ACI Worldwide, Inc. Q4 FY2025 earnings call

• 2025 was a strong year for ACI with double - digit revenue growth, improving margins, and solid free cash flow. - Payment software segment unified bank and merchant businesses, driving efficiency, innovation, and simplified structure. - Biller segment had strong, consistent performance with revenue growth and investment in SpeedPay platform. - ACI is applying AI across the enterprise to improve engineering productivity, enhance customer outcomes, and reduce costs. - Board refreshment process with appointment of new members and transition of others.

For 2025, the payment software segment had revenue growth of 9% to $942 million and adjusted EBITDA growth of 10% to $544 million. SaaS revenue in payment software grew 15% in Q4 and 11% for the full year, with broad - based growth across issuing, acquiring, real - time payments, etc. The biller segment had full - year revenues growing 13% to $818 million, driven by continued transaction volume with existing customers and strong new business momentum across utilities, government, and consumer finance, benefiting from more billers consolidating onto modern digital bill pay platforms.

Full - year 2026 revenue growth expected at 7% - 9% to $1.88 - $1.91 billion. First - quarter revenue expected in range of $405 - $415 million. Full - year adjusted EBITDA expected $530 - $550 million, first - quarter $88 - $93 million. Expect to allocate 50 - 60% of operating cash flow to share repurchases in 2026 while investing organically and considering strategic M&A within targeted leverage range.

Q: Jeff Kendall asked about 2026 revenue guidance building blocks and cadence, and why back - half acceleration.

A: Bobby said guidance is balanced across segments, with strong visibility in recurring revenue, renewal phasing, deals signed in 2025 to be implemented in 2026, and strong pipeline in key products like Kinetic. Tom added on revenue recognition visibility.

Q: George Sutton asked about Kinetic pipeline.

A: Tom said Kinetic is fastest - growing in pipeline, had first signing with European bank, pipeline is strong with expansion of functionality and mid - tier financial institutions making up two - thirds of opportunities.

Q: Charles Navin asked about uplift on renewals and strategic M&A.

A: Bobby talked about biller and payment software renewal uplift with retention, transactions, new logos, price, and value - added services. Tom said strategic M&A focuses on accelerating Kinetic and expanding geographically, with plan to use 50 - 60% of operating cash flow for share repurchases and being opportunistic on M&A