Company: ACIW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000935036-25-000031
Chunk: 35

Company: ACI WORLDWIDE, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 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— — 

17

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)37.65 Nonvested as of September 30, 20251,942,680 $42.88 During the nine months ended September 30, 2025, a total of 903,561 RSUs vested. The Company withheld 293,044 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.As of September 30, 2025, there was unrecognized compensation expense of $76.4 million related to RSUs and $21.9 million related to TSRs, which the Company expects to recognize over a weighted average period of 2.2 years and 1.6 years, respectively.

The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2025 and 2024, of $17.4 million and $11.3 million, respectively, with corresponding tax benefits of $2.5 million and $1.9 million, respectively. The Company recorded stock-based compensation expense recognized under ASC 718 for the nine months ended September 30, 2025 and 2024, of $45.4 million and $30.2 million, respectively, with corresponding tax benefits of $6.9 million and $5.