ACI Worldwide Q2 2026 earnings: Payment Software lifts margins and guidance

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.

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.

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.

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.