced Thursday after the global payments software company reported third-quarter results that surpassed Wall Street expectations and prompted an upward revision to its full-year guidance.
The firm posted earnings of $0.88 per share, topping analyst projections of $0.68, while revenue climbed 7% year over year to $482.36 million, above the consensus estimate of $465.33 million. Recurring revenue, which accounted for 62% of total revenue, increased 10% to $298 million.
“Q3 continued our positive momentum, with strong revenue, adjusted EBITDA and bookings growth,” said Thomas Warsop, President and CEO of ACI. “Year-to-date, both Payment Software and Biller segment revenues have grown 12%.”
The company’s Payment Software segment recorded a 4% rise in revenue, while the Biller segment jumped 10% from the same quarter last year. Net new annual recurring revenue bookings rose 14% to $13 million, and new license and services bookings advanced 21% to $81 million.
Given the strong quarterly performance, ACI raised its 2025 full-year guidance, now targeting revenue between $1.73 billion and $1.754 billion, compared with prior guidance of $1.71 billion to $1.74 billion, and above the $1.727 billion consensus. The company also increased its adjusted EBITDA forecast to $495–$510 million, versus the previous $490–$505 million range.
The board of directors approved a new $500 million share repurchase program, replacing prior authorizations. During the quarter, ACI repurchased 0.4 million shares for $16 million, bringing year-to-date buybacks to 3.1 million shares worth $150 million.
“Our commitment to innovation, demonstrated by the progress of ACI Connetic and Speedpay, together with disciplined operational execution, continues to drive high-value growth and strong underlying cash generation,” said Robert Leibrock, Chief Financial Officer.