v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company reports financial performance based on its operating segments, Payment Software, which includes bank and merchant customers, and Biller. The Company analyzes 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-sized 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 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, 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 types as well as provide a convenient consumer payments experience that helps billers optimize growth and operational efficiencies while improving customer experience. 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 March 31, 2026
Payment SoftwareBillerTotal
Revenue$213,461 $212,288 $425,749 
Less:
Interchange (a)
— 146,228 146,228 
Global technology and innovation (b)
67,375 11,887 79,262 
Other segment items (c)
32,750 20,204 52,954 
Segment adjusted EBITDA
$113,336 $33,969 $147,305 
Reconciliation of income before income taxes
Depreciation and amortization(25,319)
Stock-based compensation expense(16,957)
Corporate and unallocated expenses(47,539)
Interest, net(8,592)
Other, net1,526 
Income before income taxes
$50,424 
Three Months Ended March 31, 2025
Payment SoftwareBillerTotal
Revenue
$200,725 $193,840 $394,565 
Less:
Interchange (a)
— 130,828 130,828 
Global technology and innovation (b)
64,667 13,236 77,903 
Other segment items (c)
29,497 18,881 48,378 
Segment adjusted EBITDA
$106,561 $30,895 $137,456 
Reconciliation of loss before income taxes
Depreciation and amortization(23,985)
Stock-based compensation expense(11,627)
Corporate and unallocated expenses(43,328)
Interest, net(10,619)
Other, net23,740 
Income before income taxes
$71,637 

(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, are included. 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 March 31, 2026
Payment SoftwareBillerTotal
Primary solution categories
Bill payments
$— $212,288 $212,288 
Merchant payments
47,026 — 47,026 
Payments intelligence
9,437 — 9,437 
Real-time payments
32,427 — 32,427 
Issuing and acquiring
124,571 — 124,571 
Total$213,461 $212,288 $425,749 
Three Months Ended March 31, 2025
Payment SoftwareBillerTotal
Primary solution categories
Bill payments
$— $193,840 $193,840 
Merchant payments
37,659 — 37,659 
Payments intelligence
9,574 — 9,574 
Real-time payments
25,738 — 25,738 
Issuing and acquiring
127,754 — 127,754 
Total$200,725 $193,840 $394,565 

Three Months Ended March 31,
20262025
Payment Software
Software as a service and platform as a service$49,669 $43,243 
License88,041 84,493 
Maintenance50,918 48,642 
Services24,833 24,347 
Total$213,461 $200,725 
Biller
Software as a service and platform as a service$212,288 $193,840 
Total$212,288 $193,840 
The following is the Company's revenue by geographic location for the periods indicated (in thousands):
Three Months Ended March 31,
20262025
Revenue
United States$273,710 $236,754 
Other152,039 157,811 
Total$425,749 $394,565 

The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands):
March 31, 2026December 31, 2025
Long-lived assets
United States$1,090,183 $1,106,051 
Other815,199 836,618 
Total$1,905,382 $1,942,669 

No single customer accounted for more than 10% of the Company’s consolidated revenues during the three months ended March 31, 2026 and 2025. No country outside the United States accounted for more than 10% of the Company's consolidated revenues during the three months ended March 31, 2026 and 2025.