ACIW Nasdaq Earnings call
ACI Worldwide, Inc. (ACIW) · Q1 2026 results and valuation
Share price: $61.85 · 2026-11-11
Results Q1 2026 vs Q4 2025 · previous quarter · published 7 May 2026 and 26 Feb 2026
Net income down 40.5% on the previous quarter, guidance raised. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−40.5%
Net income vs Q4 2025
Guidance raised
Net income 38.3M vs 64.3M
Revenue −11.6%
Against the same quarter last year (Q1 2025) it is −34.9%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 86% of company calls
Answers to analysts: upbeat, in line with the script.
Last call it was different: the answers were more upbeat than the script.
3 · What stood out
Key theme
Adjusted EBITDA reached $105 million, an increase of 12% year-over-year, driven by growth in recurring revenue from software-led offerings.
Valuation
Is ACI Worldwide, Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 7.4% growth a year (3-year revenue growth), the model's fair value is $53.37 a share — the stock trades 16% above it. Today's price assumes 9.2% growth a year.
Current price
$61.85
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+9.2% for 10 yrs
Fair value / share
$53.37
Buy below
$40.03
Price vs fair value
Overvalued 16%
Price vs buy-below price
Overvalued 55%
Read between the lines
-
Guidance ↑
ACIW raised its full-year adjusted EBITDA guidance to a range of $540 million to $555 million, up from $530 million to $550 million.
Source quote
“For the full year, we are raising adjusted EBITDA guidance to a range of $540 million to $555 million, up from $530 million to $550 million, representing growth...”
-
Guidance
The company expects its strategy to enable at least high single-digit organic revenue growth, which supports cash flow conversion and capital allocation.
Source quote
“We expect our strategy to enable us to deliver at least high single-digit organic revenue growth, strong cash flow conversion and the allocation of capital to drive incremental...”
-
Dropped
ACIW's segment revenue grew over 20% as rising real-time payment volumes drove larger total contract values.
Source quote
“That part of the business grew revenue by over 20% as increasing real-time payment volumes drive larger total contract values...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q1 2026. Ring: Q4 2025.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“One renewal that I'd like to highlight provided us an opportunity to improve pricing substantially while offsetting interchange increases, and that shows the strength of the relationship and leadership position...”
“Our growth strategy is built on expanding within our existing customer base in addition to winning new logos and of course, accelerating innovation all along the way.”
“The continued growth in recurring revenue reflects strong momentum and increasing demand from our software-led offerings across both payment software and biller.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-03-31)
| Metric | Q1 2026period end 2026-03-31 | Q4 2025period end 2025-12-31 | Change | Q1 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 425.7M | 481.6M | −11.6% | 394.6M | +7.9% |
| Gross profit | 197.3M | — | 181.2M | +8.9% | |
| Operating income | 57.5M | 108.8M | −47.2% | 58.5M | −1.8% |
| Net income | 38.3M | 64.3M | −40.5% | 58.9M | −34.9% |
| EPS | 0.37 | 0.62 | −40.3% | 0.55 | −32.7% |
| P/E today 23.5 | 20.7 | 22.1 | −1.4 | 21.6 | −0.9 |
Topics
Most discussed now
- ACI Worldwide had a solid start to the year, driven by its progress on its growth initiatives, strong operating discipline and...
- ACI Worldwide continues to see strong new business momentum across utilities, government and...
- ACI Worldwide's strong balance sheet and a highly cash-generative business give us the flexibility to return capital to shareholders while…
- There's a lot of geopolitical unrest, all kinds of things happening in the world, but ACI Worldwide remains absolutely focused on...
Faded since Q4 2025
- Fading ACI Worldwide is already seeing tangible benefits in customer outcomes and productivity.
- Fading ACI Worldwide delivered adjusted EBITDA of $506 million, an increase of 9% year-over-year and expanded net adjusted EBITDA margin to 42%,...
- Fading Total revenue in the quarter was $482 million, up 6% year-over-year, and recurring revenue was $304 million, up 13%, reflecting...
- Fading Net new ARR bookings increased 7% to $70 million, while new license and services bookings were $255 million, down 12%.
Latest announcements
Official filings, newest first.
- Results of operations; Regulation FD disclosure · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Results of operations; Director or officer change; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K