Jack Henry & Associates, Inc. Reports Second Quarter Fiscal 2026 Results

MONETT, Mo., Feb. 3, 2026

MONETT, Mo., Feb. 3, 2026 /PRNewswire/ -- Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading financial technology provider, today announced results for fiscal second quarter ended December 31, 2025.

Operating Results

Revenue, operating expenses, operating income, and net income for the fiscal three and six months ended December 31, 2025, compared to the fiscal three and six months ended December 31, 2024, were as follows:

• Services and support revenue increased for the fiscal three months ended December 31, 2025, primarily driven by growth in data processing and hosting revenue within private and public cloud revenue of 9.2% and higher deconversion revenue by $6,143. Processing revenue increased for the fiscal three months ended December 31, 2025, primarily driven by growth in digital and transaction revenue of 14.8%, card revenue of 6.1%, and faster payments products revenue, of 52.1%.
• Services and support revenue increased for the fiscal six months ended December 31, 2025, primarily driven by growth in data processing and hosting revenue within private and public cloud revenue of 8.6% and higher deconversion revenue by $11,072. Processing revenue increased for the fiscal six months ended December 31, 2025, primarily driven by growth in card revenue of 7.5%, digital and transaction revenue of 14.3%, and faster payments products revenue of 53.9%.
• For the fiscal three months ended December 31, 2025, core segment revenue increased 8.4%, payments segment revenue increased 8.0%, complementary segment revenue increased 9.6%, and corporate and other segment revenue decreased 9.8%. For the fiscal three months ended December 31, 2025, core segment non-GAAP adjusted revenue increased 7.4%, payments segment non-GAAP adjusted revenue increased 6.4%, complementary segment non-GAAP adjusted revenue increased 8.7%, and corporate and other non-GAAP adjusted segment revenue decreased 10.1%. Total non-GAAP adjusted revenue increased 6.7% for the same period (see revenue lines of segment break-out tables on pages 5 and 6 below for a reconciliation of GAAP segment revenue to non-GAAP adjusted segment revenue).
• For the fiscal six months ended December 31, 2025, core segment revenue increased 4.2%, payments segment revenue increased 8.5%, complementary segment revenue increased 9.9%, and corporate and other segment revenue increased 9.3%. For the fiscal six months ended December 31, 2025, core segment non-GAAP adjusted revenue increased 6.8%, payments segment non-GAAP adjusted revenue increased 7.4%, complementary segment non-GAAP adjusted revenue increased 9.0%, and corporate and other non-GAAP adjusted segment revenue increased 9.0%. Total non-GAAP adjusted revenue increased 7.7% for the same period (see revenue lines of segment break-out tables on pages 7 and 8 below for a reconciliation of GAAP segment revenue to non-GAAP adjusted segment revenue).

• Cost of revenue increased for the fiscal three months ended December 31, 2025, compared to the fiscal three months ended December 31, 2024, primarily due to higher direct costs generally consistent with increases in related lines of revenue and higher personnel costs tempered by lower than normal medical claims, quarter-over-quarter.
• Cost of revenue increased for the fiscal six months ended December 31, 2025, compared to the fiscal six months ended December 31, 2024, primarily due to higher direct costs generally consistent with increases in related lines of revenue, higher personnel costs tempered by lower than normal medical claims, and increased amortization of intangible assets, period over period.
• Research and development expense increased for the fiscal three and six months ended December 31, 2025, compared to the fiscal three and six months ended December 31, 2024.
• Selling, general, and administrative expense decreased for the fiscal three months ended December 31, 2025, compared to the fiscal three months ended December 31, 2024, primarily due to the decrease in travel and entertainment and meeting expenses related to the timing of our Connect conference and the higher gain on sale of assets, net, in the current fiscal year quarter of $3,032 compared to the prior fiscal year quarter.
• Selling, general, and administrative expense decreased for the fiscal six months ended December 31, 2025, compared to the fiscal six months ended December 31, 2024, primarily due to higher personnel costs partially related to a limited increase in employee headcount in the trailing twelve months and higher professional service costs that were more than offset by lower than normal medical claims and the higher gain on sale of assets, net, in the current fiscal year period of $6,829 compared to the prior fiscal year period.

• Effective tax rates for the fiscal three and six months ended December 31, 2025, and 2024, were 24.1% and 24.2% and 23.2% and 23.6%, respectively.

Impact of Non-GAAP Adjustments

The tables below show our revenue, operating income, and net income for the fiscal three and six months ended December 31, 2025, compared to the fiscal three and six months ended December 31, 2024, excluding the impacts of deconversions in the fiscal quarters and fiscal year-to-date periods ended December 31, 2025, and December 31, 2024, the gain on sale of assets, net, in the current fiscal quarter and fiscal year-to-date period, the impact of a contract change in the prior fiscal quarter and fiscal year-to-date period, and the acquisition in the current fiscal quarter and fiscal year-to-date period.

The tables below show the segment break-out of revenue and cost of revenue for each period presented, as adjusted for the items above, and include a reconciliation to non-GAAP adjusted operating income presented above.

The table below shows our GAAP to non-GAAP guidance for the fiscal year ending June 30, 2026. Fiscal year 2026 non-GAAP guidance excludes the impacts of deconversion revenue and related operating expenses, acquisition revenues and related operating expenses, the revenues and operating expenses related to a contractual change, and the gain on sale of assets, and assumes no additional acquisitions or dispositions will be made during the fiscal year.

Balance Sheet and Cash Flow Review

• Cash and cash equivalents were $28 million at December 31, 2025, compared to $26 million at December 31, 2024.
• Trade receivables were $298 million at December 31, 2025, compared to $283 million at December 31, 2024.
• The Company had $20 million of borrowings at December 31, 2025, compared to $150 million of borrowings at December 31, 2024.
• Deferred revenue was $271 million at December 31, 2025, compared to $269 million at December 31, 2024.
• Stockholders' equity increased to $2,203 million at December 31, 2025, compared to $1,976 million at December 31, 2024.

The following table summarizes net cash from operating activities:

The following table summarizes net cash from investing activities:

The following table summarizes net cash from financing activities:

Use of Non-GAAP Financial Information

Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures, including adjusted revenue, adjusted segment revenue, adjusted operating income, adjusted segment income, adjusted cost of revenue, adjusted segment cost of revenue, adjusted operating expenses, adjusted operating margin, adjusted segment income margin, non-GAAP earnings before interest, taxes, depreciation, and amortization (non-GAAP EBITDA), free cash flow, net operating profit after tax return on invested capital (NOPAT ROIC), and non-GAAP adjusted net income.

We believe non-GAAP financial measures help investors better understand the underlying fundamentals and true operations of our business. Adjusted revenue, adjusted segment revenue, adjusted operating income, adjusted operating margin, adjusted  segment income, adjusted segment income margin, adjusted cost of revenue, adjusted segment cost of revenue, adjusted operating expenses, and adjusted net income eliminate one-time deconversion revenue and associated costs, the gain on sale of assets, net, an acquisition, and a contractual change, which management believes are not indicative of the Company's operating performance. Such adjustments give investors further insight into our performance. Non-GAAP EBITDA is defined as net income attributable to the Company before the effect of interest expense, taxes, depreciation, and amortization, adjusted for net income before the effect of interest expense, taxes, depreciation, and amortization attributable to eliminated one-time deconversions, the gain on sale of assets, net, an acquisition, and a contractual change. Free cash flow is defined as net cash from operating activities, less capitalized expenditures, internal use software, and capitalized software, plus proceeds from the sale of assets. NOPAT ROIC is defined as operating income for the trailing four quarters multiplied by one minus the average effective tax rate (ETR) for the trailing four quarters, with the result divided by average invested capital (average of the beginning and ending period balances). Management believes that non-GAAP EBITDA is an important measure of the Company's overall operating performance and excludes certain costs and other transactions that management deems one time or non-operational in nature; free cash flow is useful to measure the funds generated in a given period that are available for debt service requirements and strategic capital decisions; and NOPAT ROIC is a measure of the Company's allocation efficiency and effectiveness of its invested capital. For these reasons, management also uses these non-GAAP financial measures in its assessment and management of the Company's performance.

Non-GAAP financial measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. Non-GAAP financial measures have no standardized meaning prescribed by GAAP and therefore, are unlikely to be comparable with calculations of similar measures for other companies.

Any non-GAAP financial measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Reconciliations of the non-GAAP financial measures to related GAAP measures are included.

About Jack Henry & Associates, Inc.®

Jack Henry^TM (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity — offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For nearly 50 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,400 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.

Statements made in this news release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those discussed in the Company's Securities and Exchange Commission filings, including the Company's most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Any forward-looking statement made in this news release speaks only as of the date of the news release, and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.

Quarterly Conference Call

The Company will hold a conference call on February 4, 2026, at 7:45 a.m. Central Time, and investors are invited to listen at www.jackhenry.com. A webcast replay will be available approximately one hour after the event at ir.jackhenry.com/corporate-events-and-presentations and will remain available for one year.