ACI Worldwide announced financial results for the first quarter ended March 31, 2025, reporting total revenue of $395 million, a 25% increase from Q1 2024. Recurring revenue grew 8% to $286 million, representing 72% of total revenue. Net income reached $59 million, a significant improvement from a net loss of $8 million in Q1 2024, and included a $22 million after-tax gain from the sale of a minority interest in Mindgate.
Adjusted EBITDA for Q1 2025 surged 95% year-over-year to $94 million, demonstrating strong operating leverage. The newly formed Payment Software segment, combining former Bank and Merchant businesses, saw revenue soar 42%, driven by modernization efforts and new logo wins. The Biller segment also contributed positively with an 11% revenue increase.
Given the strong start to the year, ACI Worldwide raised its full-year 2025 revenue guidance to a range of $1.690 billion to $1.720 billion, up from the previous range of $1.685 billion to $1.715 billion. Adjusted EBITDA guidance was maintained at $480 million to $495 million. The company ended Q1 2025 with a net debt leverage ratio of 1.2x adjusted EBITDA and repurchased 1 million shares for $52 million.
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