ACI Worldwide, Inc. Q1 FY2026 earnings call

Tom noted 6% organic revenue growth and over 160 basis points of FX adjusted net adjusted EBITDA margin expansion. Discussed strategic initiatives like growth in core vertical markets, operational execution, capital allocation. Payment software saw 6% growth with benefits from unifying bank and merchant businesses; real-time payments growing over 20%; progress on ACI Kinetic. Biller saw strong results with 39% new ARR bookings growth, advances in SpeedPayOne platform. Mentioned operational efficiency, capital allocation including share repurchases, and AI-first roadmap.

Payment software: Revenue increased 2% in constant currency to $214 million. SaaS revenue grew 11% in Q1 (excluding FX). Segment recurring revenue grew 9% year over year (reported) or 6% in constant currency. Real-time payments and merchant grew 22% and 21% in constant currency respectively. Payment software EBITDA was $113 million in Q1, up 2% year over year in constant currency; EBITDA margin was 53%, flat versus last year. Biller: Revenue increased 10% to $212 million, driven by higher transaction volumes and new customer wins. Revenue net of interchange increased 5% year over year. Biller-adjusted EBITDA grew 10% to 34 million; EBITDA margin net of interchange was 51%, up more than 200 basis points from last year.

Raised full-year revenue guidance to 7%-9% ($1.89B - $1.92B). Second quarter revenue expected $420-$440M. Full-year adjusted EBITDA guidance raised to $540-$555M. Second quarter adjusted EBITDA expected $85-$95M. Both segments expected upper single-digit growth; strong pipeline and momentum support guidance.

Conflict in the Middle East and energy shock introducing uncertainty into economic outlook; macroeconomic pressures affecting business, but payments infrastructure remains critical.

George Sutton asked about 39% bookings growth and context. Jeff Cantwell asked on Kinetic sales, announcements with payment networks, Q1 revenue pull forward, and IRS tax payments and currency impacts.