Does Raised Revenue Guidance and Strong Cash Flow Shift the Bull Case for ACI Worldwide (ACIW)?

• Earlier this week, ACI Worldwide reported second quarter 2025 results, with revenues rising to US$401.26 million and six-month earnings showing a strong rebound, while also raising its full-year and upcoming quarterly revenue forecasts above previous guidance.
• ACI Worldwide’s combination of stronger cash flow conversion and manageable debt levels highlights improved financial flexibility as the company enters the second half of 2025.
• We’ll explore how the recent increase to full-year revenue guidance could influence ACI Worldwide’s investment narrative and future growth projections.

Find companies with promising cash flow potential yet trading below their fair value.

ACI Worldwide Investment Narrative Recap

For ACI Worldwide shareholders, the core investment belief revolves around the company’s ability to consistently grow its software and payments revenues, driven largely by adoption of next-generation platforms like Kinetic and improved operational scale. The recently raised full-year revenue guidance for 2025 is a positive signal for near-term momentum, but it does not fully resolve the underlying execution risks tied to Kinetic’s rollout, which remains the most important catalyst and risk for the business in the months ahead. Among recent developments, the August 2025 guidance increase for full-year and Q3 revenue stands out. This move provides greater visibility for investors assessing whether ACI’s expanded product suite and payment solutions are translating to tangible revenue growth, a question central to the company's near-term trajectory. But if higher revenue targets are not matched by wider Kinetic adoption or steady margins, investors should be aware that...

Read the full narrative on ACI Worldwide (it's free!)

ACI Worldwide's narrative projects $1.9 billion in revenue and $263.7 million in earnings by 2028. This requires 4.9% yearly revenue growth and a $6 million decrease in earnings from $269.7 million today.

Uncover how ACI Worldwide's forecasts yield a $64.60 fair value, a 48% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community see ACI Worldwide's fair value as ranging from US$37.66 to US$78.42. While expectations differ, your perspective on Kinetic’s market acceptance could shape your own view on the company's future.

Explore 6 other fair value estimates on ACI Worldwide - why the stock might be worth 14% less than the current price!

Build Your Own ACI Worldwide Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ACI Worldwide research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.
• Our free ACI Worldwide research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ACI Worldwide's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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