ACI Worldwide Raises 2026 EBITDA Outlook as ARR Bookings Jump

ACI Worldwide (ACIW) raised its full-year 2026 adjusted EBITDA guidance while maintaining its revenue outlook, as strong annual recurring revenue bookings and expectations for a renewal-heavy fourth quarter offset a sharp decline in third-quarter Payment Software revenue and profitability.

The payments technology company reported third-quarter revenue of $426.8 million, down from $482.4 million a year earlier. Net income fell to $32.5 million, or $0.32 per diluted share, from $91.3 million, or $0.88 per share. Adjusted EBITDA declined to $97.5 million from $170.6 million, while adjusted diluted earnings per share fell to $0.54 from $1.09.

Revenue net of pass-through interchange was $282.5 million, compared with $347.1 million in the prior-year quarter. ACI’s net adjusted EBITDA margin contracted to 35% from 49%.

Recurring revenue provided a more stable counterpoint to the quarterly decline. Total recurring revenue rose to $309.3 million from $298.3 million, supported by SaaS and PaaS fees of $258.3 million. New ARR bookings increased 86% to $23.6 million, with growth across both the Payment Software and Biller segments. License and services bookings, however, declined to $63.9 million from $81.4 million.

Payment Software results reflect renewal timing

Payment Software revenue fell 23% on a constant-currency basis to $216.4 million. Segment adjusted EBITDA dropped 41% to $107 million, and the segment’s net adjusted EBITDA margin declined to 49% from 64% a year earlier.

Payment Software recurring revenue was $98.9 million, down 1% on a constant-currency basis, while SaaS revenue also declined 1% to $48 million. For the first nine months of 2026, segment revenue fell 7% to $626.2 million and adjusted EBITDA decreased 17% to $314 million. Nine-month recurring revenue increased 2%, while SaaS revenue rose 4%, both on a constant-currency basis.

ACI said Payment Software’s full-year performance will depend heavily on a stronger concentration of scheduled renewals in the fourth quarter. Management expects the segment to post upper-single-digit growth for 2026 and anticipates growth in full-year new ARR bookings.

The company also reported the first customer go-live for ACI Connetic and two additional customer wins. ACI acquired Cranium Ventures to add multi-rail card-switching microservices, although the presentation did not disclose financial terms.

Biller maintains revenue growth

Biller revenue increased 6% on a constant-currency basis to $210.4 million. Segment adjusted EBITDA rose 4% to $33.6 million, while the net adjusted EBITDA margin remained at 51%.

Interchange revenue increased to $144.3 million from $135.3 million. Excluding interchange, Biller net revenue grew 5% to $66 million. ACI cited continued progress on interchange optimization and strong new ARR bookings during the quarter.

For the first nine months, Biller revenue rose 7% to $656.8 million, while adjusted EBITDA was nearly unchanged at $102.3 million. Net adjusted EBITDA margin slipped to 51% from 52%. Management continues to expect high-single-digit Biller revenue growth for the full year and said Speedpay ONE is gaining momentum.

Full-year adjusted EBITDA outlook raised

ACI maintained its 2026 revenue guidance of $1.895 billion to $1.925 billion and raised its adjusted EBITDA forecast to between $550 million and $565 million. The company expects both Payment Software and Biller to deliver upper-single-digit full-year growth.

For the fourth quarter, ACI projects revenue of $612 million to $642 million and adjusted EBITDA of $257 million to $272 million. The outlook reflects the company’s expectation for significant fourth-quarter activity tied to scheduled renewals.

Management also expects 2026 capital expenditures of approximately $45 million, cash taxes of about $80 million and net interest expense of roughly $32 million. Depreciation and amortization are forecast at about $93 million, non-cash compensation expense at $70 million to $75 million, and the effective tax rate at approximately 24%.

Operating cash flow increased 26% to $254 million during the first nine months of 2026. As of September 30, ACI held $219 million in cash, had $821 million of debt and reported a net debt leverage ratio of 1.3 times EBITDA. Total cash and available credit-facility liquidity stood at $587 million.

The company repurchased approximately 3.4 million shares for $157 million during the first nine months, at an average price of $45.69 per share. ACI expects to allocate 50% to 60% of full-year operating cash flow to repurchases, subject to market conditions, with $299 million remaining under its authorization.

ACI’s outlook remains subject to renewal timing, customer project delays or cancellations, adoption of ACI Connetic, competitive pressure, cybersecurity and technology risks, reliance on third-party infrastructure, currency movements and changes in payment-network fees. The company also noted that the concentration of revenue-generating activity late in each quarter can make its revenue and earnings cyclical and complicate forecasting.