Here’s Why ACI Worldwide (ACIW) Slid in Q2

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with a risk-off environment from the previous quarter, but later regained momentum driven by broad-based elements. In the second quarter, the strategy delivered a return of 3.25% net of fees (3.41% gross of fees) underperforming the 8.50% total return of the Russell 2000 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as ACI Worldwide, Inc. (NASDAQ:ACIW). ACI Worldwide, Inc. (NASDAQ:ACIW) is a software company that develops, installs, and supports a wide range of software products and solutions to facilitate digital payments. The one-month return of ACI Worldwide, Inc. (NASDAQ:ACIW) was 0.75%, and its shares gained 9.71% of their value over the last 52 weeks. On July 22, 2025, ACI Worldwide, Inc. (NASDAQ:ACIW) stock closed at $45.52 per share, with a market capitalization of $4.775 billion.

Aristotle Capital Small Cap Equity Strategy stated the following regarding ACI Worldwide, Inc. (NASDAQ:ACIW) in its second quarter 2025 investor letter:

“ACI Worldwide, Inc. (NASDAQ:ACIW), is a provider of software solutions to facilitate payment transactions for financial institutions, retailers, and payment processors around the world. The company reported strong Q1 earnings and reaffirmed FY 2025 guidance, yet the stock price declined due to investor sentiment around macroeconomic concerns. We maintain our investment as we believe the company has a strong market position in the payments software niche segment. New revenues with higher incremental margins and effective cost controls should allow management to delever the balance sheet while continuing to deliver value to shareholders.”

Is ACI Worldwide Inc. (ACIW) the Most Promising Technology Stock to Buy Now?

A businesswoman using a digital tablet, making a payment using the company’s payment processing technology.

ACI Worldwide, Inc. (NASDAQ:ACIW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held ACI Worldwide, Inc. (NASDAQ:ACIW) at the end of the first quarter, which was 35 in the previous quarter. While we acknowledge the risk and potential of ACI Worldwide, Inc. (NASDAQ:ACIW) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ACI Worldwide, Inc. (NASDAQ:ACIW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered ACI Worldwide, Inc. (NASDAQ:ACIW) and shared The London Company Small Cap Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.