Company: ACIW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000935036-25-000031
Chunk: 80

Company: ACI WORLDWIDE, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 achievement, over a specified period that must not be less than one year and is typically a three-year performance period. The awards have operating performance goals that include (i) adjusted EBITDA metrics and (ii) revenue growth rates as determined by the Company with a TSR multiplier up to plus or minus 20%. Up to 200% of the performance shares could be earned upon achievement of the performance goals, including the multiplier. On a quarterly basis, management evaluates the probability that the threshold performance goals will be achieved, if at all, and the anticipated level of attainment to determine the amount of compensation expense to record in the consolidated financial statements.A summary of nonvested TSRs is as follows:Number ofSharesWeighted AverageGrant Date Fair ValueNonvested as of December 31, 2024952,481 $35.21 Granted459,741 59.78 Vested(507,754)42.99 Forfeited(60,698)42.65 Change in payout rate253,877 42.99 Nonvested as of September 30, 20251,097,647 $43.37 During the nine months ended September 30, 2025, a total of 507,754 TSRs granted in fiscal 2022 vested and achieved a payout rate of 200% based on the Company's total shareholder return as compared to a group of peer companies over a three-year performance period. The Company withheld 173,120 of those shares to pay the employee's portion of the minimum payroll withholding taxes.The fair value of TSRs granted during the nine months ended September 30, 2025 and 2024, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, Compensation - Stock Compensation, using the following weighted average assumptions:Nine months ended September 30,20252024Expected life (years)2.32.7Risk-free interest rate4.0 %4.4 %Expected volatility33.2 %36.8 %Expected dividend yield— — 

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Restricted Share UnitsA summary of nonvested restricted share unit awards ("RSUs") is as follows:Number ofSharesWeighted AverageGrant Date Fair ValueNonvested as of December 31, 20241,727,524 $29.95 Granted1,311,794 52.41 Vested(903,561)33.16 Forfeited(193,077