Company: ACIW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000935036-25-000031
Chunk: 55

Company: ACI WORLDWIDE, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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 increased $28.9 million, or 9%, as compared to the same period in 2024. 

Cost of Revenue

Cost of revenue includes costs to provide SaaS and PaaS, third-party royalties, amortization of purchased and developed software for resale, the costs of maintaining our software products, as well as the costs required to deliver, install, and support software at customer sites. SaaS and PaaS service costs include payment card interchange fees, amounts payable to banks, and payment card processing fees. Maintenance costs include the efforts associated with providing the customer with upgrades, 24-hour help desk, post go-live (remote) support, and production-type support for software that was previously installed at a customer location. Service costs include human resource costs and other incidental costs such as travel and training required for both pre go-live and post go-live support. Such efforts include project management, delivery, product customization and implementation, installation support, consulting, configuration, and on-site support.

Cost of revenue increased $25.8 million, or 13%, 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 $0.4 million increase in cost of revenue during the three months ended September 30, 2025, as compared to the same period in 2024.

•Adjusted for the impact of foreign currency, cost of revenue for the three months ended September 30, 2025, increased $25.4 million, or 13%, as compared to the same period in 2024.

•The increase was primarily due to higher payment card interchange and personnel and related expenses of  $18.2 million and $7.2 million, respectively. 

33

Research and Development

Research and development (“R&D”) expenses are primarily human resource costs related to the creation of new products, improvements made to existing products as well as compatibility with new operating system releases and generations of hardware.

R&D expense increased $4.9 million, or 13%, 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 $0.3 million increase in R&D expenses during the three months ended September 30, 2025, as compared to the same period in 2024.

•Adjusted for the impact of foreign currency, R&D