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NASDAQ: ACIW Investor Presentation
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This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. A discussion of these forward-looking statements and risk factors that may affect them is set forth at the end of this presentation. The Company assumes no obligation to update any forward-looking statement in this presentation, except as required by law. Private Securities Litigation Reform Act of 1995 safe harbor for forward-looking statements
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Powering the world’s payments ecosystem ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers, and merchants can drive growth, while continuously modernising their payment infrastructures, simply and securely. With nearly 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities.
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4 • Accelerating organic revenue • Leading market position • High retention rates • Pricing power and large barriers to entry • Significant recurring revenue • Scalable model with improving margin • Low cash investment required • Strong cash flow and balance sheet High-quality software model
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ACI positioned at the center of payment flows * Merchant may outsource payment acceptance systems to a merchant acquirer such as First Data or Global Payments ** Bank may outsource card issuing capabilities to a processor such as Fiserv or Jack Henry Mary makes a card purchase The issuing software at Mary’s bank** receives the financial message, ensures the card is valid, identifies the customer and verifies funds The network sends this message to Mary’s bank (also called the issuing bank) Once confirmed, the issuing bank sends an approval message back to the card network, which then sends the approval to the merchant (funds settlement will occur later) The acquiring software sorts and routes the message to the required network (ex. Visa, Star, etc.) ACI ISSUING Mary pays a utility bill 1 1 3 4 6 52 Merchant Biller ACI ACQUIRING The point-of-sale terminal (or online gateway) sends Mary’s card information to the merchant’s acquiring software* Mary Bank 5
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Expansion across international markets is driving new customer wins Long-term, blue-chip, geographically diverse customer base 6 http://blog.ebay.com/wp-content/uploads/2011/02/telefonica-o2.jpg Americas EMEA Asia-Pacific 3,000+ Customers ~450 Customers ~250 Customers
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Unrivaled leadership across our segments 7 >80,000 merchants powered by ACI directly and through PSPs >250 API library >3,000 billers in the U.S. >500 million bill pay transactions annually ~9,000 endpoint relationships Banks and Intermediaries Merchants Billers 10 60 94 26 11 of the top 10 banks worldwide of the top 100 banks globally countries with customers real-time domestic schemes central bank Infrastructures
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Accelerating organic growth 8 Note: Dollars in millions. Revenue adjusted for Corporate Online Banking divestiture completed 09.01.2022. Adjusted EBITDA is a non-GAAP measure. See the Appendix for additional information. 2026 amounts represent midpoint of company guidance. Adjusted EBITDA (millions) CAGR 9% Revenue (millions) CAGR 8% 316 356 359 395 466 506 540 250 300 350 400 450 500 550 600 2020 2021 2022 2023 2024 2025 2026 1,225 1,315 1,390 1,453 1,584 1,760 1,895 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 2020 2021 2022 2023 2024 2025 2026
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• Biller direct in consumer finance, utilities & telco, insurance, higher education, and government verticals • 100% transaction-based SaaS model • High single-digit growth. Growth drivers: ✓ Secular transaction growth in electronic bill payments, shift from bank bill pay, new logos and cross selling value-added services • 100% U.S.-based ~ $818M revenue in 2025 ~ $141M EBITDA in 2025* • Formerly Bank and Merchant segments • Blue-chip customer base of the world’s largest banks, merchants and financial intermediaries • Bank typically utilize term-based subscription license and Merchants typically utilize transaction-based SaaS • High single-digit growth. Growth drivers: ✓ eCommerce transaction growth significant tailwind, new logos, cross selling value-added services • Approximately 1/3 U.S. based, 2/3 international ~ $942M revenue in 2025 ~ $544M of EBITDA in 2025* “Gold Standard” reputation for reliability, scalability, and functionality High quality segment models 9 Payments Software Biller * Segment profitability excluding overhead costs
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ACI software and platforms account for unrivaled volume of transactions Large, growing addressable market 10 Global payment transactions (volume) 9%+ CAGR 1.9 TRILLION transactions 2021 3.0 TRILLION transactions 2026E1 (1) GlobalData
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Low risk/very little downside risk for investors Existing customers provide revenue base 11 Year 1 Year 2 Year 3 Year 4 Year 5 * Note - slides represent illustrative example Existing customer base and high retention produces mid single-digit growth Price increases and CPI uplift Transaction growth Existing customer base (includes slight decline to account for attrition
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Historic growth has mainly come through cross sales to existing Cross sales to existing customers 12 * Note - slides represent illustrative example Cross sales to existing customers Year 1 Year 2 Year 3 Year 4 Year 5 Layering on cross sales increases growth
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Incremental growth = high reward for shareholders Add new logos, new applications 13 * Note - slides represent illustrative example Year 1 Year 2 Year 3 Year 4 Year 5 New opportunities, including bank modernization / hub accelerates growth New hub sales New logos and new applications
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Balanced use of cash 14 Cash allocation from total cash flow generated in 2025 M&A 2% Debt repayments 34% Share repurchase 63%
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Significant financial flexibility 15 We intend to balance growth investments with returning cash to shareholders Allocation Priorities Organic growth investments Inorganic growth investments Returning cash to shareholders
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2026 Financial Guidance Expect High Single-Digit Revenue and Adjusted EBITDA Growth, with Continued Capital Returns 16 Next Quarter Guidance Full YearGuidance Q1 2026 FY 2026 Low High Low High Revenue $405 $415 $1,880 $1,910 Adjusted EBITDA $88 $93 $530 $550 $'s in millions • Full year 2026 revenue phasing expected to be ~44% in 1H and ~56% in 2H • Expect to allocate 50% to 60% of cash flow from operating activities towards share repurchases, subject to market conditions • Capital expenditures to approximate to $45M • Cash taxes expected to approximate to $80 - 90M • Interest expense, net expected to approximate $30M • Depreciation and amortization expected to approximate $90M • Non-cash compensation expense expected to approximate $65 - 75M • Effective tax rate expected to approximate 25% • Diluted share count expected to approximate 105 million shares (excluding future share buy-back activity)
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Longer-term outlook 17 Target leverage 2.0x net debt/EBITDA High single-digit growth • Additional upside with penetration into mid-tier banks Organic revenue Adjusted EBITDA Track revenue growth Cash flow Increasing EBITDA to cash flow conversion
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Appendix 18
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Non-GAAP financial measures 19 Adjusted EBITDA (millions) 2020 2021 2022 2023 2024 2025 Net income $ 73 $ 128 $ 142 $ 122 $ 203 $ 227 Plus: Income tax expense 26 47 64 26 47 80 Net interest expense 45 34 41 64 57 43 Net other (income) expense 1 1 (43) 8 1 (20) Depreciation expense 25 21 23 24 18 13 Amortization expense 115 113 104 99 93 84 Non-cash stock-based compensation expense 29 27 30 24 41 71 Adjusted EBITDA before significant transaction- related expenses 314 371 361 367 460 498 Significant transaction-related expenses 45 13 12 28 5 9 Proforma impact of divestiture (43) (28) (14) - - - Adjusted EBITDA $ 316 $ 356 $ 359 $ 395 $ 466 $ 506 2020 2021 2022 2023 2024 2025 Revenue as reported $ 1,294 $ 1,371 $ 1,422 $ 1,453 $ 1,594 $ 1,760 Proforma impact of divestiture (69) (56) (32) - - - Adjusted Revenue $ 1,225 $ 1,315 $ 1,390 $ 1,453 $ 1,594 $ 1,760 For the Years Ended December 31, For the Years Ended December 31,
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Non-GAAP Financial Measures 20 To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and non-cash compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP. We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include: ◦ Adjusted EBITDA: net income (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization, and non-cash compensation, as well as significant transaction related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income (loss). ◦ Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass-through interchange revenue. Net Adjusted EBITDA Margin should be considered in addition to, rather than as a substitute for, net income (loss). ◦ Diluted EPS adjusted for non-cash and significant transaction related items: diluted EPS plus tax effected significant transaction related items, amortization of acquired intangibles and software, and non-cash stock-based compensation. Diluted EPS adjusted for non-cash and significant transaction related items should be considered in addition to, rather than as a substitute for, diluted EPS. ◦ Recurring Revenue: revenue from software as a service and platform service fees and maintenance fees. Recurring revenue should be considered in addition to, rather than as a substitute for, total revenue. ◦ ARR: New annual recurring revenue expected to be generated from new accounts, new applications, and add-on sales bookings contracts signed in the period.
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Forward Looking Statements 21 This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, but are not limited to: (i) Q1 2026 and full-year 2026 revenue and adjusted EBITDA financial guidance. All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, business interruptions, cybersecurity incidents or failure of our information technology and communication systems, security breaches, reliance on third-party cloud infrastructure and related services, reliance on third-parties, our ability to attract and retain senior management personnel and skilled technical employees, future acquisitions, strategic partnerships and investments, divestitures and other restructuring activities, implementation and success of our strategy, anti-takeover provisions, exposure to credit or operating risks arising from certain payment funding methods, loss caused by theft or fraud, customer reluctanceto switch to a new vendor, our ability to adequately defend our intellectual property, litigation, consent orders and other compliance agreements, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, adoption of ACI Connetic, adverse changes in the global economy, compliance of our products with applicable legislation, governmental regulations and industry standards, the complexity of our products and services and the risk that they may contain hidden defects, legal and business risks from artificial intelligence incorporated into our products, risks to our business from the use of artificial intelligence by our workforce, complex regulations applicable to our payments business, our compliance with privacy and cybersecurity regulations, compliance with requirements of the payment card networks and Nacha, exposure to unknown tax liabilities, changes in tax laws and regulations, consolidations and failures in the financial services industry, volatility in our stock price, demand for our products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, changes in card association and debit network fees or products, impairment of our goodwill or intangible assets, the accuracy of management’s backlog estimates, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, restrictions and otherfinancial covenants in our debt agreements, our existing levels of debt, incurring additional debt, events outside of our control including natural disasters, wars, and outbreaks of disease, and revenues or revenue mix below expectations. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.