ACI Worldwide (NASDAQ: ACIW) reported Q2 2026 revenue of $430.4 million, up 7% year over year, while GAAP diluted EPS increased to $0.31 from $0.12. Adjusted EBITDA rose 12% to $90.8 million, and net adjusted EBITDA margin expanded to 34% from 32% as Payment Software operating leverage outweighed weaker Biller profitability.
Core financial results
Revenue grew faster than operating expenses, which increased about 5% to $385.8 million. That lifted GAAP operating income by approximately 28%, while net income also benefited from total other expense narrowing to $5.7 million from $17.0 million.
License revenue increased to $68.8 million from $56.7 million, outpacing the 5% growth in recurring revenue to $336 million. Quarterly operating cash flow also rose faster than revenue.
| Metric | Q2 2026 | Q2 2025 | YoY change |
|---|---|---|---|
| Revenue | $430.4 million | $401.3 million | 7% |
| GAAP operating income | $44.6 million | $34.9 million | About 28% |
| GAAP operating margin | 10.4% | 8.7% | About 1.7 pp |
| GAAP net income | $31.8 million | $12.2 million | About 161% |
| GAAP diluted EPS | $0.31 | $0.12 | About 158% |
| Adjusted diluted EPS | $0.54 | Not stated | 54% |
| Adjusted EBITDA | $90.8 million | $80.9 million | 12% |
| Net adjusted EBITDA margin | 34% | 32% | 2 pp |
| Operating cash flow | $70.8 million | $49.8 million | About 42% |
Net adjusted EBITDA margin is calculated using revenue excluding pass-through interchange revenue, rather than total reported revenue.
Payment Software gains offset Biller margin pressure
Payment Software was the main source of profit expansion. Revenue increased 9% on a reported basis and 7% in constant currency, led by large expansions with renewing Issuing and Acquiring customers. Biller revenue increased, but revenue net of interchange and segment profitability declined against a demanding prior-year comparison.
| Segment metric | Q2 2026 | YoY change | Main factor |
|---|---|---|---|
| Payment Software revenue | $196 million | 9% | Issuing and Acquiring growth |
| Payment Software adjusted EBITDA | $94 million | 12% | Operating leverage and expense discipline |
| Payment Software net adjusted EBITDA margin | 48% | Up from 46% | Revenue growth exceeded cost growth |
| Biller revenue | $234 million | 5% | Reported and constant-currency growth |
| Biller revenue net of interchange | $68 million | (3%) | Strong prior-year onboarding and transaction comparison |
| Biller adjusted EBITDA | $35 million | (13%) | Lower net revenue, discrete expenses and Speedpay ONE investment |
| Biller net adjusted EBITDA margin | 51% | Down from 56% | Lower net revenue and continued investment |
Within Payment Software, Issuing and Acquiring revenue rose 33% in constant currency. Payments Intelligence and Merchant Payments each grew 3% in constant currency, while Real-Time Payments revenue declined to $23 million because of renewal timing.
Bookings lagged current-period revenue
Q2 net new annual recurring revenue bookings fell 25% to $18 million as strength in Biller was offset by the timing of expected Payment Software contracts. Trailing-12-month net new ARR bookings were $68 million, down 15%.
New license and services bookings increased 2% to $59 million for the quarter, but the trailing-12-month total declined 12% to $255 million. ACI still expects full-year growth in both booking categories, making the timing and completion of anticipated contracts an important second-half measure.
Cash flow, liquidity and capital allocation
Operating cash flow was $70.8 million for the quarter and $135.0 million for the first six months of 2026, compared with $49.8 million and $128.0 million, respectively, in the prior-year periods. The distinction matters because the quarterly increase was considerably larger than the year-to-date improvement.
ACI ended June with $167 million in cash and $826 million of debt. Net debt leverage was 1.2 times adjusted EBITDA, and total cash plus available credit-facility liquidity was $540 million.
The company repurchased approximately 948,000 shares for $41 million during Q2. First-half repurchases totaled 2.5 million shares for $107 million, leaving approximately $349 million under the authorization. Management continues to target full-year repurchases equal to 50% to 60% of operating cash flow, subject to market conditions.
2026 guidance
ACI raised both ends of its full-year revenue and adjusted EBITDA ranges by $5 million, citing first-half performance and pipeline strength. The company also maintained a back-end-loaded second-half outlook because of the timing of high-margin Payment Software license renewals.
| Metric | Latest guidance | Previous guidance | Change |
|---|---|---|---|
| Full-year revenue | $1.895 billion-$1.925 billion | $1.890 billion-$1.920 billion | Both ends raised by $5 million |
| Full-year adjusted EBITDA | $545 million-$560 million | $540 million-$555 million | Both ends raised by $5 million |
| Q3 revenue | $417 million-$427 million | Not provided | New quarterly guidance |
| Q3 adjusted EBITDA | $90 million-$95 million | Not provided | New quarterly guidance |
ACI expects approximately 40% of second-half revenue in Q3 and 60% in Q4. That concentration increases the importance of renewal timing and fourth-quarter execution.
Management perspective
Management highlighted the first two U.S. customer signings for ACI Connetic after enabling the cloud-native platform across eight major U.S. payment networks. ACI continues to invest in Connetic to support longer-term organic growth, although the company did not quantify its expected revenue contribution.
Based on new business wins and current transaction trends, management maintained its expectation for high-single-digit full-year Biller revenue growth despite the segment’s 5% Q2 growth and lower net revenue.
Risks investors should monitor
- Bookings conversion: Quarterly net new ARR and both trailing-12-month booking measures declined, increasing reliance on contracts expected later in 2026.
- Back-end-loaded revenue: About 60% of second-half revenue is expected in Q4 because of Payment Software renewal timing, creating execution and forecasting concentration.
- Biller profitability: Revenue net of interchange fell 3%, while adjusted EBITDA declined 13% and margin contracted five percentage points.
- Investment requirements: Continued spending on ACI Connetic and Speedpay ONE may weigh on expenses before those platforms generate a disclosed financial contribution.
Summary
ACI Worldwide’s Q2 results combined 7% revenue growth with faster adjusted EBITDA and operating-income growth, primarily because Payment Software delivered operating leverage. Biller profitability and recent booking trends were less favorable, but stronger first-half performance supported higher full-year revenue and adjusted EBITDA guidance. Second-half contract timing, Q4 revenue concentration and Biller margin performance are the main operating points to monitor.
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