Stocks Steady Before the Open as Investors Await U.S.-Iran Updates; Earnings and Economic Data on TapMay 7, 2026
June S&P 500 E-Mini futures (ESM26) are up +0.03%, andJune Nasdaq 100 E-Mini futures (NQM26) are down -0.01% this morning as investors await the outcome of diplomatic efforts aimed at ending the Iran war.
The U.S. is awaiting Iran’s response to its proposal to reopen the Strait of Hormuz and end the war. Bloomberg reported on Wednesday that Washington has conveyed a one-page memorandum to the Islamic Republic that would gradually reopen the waterway and remove the American blockade on Iranian ports. Iran is expected to deliver its response through Pakistan in the coming days, the report said. Meanwhile, an Israeli strike on Lebanon’s capital on Wednesday underscored how tensions remain high.
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The price of WTI crude fell over -2% on Thursday after Saudi news outlet Al Arabiya reported that negotiations to gradually reopen the Strait are underway and that a breakthrough could come in the coming hours. The 10-year T-note yield fell one basis point to 4.34% as inflation expectations eased.
Market participants are also awaiting a new round of U.S. economic data and corporate earnings reports, along with comments from Federal Reserve officials.
In yesterday’s trading session, Wall Street’s three main equity benchmarks ended in the green, with the S&P 500 and Nasdaq 100 posting new all-time highs. Super Micro Computer (SMCI) jumped over +24% and was the top percentage gainer on the S&P 500 after the AI server maker reported better-than-expected FQ3 adjusted EPS and provided solid FQ4 guidance. Also, Advanced Micro Devices (AMD) surged more than +18% and was the top percentage gainer on the Nasdaq 100 after the chipmaker posted upbeat Q1 results and delivered a blockbuster Q2 sales forecast. In addition, DaVita (DVA) popped over +23% after the kidney dialysis company reported stronger-than-expected Q1 results and raised its full-year guidance. On the bearish side, CDW Corp. (CDW) cratered more than -20% and was the top percentage loser on the S&P 500 after the company posted weaker-than-expected Q1 adjusted EPS.
The ADP National Employment report released on Wednesday showed that U.S. private nonfarm payrolls rose by 109K in April, slightly weaker than expectations of 118K.
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“The labor market has been on a solid but precarious footing for some time, not exactly growing but also not significantly deteriorating,” said Elizabeth Renter, senior economist at NerdWallet.
St. Louis Fed President Alberto Musalem said on Wednesday that there is considerable uncertainty over the future path of the economy and monetary policy, but he sees risks tilting more toward inflation than toward employment. “Inflation is running meaningfully above our target of 2%,” Musalem said. Separately, Chicago Fed President Austan Goolsbee cautioned against reflexively cutting interest rates in response to stronger productivity growth, noting that such a trend can sometimes fuel inflation.
Meanwhile, U.S. rate futures have priced in a 94.2% probability of no rate change and a 5.8% chance of a 25 basis point rate cut at the conclusion of the Fed’s June meeting.
First-quarter corporate earnings season continues, with notable companies such as McDonald’s (MCD), Gilead Sciences (GILD), Cloudflare (NET), Airbnb (ABNB), Monster Beverage (MNST), and CoreWeave (CRWV) slated to release their quarterly results today. According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +12% increase in quarterly earnings for Q1 compared to the previous year, marking the sixth consecutive quarter of double-digit growth.
On the economic data front, investors will focus on U.S. Initial Jobless Claims data, set to be released in a couple of hours. Economists expect this figure to be 205K, compared to last week’s number of 189K.
U.S. Unit Labor Costs and Nonfarm Productivity preliminary data will also be closely watched today. Economists forecast Q1 Unit Labor Costs to rise +2.6% q/q and Nonfarm Productivity to rise +0.7% q/q, compared to the fourth-quarter numbers of +4.4% q/q and +1.8% q/q, respectively.
The U.S. Construction Spending report for March will come in today. Notably, the release will also incorporate the February figures. Economists expect construction spending to rise +0.3% m/m in March.
The Fed’s Consumer Credit report will be released today as well. Economists project the U.S. Consumer Credit to be $12.5 billion in March, compared to the previous figure of $9.5 billion.
In addition, market participants will hear perspectives from Minneapolis Fed President Neel Kashkari, Cleveland Fed President Beth Hammack, and New York Fed President John Williams throughout the day.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.34%, down -0.28%.
The Euro Stoxx 50 Index is up +0.05% this morning as investors await updates on a potential U.S.-Iran peace agreement and digest a wave of corporate earnings reports. U.S. President Donald Trump said on Wednesday that the Iran war has “a very good chance of ending” and that it’s “possible” it could end before his trip to Beijing next week, according to an interview with PBS News Hour. Luxury, travel, and automobile stocks led the gains on Thursday. At the same time, food and beverage stocks slumped, weighed down by a more than -12% plunge in Campari (CPR.M.DX) after the spirits group reported weaker-than-expected Q1 revenue. Utility stocks also sank. Data from Eurostat released on Thursday showed that Eurozone monthly retail sales declined in March, with weakening consumer sentiment tied to the Middle East conflict suggesting demand could soften further in the months ahead. Separately, data showed that Germany’s monthly factory orders jumped in March, signaling possible front-loading of orders to manage rising energy prices and supply disruptions that followed the start of the Middle East conflict. Meanwhile, Norway’s central bank unexpectedly raised its policy rate by 25 basis points to 4.25% on Thursday to curb inflation pressures fueled by robust wage growth and high energy costs. “Inflation is too high and has run above target for several years,” said Norges Governor Ida Wolden Bache in a statement. Sweden’s central bank kept its key policy rate unchanged at 1.75%, as expected, but said it remains vigilant and is ready to act swiftly if the Middle East conflict pushes inflation higher or weighs on economic growth. European Central Bank Governing Council member Francois Villeroy de Galhau said on Thursday that the ECB cannot commit to raising its key rate at its June meeting, and that its decisions will instead be guided by evidence of shifts in the economy. In other corporate news, Shell (SHEL.LN) fell over -2% after the oil major reported solid Q1 profit but cautioned about reduced gas production due to the Middle East conflict and launched a smaller buyback than in prior quarters. At the same time, Zealand Pharma (ZEAL.C.DX) surged more than +16% after reporting better-than-expected Q1 results.
Germany’s Factory Orders and Eurozone’s Retail Sales data were released today.
The German March Factory Orders rose +5.0% m/m, stronger than expectations of +1.0% m/m.
Eurozone’s March Retail Sales fell -0.1% m/m and rose +1.2% y/y, stronger than expectations of -0.3% m/m and +1.0% y/y.
Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.48%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +5.58%.
China’s Shanghai Composite Index closed higher today amid optimism that the U.S. and Iran were close to reaching a deal to end their conflict. 5G communication stocks outperformed on Thursday. Liquor stocks also advanced. Limiting gains, energy stocks sank as oil prices dropped for a third straight day. The Wall Street Journal reported that the U.S. and Iran are working with mediators on a framework to resume negotiations that could end the conflict and reopen the Strait of Hormuz. Lloyd Chan, senior currency analyst at MUFG, said, “Signs continue to point to limited appetite for further escalation in the Middle East.” Meanwhile, China’s tourism sector recorded an increase in trips during the Labor Day holidays, although official data released the day after the five-day break did not include spending figures that typically provide a fuller picture of consumption over the period. In other news, The Wall Street Journal reported on Wednesday that Washington and Beijing are considering the launch of formal talks on AI. Market watchers are closely monitoring U.S.-China developments as U.S. President Donald Trump is scheduled to meet Chinese President Xi Jinping next week during his first visit to China in eight years. In corporate news, BeOne Medicines gained over +3% after the drugmaker reported a jump in its Q1 earnings.
Japan’s Nikkei 225 Stock Index closed sharply higher today as markets reopened after a holiday break, with investors playing catch-up to a global equities rally fueled by robust technology earnings and signs of a potential peace agreement in the Middle East. Oil prices held their previous session’s losses on speculation that a U.S.-Iran agreement would help restore oil shipments through the vital Strait of Hormuz. Takashi Ito, senior strategist at Nomura Securities, said, “Lower oil prices are significant for companies, as even a modest easing of inflation can provide meaningful relief.” Technology stocks led the gains on Thursday, with SoftBank Group jumping over +18% on renewed confidence in the AI trade. Mining, industrial, and financial stocks also climbed. The benchmark index closed above the 62,000 mark for the first time. It also posted its largest daily percentage gain since April 2025. Meanwhile, minutes of the Bank of Japan’s March meeting released on Thursday showed that many board members believed interest rates may need to be raised if the energy shock driven by the Iran war persists and triggers concerns about second-round effects on broader inflation. One member said the BOJ should raise rates “without long intervals,” while another stated the central bank would need to tighten “without hesitation” if the economy showed no signs of weakening from the conflict. Elsewhere, Japan’s top currency diplomat, Atsushi Mimura, said on Thursday that the country faces no limits on how frequently it can intervene in currency markets and remains in daily contact with U.S. authorities, underscoring Tokyo’s readiness to step in to support the yen. In corporate news, TOTO Ltd. rose over +4% as investors continued to pour into the stock, reassessing the toilet maker as a stealth AI play given its critical role in the semiconductor supply chain. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -5.40% to 37.64.
Pre-Market U.S. Stock Movers
Fortinet (FTNT) surged more than +15% in pre-market trading after the cybersecurity vendor posted upbeat Q1 results and raised its full-year revenue guidance.
DoorDash (DASH) climbed about +10% in pre-market trading after the food-delivery app reported better-than-expected Q1 EPS.
AppLovin (APP) rose more than +3% in pre-market trading after the mobile advertising platform reported stronger-than-expected Q1 results and issued above-consensus Q2 revenue guidance.
Arm Holdings (ARM) slumped over -6% in pre-market trading after CEO Rene Haas cautioned about weakness in the smartphone industry, denting a vital source of the company’s revenue.
Fastly (FSLY) plummeted more than -21% in pre-market trading despite the cloud computing company posting strong Q1 results and raising its full-year guidance.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - May 7th
McDonald’s (MCD), Gilead Sciences (GILD), Howmet Aerospace (HWM), McKesson (MCK), Cloudflare (NET), Airbnb (ABNB), Monster Beverage (MNST), CoreWeave (CRWV), Motorola Solutions (MSI), Republic Services (RSG), Ubiquiti (UI), Sempra (SRE), Wheaton Precious Metals (WPM), W.W. Grainger (GWW), Microchip Technology (MCHP), Cheniere Energy (LNG), Vistra (VST), Targa Resources (TRGP), Coinbase Global (COIN), Datadog (DDOG), Zoetis (ZTS), Rocket Lab (RKLB), Rocket Companies (RKT), Block (XYZ), Becton, Dickinson and Company (BDX), Consolidated Edison (ED), Kenvue (KVUE), Cheniere Energy Partners (CQP), Natera (NTRA), Insmed (INSM), Tapestry (TPR), Expedia Group (EXPE), Mettler-Toledo International (MTD), MACOM Technology Solutions Holdings (MTSI), Formula One Group (FWONA), Formula One Group (FWONK), Affirm Holdings (AFRM), US Foods Holding (USFD), Corpay (CPAY), Evergy (EVRG), Viatris (VTRS), The Carlyle Group (CG), Akamai Technologies (AKAM), Toast (TOST), Warner Music Group (WMG), News Corporation (NWS), News Corporation (NWSA), Lamar Advertising Company (LAMR), Reinsurance Group of America (RGA), Applied Optoelectronics (AAOI), BridgeBio Pharma (BBIO), MP Materials (MP), Globus Medical (GMED), HubSpot (HUBS), DraftKings (DKNG), Guardant Health (GH), Gen Digital (GEN), Unity Software (U), The Trade Desk (TTD), Wynn Resorts (WYNN), Arrowhead Pharmaceuticals (ARWR), Essential Utilities (WTRG), Texas Roadhouse (TXRH), Bentley Systems (BSY), Arrow Electronics (ARW), American Healthcare REIT (AHR), Allegro MicroSystems (ALGM), Charles River Laboratories International (CRL), CareTrust REIT (CTRE), StandardAero (SARO), ESCO Technologies (ESE), Celsius Holdings (CELH), Vaxcyte (PCVX), Installed Building Products (IBP), Lincoln National (LNC), Clearwater Analytics Holdings (CWAN), Primo Brands (PRMB), GATX Corporation (GATX), The Middleby Corporation (MIDD), JFrog (FROG), Clearway Energy (CWEN), ESAB Corporation (ESAB), USA Rare Earth (USAR), Century Aluminum Company (CENX), Nexstar Media Group (NXST), Dropbox (DBX), Loar Holdings (LOAR), Genpact (G), EPAM Systems (EPAM), Blackstone Secured Lending Fund (BXSL), Scholar Rock Holding (SRRK), Xenon Pharmaceuticals (XENE), OUTFRONT Media (OUT), Paylocity Holding (PCTY), HA Sustainable Infrastructure Capital (HASI), Lantheus Holdings (LNTH), PTC Therapeutics (PTCT), Lyft, Inc. (LYFT), Teleflex (TFX), Diodes (DIOD), MarketAxess Holdings (MKTX), Opendoor Technologies (OPEN), BGC Group (BGC), Planet Fitness (PLNT), Main Street Capital (MAIN), Nelnet (NNI), Vontier (VNT), Axcelis Technologies (ACLS), Post Holdings (POST), Fortune Brands Innovations (FBIN), Ligand Pharmaceuticals (LGND), MDU Resources Group (MDU), NuScale Power (SMR), Crinetics Pharmaceuticals (CRNX), ACI Worldwide (ACIW), Power Integrations (POWI), Griffon (GFF), International Seaways (INSW), WillScot Holdings (WSC), Synaptics (SYNA), Trex Company (TREX), Shake Shack (SHAK), Kontoor Brands (KTB), SoundHound AI (SOUN), RingCentral (RNG).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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ACI Worldwide Reports Strong First Quarter 2026 Results and Raises Full-Year GuidanceMay 7, 2026
ACI Worldwide First Quarter 2026 Earnings Presentation
Q1 2026 HIGHLIGHTS
Revenue of $426 million increased 8% (6% in constant currency) GAAP net income of $38 million and adjusted EBITDA of $105 million increased 12% (8% in constant currency) GAAP EPS of $0.37 and adjusted EPS of $0.61 increased 20% (15% in constant currency) Repurchased 1.5 million shares for $65 million Raising full-year 2026 guidance range for both revenue & adjusted EBITDA
OMAHA, Neb., May 07, 2026--(BUSINESS WIRE)--ACI Worldwide (NASDAQ: ACIW), a leading provider of global payments technology, today announced financial results for the quarter ended March 31, 2026.
"Payments modernization continues to accelerate, and ACI is at the center of it," said Thomas Warsop, President and CEO of ACI Worldwide. "In the quarter, Real Time Payments and Merchant each grew more than 20%, Biller delivered 10% growth on top of last year’s double‑digit performance, and new ARR bookings grew 39% across the company. At the same time, our ACI Connetic pipeline continues to expand, underscoring strong market demand for our cloud‑native payments platform. The decision last year to operate our Payment Software and Biller businesses as two distinct segments has sharpened our focus, accelerated organic growth, and consistently enabled us to outperform expectations. We are committed to our capital allocation framework, investing in organic growth, pursuing strategic M&A, and returning capital to shareholders."
"We entered 2026 with momentum, executed ahead of expectations in the first quarter, and are raising our full‑year outlook," Warsop concluded.
Q1 2026 FINANCIAL SUMMARY
In Q1 2026, total revenue was $426 million, up 8%, from Q1 2025, or up 6% on a constant currency basis. Recurring revenue was $313 million, up 10% from Q1 2025, or up 8% on a constant currency basis. Net income of $38 million in Q1 2026 compares to net income of $59 million in Q1 2025, which included a $22 million after-tax gain on the sale of our minority interest in Mindgate. GAAP diluted EPS in Q1 2026 was $0.37 and adjusted diluted EPS was $0.61, up 20% from Q1 2025, or up 15% on a constant currency basis.
Total adjusted EBITDA in Q1 2026 was $105 million, up 12% from Q1 2025, or up 8% on a constant currency basis. Net adjusted EBITDA margin in Q1 2026 was 38%, up from 36% in Q1 2025.
PAYMENT SOFTWARE SEGMENT RESULTS
Payment Software revenue in Q1 2026 was $214 million, up 6%, from Q1 2025, or up 2% on a constant currency basis. The segment saw particular strength from Real Time Payments and Merchant, which increased 22% and 21% on a constant currency basis, respectively, versus Q1 2025. Payments Intelligence revenue decreased 3% on a constant currency basis in the quarter. Issuing and Acquiring revenue decreased 6% on a constant currency basis, against a strong prior-year comparison that saw 87% growth in Q1 2025. Recurring revenue in the segment, which represents SaaS and Maintenance revenues, increased 9%, versus Q1 2025, or 6% on a constant currency basis. SaaS revenue in Payment Software was $50 million, up 15% versus Q1 2025, or up 11% on a constant currency basis.
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Payment Software adjusted EBITDA in Q1 2026 was $113 million, up 6% on a reported basis, or up 2% on a constant currency basis from Q1 2025. Net adjusted EBITDA margin was 53%, consistent with Q1 2025.
BILLER SEGMENT RESULTS
Biller revenue in Q1 2026 was $212 million, up 10% from Q1 2025 on a reported and constant currency basis. The increase was driven by higher transaction volumes with existing customers and new customer wins. Biller revenue, net of interchange fees, was $66 million, up 5%, from Q1 2025.
Biller adjusted EBITDA in Q1 2026 was $34 million, up 10%, from Q1 2025. Net adjusted EBITDA margin, net of interchange fees, was 51%, up from 49% in Q1 2025, reflecting operating leverage from incremental volumes generated by existing customers.
NEW BOOKINGS
Net new ARR bookings in Q1 2026 were $12 million, up 39%, from Q1 2025. New license and services bookings were $50 million in Q1 2026, consistent with Q1 2025.
BALANCE SHEET AND LIQUIDITY, CASH FLOW, AND REPURCHASES
ACI ended Q1 2026 with $162 million in cash on hand and a debt balance of $812 million, representing a net debt leverage ratio of 1.3x adjusted EBITDA. ACI had total cash and available liquidity under its credit facility of $560 million. Operating cash flows were $64 million in Q1 2026, down from $78 million in Q1 2025, reflecting a higher concentration of contract signings late in the quarter.
During Q1 2026, the company repurchased 1.5 million shares for approximately $65 million. Since the start of 2025, the company has bought back 5.7 million shares, or over 5% of total shares outstanding. The company has approximately $391 million remaining available on the share repurchase authorization and continues to expect to allocate 50-60% of operating cash flow to share repurchases for the full year, subject to market conditions.
RAISING 2026 GUIDANCE
Based on Q1 2026 performance and the strength of its pipeline, the company is raising its full-year 2026 guidance. The company now expects revenue in the range of $1.89 billion to $1.92 billion, up from the prior range of $1.88 billion to $1.91 billion, and adjusted EBITDA in the range of $540 million to $555 million, up from $530 million to $550 million. For Q2 2026, the company expects revenue of $420 million to $440 million, and adjusted EBITDA of $85 million to $95 million.
CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS
Today, management will host a conference call at 8:30 a.m. ET to discuss these results.
Participants may access the call as follows:
Webcast: http://investor.aciworldwide.com/
Pre-registration (recommended): https://events.q4inc.com/analyst/134451343?pwd=FRT1UsXC
Dial-in: +1 833 461 5787
Conference ID: 134451343
Pre-registration provides a unique passcode to join without operator assistance.
About ACI Worldwide
ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers, and merchants can drive growth, while continuously modernizing their payment infrastructures, simply and securely. With 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities.
© Copyright ACI Worldwide, Inc. 2026.
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties' trademarks referenced are the property of their respective owners.
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction-related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP.
We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include:
Adjusted EBITDA: net income (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization and stock-based compensation, as well as significant transaction-related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income (loss). Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass-through interchange revenue. Net Adjusted EBITDA Margin should be considered in addition to, rather than as a substitute for, net income (loss). Adjusted Diluted EPS: diluted EPS plus tax effected significant transaction related items, amortization of acquired intangibles and software, and non-cash stock-based compensation. Adjusted diluted EPS should be considered in addition to, rather than as a substitute for, diluted EPS. Recurring Revenue: revenue from software as a service and platform as a service fees and maintenance fees. Recurring revenue should be considered in addition to, rather than as a substitute for, total revenue. ARR: New annual recurring revenue expected to be generated from new accounts, new applications, and add-on sales bookings contracts signed in the period.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as "believes," "will," "expects," "anticipates," "intends," and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements in this press release include, but are not limited to: (i) payments modernization continues to accelerate, and ACI is at the center of it, (ii) our ACI Connetic pipeline continues to expand, underscoring strong market demand for our cloud‑native payments platform, (iii) we are committed to our capital allocation framework, investing in organic growth, pursuing strategic M&A, and returning capital to shareholders, (iv) our full‑year outlook including Q2 2026 and full-year 2026 revenue and adjusted EBITDA financial guidance, and (v) expectations to allocate 50-60% of operating cash flow to share repurchases for the full year, subject to market conditions.
All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, business interruptions, cybersecurity incidents or failure of our information technology and communication systems, security breaches, reliance on third-party cloud infrastructure and related services, reliance on third-parties, our ability to attract and retain senior management personnel and skilled technical employees, future acquisitions, strategic partnerships and investments, divestitures and other restructuring activities, implementation and success of our strategy, anti-takeover provisions, exposure to credit or operating risks arising from certain payment funding methods, loss caused by theft or fraud, customer reluctance to switch to a new vendor, our ability to adequately defend our intellectual property, litigation, consent orders and other compliance agreements, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, adoption of ACI Connetic, adverse changes in the global economy, compliance of our products with applicable legislation, governmental regulations and industry standards, the complexity of our products and services and the risk that they may contain hidden defects, legal and business risks from artificial intelligence technology incorporated into our products, risks to our business from the use of artificial intelligence by our workforce, complex regulations applicable to our payments business, our compliance with privacy and cybersecurity regulations, compliance with requirements of the payment card networks and Nacha, exposure to unknown tax liabilities, changes in tax laws and regulations, consolidations and failures in the financial services industry, volatility in our stock price, demand for our products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, changes in card association and debit network fees or products, impairment of our goodwill or intangible assets, the accuracy of management’s backlog estimates, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, restrictions and other financial covenants in our debt agreements, our existing levels of debt, incurring additional debt, events outside of our control including natural disasters, wars, and outbreaks of disease, and revenues or revenue mix below expectations. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.
ACI WORLDWIDE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited and in thousands) March 31,
2026 December 31,
2025 ASSETS Current assets Cash and cash equivalents $ 161,757 $ 196,462 Receivables, net of allowances 456,831 445,866 Settlement assets 460,893 397,346 Prepaid expenses 35,705 29,876 Other current assets 17,821 19,564 Total current assets 1,133,007 1,089,114 Noncurrent assets Accrued receivables, net 369,078 391,719 Property and equipment, net 37,528 37,363 Operating lease right-of-use assets 26,526 28,733 Software, net 72,063 77,523 Goodwill 1,231,026 1,231,128 Intangible assets, net 141,439 147,062 Deferred income taxes, net 66,233 73,124 Other noncurrent assets 27,722 29,141 TOTAL ASSETS $ 3,104,622 $ 3,104,907 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 61,842 $ 64,931 Settlement liabilities 459,870 396,034 Employee compensation 31,716 56,142 Current portion of long-term debt 40,957 40,941 Deferred revenue 79,344 73,637 Other current liabilities 65,650 73,958 Total current liabilities 739,379 705,643 Noncurrent liabilities Deferred revenue 12,651 13,620 Long-term debt 766,438 776,667 Deferred income taxes, net 38,006 38,514 Operating lease liabilities 20,500 22,609 Other noncurrent liabilities 27,012 28,776 Total liabilities 1,603,986 1,585,829 Commitments and contingencies Stockholders’ equity Preferred stock — — Common stock 702 702 Additional paid-in capital 771,834 761,523 Retained earnings 1,863,049 1,824,743 Treasury stock (1,026,803 ) (964,752 ) Accumulated other comprehensive loss (108,146 ) (103,138 ) Total stockholders’ equity 1,500,636 1,519,078 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 3,104,622 $ 3,104,907
ACI WORLDWIDE, INC.AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except per share amounts) Three Months Ended March 31, 2026 2025 Revenues Software as a service and platform as a service $ 261,957 $ 237,083 License 88,041 84,493 Maintenance 50,918 48,642 Services 24,833 24,347 Total revenues 425,749 394,565 Operating expenses Cost of revenue (1) 228,459 213,378 Research and development 44,092 38,908 Selling and marketing 30,236 32,186 General and administrative 40,216 27,592 Depreciation and amortization 25,256 23,985 Total operating expenses 368,259 336,049 Operating income 57,490 58,516 Other income (expense) Interest expense (12,198 ) (14,683 ) Interest income 3,606 4,064 Other, net 1,526 23,740 Total other income (expense) (7,066 ) 13,121 Income before income taxes 50,424 71,637 Income tax expense 12,118 12,767 Net income $ 38,306 $ 58,870 Income per common share Basic $ 0.38 $ 0.56 Diluted $ 0.37 $ 0.55 Weighted average common shares outstanding Basic 101,922 105,350 Diluted 102,843 106,827
(1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale.
ACI WORLDWIDE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net income $ 38,306 $ 58,870 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation 3,400 3,156 Amortization 21,919 20,829 Amortization of operating lease right-of-use assets 2,337 2,435 Amortization of deferred debt issuance costs 412 650 Deferred income taxes 6,328 (2,463 ) Stock-based compensation expense 16,957 11,627 Gain on sale of equity investment — (25,927 ) Other (590 ) (718 ) Changes in operating assets and liabilities: Receivables 10,160 41,640 Accounts payable 937 7,479 Accrued employee compensation (24,289 ) (25,182 ) Deferred revenue 4,903 (4,648 ) Other current and noncurrent assets and liabilities (16,533 ) (9,527 ) Net cash flows from operating activities 64,247 78,221 Cash flows from investing activities: Purchases of property and equipment (3,003 ) (2,170 ) Purchases of software (11,508 ) (6,759 ) Proceeds from sale of equity investment — 46,021 Net cash flows from investing activities (14,511 ) 37,092 Cash flows from financing activities: Proceeds from issuance of common stock 905 813 Proceeds from exercises of stock options 64 582 Repurchase of stock-based compensation awards for tax withholdings (3,839 ) (7,070 ) Repurchases of common stock (65,277 ) (14,408 ) Proceeds from revolving credit facility 15,000 — Repayment of revolving credit facility (15,000 ) (70,000 ) Repayment of term portion of credit agreement (10,625 ) (9,375 ) Payments on or proceeds from other debt, net (3,539 ) (4,217 ) Net increase in settlement assets and liabilities 18,126 88,324 Net cash flows from financing activities (64,185 ) (15,351 ) Effect of exchange rate fluctuations on cash (2,419 ) 1,791 Net increase (decrease) in cash and cash equivalents (16,868 ) 101,753 Cash and cash equivalents, including settlement deposits, beginning of period 258,996 265,018 Cash and cash equivalents, including settlement deposits, end of period $ 242,128 $ 366,771 Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets Cash and cash equivalents $ 161,757 $ 230,057 Settlement deposits 80,371 136,714 Total cash and cash equivalents $ 242,128 $ 366,771
Three Months Ended March 31, Adjusted EBITDA (millions) 2026 2025 Net income $ 38.3 $ 58.9 Plus: Income tax expense 12.1 12.8 Net interest expense 8.6 10.6 Net other income (1.5 ) (23.7 ) Depreciation expense 3.4 3.2 Amortization expense 21.9 20.8 Non-cash stock-based compensation expense 17.0 11.6 Adjusted EBITDA before significant transaction-related expenses $ 99.8 $ 94.1 Significant transaction-related expenses: Cost reduction strategies $ 5.4 $ — Adjusted EBITDA $ 105.2 $ 94.1 Revenue, net of interchange: Revenue $ 425.7 $ 394.6 Interchange 146.2 130.8 Revenue, net of interchange $ 279.5 $ 263.8 Net adjusted EBITDA margin 38 % 36 %
Three Months Ended March 31, Segment Information (millions) 2026 2025 Revenue Payment Software $ 213.5 $ 200.7 Biller 212.3 193.9 Total $ 425.7 $ 394.6 Recurring revenue Payment Software $ 100.6 $ 91.9 Biller 212.3 193.8 Total $ 312.9 $ 285.7 Segment adjusted EBITDA Payment Software $ 113.3 $ 106.6 Biller 34.0 30.9
Note: Amounts may not recalculate due to rounding.
Three Months Ended March 31, 2026 2025 EPS Impact of Non-cash and Significant Transaction-related Items (millions) EPS Impact $ in Millions (Net of Tax) EPS Impact $ in Millions (Net of Tax) GAAP net income $ 0.37 $ 38.3 $ 0.55 $ 58.9 Adjusted for: Gain on sale of equity investment — — (0.20 ) (21.7 ) Significant transaction-related expenses 0.04 4.1 — — Amortization of acquisition-related intangibles 0.04 4.2 0.04 4.1 Amortization of acquisition-related software 0.03 3.3 0.03 3.2 Non-cash stock-based compensation 0.13 13.4 0.09 9.2 Total adjustments $ 0.24 $ 25.0 $ (0.04 ) $ (5.2 ) Adjusted Diluted EPS $ 0.61 $ 63.3 $ 0.51 $ 53.7
Three Months Ended March 31, Recurring Revenue (millions) 2026 2025 SaaS and PaaS fees $ 262.0 $ 237.1 Maintenance fees 50.9 48.6 Recurring revenue $ 312.9 $ 285.7
New Bookings (millions) Three Months Ended March 31, TTM Ended March 31, 2026 2025 2026 2025 Annual recurring revenue (ARR) bookings $ 12.4 $ 8.9 $ 73.8 $ 68.3 License and services bookings 49.5 50.0 254.1 312.8
Note: Amounts may not recalculate due to rounding.
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Contacts
For more information contact:
Investor Relations
John Kraft
SVP, Head of Strategy and Finance
305-894-2223 / john.kraft@aciworldwide.com
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