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Segment Information | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Information | Segment Information In 2025, the Company made a change in organizational structure to align with its strategic direction. As a result of this change, the Company reassessed its segment reporting structure due to changes in leadership structure and how the Company's chief operating decision maker ("CODM") assesses the Company's performance and allocates resources. Beginning in the first quarter of 2025, the Company reported financial performance based on its new operating segments, Payment Software, which includes bank and merchant customers, and Biller. The Company continues to use Segment Adjusted EBITDA as a measure of segment profitability. The Company’s Chief Executive Officer is also the chief operating decision maker. The CODM, together with other senior management personnel, focus their review on consolidated financial information and the allocation of resources based on operating results, including revenues and Segment Adjusted EBITDA, for each segment, separate from corporate operations. No operating segments have been aggregated to form the reportable segments. Payment Software. Payment Software drives payments orchestration for banks and merchants. ACI provides payment solutions to large and mid-size banks globally for retail banking, digital, and other payment services. These solutions transform banks’ complex payment environments to speed time to market, reduce costs, and deliver a consistent experience to customers across channels while enabling them to prevent and rapidly react to fraudulent activity. In addition, they enable banks to meet the requirements of different real-time payments schemes and to quickly create differentiated products to meet consumer, business, and merchant demands. ACI’s support of merchants globally includes Tier 1 and Tier 2 merchants (in-store and online), payment service providers, independent selling organizations, value-added resellers, and acquirers who service them. These customers operate in a variety of verticals, including general retail, grocery, hospitality, dining, travel and ticketing, fuel, telecommunications, and others. The Company's solutions provide merchants with a secure, omnichannel payments platform that gives them flexibility and independence. The Company also offers secure solutions to online-only merchants that provide consumers with a convenient and seamless way to shop. Biller. Within the Biller segment, ACI provides electronic bill presentment and payment services to companies operating in the consumer finance, insurance, healthcare, higher education, utility, government, mortgage, subscription provider, and telecommunications categories. The solutions enable these customers to support a wide range of payment options and provide a convenient consumer payments experience that drives consumer loyalty and increases revenue. ACI also provides fraud abuse protection to its Biller customers leveraging its proven AI, human, and data capabilities. Revenue is attributed to the reportable segments based upon customer and product. Expenses are attributed to the reportable segments in one of three methods: (1) direct costs of the segment, (2) labor costs that can be attributed based upon time tracking for individual projects, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities. Segment Adjusted EBITDA is the measure reported to the CODM for purposes of making decisions on allocating resources and assessing the performance of the Company’s segments, including budget and forecast-to-actual variances, and, therefore, Segment Adjusted EBITDA is presented in conformity with ASC 280, Segment Reporting. Segment Adjusted EBITDA is defined as earnings from operations before interest, income tax expense (benefit), depreciation and amortization (“EBITDA”) adjusted to exclude net other income (expense). Corporate and unallocated expenses includes global facilities and information technology costs and long-term product roadmap expenses in addition to corporate overhead costs that are not allocated to reportable segments. The overhead costs relate to human resources, finance, legal, accounting, and merger and acquisition activity. These costs along with depreciation and amortization and stock-based compensation are not considered when management evaluates segment performance. The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands):
| Three Months Ended September 30, 2025 |  |  |  |
| Payment Software |  | Biller |  | Total |  |  |  |
Revenue | $ | 284,022 |  |  | $ | 198,337 |  |  | $ | 482,359 |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |
Interchange (a) | — |  |  | 135,253 |  |  | 135,253 |  |  |  |  |
Global technology and innovation (b) | 69,339 |  |  | 12,525 |  |  | 81,864 |  |  |  |  |
Other segment items (c) | 33,017 |  |  | 18,473 |  |  | 51,490 |  |  |  |  |
Segment Adjusted EBITDA | $ | 181,666 |  |  | $ | 32,086 |  |  | $ | 213,752 |  |  |  |  |
Reconciliation of income before income taxes |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  |  |  | (24,140) |  |  |  |  |
Stock-based compensation expense |  |  |  |  | (17,381) |  |  |  |  |
Corporate and unallocated expenses |  |  |  |  | (44,525) |  |  |  |  |
Interest, net |  |  |  |  | (11,135) |  |  |  |  |
Other, net |  |  |  |  | 1,551 |  |  |  |  |
Income before income taxes |  |  |  |  | $ | 118,122 |  |  |  |  |
| Three Months Ended September 30, 2024 |  |  |  |
| Payment Software |  | Biller |  | Total |  |  |  |
Revenue | $ | 272,151 |  |  | $ | 179,601 |  |  | $ | 451,752 |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |
Interchange (a) | — |  |  | 117,054 |  |  | 117,054 |  |  |  |  |
Global technology and innovation (b) | 60,600 |  |  | 12,169 |  |  | 72,769 |  |  |  |  |
Other segment items (c) | 30,896 |  |  | 19,458 |  |  | 50,354 |  |  |  |  |
Segment Adjusted EBITDA | $ | 180,655 |  |  | $ | 30,920 |  |  | $ | 211,575 |  |  |  |  |
Reconciliation of income before income taxes |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  |  |  | (31,515) |  |  |  |  |
Stock-based compensation expense |  |  |  |  | (11,346) |  |  |  |  |
Corporate and unallocated expenses |  |  |  |  | (46,128) |  |  |  |  |
Interest, net |  |  |  |  | (14,485) |  |  |  |  |
Other, net |  |  |  |  | (823) |  |  |  |  |
Income before income taxes |  |  |  |  | $ | 107,278 |  |  |  |  |
| Nine months ended September 30, 2025 |  |  |  |
| Payment Software |  | Biller |  | Total |  |  |  |
Revenue | $ | 664,090 |  |  | $ | 614,092 |  |  | $ | 1,278,182 |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |
Interchange (a) | — |  |  | 417,144 |  |  | 417,144 |  |  |  |  |
Global technology and innovation (b) | 199,183 |  |  | 37,763 |  |  | 236,946 |  |  |  |  |
Other segment items (c) | 93,402 |  |  | 56,419 |  |  | 149,821 |  |  |  |  |
Segment Adjusted EBITDA | $ | 371,505 |  |  | $ | 102,766 |  |  | $ | 474,271 |  |  |  |  |
Reconciliation of income before income taxes |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  |  |  | (72,226) |  |  |  |  |
Stock-based compensation expense |  |  |  |  | (45,419) |  |  |  |  |
Corporate and unallocated expenses |  |  |  |  | (135,546) |  |  |  |  |
Interest, net |  |  |  |  | (32,347) |  |  |  |  |
Other, net |  |  |  |  | 18,898 |  |  |  |  |
Income before income taxes |  |  |  |  | $ | 207,631 |  |  |  |  |
| Nine months ended September 30, 2024 |  |  |  |
| Payment Software |  | Biller |  | Total |  |  |  |
Revenue | $ | 594,974 |  |  | $ | 546,276 |  |  | $ | 1,141,250 |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |
Interchange (a) | — |  |  | 353,648 |  |  | 353,648 |  |  |  |  |
Global technology and innovation (b) | 179,153 |  |  | 35,955 |  |  | 215,108 |  |  |  |  |
Other segment items (c) | 88,290 |  |  | 57,581 |  |  | 145,871 |  |  |  |  |
Segment Adjusted EBITDA | $ | 327,531 |  |  | $ | 99,092 |  |  | $ | 426,623 |  |  |  |  |
Reconciliation of income before income taxes |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  |  |  | (86,710) |  |  |  |  |
Stock-based compensation expense |  |  |  |  | (30,165) |  |  |  |  |
Corporate and unallocated expenses |  |  |  |  | (123,901) |  |  |  |  |
Interest, net |  |  |  |  | (44,004) |  |  |  |  |
Other, net |  |  |  |  | (1,692) |  |  |  |  |
Income before income taxes |  |  |  |  | $ | 140,151 |  |  |  |  |
(a) Interchange – Interchange costs include all payment card interchange fees, amounts payable to banks, and payment card processing fees associated with providing services to Biller customers. (b) Global Technology & Innovation – (“GTI”) costs include the costs of maintaining software products, as well as the costs required to deliver, install, and support software at customer sites. It also includes maintenance costs, which are the efforts associated with providing the customer with upgrades, 24-hour help desk, post go-live (remote) support, and production-type support for software that was previously installed at a customer location. GTI includes costs to provide SaaS and PaaS services including our data center operations. Service costs including human resource and other incidental costs such as travel and training required for both pre go-live and post go-live support. Such efforts include project management, delivery, product customization and implementation, installation support, consulting, configuration, and on-site support. GTI also includes research and development expenses which are primarily human resource costs related to the creation of new products, improvements made to existing products, as well as compatibility with new operating system releases and generations of hardware. (c) Other segment items – other includes selling and marketing, product management, third-party royalties and other cost of goods sold excluding interchange. Selling and marketing costs, which are the costs related to selling our products to current and prospective customers as well as the costs related to promoting the Company, its products and the research efforts required to measure customers’ future needs and satisfaction levels. Selling costs are primarily the human resource and travel costs related to the effort expended to license our products and services to current and potential clients within defined territories and/or industries as well as the management of the overall relationship with customer accounts. Selling costs also include the costs associated with assisting distributors in their efforts to sell our products and services in their respective local markets. Product management costs are primarily the human resource costs related to developing and documenting our product requirements. Assets are not allocated to segments, and the Company’s CODM does not evaluate operating segments using discrete asset information. The following is revenue by primary solution category for the Company’s reportable segments for the periods indicated (in thousands):
| Three Months Ended September 30, 2025
| Payment Software |  | Biller |  | Total
Primary Solution Categories |  |  |  |  |
Bill Payments | $ | — |  |  | $ | 198,337 |  |  | $ | 198,337 |
Merchant Payments | 50,951 |  |  | — |  |  | 50,951 |
Fraud Management | 15,077 |  |  | — |  |  | 15,077 |
Real-Time Payments | 34,679 |  |  | — |  |  | 34,679 |
Issuing and Acquiring | 183,315 |  |  | — |  |  | 183,315 |
Total | $ | 284,022 |  |  | $ | 198,337 |  |  | $ | 482,359 |
| Three Months Ended September 30, 2024
| Payment Software |  | Biller |  | Total
Primary Solution Categories |  |  |  |  |
Bill Payments | $ | — |  |  | $ | 179,601 |  |  | $ | 179,601 |
Merchant Payments | 50,120 |  |  | — |  |  | 50,120 |
Fraud Management | 18,451 |  |  | — |  |  | 18,451 |
Real-Time Payments | 45,376 |  |  | — |  |  | 45,376 |
Issuing and Acquiring | 158,204 |  |  | — |  |  | 158,204 |
Total | $ | 272,151 |  |  | $ | 179,601 |  |  | $ | 451,752 |
| Nine Months Ended September 30, 2025
| Payment Software |  | Biller |  | Total
Primary Solution Categories |  |  |  |  |
Bill Payments | $ | — |  |  | $ | 614,092 |  |  | $ | 614,092 |
Merchant Payments | 128,265 |  |  | — |  |  | 128,265 |
Fraud Management | 39,812 |  |  | — |  |  | 39,812 |
Real-Time Payments | 99,888 |  |  | — |  |  | 99,888 |
Issuing and Acquiring | 396,125 |  |  | — |  |  | 396,125 |
Total | $ | 664,090 |  |  | $ | 614,092 |  |  | $ | 1,278,182 |
| Nine Months Ended September 30, 2024
| Payment Software |  | Biller |  | Total
Primary Solution Categories |  |  |  |  |
Bill Payments | $ | — |  |  | $ | 546,276 |  |  | $ | 546,276 |
Merchant Payments | 123,865 |  |  | — |  |  | 123,865 |
Fraud Management | 39,145 |  |  | — |  |  | 39,145 |
Real-Time Payments | 96,553 |  |  | — |  |  | 96,553 |
Issuing and Acquiring | 335,411 |  |  | — |  |  | 335,411 |
Total | $ | 594,974 |  |  | $ | 546,276 |  |  | $ | 1,141,250 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Payment Software |  |  |  |  |  |  |
Software as a service and platform as a service | $ | 48,579 |  |  | $ | 43,766 |  |  | $ | 141,165 |  |  | $ | 128,222 |
License | 161,957 |  |  | 157,429 |  |  | 303,161 |  |  | 252,984 |
Maintenance | 51,420 |  |  | 47,559 |  |  | 150,483 |  |  | 144,046 |
Services | 22,066 |  |  | 23,397 |  |  | 69,281 |  |  | 69,722 |
Total | $ | 284,022 |  |  | $ | 272,151 |  |  | $ | 664,090 |  |  | $ | 594,974 |
Biller |  |  |  |  |  |  |
Software as a service and platform as a service | $ | 198,337 |  |  | $ | 179,601 |  |  | $ | 614,092 |  |  | $ | 546,276 |
Total | $ | 198,337 |  |  | $ | 179,601 |  |  | $ | 614,092 |  |  | $ | 546,276 |
The following is the Company's revenue by geographic location for the periods indicated (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Revenue |  |  |  |  |  |  |
United States | $ | 253,443 |  |  | $ | 241,054 |  |  | $ | 766,052 |  |  | $ | 698,704 |
Other | 228,916 |  |  | 210,698 |  |  | 512,130 |  |  | 442,546 |
Total | $ | 482,359 |  |  | $ | 451,752 |  |  | $ | 1,278,182 |  |  | $ | 1,141,250 |
The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
| September 30, 2025 |  | December 31, 2024
Long-lived Assets |  |  |
United States | $ | 1,121,170 |  |  | $ | 1,169,965 |
Other | 791,878 |  |  | 791,793 |
Total | $ | 1,913,048 |  |  | $ | 1,961,758 |
No single customer accounted for more than 10% of the Company's consolidated revenue during the three and nine months ended September 30, 2025 and 2024. The United Kingdom accounted for 12.0% of the Company's consolidated revenue during the three months ended September 30, 2024. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the three and nine months ended September 30, 2025, and nine months ended September 30, 2024.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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