ACT
ACT is a non-profit assessment organization headquartered in Iowa City, Iowa, that administers the ACT Test, a standardized college-readiness assessment accepted by 100% of US colleges and used by 1.38 million students annually across 130+ countries.
- Company typePrivate
- Founded1959
- HeadquartersIowa City, United States
- Headcount1–10
- GTM typeB2B and B2C
- OfferingServices
What ACT does
ACT is a non-profit assessment and educational services organization headquartered in Iowa City, Iowa, founded in 1959. Its core product is the ACT Test, a standardized college readiness assessment administered in both paper and computer-based formats across the United States and in 130+ countries. The company is accepted by 100% of US colleges, reports an annual national average score of 19.4, and serves approximately 1.38 million domestic test-takers per year. Beyond the flagship test, ACT has assembled a multi-product portfolio spanning grades 3 through career: ACT Aspire for K-12, ACT WorkKeys for workforce readiness, ACT Engage for social-emotional learning, ACT Tessera, and the ACT Holistic Framework for non-cognitive assessment. The underlying technology stack includes the MyACT student portal, an in-house CRASE NLP/ML essay scoring engine, an interest inventory recommendation engine, and predictive analytics powered by longitudinal data on 214 institutions and 230,000+ students managed through the Center for Living and Learning. Post-acquisition platforms — Encoura (data-driven college planning), Knovation (digital content library of 330,000+ resources), Mawi (student data), and ScootPad (adaptive learning) — are integrated into this suite.
The business model combines transactional per-test revenue with recurring institutional contracts. Domestic test fees are $68 (without Writing) and $186.50 internationally, with add-ons for the Writing section ($25) and STEM optional items; score reporting carries a $20 fee. Institutional revenue comes from statewide contracts (Wyoming and Nebraska explicitly cited), district-level deployments of ACT Aspire, ACT WorkKeys enterprise sales, and Knovation licensing. Distribution runs through three channels: direct-to-consumer registration via the MyACT portal, state and district institutional sales, and international partner networks. The company has invested in cloud infrastructure via AWS (including a $30,000 AWS Imagine Grant in 2021) and embedded partnerships with Kaplan, Prepscholar, CrackACT, and Texas Instruments to extend prep ecosystem reach.
Customer concentration is low: 1.38 million individual student fee-payers form a long tail, layered with a diversified mix of state agencies, school districts, and corporate WorkKeys clients; no single buyer dominates disclosed revenue. The company employs 1,001-5,000 people and operates as a 501(c)(3) non-profit, with Steve Tapp appointed President and CEO in October 2025. The most significant business risk is structural — sustained migration of US colleges to test-optional admissions policies, which has driven the test-taker count from 1.78 million in 2019 to 1.38 million in 2025 and is the primary driver of ACT's strategic diversification into AI-enabled scoring, institutional contracts, and adjacent verticals.
ACT firmographics
Firmographics- Name
- ACT
- Legal name
- ACT Education Corp.
- Website
- https://act.org
- Company type
- Private
- Founded year
- 1959
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- ACT is a non-profit assessment organization headquartered in Iowa City, Iowa, that administers the ACT Test, a standardized college-readiness assessment accepted by 100% of US colleges and used by 1.38 million students annually across 130+ countries.
- Ownership category
- akta.pro rank
ACT industry classification
Industry- Product category
- Educational Assessment Services
- NAICS
- Exam Preparation and Tutoring (611691), Colleges, Universities, and Professional Schools (61131), Technical and Trade Schools (61151)
- SIC
- Services-Educational Services (8200)
- akta.pro primary industry
- National/State Examination Boards & Testing Agencies (EDADAFAA)
- akta.pro secondary industries
- University/College Entrance & Admissions Testing Authorities (EDADAFAE), Test Administration, Proctoring & Security Authorities (EDADAFAH), College Entrance Exams (SAT/ACT/PSAT) Prep (EDANABAA), Assessment & Item Writing / Test Content Development (EDAGAKAE)
Keywords
Where ACT is headquartered
LocationHeadquarters
- HQ city
- Iowa City
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
ACT business model
Business model- GTM type
- B2B and B2C
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure
Revenue model
- ACT Test Registration Fees: Primary revenue stream from student test registration fees. Domestic US testing at $68.00 base fee with optional $25 writing add-on and $4 science add-on. International testing at $186.50 with $10 science add-on. Fee waivers available for qualifying students.
- Score Reporting Services: Revenue from sending scores to colleges, scholarship agencies, and high schools at $20 per test date, with additional $30 archive fee for scores older than three years.
- Test Preparation Products: Sale of official ACT prep materials, study guides, and test prep resources. Includes free practice tests and premium paid preparation options.
- Institutional Testing Programs: State and district testing contracts where ACT administers assessments for K-12 education systems. Also includes higher education placement and on-campus testing services.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| One time/ perpetual license | Pay-as-you-go | Standard ACT Test - $68.00 |
| One time/ perpetual license | Pay-as-you-go | Writing Add-On - $25.00 |
| One time/ perpetual license | Pay-as-you-go | Science Add-On - $4.00 (US) / $10.00 (International) |
| One time/ perpetual license | Pay-as-you-go | International ACT Test - $186.50 |
| Transaction based/ take rate | Pay-as-you-go | Score Reporting - $20 per test date |
| Transaction based/ take rate | Pay-as-you-go | Archive Score Report - $30 |
Go-to-market motion3 records
Distribution channels6 records
Marketing channels7 records
ACT product offering
Product offeringCore offering
ACT administers the ACT Test, a standardized college readiness assessment offered in paper or computer formats with optional Science and Writing sections, accepted by 100% of U.S. colleges. The company extends this core assessment into a broader portfolio including PreACT (preliminary testing), ACT WorkKeys (workforce skills certification), ACT Interest Inventory and Navigator (career/college planning), ACT Recruit Me (college matching and scholarships), and international programs (Global Assessment Certificate and English Proficiency Program) delivered through partner organizations.
Product overview
ACT is a comprehensive assessment and educational services organization offering an integrated portfolio of college readiness, career planning, and workforce solutions. The core product is The ACT Test, a standardized college entrance examination available in paper or computer formats with optional Science and Writing sections. This core assessment is supported by a platform-plus-services architecture: MyACT serves as the central portal for test registration, score access, and college matching; PreACT provides preliminary assessment for younger students; ACT Interest Inventory and ACT Navigator power career and college exploration; CRASE (Constructed Response Automated Scoring Engine) enables automated writing evaluation using NLP and machine learning; and ACT WorkKeys addresses workforce skills certification. Test preparation is delivered through free resources (practice tests, QuizMe) and a Kaplan partnership for premium prep. International programs include the Global Assessment Certificate (GAC) and English Proficiency Program (EPP). Additional services include ACT Recruit Me for college connections, Superscore aggregation, and ACT My Answer Key for detailed score analysis. Spanish-language resources extend accessibility for Spanish-speaking students and families.
Differentiator
Problem solved
Functional benefit
Products and services
- The ACT Test
Quantifiable outcome
- 2M+ students test annually with ACT
- +4 more outcomes
Companies that use ACT
Customer profileNamed customers4 records
Segments5 records
Ideal customer profiles4 records
ACT technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration2 records
AI capability6 records
Feature4 records
ACT partnerships and signals
Strategic signalPartnerships
Two partnerships are on record, tiered core.
- Texas Instruments Education TechnologycoreACT partnered with Texas Instruments to create an online resource center with free instructional videos, study materials, and professional development resources designed to help students use TI calculators more effectively on the ACT math test. Resources include short demonstrations showing time-saving calculator functions and strategies for educators to integrate into instruction.
- International UniversitiescoreInternational Partners help deliver the ACT Test, English Proficiency Program (EPP), and Global Assessment Certificate (GAC) Program to international students preparing for study at English-speaking universities around the world.
Scale indicators11 records
Recent moves6 records
Expansion highlights5 records
ACT competitors and assessment
Company assessmentDirect peers
- College Board: The College Board administers the SAT, ACT's primary direct competitor in college entrance assessment. Both organizations compete for student test-taker share, state and district testing contracts, and institutional acceptance, with overlapping product portfolios in college readiness measurement and college planning tools.
- Prometric: Prometric operates a global test delivery network for certification, licensure, and admissions assessments, directly competing with ACT's national and international test centers. Prometric also delivers assessments for credentialing bodies in workforce and professional certification markets where ACT WorkKeys and ACT EPP operate.
- Pearson VUE: Pearson VUE operates one of the largest global test center networks, directly competing with ACT's national and international test centers for delivery of high-stakes certification and admissions assessments. Both organizations run scheduled, proctored testing at physical sites with similar fee structures.
- The Princeton Review: The Princeton Review is a leading test preparation provider offering SAT, ACT, and graduate exam prep courses, directly competing with ACT's test preparation products and the Kaplan partnership. Both companies target college-bound students and families seeking score improvement.
Emerging players
- Kaplan: Kaplan is both a content partner to ACT (Kaplan Test Prep Suite) and a direct competitor through Kaplan Test Prep's SAT prep offerings. Kaplan competes for the same student mindshare on test preparation and adjacent professional certification markets where ACT also operates.
- Khan Academy: Khan Academy partnered with College Board to provide free Official SAT Practice, creating a free alternative to ACT's paid and free prep products. As a free, high-quality test prep provider, Khan Academy pressures both ACT and Kaplan in the student preparation funnel and shapes college-bound student behavior.
- Curriculum Associates: Curriculum Associates provides iReady, a widely-adopted K-12 adaptive diagnostic and instruction platform that competes with ACT's PreACT and K-12 state and district testing contracts. Both companies serve school districts with formative and summative assessment solutions.
Broad incumbents
- Pearson: Pearson operates a global assessment portfolio including GED, Pearson VUE certification testing, and clinical/health assessments, and competes with ACT's WorkKeys and ACT English Proficiency Program in workforce and English-language assessment. Pearson also owns Pearson VUE, a major test delivery competitor to ACT's national test centers.
- McGraw Hill: McGraw Hill is a major educational publisher and assessment provider serving K-12 and higher education with prep materials, adaptive learning platforms, and curriculum-aligned assessments. McGraw Hill competes with ACT's PreACT, ACT Aspire, and test preparation products for institutional adoption and student market share.
- Educational Testing Service (ETS): ETS is the largest private educational measurement organization, administering GRE, TOEFL, Praxis, and HiSET. While ETS focuses on graduate, English-language, and teacher assessments rather than undergraduate admissions, it competes with ACT's WorkKeys in workforce skills assessment and shares the institutional testing market for state and district contracts.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat6 records
Key risks6 records
Key highlights7 records
Customer concentration
ACT social profiles
Digital presenceACT compliance and trust
Trust signalCompliance1 record
ACT financial estimates
Financial estimateRevenue estimate
Valuation estimate
ACT leadership team
Management profileNumber of profiles
Profiles3 records
ACT funding detail
Funding detailFunding overview
Funding rounds1 record
Investors1 record
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
ACT M&A and investment
M&A and investmentM&A5 records
Investments5 records
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about ACT
What does ACT do?
ACT administers the ACT Test, a standardized college readiness assessment offered in paper or computer formats with optional Science and Writing sections, accepted by 100% of U.S. colleges. The company extends this core assessment into a broader portfolio including PreACT (preliminary testing), ACT WorkKeys (workforce skills certification), ACT Interest Inventory and Navigator (career/college planning), ACT Recruit Me (college matching and scholarships), and international programs (Global Assessment Certificate and English Proficiency Program) delivered through partner organizations.
Is ACT a public or private company?
ACT is a private company. It is classified as nonprofit foundation owned and is currently operating.
When was ACT founded?
ACT was founded in 1959. It employs 1 to 10 people.
Where is ACT based?
ACT is headquartered in Iowa City, United States, in the North America region.
How does ACT make money?
Four revenue lines are on record. ACT Test Registration Fees are the primary driver. The others are score Reporting Services, test Preparation Products and institutional Testing Programs.
Who are ACT's main competitors?
Direct peers on record are College Board, Prometric, Pearson VUE and The Princeton Review. Emerging players are Kaplan, Khan Academy and Curriculum Associates. Broad incumbents are Pearson, McGraw Hill and Educational Testing Service (ETS).
Does ACT have an API?
No public API is recorded for ACT.
What industry is ACT in?
ACT's product category is Educational Assessment Services. Its primary akta.pro industry code is EDADAFAA, National/State Examination Boards & Testing Agencies, with a secondary code of EDADAFAE, University/College Entrance & Admissions Testing Authorities. Its NAICS code is 611691 and its SIC code is 8200.