Company: ACIW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000935036-25-000031
Chunk: 84

Company: ACI WORLDWIDE, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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 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.

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The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands):Three Months Ended September 30, 2025Payment SoftwareBillerTotalRevenue$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 taxesDepreciation and amortization(24,140)Stock-based compensation expense(17,381)Corporate and unallocated expenses(44,525)Interest, net(11,135)Other, net1,551 Income before income taxes$118,122 Three Months Ended September 30, 2024Payment SoftwareBillerTotalRevenue$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