Company: ACIW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000935036-25-000031
Chunk: 53

Company: ACI WORLDWIDE, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 multi-year, time-based software license arrangements that vary in length but are generally five years. Under these arrangements the software is installed at the customer’s location (i.e. on-premise). Within these agreements are specified capacity limits typically based on customer transaction volume. ACI employs measurement tools that monitor the number of transactions processed by customers and if contractually specified limits are exceeded, additional fees are charged for the overage. Capacity overages may occur at varying times throughout the term of the agreement depending on the product, the size of the customer, and the significance of customer transaction volume growth. Depending on specific circumstances, multiple overages or no overages may occur during the term of the agreement.

Included in license revenue are license and capacity fees that are payable at the inception of the agreement. License revenue also includes license and capacity fees payable annually, quarterly, or monthly due to negotiated customer payment terms. The Company recognizes revenue in advance of billings for software license arrangements with extended payment terms and adjusts for the effects of the financing component, if significant.

License revenue increased $4.5 million, or 3%, during the three months ended September 30, 2025, as compared to the same period in 2024. 

•The impact of foreign currencies strengthening against the U.S. dollar resulted in a $2.1 million increase in license revenue during the three months ended September 30, 2025, as compared to the same period in 2024.

•Adjusted for the impact of foreign currency, license revenue for the three months ended September 30, 2025, increased $2.4 million, or 2%, as compared to the same period in 2024.

•The increase was driven by license renewal timing as well as the relative size of new license and capacity events during the three months ended September 30, 2025, as compared to the same period in 2024. 

Maintenance Revenue

Maintenance revenue includes standard, enhanced, and premium customer support and any post contract support fees received from customers for the provision of product support services.

Maintenance revenue increased $3.9 million, or 8%, during the three months ended September 30, 2025, as compared to the same period in 2024. 

•The impact of foreign currencies strengthening against the U.S. dollar resulted in a $0.5 million increase in maintenance revenue during the three months ended September 30, 2025, as compared to the same period in 2024.

•Adjusted for the impact