Mission-critical payment switches and Speedpay biller rails generate $338.68M in GAAP EBIT on $1.82B of TTM revenue, yet 6.45% top-line growth and $654.78M in net debt cap fair value at $35.68.
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ACI Worldwide generated $1.82B ($1,820.13M) in trailing twelve-month GAAP revenue (+6.45% year over year), $338.68M in GAAP operating income (18.61% margin), and $311.41M in GAAP free cash flow (17.11% margin) across thousands of global retail banks, central-bank instant-payment schemes, merchants, and consumer billers. [1]
Our variant perception focuses on ASC 606 revenue-recognition cyclicality and gross-margin structure. Under ASC 606, whenever Tier-1 banks renew 5-year on-premise or private-cloud term licenses for BASE24-eps and Postilion payment switches, ACI recognizes the upfront license component immediately upon renewal rather than ratably across 60 months.
[1] That accounting mechanic drove an optical surge from +2.16% revenue growth in FY2023 ($1.45B) to +9.76% in FY2024 ($1.59B) and +10.38% in FY2025 ($1.76B), prompting momentum investors to re-rate ACIW toward $48.87. As that 5-year renewal cohort crests in TTM Q2 2026, top-line growth has already decelerated back to +6.45% while GAAP FCF margin stepped down from 21.54% in FY2024 to 17.11% today.
Furthermore, ACI's consolidated GAAP gross margin sits at 49.08% because its Speedpay Biller Direct segment processes consumer utility, tax, and auto-loan payments where gross interchange and network pass-through costs weigh on gross profit. [1] Deducting $654.78M in remaining net debt ($822.18M total debt less $167.40M cash, or -$6.44 per share) yields an SBC-burdened DCF base value of $35.68 per share (-26.99% downside) and even an unburdened DCF base of $42.98 (-12.05% downside), supporting a disciplined Sell call at $48.87.
Source: ACI Worldwide, Inc. SEC Form 10-K and Form 10-Q filings.
Exhibit 2Data Exhibit
Revenue reached $1.82B as GAAP FCF margin moderated from FY2024's 21.54% renewal peak to 17.11%
Filed annual and TTM GAAP revenue (primary bars) and free cash flow margin (secondary line).
Revenue
FCF margin
Source: ACI Worldwide, Inc. SEC Form 10-K and Form 10-Q filings.
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