Aci Worldwide, Inc. (ACIW) Q2 2026 Earnings Call Transcript

Hello, everyone. Thank you for joining us and welcome to the second quarter 2026 ACI Worldwide Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to John Kraft. Please go ahead.

Good morning everyone and thanks for joining us. On today's call we will discuss ACI Worldwide's second quarter 2026 results as well as our updated financial outlook for the remainder of the year. We will then open the line for your questions. The slides and press release accompanying this webcast can be found at ACIWorldwide.com under the Investor Relations tab and will remain available after the call. As always, today's call is subject to safe harbor and forward-looking statements. You can find the full text of these statements in our earnings materials and SEC filings. Joining me this morning are Thomas Warsop, our President and CEO, and Robert Liebrock, our Chief Financial Officer. Before I turn it over to Tom, I'd like to highlight several upcoming conferences where members of management will be participating. The KeyBank Technology Leadership Forum on August 11, the Seaport Research Partners Annual Summer Investor Conference on August 18, and the FT Partners Fintech Conference on September 15. We look forward to meeting many of you at these events. With that, I'll turn the call over to Tom. Tom?

Thanks, John. Good morning, everyone. As always, I appreciate you joining us for our earnings call. Today, we'll talk about our second quarter 2026. And let me start by saying financial performance was strong, and the quarter was fulfilling in many ways in addition to those strong financial results. I want to share a few examples of the things we at ACI are proud of as we continue to deliver on our promises and transform for the future. Let me start with the headline financial results, and then I'll discuss the operational progress driving the momentum we're seeing across the business. Today, we reported 7% revenue growth, 12% adjusted EBITDA growth, and 54% adjusted diluted EPS growth. And we're again raising our full year guidance. Perhaps even more importantly, we continue to make progress on our key strategic initiatives the things we believe drive long-term growth and shareholder value creation. We signed our first U.S.-based Kinetic customer in the quarter, and we've already signed another in Q3. The traction with Kinetic is a result of our ongoing strategic growth investments and the privileged position we have in the payments ecosystem around the world. We remain well-positioned to benefit from the ongoing need for payments modernization. I'm going to discuss this in more detail shortly. Our margin expansion is the result of disciplined expense management while continuing to invest in innovation and returning capital to shareholders. Before I discuss our business segments, I'll spend a few minutes on what's happening in the payments industry. Across financial services, payment ecosystems are becoming significantly more complex. Financial institutions are managing more payment types, more payment rails, increasing real-time payment adoption, rising fraud threats, evolving regulatory requirements, and continually increasing expectations from consumers and businesses. At the same time, many organizations are operating on infrastructure that was designed for a very different payments environment. As a result, modernization has become one of the most important strategic priorities for customers around the world. Increasingly, the discussion is no longer whether institutions will modernize, but how they will modernize and who they will partner with to help them get there. That trend continues to create meaningful opportunities for us at ACI. As I mentioned, one of the most significant accomplishments during the quarter was the signing of our first US-based Kinetic customers. We signed one customer during Q2 and a second customer shortly after the quarter ended. We view these wins as further validation of the Kinetic strategy. Customers are increasingly looking to simplify complex payments environments through a modern cloud-native platform that provides connectivity across payment types while positioning them for the next generation of payment intelligence and orchestration. Our Kinetic pipeline continues to expand faster than any other solution set. In the biller business, our SpeedPay 1 platform continues to advance, with new customers being implemented on this cloud-native, leading-edge solution. We now have more than 100 customers live on this platform, and our continuing investments are improving performance and flexibility. Our Kinetic solution and our SpeedPay 1 Biller solution are broadly AI-enabled, meaning we're building AI-powered capabilities directly into the solution from day one. And I've previously mentioned a little bit about how ACI is taking advantage of the potential of AI, but I want to give you a little bit more flavor in terms of how AI is really impacting us and our customers. We're already seeing tangible benefits from these efforts. Here's a few examples. In terms of test automation, our AI mandate analyzer is reducing the time required to interpret payment scheme mandates from two to three weeks to minutes or hours. And that's shifting roughly two weeks of effort earlier in each cycle across schemes and products and creating an incremental person year of engineering capacity over time. And that's just the beginning. In our biller business, AI-supported re-architecture work on one of our common products has reduced the effort by about 50%. That's already saved over 6,000 hours of engineering time. And in customer support, we built a retrofit agent team. So it's a team of agents doing retrofitting work, and that will automate up to 85% of a previously completely manual process, saving approximately 10 hours per week per user with additional benefits and related root cause workflows. That work has already been piloted with a large customer in our European business with broader rollout coming soon. We've integrated AI-powered functionality into products across our portfolio, and this is accelerating. Just a couple of examples. In Kinetic, we've implemented a dynamic, context-dependent, intelligent routing and scoring capability. This enables very fast adjustments to fraud and routing algorithms based upon up to the second information. That is only possible with generative AI and related tools. On SpeedPay 1 in our biller business, we've deployed tools to simplify and accelerate our customers' ability to deploy our standard APIs and to accelerate the customer implementation journey. These are only two of the many solution capabilities we've implemented, which are powered by AI. I do want to comment briefly on each of our operating segments. Obviously, Bobby will cover more detail. Let me start with payment software. Payment software continued to perform well during this quarter. The segment delivered 9% revenue growth, driven by strength in issuing and acquiring, where revenue increased 37%. Encouragingly, we're seeing customers move beyond evaluating modernization initiatives and increasingly begin executing against them. As transaction volumes continue to grow and payment environments become more complex, customers increasingly view ACI as a strategic technology partner rather than simply a software provider. Our merchant and anti-fraud solutions both grew in the mid-single digits, and both solutions are well-positioned to benefit from some interesting new AI, which is driving new technology opportunities and tools, and that includes a new collaboration with some of our merchant clients where we have created an agentic commerce solution that can be used both by consumers making a purchase and by our customers' agents who are assisting consumers. So we're playing both sides of that opportunity. In our biller segment, revenue increased 5% during the quarter. While year-over-year comparisons in Q2 were challenging, following unusually strong volumes last year, as well as some unique margin benefits that did not recur, The underlying health of the business is strong. We continue to see growing adoption of our SpeedPay One platform through expansions across our installed base and success with new customer wins. We remain confident in our expectation for upper single-digit growth in Biller for the full year. We're also continuing to execute our balanced capital allocation strategy. We deployed approximately $41 million of capital to share repurchases in Q2. And that brings our year-to-date repurchases to approximately $107 million. As we previously communicated, we expect to allocate between 50 and 60% of operating cash flow to share repurchases during 2026. At this level, we will maintain flexibility for further organic growth investments and potential strategic acquisitions, particularly focusing on those that accelerate our cloud-based payments modernization offerings. As we've said before, driving a superior return on capital deployed is a core tenant of our leadership team and a strategic imperative for our business. We take this capital stewardship seriously. As a part of this disciplined effort, our corporate development team regularly evaluates inorganic opportunities across a full spectrum of strategic actions, including opportunistic acquisitions, divestitures, and partnerships. There are some interesting technologies in the marketplace that could help accelerate our growth, and the valuations are more attractive than they've been in the recent past. Evaluation of those opportunities occurs in the normal course of business for us, and I'm sure you understand that I will not comment directly on any recent speculation about us in the news. To be clear, our business is operating from a place of financial and competitive strength, positioning us to further establish ACI as a platform for profitable growth over time consistent with our proven track record as a value compound. I'm pleased with our execution in the first half of the year and I remain encouraged by the strength of our pipeline which gives us confidence we are on track for a strong finish to the year. Our recurring revenue profile, strong customer relationships, ongoing technology investments and disciplined cost management have us well positioned to continue delivering profitable growth. This strategic framework combined with our shareholder focus returns based capital employment strategy positions as well to continue to create long-term shareholder value i want to thank our employees around the world for what they do every day their dedication to our customers and their commitment to operational excellence are what makes our success possible i also want to thank our customers for their partnership and our shareholders for their continued trust and support as we execute on our long-term value creation strategy. With that, I'll turn it over to Bobby.

Thank you, Tom, and good morning, everyone. I'll begin with a review of our second quarter of financial results, then discuss our first-half performance, capital allocation activities, and outlook for the remainder of 2026. Overall, we delivered another quarter of solid financial performance characterized by revenue growth, margin expansion, earnings growth, and strong cash generation. Second quarter revenue was $430 million, up 7% on a reported basis and up 6% in constant currency. Net income was $32 million compared to $12 million a year ago. Adjusted diluted earnings per share was $0.54, up 54% from the prior year, reflecting strong operational performance and the benefits of our share repurchase program. Adjusted EBITDA was 91 million, up 12% on a reported basis and up 9% in constant currency. Net adjusted EBITDA margin expanded to 34% from 32% last year, even as we increased R&D spending by 17% to support innovation and future growth. This margin expansion was driven been by strong operating leverage and reflects disciplined expense management. Year-to-date revenue was $956 million, up 8% on a reported basis and up 6% in constant currency. Year-to-date adjusted EBITDA was $196 million, up 12% on a reported basis and up 8% in constant currency, while net adjusted even a margin for that period expanded approximately 200 basis points to 36%. In the payment software segment, second quarter revenue was $196 million, up 9% on a reported basis and up 7% in constant currency. The segment benefited from notable strength in issuing and acquiring, which grew 33% in constant currency versus the prior year period, driven by large expansions with renewing customers. Merchant and fraud management revenue also delivered year-over-year growth. Real-time payments revenue declined for a prior year period. While the number of renewal and expansion opportunities was lower than a year ago, retention and expansion performance remained strong, underscoring the healthy demand environment we continue to see in real-time payments. We continue to expect real-time payments to contribute to growth in 2026 and remain encouraged by customer demand and the strength of our pipeline. Segment-adjusted EBITDA for payment software was $94 million, up 12% on a reported basis and up 9% in constant currency, resulting in a net adjusted EBITDA margin of 48%. The margin expansion reflects the inherent leverage of a highly recurring software model. In Biller, revenue was $234 million of 5% on both a reported and constant currency basis. As we noted last quarter, second quarter revenue, net of interchange and adjusted EBITDA were impacted by mixed and difficult comparisons against unusually strong volume activity in the prior year, which also included certain credits that did not occur. Despite those near-term comparisons, underlying customer demand remains healthy, and we continue to expect upper single-digit revenue growth for the biller segment for the full year. While adjusted EBITDA declined year-over-year, the pressure was primarily driven by prior-year comparison items rather than any change in the underlying health of the business. Results in the current quarter were also impacted by a one-time charge related to a partnership that has since been terminated and is not expected to reoccur. The business continues to benefit from healthy transaction growth, strong customer retention, new customer additions, and continued adoption of SpeedPay One. We also expect net revenue growth to trend more closely with gross revenue growth over the balance of the year. Net new ARR bookings were $18 million during the quarter, while new license and services bookings were $59 million. ARR bookings were compared against a particularly strong prior year period that benefited from several large payment software contract signings. This year, strong biller performance partially offset lower payment software bookings with a greater concentration of expected signings weighted towards the second half of the year. New license and services bookings reflect similar timing of anticipated payment software While quarterly results can fluctuate based on the timing of large transactions, we remain encouraged by the strength of our pipeline and continue to expect both net new ARR bookings and new license and services bookings to grow for the full year on the balance sheet we ended the quarter with 167 million in cash and a net leverage ratio of 1.2 times adjusted EBITDA year-to-date operating cash flow was 135 million reflecting the strength of the business and disciplined execution across the organization. As Tom mentioned, we continue to take a balanced and disciplined approach to capital allocation, investing in initiatives that support long-term growth while returning capital to shareholders. During the second quarter, we were purchased approximately 948,000 shares for $41 million. Year-to-date, we have repurchased approximately 2.5 million shares for 107 million and ended the quarter with approximately 349 million remaining under our authorization. Turning to guidance, based on the first half performance and the strength of our pipeline, we're increasing our full year 2026 outlook. We now expect revenue in the range of $1.895 to $1.925 billion, up from a prior range of $1.89 to $1.92 billion. We expect adjusted EBITDA in the range of $545 million to $560 million, up from $540 to $555 million. For the second half of 2026, as we discussed last quarter, we continue to expect an approximately 40% and 60% revenue weighting between the third and fourth quarters, respectively, driven by the timing of high margin payment software license renewals. This implies third quarter revenue of 417 to 427 million and adjusted EBITDA in Q3 26 is expected to be 90 to 95 million additional income statement balance sheet and cash flow guidance assumptions are available on the guidance slide in our earnings presentation our outlook continues to be supported by a strong recurring revenue base healthy customer demand and a robust pipeline across both payment software and biller the increase in our guidance reflects both our strong first half performance and our confidence in the opportunities we see ahead we remain committed to investing in innovation and our strategic growth priorities while maintaining a disciplined approach to profitability and cash generation. As we look to the balance of 2026, we remain focused on executing our strategy, investing in innovation, maintaining operational discipline, and generating strong cash flow. As customers continue to modernize their payment infrastructure, the needs for intelligent payment orchestration continues to grow. We believe ACI's unique combination of software, data, industry expertise positions us well to capitalize on that opportunity while continuing to deliver long-term shareholder value. With that, Tom and I will be happy to take your question.

We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. The first question comes from the line of Jeff Cantwell with Seaport Research.

Your line is now open please go ahead hey jeff hey thanks guys good morning can you talk more about the q3 and q4 guidance why is there a 40 60 cadence this year what are the major call outs i hear you on the timing but can you go through this in a little more detail if you don't mind and can you confirm whether that was expected because we're getting questions on that this morning thanks hey jeff i'll jump in this is bobby and i think it'd be helpful for tom to kind of expand on some of the strength we're seeing for the year that you know supports the confidence we have in the race of the overall guide uh yeah as you get into q3 q4 um i've been trying to be

very transparent with the guidance we've provided one because the recurring nature of our business you know we provide the recurring revenue that happens every quarter and i like to think 95 percent of ACI's revenue is recurring, but on a five-year-based contract basis for the payment software license renewals. That gives me and Tom a lot of visibility as we enter the year to know when we're going to have the best opportunity to renew those customers as well as expand on them. Last quarter, 90 days ago, I gave headlights into the Q3, Q4 guide as being more of a 40-60 split versus the last couple of years, it's been 50-50. You go back and you compare, call it three, four, five years ago, you'll see that same 40-60 split, which is indicative of the types of customers and the concentration we see in Q4 this year. And we feel good about that. As you look underneath it, it's all payment software driven, and that's our high margin business. So the EBITDA even has a bit more of a skew towards fourth quarter. But as shown in the confidence of raising both revenue and EBITDA on the full year, we feel good about that. Payment software had a good Q2, and they're coming out of the first half very strong.

Yeah, Jeff, we have good visibility, very good visibility into the second half, given what Bobby just described in the driver for that 40-60 versus what we saw the last couple of years, bit more closer to 50-50, it's all due to renewal dates. And as you know, by US GAAP, we have to book the revenue on the renewal date. So we can't change that, but we have excellent visibility to that. And we have strong pipelines. Business is performing very well. So we tried, you know, last quarter, Bobby talked about the 40-60 split. That's still what we see. But as he just said, the business, the higher skew to fourth quarter on revenue drives an even higher skew towards EBITDA because of that high margin software business.

Okay, thanks for that. And can you tell us about the Kinetic signing in the U.S., how that came about, and anything that you can give us in terms of was it an existing customer that converted? Was it a new customer? Is this a sizable asset base? And then what does the pipeline look like for Kinect right now? I'd just love to hear an update on that as well.

So the one we signed in quarter, it is an existing customer. And that's great news, actually, because we're attacking opportunities across all types of customers. Net new, existing customers that will convert, and then a little bit hybrid. We've got a very strong pipeline, growing pipeline across all of those types of customers. This particular one that we signed in the quarter is an existing customer and will convert in the next few months from an existing solution to Kinetic. So that's great and we're excited about it. But that's specifically to your question. The pipeline that is the fastest growing, I think I mentioned this previously, that Kinetic is the fastest growing solution set in terms of our pipeline. It has been for a couple of quarters now, and we expect that to continue. So very pleased with the progress on Kinetic. We also announced a couple of months ago, I think, that we have enabled Kinetic across eight different sets of payment rails in the U.S.

So we can handle just about anything that gets thrown at Kinetic in terms of payment types and payment rails. yeah i think the thing i would add jeff on the kinetic part would be um one you know we talked about the the guidance this year really doesn't depend on kinetic revenue but as tom's uh showing almost every sales discussion with our customers starts with a kinetic level of excitement on how they can modernize um and as you get under that um all the kinetic signings to date have been sas which is exciting because it's proving the the cloud native platform that we've built there that customers it really resonates with them um the the other thing that's exciting is uh solaris who we mentioned last year the team's made great progress with them leaning in both on their side and ours um and we're excited to start to get them live here in the second half of the year which will be a good instantiation of the platform absolutely okay that's a great uh update maybe if i could just squeeze one more in there were some articles out there about biller which obviously you're not going to comment on rumors.

Could you maybe talk to everyone who's listening about your approach to M&A and maybe just give us an update? Because it's been a while since we've had to consider a potential sale of biller. So how would you frame that for us?

Thanks. Yeah, I mean, as I said in the prepared remarks, this is sort of a normal course of business. We evaluate constantly what's the best way to drive shareholder value and we look at potential acquisitions potential divestitures different kinds of investments we do that all the time there's nothing unusual about that we obviously don't comment on specific specific rumors in the marketplace but i think it's fair to say we have a we have we have great businesses and And there's a lot of people that would probably love to own all the businesses that we have. But that's just that's just what we do.

I think, Jeff, I'll take the opportunity to talk mostly about the strength we see in payment software and Kinetic. We do have, as Tom mentioned, a very healthy speed pay business with our biller segment. I talked a bit in my earlier comments around the bookings health we see. And I just want to, similar to what I did last quarter, put a little more detail on that. Year to date, we're doing great in terms of the AR bookings in that business. In Q1, I mentioned we had three new logos and about 70% of our top wins actually were within our expansion. Customers were seeing really good return on the customer success, account management focus that the team's driving there. In Q2, we signed two nice new logos there. And then across those bookings, 80% of them were really healthy expansions, customers doubling, tripling their relationships with us. So I'm excited on the health of that business, and we see it growing high single digits for the year and really accelerating in the second half.

Great. Okay. Appreciate all that. Thanks for that. And I'll jump back in the queue. I have some other questions, but I'll jump back in the queue. Thanks.

Thanks, Jeff. the next question comes from pete heckman with da davidson your line is now open please go ahead hey hey good morning everybody good to see the good results and the raise in the annual guidance um also good to see the the kinetic wind can you talk a little bit about how the perception of aci might be changing for a long time i think people who used ACI and people who were deep in the industry understood how important ACI was to certain processes within financial or electronic payments. But maybe the company was viewed as maybe having some older technology or not being as innovative. I guess with Kinetic, I guess, how is this changing your perception with customers? And clearly it appears that there's been some good early acceptance of the platform, but I guess what I'm thinking is, do you think the fact that you have this roadmap towards this modern payments hub can actually cause some non-customers to think differently about ACI and potentially adopt other solutions that you have?

Yeah, great question, Pete. Yes, I mean, the short answer to your question is yes. we're we are having very different dialogues with customers and prospects now as we as we lead with kinetic and I think the one of the one of the biggest drivers of that is that our our vision of the future of payments the payments industry is that you have a very consistent set of technologies platforms that can handle essentially any type of payment that will allow financial institutions and merchants to get maximum leverage out of the investments they make in payments and provide even better service to to their customers and so we we that is our vision and kinetic was built very specifically to support that that vision and what's what's happening now is in the in the in the old days so you know maybe a couple of years ago pete uh we would go in and we were perceived as trying to sell a piece of software and of course we want to sell software but now what tends to happen is we'll sit down with a customer or a prospect and we'll talk about how can we help them change the way they do business how can we help the the bank or the merchant provide a better customer experience, get better results, reduce the cost of handling payments inside of their organization, and ultimately modernize their infrastructure. So not just the payments side, but every, especially financial institutions, they're all thinking about how do I modernize my infrastructure? And they look increasingly to ACI to help them think that through. How do I modernize specifically? How can I take advantage of this new way of approaching the technology around payments? And that's what Kinetic gives us. It's created a different kind of dialogue and it's created, it's definitely started. We got more to go, Pete, but it started to change the perception that we have in the industries where much more often people are thinking of us as a current innovator instead of well you know they've got software that they've been running for a long time it's really good but it's not all that innovative now we're much more likely to be seen as innovative and Pete I'll just add to Tom's comments I mean that whole you know this idea of the momentum we have the perception it is very contagious across multiple elements of the business everything from how do you attract talent the sense of urgency in

the company how fast we show up to customer requests demands um the thing i'd also add is you talked about kinetic um i think the focus that aci has and the two segment model gm model that Tom's put in place over the last few years has definitely unlocked that as well. A lot of the comments there around Kinetic, I would say you're seeing it show up in the SpeedPay biller business as well. One of the stats I put out there is our customers this past year have given us a 15-point increase in their net promoter score for SpeedPay. And I think that's a bit of how we're showing up, as you described, in the SpeedPay business as well. So the focus we have on not, you know, managing as a, you know, mixing our biller customers with our banking customers, intermediary customers, our merchants, that focus has helped a lot in how the company's showing up. And we're seeing across both segments in a really healthy way.

Yeah, actually, that's a great point. And I think the other thing about that is it's allowed us to get a lot more focus internally on the two segments. And so not only are we showing up differently to customers and prospects but also internally we have uh it's very clear now i i you know somebody would say i'm on the speed pay team my job is to make speed pay perform incredibly well or i'm and i'm on the payment software team i'm going to make sure that that business performs super well so we we we struggled with that when we had a functional model and this changed to a general management model, which we did a year and a half or two years ago, has made a big difference inside and outside the company.

All right. That's very helpful. And then just the one-time item, I believe that was in Biller to terminate a partnership. I just want to confirm that was included in the addbacks to adjusted EBITDA.

That flowed through to EBITDA. It was an operational item was not a one-time uh item it's it's within our adjusted EBITDA um it was so it's not it was not in that back yes it was not excluded okay and and could you put a rough bracket around the the dollar value of that one-time item yeah it was as you look at the contraction you saw there and in our EBITDA it was you know less than half of that you know i gave you the other buckets which for some of the seasonality we saw in revenue, as well as, you know, some of the last year items. So those are the three buckets and they're not exactly perfect, but it's more like a third, it's not more than half.

Okay, all right, well then we'll just keep that in mind as we think about modeling for the second quarter last year. Thanks, I'll get back in the queue. Thanks Pete, thank you Pete.

The next question comes from George Sutton with Craig Hollum. your line is now open please go ahead hey George hey thank you hey guys so um I wondered if you could go in a little more detail on the strength and issuing and acquiring uh surprisingly strong you mentioned large expansions can you give us a little more of a picture of what's happening there I think the uh so I'll jump in and I think as you look across you know the expansions um I I like to think about it in the solution areas that we see within payment software.

Really, we've got a great install base around our issue and acquiring products. I've, you know, over the last year, since I've joined George, I've really tried to instill this idea of what's the, the, the retention rates, the NRR is underneath of those, that business, it's very durable, you know, mid, mid single retention rates, nice and stable there where we get a lot of the lift. when you get into the retention rates. And this could be distorted on a quarterly basis when you look at the year-to-year on different renewal cohorts. But where we're getting really good lift is gonna be in the real-time payment area where we're seeing a lot more demand for that on a multi-year basis and how that is growing. And I think that's the, as I've kind of learned here in ACI, that's a bit of the beauty of our strategy. We're agnostic on your payment type. You know, we're independent on whether you're choosing a card type, a debit type, a real-time payment scheme. And we can help you orchestrate across all of those. And from a growth standpoint, it really is very defendable that as payments go from one, you know, from a card to a different real-time payment or even to a digital asset, we can help you orchestrate across that, but we're also gonna be protected from a revenue standpoint as well.

Yeah, and I just add to that that, you know, the issue of acquiring strength, it was quite broad-based and we had, we increased in all of the areas that drive our revenue in that space, in the software space. So we had volume growth, which is great. So one of the really great things about being in the payment business, of course, is that payment volumes grow and they tend to continue to grow. So we have that. we have good pricing power, and we exercise that on renewals. And then we had some nice new product launch, so value-add services, more cross-sell. So it was strong across all of those areas, and we're very pleased with the performance in that particular part of the business.

Fabulous. I wondered if you could address the kinetic use cases in the U.S. I know your initial win was going to be a fairly focused use case. Can you talk about how broad these U.S. wins might be?

Yeah. So the initial use cases in the U.S. are largely concentrated around account-to-account payments And so what that means is everything from, and as we've said, Kinetic enables most types of payments today, but in the U.S., there's a lot of interest around real-time payments, being ready for real-time payments when consumers ramp up their adoption, and then also high-value payments. so wire transfers for example swift payments and so those are those are some of the use cases that are of the greatest interest right now but we are seeing uh we are seeing broad-based interest including uh cards as well uh going forward but but the initial ones are largely focused around account to account perfect okay thanks guys thank you george we have now reached the end of our q a session.

I would now like to turn the call back to ACI Worldwide for closing remarks.

Thank you very much and we appreciate you all joining us this morning. We're very pleased with the work that our teams are doing. I'm really proud of our team around the world. We're very thankful for the customers that are helping make sure that we continue to drive growth and of course we're very thankful for our shareholders and just we we've we've said it many times but our job is to drive extraordinary shareholder value that's what we're trying to do and uh we expect to continue to do that and uh this we have a great start to the year in the first half and as uh as we've said this morning the the outlook is is strong for the remainder of the year so that's what gave us the the confidence to once again raise our guidance in both terms of both revenue and EBITDA so we're excited about about the future and thank you all

for your support thanks everyone this concludes today's call thank you for connecting you may now disconnect