A payments technology company whose software lets banks, merchants, and billers process card payments, real-time transfers, and fraud checks. Its Payments Orchestration Platform serves tens of thousands of merchants, including most of the world's largest retailers. Founded in 1975 in Omaha as Applied Communications Inc., the "ACI" initials stuck even after the firm took the ACI Worldwide name in 2007. Its Speedpay bill-payment arm handles everyday bills like utilities and mortgages for consumers.
Net income more than doubled to $31.8M as license revenue rose 21% and interest expense fell 18%.
License rebounded 21%, reversing last quarter's slowdown. Total revenue rose 7% to $430.4M and more than doubled to $31.8M, driven by renewal timing and lower interest costs on reduced debt. The Biller 's interchange cost persisted, but the company's recurring SaaS base grew 5% and held above $7B.
Key takeaways
License rose 21% to $65.6M, which management attributed to the timing of renewals and new capacity events, a clear reversal from the 4% growth in Q1 2026 and the 14% decline in Q2 2025.
SaaS and PaaS , the largest and most stream, grew 5% to $271.3M, decelerating from the 10-15% pace of the prior four quarters, though management cited new customer go-lives and higher transaction volumes as drivers.
more than doubled to $31.8M, aided by an 18% decline in to $16.3M as fell 9% , and a swing in other income from a $6.4M loss to a $0.7M gain.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue rose 7% to $430M, driven by license and SaaS growth, while net income more than doubled to $32M.
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Total increased 7% to $430.4M, with license revenue up 21% due to renewal timing and new capacity events, and SaaS/PaaS up 5% on new go-lives and higher transaction volumes.
grew 28% to $44.6M, as a 5% rise in operating expenses was outpaced by growth; cost of revenue rose 6% mainly from a $14.6M increase in payment card .
rose 28% to $44.6M, but contracted 4.2 points sequentially to 42.2% as cost of rose 6%, including a $14.6M increase in payment card interchange fees tied to Biller growth.
The Biller 's fell $5.0M as a $17.1M increase in cash operating expenses, mainly interchange and processing fees, outpaced growth, extending a multi-quarter pattern of .
The 60-month reached $7.28B, with renewal backlog rising to $5.15B from $4.96B at year-end 2025, while committed backlog declined to $2.13B from $2.30B, signaling future visibility weighted toward renewals.
What changed
License in Q2 FY2026 was flagged to watch after Q1's modest 4% growth: the 21% increase suggests the renewal cycle is again producing second-quarter strength, though the $65.6M figure is below the $84.5M peak in Q1 2025, consistent with a normalization toward a lower but steadier run-rate.
SaaS and PaaS growth was flagged to see if the 10-15% pace could be sustained: the 5% growth in Q2 2026 represents a deceleration, and whether this is a one-quarter pause or a new, lower growth rate will be a key question for the second half.
General and administrative expenses were flagged after a 46% spike in Q1 2026: the $37.7M figure in Q2 2026 is flat sequentially, suggesting the Q1 increase in professional and legal fees and cost reduction charges was a one-quarter event rather than a new baseline.
Biller margin was flagged to see if the interchange cost moderates: the $5.0M decline in , driven by a $17.1M increase in cash operating expenses, shows the headwind persisted and intensified this quarter.
was flagged to see if the February 2024 refinancing begins to reduce the burden: the 18% decline to $16.3M in Q2 2026, from $19.9M a year ago, is the first clear sign that lower debt balances are translating into lower interest costs.
What to watch
SaaS and PaaS growth in Q3 FY2026 to determine whether the 5% pace in Q2 was a one-quarter deceleration or the start of a lower growth trajectory, which would shift the earnings mix back toward lumpier license revenue.
Biller margin in Q3 FY2026 to see if the $17.1M increase in cash operating expenses, mainly interchange fees, represents a new run-rate or if the company can pass through or mitigate these costs after multiple quarters of compression.
License in Q3 FY2026 to see whether the Q2 renewal strength continues into the seasonally larger third quarter, repeating the pattern of prior years, or if the full-year run-rate is normalizing at a lower level.
Committed conversion in the second half of FY2026, given the decline to $2.13B from $2.30B at year-end 2025, to assess whether the shift toward renewal backlog signals a slowdown in new business or simply the timing of large deal signings.
surged 161% to $31.8M, helped by an 18% drop in on lower debt balances and a swing in other income from a $6.4M loss to a $0.7M gain.
Payment Software rose $10.3M on higher license , while Biller segment adjusted EBITDA fell $5.0M as a $17.1M increase in cash operating expenses, including , outpaced revenue gains.
Total 60-month stood at $7.28B as of June 30, 2026, with committed backlog declining to $2.13B from $2.30B at year-end 2025, while renewal backlog increased to $5.15B.
Liquidity remained strong at $540.5M, though down from $594.6M at year-end, primarily due to $107.4M in share repurchases and term loan payments, partially offset by .
Quantitative and Qualitative Disclosures About Market Risk
Foreign exchange and floating-rate debt are the primary market risks; no material change from prior disclosures.
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The company states there have been no material changes in market risk for the six months ended June 30, 2026, aside from interest rates, inflation, and global financial market uncertainty.
is predominantly denominated in U.S. dollars, so a decline in local foreign currencies makes products more expensive for foreign customers and can impair receivable collections.
Where is in U.S. dollars but operating expenses are in local currency, a weaker U.S. dollar unfavorably impacts operating margins.
The company uses natural hedging by entering contracts in local currencies in Australia, Canada, the UK, other European countries, Brazil, India, and Singapore, and does not use foreign currency hedging derivatives.
A hypothetical 10% change in effective interest rates would change annual interest income by $0.3 million and on the $826.3 million by approximately $4.5 million.
From time to time, we are involved in various litigation matters arising in the ordinary course of our business. We are not currently a party to any legal proceedings the adverse outcome of which, individually or in the aggregate, we believe would be likely to have a material ef…
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From time to time, we are involved in various litigation matters arising in the ordinary course of our business. We are not currently a party to any legal proceedings the adverse outcome of which, individually or in the aggregate, we believe would be likely to have a material effect on our financial condition or results of operations.
There have been no material changes to the risk factors disclosed in Item 1A of our Form 10-K for the fiscal year ended December 31, 2025. Additional risks and uncertainties, including risks and uncertainties not presently known to us, or that we currently deem immaterial, could…
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There have been no material changes to the risk factors disclosed in Item 1A of our Form 10-K for the fiscal year ended December 31, 2025. Additional risks and uncertainties, including risks and uncertainties not presently known to us, or that we currently deem immaterial, could also have an adverse effect on our business, financial condition and/or results of operations.