On today's call, we will discuss the company's second quarter 2025 results, as well as our financial outlook for the rest of the year. You can find the full text of both statements in our presentation deck and earnings release, both of which are available on our website and with the SEC. I'm going to start by highlighting some key takeaways of our second quarter results, and then Bobby, in his first earnings call as our CFO, will provide a financial and segment-level review. Revenue was up 7% year-over-year versus Q2 2024, and it was up 15% versus the first half of 2024.

The momentum we're achieving gives us the confidence to raise our full-year guidance for revenue and Adjusted EBITDA for fiscal 2025, and Bobby will discuss that in more detail shortly. Turning to the segments, the Biller Segment was up 16% in Q2 and up 13% for the first half of 2025. That brings our first half 2025 new ARR bookings growth to 71%. Our pipeline is strong, and I'll keep you updated on our progress.

In addition to our continued investment in technology leadership and innovation, we remain committed to returning capital to shareholders. As you know, our quarterly growth rates can fluctuate due to the timing of our term license-based business, with both new contracts and renewals having significant revenue recognition upfront. While Q2 revenue was up 7%, for the first half of 2025, revenue grew 15%. That’s on top of the 10% revenue growth we achieved for the full year 2024.

What went well
  • Total revenue grew 7% year-over-year to $401 million in Q2, and was up 15% for the first half of 2025 (on top of 10% full-year growth in 2024).
  • Biller Segment revenue grew 16% in Q2 (13% in the first half), led by strength in government, consumer finance, and utility markets, including an IRS win.
  • New ARR bookings jumped 86% in the quarter, bringing first-half 2025 new ARR bookings growth to 71%, with a diversified mix of deals across merchants, banks, and billers.
  • Estimated 60-month backlog exceeded $7 billion for the first time, with equal strength across both Payment Software and Biller segments.
  • Launched Connetix, the next-generation cloud-native payments hub, in May, with overwhelmingly positive customer feedback and a strong pipeline.
  • Strong balance sheet: $190 million cash, net leverage ratio of 1.4x (well below the lowered 2x target); repurchased 2.4 million shares (~$119 million) in Q2.
What went wrong
  • Total Adjusted EBITDA fell 13% year-over-year to $181 million in Q2, driven by the quarterly timing of license-based contracts and payment software.
  • Payment Software Segment revenue declined 1% in Q2 and its segment-Adjusted EBITDA decreased 12%, due to renewal calendar timing and strong Q1 new business signings (this was expected and in prior guidance).
  • Cash flow from operating activities was $128 million in the first six months versus $178 million last year, lower largely due to the timing of receivables.

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Reported 2025-08-07 · figures from the Aci Worldwide, Inc. Q2 2025 earnings call.

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