Company: ACIW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000935036-25-000031
Chunk: 43

Company: ACI WORLDWIDE, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 Company reported a tax charge on pretax income for both the three and nine months ended September 30, 2025, with foreign entities recognizing earnings of $131.9 million and $231.1 million, respectively. For the three and nine months ended September 30, 2024, the Company's effective tax rate was 24% and 25%, respectively. The Company reported a tax charge on pretax income for both the three and nine months ended September 30, 2024, with foreign entities recognizing earnings of $107.6 million and $148.1 million, respectively. The Company’s effective tax rate could fluctuate on a quarterly basis due to the occurrence of significant and unusual or infrequent items, such as vesting of stock-based compensation or foreign currency gains and losses. The Company’s effective tax rate could also fluctuate due to changes in the valuation of its deferred tax assets or liabilities, or by changes in tax laws, regulations, accounting principles, or interpretations thereof. In addition, the Company is occasionally subject to examination of its income tax returns by tax authorities in the jurisdictions in which it operates. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes.

25

As of both September 30, 2025, and December 31, 2024, the amount of unrecognized tax benefits for uncertain tax positions was $21.0 million, excluding no related liabilities for interest and penalties as of September 30, 2025 and $0.4 million as of December 31, 2024.The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $0.8 million, due to the settlement of various audits and the expiration of statutes of limitation.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into U.S. tax law. OBBBA includes a broad range of tax reform provisions, such as the permanent extension of certain expiring provisions of the 2017 Tax Cuts and Jobs Act and modifications to the international tax framework. OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The provisions that are effective in 2025 have not had a significant impact on the Company’s effective tax rate through September 30, 2025. OBBBA also allows certain elections that the Company can make for the