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ACI Worldwide Q3 revenue beats estimates on Biller segment growth

By Reuters News


Overview

  • Global payments tech firm's Q3 revenue fell 12% yr/yr but beat analyst expectations

  • Adjusted EBITDA for Q3 beat analyst estimates; net income missed expectations

  • Company raised full-year adjusted EBITDA guidance and reiterated revenue outlook


Outlook

  • ACI Worldwide raises 2026 adjusted EBITDA guidance to $550 mln-$565 mln, up from $545 mln-$560 mln

  • Company reiterates 2026 revenue guidance of $1.895 bln-$1.925 bln

  • ACI Worldwide expects Q4 2026 revenue of $612 mln-$642 mln and adjusted EBITDA of $257 mln-$272 mln


Result Drivers

  • LICENSE RENEWAL TIMING - Co said Q3 revenue decline was primarily due to timing of this year's license renewals

  • STRONG ARR BOOKINGS - Net new ARR bookings in Q3 rose 86% yr/yr, reflecting healthy demand across Payment Software and Biller segments, per CEO Thomas Warsop

  • BILLER SEGMENT GROWTH - Biller segment revenue grew 6% yr/yr, benefiting from continued progress on interchange optimization


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$426.81 mln

$421.91 mln (5 Analysts)

Q3 Net Income

Miss

$32.53 mln

$36.92 mln (5 Analysts)

Q3 Adjusted EBITDA

Beat

$98 mln

$92.16 mln (5 Analysts)

Q3 Operating income

Miss

$52.37 mln

$65.45 mln (5 Analysts)

Q3 Pretax Profit

Miss

$42.19 mln

$96.85 mln (5 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the financial technology (fintech) peer group is "buy"

  • Wall Street's median 12-month price target for ACI Worldwide, Inc. is $66.00, about 11.5% above its November 4 closing price of $59.19

  • The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago


Reuters Recommended Reads

  • Nov 2 - Paymentus Q3 revenue beats on higher billers and transaction volumes

  • Nov 3 - Payments platform Block's Q3 profit beats estimates

  • Nov 3 - Flywire Q3 revenue rises, beats analyst estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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