JACK HENRY & ASSOCIATES INC
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
JKHY$173.23-3.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0000779152-25-000019
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0000779152-25-000092
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 71 previous paragraphs and 55 current paragraphs.
17 unchanged; 28 reworded; 10 added; 24 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
The provision for income taxes increased 23.2%, or $8,725, for the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025. This increase was primarily driven by the increase in income before income taxes. The effective tax rate for the current fiscal quarter was 24.3% compared to 24.0% for the same quarter a year ago.
Current report
Net income increased 20.8%, or $24,795, for the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025. The total net income increase, quarter over quarter, was lower when adjusted for the gain on sale of assets and deconversion net income in the current fiscal quarter and the net income related to a contractual change and deconversion net income in the prior fiscal year first quarter The increase excluding these one-time items was primarily due to net organic growth in our lines of revenue for the first quarter of fiscal 2026 partially offset by commensurate higher operating expenses and the increased provision for income taxes.
Current report
As we move into the second quarter of fiscal 2026 – our 50 th year in business – we are excited and confident about our future, and we remain well-positioned to deliver durable, consistent growth and attractive results for our shareholders. Technology spending by financial institutions remains strong, and there is clear demand for our differentiated and innovative technology solutions. We have a very healthy sales pipeline and a proven ability to attract and win deals, especially with larger financial institutions. Our unwavering focus on culture, service, innovation, strategy, and execution continues to set us apart in the market and will enable us to drive continued industry-leading revenue growth with strong margin expansion, benefiting our associates, clients, and shareholders.
Current report
Cost of revenue for the first quarter of fiscal 2026 increased 1.5% over the prior fiscal year first quarter. Total cost of revenue less deconversion costs of $904 for the current fiscal quarter and less costs related to a contractual change of $10,443 and deconversion costs of $115 for the prior fiscal year first quarter, results in a 4.4% increase quarter over quarter. This increase was primarily due to higher direct costs generally consistent with increases in the related lines of revenue, higher personnel costs primarily related to an increase in headcount during the trailing twelve months tempered by a decrease in benefit costs, and increased amortization of intangible assets. Cost of revenue decreased 3% as a percentage of total revenue compared to the prior fiscal year first quarter.
Current report
The provision for income taxes increased 23.2% for the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025. The effective tax rate for the current fiscal quarter was 24.3% compared to 24.0% for the same quarter a year ago.
Current report
The Company's Chief Executive Officer, who is also the Company's CODM, regularly evaluated segment performance and made strategic decisions on the allocation of resources to them based on various factors, including performance against trend, budget, and forecast for the fiscal three months ended September 30, 2025, and 2024. The CODM also used reportable segment revenue, costs of revenue, and segment income to evaluate segment performance and allocate resources. The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the CODM.
Current report
During the fiscal three months ended September 30, 2025, the Company transferred a product from the Corporate and Other segment to the Complementary segment, due to better alignment with the Complementary segment. As a result of this transfer, adjustments were made during the fiscal three months ended September 30, 2025, to reclassify related revenue and cost of revenue recognized for the fiscal three months ended September 30, 2024, from the Corporate and Other segment to the Complementary segment. Revenue and cost of revenue reclassed for the fiscal three months ended September 30, 2024, was $3,242 and $704, respectively.
Current report
Revenue in the Complementary segment increased 10.2% and cost of revenue increased 7.6% for the first quarter of fiscal 2026 compared to the same quarter last fiscal year. Complementary revenue less deconversion revenue in both quarters, which totaled $1,876 for the first quarter of fiscal 2026 and $473 for the first quarter of fiscal 2025, results in a 9.4% increase quarter over quarter. This increase was primarily driven by organic growth in hosting revenue as new and existing clients continue to migrate to our private cloud and processing volumes expanded and Jack Henry digital revenue (including Banno) from a higher number of active users and the ramping up of add-on products. Complementary cost of revenue less deconversion costs in both quarters, which totaled $308 for the first quarter of fiscal 2026 and $60 for the first quarter of fiscal 2025, results in a 7.3% increase quarter over quarter. This increase was primarily driven by higher direct costs generally consistent with increases in related lines of revenue and increased amortization of intangibles. Complementary cost of revenue as a percentage of Complementary revenue decreased 1% for the first quarter of fiscal 2026 compared to the same quarter in fiscal 2025.
Current report
*For the fiscal three months ended September 30, 2025, the change in other assets and liabilities includes the change in accrued expenses of $(36,567), the change in prepaid expenses, deferred costs and other of $(34,336), and the change in income taxes of $(9,150). For the fiscal three months ended September 30, 2024, the change in other assets and liabilities includes the change in accrued expenses of $(23,067), the change in prepaid expenses, deferred costs and other of $(18,788), partially offset by the change in income taxes of $38,576.
Current report
On September 30, 2025, the Company acquired substantially all the assets of Victor for $42,390 paid in cash. The primary reason for the acquisition was to expand the Company's capabilities in the Payments-as-a-Service market. Victor is a cloud-native, API-first provider of direct-to-core embedded payments solutions.
Removed paragraphs (24)
Previous report
The provision for income taxes increased 13.8%, or $3,734, for the third quarter of fiscal 2025, compared to the third quarter of fiscal 2024. Removing from the provision for income taxes the effect of taxes on deconversion net income of $1,644 for the current fiscal quarter and on deconversion net loss of $1 for the prior fiscal year third quarter results in an increase of 7.7%, quarter over quarter. This increase was primarily driven by the increase in income before income taxes partially offset by a decrease in the Company's effective tax rate due to the timing of filing our Federal tax return and recognition of return-to-provision adjustments. The effective tax rate for the current fiscal third quarter was 21.7% compared to 23.7% for the same quarter a year ago.
Previous report
Net income increased 27.6%, or $24,009, for the third quarter of fiscal 2025, compared to the third quarter of fiscal 2024. Removing from total net income the effects of deconversion net income of $5,207 for the current fiscal quarter and deconversion net loss of $5 for the prior fiscal year third quarter, results in a 21.6% increase quarter over quarter. This increase was primarily due to net organic growth in our lines of revenue for the third quarter of fiscal 2025 partially offset by higher operating expenses and the increased provision for income taxes compared to the same quarter last fiscal year.
Previous report
For the nine months ended March 31, 2025, total revenue increased 6.3%, or $104,285, compared to the same period in fiscal 2024. Total revenue less deconversion revenue of $13,410 for the current fiscal year period and $9,861 for the prior fiscal year period results in an increase of 6.1%, period over period. This increase was primarily driven by organic growth in our revenue lines including data processing and hosting within private and public cloud, card, Jack Henry digital, which is inclusive of Banno, and payment processing, which is inclusive of PayCenter, partially offset by the decrease in license and hardware revenues, period over period.
Previous report
Operating expenses increased 4.3%, or $55,033, for the nine months ended March 31, 2025 compared to the same period in fiscal 2024. Total operating expenses less deconversion operating expenses of $3,686 for the current fiscal year period and $2,309 for the prior fiscal year period and less Voluntary Employee Departure Incentive Payment ("VEDIP") program expense of $16,443 for the prior fiscal year period results in an increase of 5.5%. This increase was primarily driven by higher personnel costs and direct costs partially offset by the increase in labor cost deferral, period over period. The VEDIP program was a voluntary separation program for certain eligible employees conducted during July 2023 that included a VEDIP payment for the eligible employees who chose to participate in the program.
Previous report
Operating income increased 13.5%, or $49,252, for the nine months ended March 31, 2025 compared to the same period in fiscal 2024. Removing from total operating income the effects of deconversion operating income of $9,724 for the current fiscal year period and $7,552 for the prior fiscal year period and VEDIP program operating loss of $16,443 from the prior fiscal year period results in an increase of 8.2%, period over period. This increase was primarily driven by organic revenue growth partially offset by increased operating expenses detailed above tempered by our disciplined approach to compensation, headcount and infrastructure costs, period over period.
Previous report
The provision for income taxes increased 12.7%, or $11,051, for the nine months ended March 31, 2025, compared to the same period in fiscal 2024. Removing from the provision for income taxes the effect of taxes on deconversion net income of $2,334 for the nine months ended March 31, 2025 and $1,812 for the nine months ended March 31, 2024, and the tax benefit on VEDIP expense of $3,946 for the prior fiscal year period results in an increase of 7.4%, period over period. This increase was primarily driven by the increase in income before income taxes partially offset by a decrease in the Company's effective tax rate due to the timing of filing our Federal tax return and recognition of return-to-provision adjustments. The effective tax rate for the current fiscal year period was 23.0% compared to 23.6% for the same period a year ago.
Previous report
Net income increased 16.9%, or $47,401, for the nine months ended March 31, 2025, compared to the same period in fiscal 2024. Removing from total net income the effects of deconversion net income of $7,390 for the current fiscal year period and $5,739 for the prior fiscal year period and VEDIP program net loss of $12,497 for the prior fiscal year period results in an 11.6% increase period over period. This increase was primarily due to net organic growth in our lines of revenue for the nine months ended March 31, 2025, partially offset by higher operating expenses and the increased provision for income taxes compared to the same period last fiscal year.
Previous report
As we move into the fourth quarter of fiscal 2025, significant portions of our business continue to provide recurring revenue and our sales pipeline is also encouraging. Our clients continue to face regulatory and operational challenges which our products and services address, and in these times they have an even greater need for our solutions that directly address institutional profitability, efficiency, and security. We believe our strong balance sheet, access to extensive lines of credit, the strength of our existing product line, and an unwavering commitment to superior client service position us well to address current and future opportunities.
Previous report
Services and support revenue increased 5.3% for the nine months ended March 31, 2025, compared to the same period in fiscal 2024. Reducing services and support revenue for deconversion revenue from each period, which was $13,410 for the current fiscal year period and $9,861 for the prior fiscal year period, results in growth of 5.0% period over period. This increase was primarily driven by double-digit growth in data processing and hosting revenues within private and public cloud as new and existing clients migrate to our private cloud and processing volumes expand partially offset by the decrease in license and hardware revenues, period over period.
Previous report
Cost of revenue for the third quarter of fiscal 2025 increased 3.8% over the prior fiscal year third quarter. Reducing cost of revenue for deconversion costs from each quarter, which were $1,873 for the current fiscal year quarter and $671 for the prior fiscal year quarter, results in a 3.4% increase quarter over quarter. This increase was primarily due to higher direct costs generally consistent with increases in the related lines of revenue and included higher processing and pass through costs. Also contributing to the increase were higher internal licenses and fees from increased deployments and pricing in the current quarter partially offset by an increase in labor cost deferral. Cost of revenue decreased 3% as a percentage of total revenue compared to the prior fiscal year quarter.
Previous report
Cost of revenue for the nine months ended March 31, 2025, increased 4.6% compared to the same period in fiscal 2024. Reducing cost of revenue for deconversion costs from each period, which were $2,228 for the current fiscal year period and $1,562 for the prior fiscal year period, results in a 4.5% increase period over period. This increase was primarily due to higher direct costs generally consistent with increases in the related lines of revenue, compensation increases in the trailing twelve months, and higher internal licenses and fees from increased deployments and pricing. Also contributing to the increase were higher amortization of intangibles and increased cloud migration and consumption fees, partially offset by a decrease in license and hardware costs and increased labor cost deferral. Cost of revenue decreased 1% as a percentage of total revenue compared to the prior fiscal year period.
Previous report
Research and development expense increased 10.9% for the nine months ended March 31, 2025, compared to the same period in fiscal 2024. This increase was primarily due to higher personnel costs (net of capitalization) from compensation increases and employee headcount additions in the trailing twelve months. Deconversion and non-recurring costs did not significantly affect research and development expenses period over period. Research and development expense remained consistent as a percentage of total revenue compared to the prior fiscal year period.
Previous report
Selling, general, and administrative expense decreased 0.7% in the nine months ended March 31, 2025, compared to the same period in 2024. Reducing selling, general, and administrative expense for deconversion costs from each period, which were $1,458 for the current fiscal year period and $747 for the prior fiscal year period and for VEDIP program expense of $16,443 in the prior fiscal year period, results in a 7.4% increase period over period. This increase was primarily due to compensation increases related to an increase in employee headcount in the trailing twelve months and higher commissions expense. Selling, general, and administrative expense decreased 1% as a percentage of total revenue compared to the prior fiscal year period.
Previous report
Interest expense decreased for the three and nine months ended March 31, 2025, compared to the three and nine months ended March 31, 2024 primarily due to a decrease in average outstanding debt period over period. There was $170,000 outstanding under the revolving credit and term loan facilities at March 31, 2025, and $250,000 outstanding under the revolving credit and term loan facilities at March 31, 2024.
Previous report
The provision for income taxes increased 13.8% for the third quarter of fiscal 2025, compared to the third quarter of fiscal 2024. Removing from the provision for income taxes the effect of taxes on deconversion net income of $1,644 for the current fiscal quarter and on deconversion net loss of $1 for the prior fiscal year third quarter results in an increase of 7.7%, quarter over quarter. This increase was primarily driven by the increase in income before income taxes partially offset by a decrease in the Company's effective tax rate due to the timing of filing our Federal tax return and recognition of return-to-provision adjustments. The effective tax rate for the current fiscal third quarter was 21.7% compared to 23.7% for the same quarter a year ago.
Previous report
The provision for income taxes increased 12.7% for the nine months ended March 31, 2025, compared to the same period in fiscal 2024. Removing from the provision for income taxes the effect of taxes on deconversion net income of $2,334 for the nine months ended March 31, 2025 and $1,812 for the nine months ended March 31, 2024 and the tax benefit on VEDIP expense of $3,946 for the prior fiscal year period results in an increase of 7.4%, period over period. This increase was primarily driven by the increase in income before income taxes partially offset by a decrease in the Company's effective tax rate due to the timing of filing our Federal tax return and recognition of return-to-provision adjustments. The effective tax rate for the current fiscal year period was 23.0% compared to 23.6% for the same period a year ago.
Previous report
Net income increased 16.9% to $328,144, or $4.49 per diluted share, for the nine months ended March 31, 2025 compared to $280,743, or $3.85 per diluted share, in the same period of fiscal 2024. Removing from total net income the effects of deconversion net income of $7,390 for the current fiscal year period and $5,739 for the prior fiscal year period, and the VEDIP program net loss of $12,497 for the prior fiscal year period, results in an 11.6% increase period over period. This increase was primarily due to net organic growth in our lines of revenue for the nine months ended March 31, 2025, partially offset by higher operating expenses and the increased provision for income taxes compared to the same period last fiscal year.
Previous report
The Company evaluates the performance of its segments and allocates resources to them based on various factors, including performance against trend, budget, and forecast. Only revenue and costs of revenue are considered in the evaluation for each segment.
Previous report
Revenue in the Core segment increased 5.9% and cost of revenue increased 4.6% for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. Reducing Core revenue for deconversion revenue in both periods, which totaled $6,105 for the nine months ended March 31, 2025, and $4,885 for the nine months ended March 31, 2024, results in a 5.8% increase period over period. This increase was primarily driven by organic growth in our Core revenue lines including data processing and hosting revenues within private and public cloud as new and existing clients migrate to our private cloud and processing volumes expand, partially offset by a decrease in maintenance fees and software usage revenues. Reducing Core cost of revenue for deconversion costs in both periods, which totaled $1,365 for the nine months ended March 31, 2025 and $650 for the nine months ended March 31, 2024, results in a 4.3% increase period over period. This increase was primarily due to higher direct costs generally consistent with increases in related lines of revenue. Core cost of revenue decreased 1% as a percentage of Core revenue for the nine months ended March 31, 2025 compared to the same period in fiscal 2024.
Previous report
Revenue in the Payments segment increased 6.5% and cost of revenue increased 4.2% for the nine months ended March 31, 2025, compared to the equivalent period of the prior fiscal year. Reducing Payments revenue for deconversion revenue in both periods, which totaled $4,341 for the nine months ended March 31, 2025 and $3,470 for the nine months ended March 31, 2024, results in a 6.4% increase period over period. This increase was primarily due to higher card revenue from an increase in volumes, higher payment processing revenues, including PayCenter products — Zelle, RTP, and FedNow — from an increase in volumes and new client revenue, and increased remote capture and ACH revenue. The Payments cost of revenue increase was primarily due to higher direct costs generally consistent with increases in lines of revenue and higher compensation costs in the trailing twelve months. Deconversion and non-recurring costs did not significantly affect the Payments cost of revenue comparison. Payments cost of revenue as a percentage of Payments revenue decreased 1% for the nine months ended March 31, 2025 compared to the same period in fiscal 2024.
Previous report
Revenue in the Complementary segment increased 12.2% and cost of revenue increased 5.6% for the third quarter of fiscal 2025 compared to the equivalent quarter of the prior fiscal year. Reducing Complementary revenue for deconversion revenue, which totaled $2,324 for the third quarter of fiscal 2025 and $(1,366) for the third quarter of fiscal 2024, results in a 9.6% increase quarter over quarter. This increase was primarily driven by increased Jack Henry digital revenue (including Banno) as the number of active users increased and volumes expanded and from the ramping up of add-on products and organic growth in hosting revenues as new and existing clients continued to migrate to our private cloud and processing volumes expanded. Reducing Complementary cost of revenue for deconversion costs in both quarters, which totaled $519 for the third quarter of fiscal 2025 and $348 for the third quarter of fiscal 2024, results in a 5.4% increase quarter over quarter. This increase was primarily driven by higher direct costs generally consistent with increases in related lines of revenue. Complementary cost of revenue as a percentage of Complementary revenue decreased 3% for the third quarter of fiscal 2025 compared to the same quarter in fiscal 2024.
Previous report
Revenue in the Complementary segment increased 8.0% and cost of revenue increased 4.9% for the nine months ended March 31, 2025, compared to the equivalent period of the prior fiscal year. Reducing Complementary revenue for deconversion revenue in both periods, which totaled $2,857 for the nine months ended March 31, 2025, and $1,440 for the nine months ended March 31, 2024, results in a 7.7% increase period over period. This increase was primarily driven by organic growth in hosting revenues as new and existing clients continued to migrate to our private cloud and processing volumes expanded, increased Jack Henry digital revenue (including Banno) as the number of active users increased and volumes expanded and from the ramping up of add-on products, and higher maintenance fee revenue. The Complementary cost of revenue increase was primarily driven by higher direct costs generally consistent with increases in related lines of revenue, compensation increases in the trailing twelve months, and increased amortization of capitalized software from capital software development projects. Deconversion and non-recurring costs did not significantly affect the Complementary cost of revenue comparison. Complementary cost of revenue as a percentage of Complementary revenue decreased 1% for the nine months ended March 31, 2025, compared to the same period in fiscal 2024.
Previous report
Revenue in the Corporate and Other segment decreased 3.9% for the nine months ended March 31, 2025, compared to the equivalent period of the prior fiscal year. The Corporate and Other revenue decrease was primarily due to lower hardware revenue partially offset by higher subscription and software usage revenue, increased processing revenue, and higher data processing and hosting revenue within private and public cloud. Deconversion revenue did not significantly affect the Corporate and Other revenue comparison. The Corporate and Other cost of revenue in the nine months ended March 31, 2025, increased 5.0% when compared to the prior fiscal year period. This increase was primarily due to increased direct costs, higher cloud consumption costs, and increased internal licenses and fees partially offset by lower cost of hardware in line with lower hardware revenue. Deconversion and non-recurring costs did not significantly affect the Corporate and Other cost of revenue comparison.
Previous report
Term loan facility
Reworded paragraphs (28)
Previous wording
Jack Henry & Associates, Inc. is a well-rounded financial technology company headquartered in Monett, Missouri, that employs approximately 7,200 full-time and part-time associates nationwide, and is a leading provider of technology solutions and payment processing services primarily to community and regional financial institutions. Our solutions serve approximately 7,500 clients and consist of integrated data processing systems solutions to U.S. banks ranging from de novo to multi-billion-dollar institutions with assets up to $50 billion, core data processing solutions for credit unions of all sizes, and non-core highly specialized core-agnostic products and services that enable financial institutions of every asset size and charter, and diverse corporate entities outside the financial services industry, to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. Our integrated solutions are available for on-premise installation and delivery in our private and public cloud.
Current wording
Jack Henry & Associates, Inc. is a well-rounded financial technology company headquartered in Monett, Missouri, that employs approximately 7,200 full-time and part-time associates nationwide, and is a leading provider of technology solutions and payment processing services primarily to community and regional banks and credit unions. Our solutions serve approximately 7,400 clients and consist of integrated data processing systems solutions to U.S. banks ranging from de novo to multi-billion-dollar institutions with assets up to $55 billion, core data processing solutions for credit unions of all sizes, and non-core highly specialized core-agnostic products and services that enable banks and credit unions of every asset size and charter, and diverse corporate entities outside the financial services industry, to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. Our integrated solutions are available for on-premise installation and delivery in our private and public cloud.
Previous wording
For the third quarter of fiscal 2025, total revenue increased 8.6%, or $46,525, compared to the same quarter in fiscal 2024. Total revenue less deconversion revenue of $9,644 for the current fiscal quarter and $843 for the prior fiscal year third quarter results in an increase of 7.0%, quarter over quarter. This increase was primarily driven by organic growth in our revenue lines including data processing and hosting within private and public cloud, card, Jack Henry digital, which is inclusive of Banno, and payment processing, which is inclusive of PayCenter, partially offset by the decrease in license and hardware revenues, quarter over quarter.
Current wording
For the first quarter of fiscal 2026, total revenue increased 7.3%, or $43,756, compared to the same quarter in fiscal 2025. Total revenue less deconversion revenue of $8,626 for the current fiscal quarter and less revenue related to a contractual change of $12,248 and deconversion revenue of $3,697 for the prior fiscal year first quarter results in an increase of 8.7% quarter over quarter. This increase was primarily driven by organic growth in our revenue lines including data processing and hosting within private and public cloud, card, Jack Henry digital, including Banno, and payment processing, including PayCenter products. Increased user group revenue related to the timing of our Connect conference was also a driver.
Previous wording
Operating expenses increased 4.7%, or $19,884, for the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024. Total operating expenses less deconversion operating expenses of $2,794 for the current fiscal quarter and $849 for the prior fiscal year third quarter results in an increase of 4.2%. This increase was primarily driven by higher direct costs and net personnel costs partially offset by the increase in labor cost deferral.
Current wording
Operating expenses increased 2.4%, or $10,967, for the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025. Total operating expenses less the gain on sale of assets of $3,796 and deconversion operating expenses of $1,525 for the current fiscal quarter and less operating expenses related to a contractual change of $10,443 and deconversion operating expenses of $202 for the prior fiscal year first quarter results in an increase of 5.4% quarter over quarter. This increase was primarily driven by higher direct costs, increased expenses related to our Connect conference, higher personnel costs tempered by lower benefits costs, and increased amortization of intangible assets.
Previous wording
Operating income increased 23.8%, or $26,641, for the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024. Removing from total operating income the effects of deconversion operating income of $6,851 for the current fiscal quarter and deconversion operating loss of $6 for the prior fiscal year third quarter results in an increase of 17.6%, quarter over quarter. This increase was primarily driven by organic revenue growth partially offset by increased operating expenses detailed above tempered by our disciplined approach to compensation, headcount and infrastructure costs, quarter over quarter.
Current wording
Operating income increased 21.7%, or $32,789, for the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025. Total operating income less the gain on sale of assets of $3,796 and deconversion operating income of $7,101 for the current fiscal quarter and less operating income related to a contractual change of $1,805 and deconversion operating income of $3,495 for the prior fiscal year first quarter results in an increase of 18.6%, quarter over quarter. This increase was primarily driven by organic revenue growth partially offset by increased operating expenses detailed above tempered by our disciplined approach to compensation, headcount and infrastructure costs.
Previous wording
A detailed discussion of the major components of the results of operations for the three and nine months ended March 31, 2025, follows.
Current wording
A detailed discussion of the major components of the results of operations for the fiscal three months ended September 30, 2025, follows.
Previous wording
Discussions compare the current fiscal year's three and nine months ended March 31, 2025, to the prior fiscal year's three and nine months ended March 31, 2024.
Current wording
Discussions compare the current fiscal year's three months ended September 30, 2025, to the prior fiscal year's three months ended September 30, 2024.
Previous wording
Services and support revenue increased 8.5% for the third quarter of fiscal 2025 compared to the same quarter a year ago. Reducing services and support revenue for deconversion revenue from each quarter, which was $9,644 for the current fiscal year quarter and $843 for the prior fiscal year quarter, results in growth of 5.6% quarter over quarter. This increase was primarily driven by double-digit growth in data processing and hosting revenues within private and public cloud as new and existing clients migrate to our private cloud and processing volumes expand partially offset by the decrease in licenses and hardware revenues, quarter over quarter.
Current wording
Services and support revenue increased 5.7% for the first quarter of fiscal 2026 compared to the same quarter a year ago. Total services and support revenue less deconversion revenue of $8,626 for the current fiscal quarter and less revenue related to a contractual change of $12,248 and deconversion revenue of $3,697 for the prior fiscal year first quarter, results in growth of 8.1% quarter over quarter. This increase was primarily driven by growth in data processing and hosting revenues within private and public cloud as new and existing clients continue to migrate to our private cloud and processing volumes expand, user group revenue related to the timing of our Connect conference, work order revenue, and implementation revenue.
Previous wording
Processing revenue increased 8.9% for the third quarter of fiscal 2025 compared to the same quarter last fiscal year. This increase was primarily driven by growth in card revenue primarily from monthly service and risk management fees, improvement in Jack Henry digital revenue (including Banno) from a higher number of active users and expanding volumes and from the ramping up of add-on products, higher payment processing revenues, including PayCenter products — Zelle, RTP (Real Time Payments), and FedNow — from expanding volumes and new client revenue. Deconversion revenue did not significantly affect processing revenue quarter over quarter.
Current wording
Processing revenue increased 9.7% for the first quarter of fiscal 2026 compared to the same quarter last fiscal year. This increase was primarily driven by growth in card revenue from monthly service and risk management fees, improvement in Jack Henry digital revenue (including Banno) from a higher number of active users and from the ramping up of add-on products, higher payment processing revenues, including PayCenter products — Zelle, RTP (Real Time Payments), and FedNow — from expanding active users and new client revenue. Deconversion and other one-time revenue did not significantly affect processing revenue quarter over quarter.
Previous wording
Research and development expense increased 9.5% for the third quarter of fiscal 2025 compared to the prior fiscal year third quarter. This increase was primarily due to higher personnel costs (net of capitalization) from compensation increases and employee headcount additions in the trailing twelve months. Deconversion and non-recurring costs did not significantly affect research and development expenses quarter over quarter. Research and development expense remained consistent as a percentage of total revenue compared to the prior fiscal year quarter.
Current wording
Research and development expense decreased 1.0% for the first quarter of fiscal 2026 compared to the prior fiscal year first quarter. This slight decrease was primarily due to a tempered personnel cost increase (net of capitalization) from lower compensation increases and employee headcount additions in the trailing twelve months. Deconversion and other one-time costs did not significantly affect research and development expenses quarter over quarter. Research and development expense decreased 1% as a percentage of total revenue compared to the prior fiscal year first quarter.
Previous wording
Selling, general, and administrative expense increased 6.6% in the third quarter of fiscal 2025 compared to the same quarter in the prior fiscal year. Reducing selling, general, and administrative expense for deconversion costs from each quarter, which were $920 for the current fiscal year quarter and $178 for the prior fiscal year quarter results in a 5.4% increase quarter over quarter. This increase was primarily due to compensation increases related to an increase in employee headcount in the trailing twelve months and higher commission expense. Selling, general, and administrative expense decreased 1% as a percentage of total revenue compared to the prior fiscal year quarter.
Current wording
Selling, general, and administrative expense increased 9.4% in the first quarter of fiscal 2026 compared to the same quarter in the prior fiscal year. Total selling, general, and administrative expense less the gain on sale of assets of $3,796 and deconversion costs of $621 for the current fiscal quarter and deconversion costs of $87 for the prior fiscal year first quarter results in a 14.3% increase quarter over quarter. This increase was primarily due to higher expenses related to the timing of our user group meeting, increased professional services expense, and higher personnel costs related to an increase in employee headcount in the trailing twelve months tempered by lower commissions and benefit costs. Selling, general, and administrative expense remained consistent as a percentage of total revenue compared to the prior fiscal year first quarter.
Previous wording
Interest income decreased due to lower interest-earning balances for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. Interest income increased due to higher interest-earning balances for the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.
Current wording
Interest income and interest expense decreased due to lower interest-earning and credit line balances, respectively, for the fiscal three months ended September 30, 2025, compared to the fiscal three months ended September 30, 2024.
Previous wording
Net income increased 27.6% to $111,108, or $1.52 per diluted share, for the third quarter of fiscal 2025 compared to $87,099, or $1.19 per diluted share, in the same quarter of fiscal 2024. Removing from total net income the effects of deconversion net income of $5,207 for the current fiscal quarter and deconversion net loss of $5 for the prior fiscal year quarter, results in a 21.6% increase quarter over quarter. This increase was primarily due to net organic growth in our lines of revenue for the third quarter of fiscal 2025 partially offset by higher operating expenses and the increased provision for income taxes compared to the same quarter last fiscal year.
Current wording
Net income increased 20.8% to $143,986, or $1.97 per diluted share, for the first quarter of fiscal 2026 compared to $119,191, or $1.63 per diluted share, in the same quarter of fiscal 2025. The total net income increase, quarter over quarter, was lower when adjusted for the gain on sale of assets and deconversion net income in the current fiscal quarter and the net income related to a contractual change and deconversion net income in the prior fiscal year first quarter. The increase excluding these one-time items was primarily due to net organic growth in our lines of revenue for the first quarter of fiscal 2026 partially offset by commensurate higher operating expenses and the increased provision for income taxes.
Previous wording
The Company is a well-rounded financial technology company and is a leading provider of technology solutions and payment processing services primarily to community and regional financial institutions.
Current wording
The Company is a well-rounded financial technology company and is a leading provider of technology solutions and payment processing services primarily to community and regional banks and credit unions.
Previous wording
The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer/member information. The Payments segment provides secure payment processing tools and services, including ATM, debit, and credit card processing services, online and mobile bill pay solutions, ACH origination and remote deposit capture processing, and risk management products and services. The Complementary segment provides additional software, hosted processing platforms, and services, including digital/mobile banking, treasury services, online account opening, fraud/anti-money laundering ("AML") and lending/deposit solutions that can be integrated with the Company's Core solutions, and many can be used independently. The Corporate and Other segment includes revenue and costs from hardware and other products not attributed to any of the other three segments, as well as operating expenses not directly attributable to the other three segments.
Current wording
The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized accountholder information. The Payments segment provides secure payment processing tools and services, including ATM, debit, and credit card processing services, online and mobile bill pay solutions, ACH origination and remote deposit capture processing, and risk management products and services. The Complementary segment provides additional software, hosted processing platforms, and services, including digital/mobile banking, treasury services, online account opening, fraud/anti-money laundering ("AML") and lending/deposit solutions that can be integrated with the Company's Core solutions, and many can be used independently. The Corporate and Other segment includes revenue and costs from hardware and other products not attributed to any of the other three segments, as well as operating expenses not directly attributable to the other three segments.
Previous wording
Immaterial adjustments have been made between segments to reclassify cost of revenue that was recognized for the three and nine months ended March 31, 2024. These reclasses were made to be consistent with the current allocation of cost of revenue by segment. Cost of revenue reclassed for the three and nine months ended March 31, 2024, from Complementary to Corporate and Other, was $1,195 and $3,710, respectively.
Current wording
Immaterial adjustments have been made between segments during the fiscal three months ended September 30, 2025, to reclassify revenue and cost of revenue that was recognized for the fiscal three months ended September 30, 2024. These reclasses were made to be consistent with the current allocation of revenue and cost of revenue by segment. Revenue and cost of revenue reclassed for the fiscal three months ended September 30, 2024, from the Core segment to the Complementary segment, was $1,337 and $473, respectively.
Previous wording
Revenue in the Core segment increased 8.4% and cost of revenue increased 4.3% for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. Reducing Core revenue for deconversion revenue in both quarters, which totaled $4,838 for the three months ended March 31, 2025, and $1,291 for the three months ended March 31, 2024, results in a 6.4% increase quarter over quarter. This increase was primarily driven by organic growth in our Core revenue lines including data processing and hosting revenues within private and public cloud, as new and existing clients migrate to our private cloud and processing volumes expand, partially offset by a decrease in maintenance fee and credit union hardware revenues. Reducing Core cost of revenue for deconversion costs in both quarters, which totaled $1,240 for the three months ended March 31, 2025, and $225 for the three months ended March 31, 2024, results in a 2.9% increase quarter over quarter. This increase was primarily due to higher direct costs generally consistent with increases in related lines of revenue. Core cost of revenue decreased 2% as a percentage of Core revenue for the third quarter of fiscal 2025 compared to the same quarter in fiscal 2024.
Current wording
Revenue in the Core segment increased 0.5% and cost of revenue decreased 9.6% for the fiscal three months ended September 30, 2025, compared to the fiscal three months ended September 30, 2024. Core revenue less deconversion revenue of $3,219 for the fiscal three months ended September 30, 2025, and less revenue related to a contractual change of $12,248 and deconversion revenue of $1,287 for the fiscal three months ended September 30, 2024, results in a 6.3% increase quarter over quarter. This increase was primarily driven by organic growth in our Core revenue lines including data processing and hosting revenues within private and public cloud as new and existing clients continue to migrate to our private cloud and processing volumes expand. Core cost of revenue less deconversion costs of $443 for the fiscal three months ended September 30, 2025, and less costs related to a contractual change of $10,443 and deconversion costs of $37 for the fiscal three months ended September 30, 2024, results in a 3.2% increase quarter over quarter. This increase was primarily due to higher direct costs generally consistent with increases in related lines of revenue. Core cost of revenue decreased 4% as a percentage of Core revenue for the first quarter of fiscal 2026 compared to the same quarter in fiscal 2025.
Previous wording
Revenue in the Payments segment increased 7.7% and cost of revenue increased 5.8% for the third quarter of fiscal 2025 compared to the equivalent quarter of the prior fiscal year. Reducing Payments revenue for deconversion revenue in both quarters, which totaled $2,394 for the third quarter of fiscal 2025 and $910 for the third quarter of fiscal 2024, results in a 7.0% increase quarter over quarter. This increase was primarily due to higher card revenue from an increase in volumes and higher payment processing revenues, including PayCenter products — Zelle, RTP, and FedNow — from an increase in volumes and new client revenue. The Payments cost of revenue increase was primarily due to higher direct costs generally consistent with increases in lines of revenue. Deconversion and non-recurring costs did not significantly affect the Payments cost of revenue comparison. Payments cost of revenue as a percentage of Payments revenue decreased 1% for the third quarter of fiscal 2025 compared to the same quarter in fiscal 2024.
Current wording
Revenue in the Payments segment increased 9.0% and cost of revenue increased 5.0% for the first quarter of fiscal 2026 compared to the same quarter last fiscal year. Payments revenue less deconversion revenue in both quarters, which totaled $3,483 for the first quarter of fiscal 2026 and $1,914 for the first quarter of fiscal 2025, results in an 8.3% increase quarter over quarter. This increase was primarily due to higher card revenue from an increase in volume and higher payment processing revenues, including PayCenter products — Zelle, RTP, and FedNow — from expanding active users and new client revenue. The Payments cost of revenue increase was primarily due to higher direct costs generally consistent with increases in lines of revenue. Deconversion and one-time costs did not significantly affect Payments cost of revenue quarter over quarter. Payments cost of revenue as a percentage of Payments revenue decreased 2% for the first quarter of fiscal 2026 compared to the same quarter in fiscal 2025.
Previous wording
Revenue classified in the Corporate and Other segment includes revenues from other products and services and hardware not specifically attributed to the other three segments. Revenue in the Corporate and Other segment decreased 6.2% for the third quarter of fiscal 2025 compared to the equivalent quarter of the prior fiscal year. Reducing Corporate and Other revenue for deconversion revenue in both quarters, which totaled $88 for the third quarter of fiscal 2025 and $8 for the third quarter of fiscal 2024, results in a 6.6% decrease quarter over quarter. This decrease was primarily due to lower hardware revenue quarter over quarter. Cost of revenue for the Corporate and Other segment includes operating expenses not directly attributable to the other three segments. The Corporate and Other cost of revenue in the third quarter of fiscal 2025 decreased 0.9% when compared to the prior fiscal year quarter. This decrease was primarily due to lower hardware costs in line with lower hardware revenues, decreased personnel costs, and increased shared services chargeback, partially offset by higher direct costs and increased cloud consumption costs. Deconversion and non-recurring costs did not significantly affect the Corporate and Other cost of revenue comparison.
Current wording
Revenue classified in the Corporate and Other segment includes revenues from other products and services and hardware not specifically attributed to the other three segments. Revenue in the Corporate and Other segment increased 31.6% for the first quarter of fiscal 2026 compared to the same quarter last fiscal year. Corporate and Other revenue less deconversion revenue in both quarters, which totaled $48 for the first quarter of fiscal 2026 and $23 for the first quarter of fiscal 2025, results in a 31.5% increase quarter over quarter. This increase was primarily due to the increase in user group revenue related to the timing of our Connect conference quarter over quarter. Cost of revenue for the Corporate and Other segment includes operating expenses not directly attributable to the other three segments. The Corporate and Other cost of revenue in the first quarter of fiscal 2026 increased 2.7% when compared to the prior fiscal year quarter. This increase was primarily due to higher cloud consumption costs and increased compensation cost primarily related to headcount increases over the trailing twelve months. Deconversion and one-time costs did not significantly affect Corporate and Other cost of revenue quarter over quarter.
Previous wording
The Company's cash and cash equivalents increased to $39,870 at March 31, 2025, from $38,284 at June 30, 2024.
Current wording
The Company's cash and cash equivalents decreased to $36,239 at September 30, 2025, from $101,953 at June 30, 2025.
Previous wording
Cash provided by operating activities for the first nine months of fiscal 2025 decreased 6% compared to the same period last year primarily due to the decrease in the change in receivables period over period. We collected significantly more annual maintenance dollars in the fourth quarter of fiscal 2024 than we have historically collected in the fourth quarter, leaving less to be collected in the current fiscal year period. Cash from operations is primarily used to repay debt, pay dividends, repurchase stock, for capital expenditures, and acquisitions.
Current wording
Cash provided by operating activities for the first three months of fiscal 2026 increased 3% compared to the same period last year. Cash from operations is primarily used to repay debt, to pay dividends, to repurchase stock, for capital expenditures, and for acquisitions.
Previous wording
Cash used in investing activities for the first nine months of fiscal 2025 totaled $176,317 and included: $130,298 for the ongoing enhancement and development of existing and new product and service offerings; capital expenditures on facilities and equipment of $41,186; $3,833 for the purchase and development of internal use software; and the purchase of investment of $2,000. Cash uses were partially offset by proceeds from investments of $1,000. Cash used in investing activities for the first nine months of fiscal 2024 totaled $164,505 and included: $125,351 for the development of software; $34,347 for capital expenditures; $4,561 for the purchase and development of internal use software; and $1,146 for the purchase of investment. Cash uses were partially offset by proceeds from dispositions of $900.
Current wording
Cash used in investing activities for the first three months of fiscal 2026 totaled $98,503 and included: $48,203 for the ongoing enhancement and development of existing and new product and service offerings; $42,390 for an acquisition; capital expenditures for facilities and equipment of $8,880; the purchase of investments of $6,000, and $1,509 for the purchase and development of internal use software. Cash uses were partially offset by proceeds from the sale of assets of $7,479 and proceeds from investments of $1,000. Cash used in investing activities for the first three months of fiscal 2025 totaled $58,736 and included: $42,259 for the development of software; $12,801 for capital expenditures; $2,676 for the purchase and development of internal use software; and $2,000 for the purchase of investments. Cash uses were partially offset by proceeds from investments of $1,000.
Previous wording
Financing activities used cash of $136,489 for the first nine months of fiscal 2025 and included: payments on credit facilities of $235,000; dividends paid to stockholders of $122,464; and the purchase of treasury stock of $35,052. Cash uses were partially offset by borrowings on credit facilities of $255,000 and $1,027 net cash inflow from the issuance of stock and tax withholding related to stock-based compensation. Financing activities used cash of $156,726 in the first nine months of fiscal 2024 and included: repayments on credit facilities of $360,000; $115,792 for the payment of dividends; and the purchase of treasury stock of $20,000. Cash uses were partially offset by borrowings on credit facilities of $335,000 and $4,066 net cash inflow from the issuance of stock and tax withholding related to stock-based compensation.
Current wording
Financing activities used cash of $87,801 for the first three months of fiscal 2026 and included: $62,045 for the purchase of treasury stock; dividends paid to stockholders of $42,145; and $3,611 net cash outflow from the issuance of stock and tax withholding related to stock-based compensation. Cash uses were partially offset by borrowings on credit facilities of $20,000. Financing activities used cash of $53,232 in the first three months of fiscal 2025 and included: $85,000 for the repayments on credit facilities; $40,104 for the payment of dividends; and $3,128 net cash outflow from the issuance of stock and tax withholding related to stock-based compensation. Cash uses were partially offset by borrowings on credit facilities of $75,000.
Previous wording
The Company generally uses existing resources and funds generated from operations to meet its capital requirements. Capital expenditures totaling $41,186 and $34,347 for the nine months ended March 31, 2025, and March 31, 2024, respectively, were made primarily for additional equipment and the improvement of existing facilities. These additions were funded from cash generated by operations. Total consolidated capital expenditures on facilities and equipment for the Company for fiscal year 2025 are expected to be approximately $68,000 and have been or will be funded from our credit facilities and cash generated by operations.
Current wording
The Company generally uses existing resources and funds generated from operations to meet its capital requirements. Capital expenditures totaling $8,880 and $12,801 for the fiscal three months ended September 30, 2025, and September 30, 2024, respectively, were made primarily for additional equipment and the improvement of existing facilities. These additions were funded from cash generated by operations. Total consolidated capital expenditures on facilities and equipment for the Company for fiscal year 2026 are expected to be between approximately $80,000 and $90,000 and have been or will be funded from our credit facilities and cash generated by operations.
Previous wording
Contractual obligations are discussed in our Annual Report on Form 10-K for the year ended June 30, 2024. There have been no material contractual obligations added for the nine months ended March 31, 2025.
Current wording
Contractual obligations are discussed in our Annual Report on Form 10-K for the year ended June 30, 2025. There have been no material contractual obligations added for the fiscal three months ended September 30, 2025.
Previous wording
The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing line of credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At March 31, 2025, there were 31,580 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,411 additional shares. The total cost of treasury shares at March 31, 2025, was $1,895,225, and the Company repurchased 207 shares during the first nine months of fiscal 2025. At June 30, 2024, there were 31,373 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,618 additional shares. The total cost of treasury shares at June 30, 2024, was $1,860,173 and the Company repurchased 129 shares during the first nine months of fiscal 2024.
Current wording
The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing line of credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At September 30, 2025, there were 31,969 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,022 additional shares. The total cost of treasury stock at September 30, 2025, was $1,957,269. During the first three months of fiscal 2026, the Company repurchased 389 shares. At June 30, 2025, there were 31,580 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,411 additional shares. The total cost of treasury stock at June 30, 2025, was $1,895,224. During the first three months of fiscal 2025, the Company repurchased no shares.
Previous wording
On August 31, 2022, the Company entered into a five-year senior, unsecured amended and restated credit agreement that replaced a prior credit facility that was entered into on February 10, 2020. The credit agreement allows for borrowings of up to $600,000, which may be increased to $1,000,000 by the Company at any time until maturity. The credit agreement bears interest at a variable rate equal to (a) a rate based on an adjusted Secured Overnight Financing Rate (“SOFR”) term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such dayplus 0.50% per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit agreement. As of March 31, 2025, the Company was in compliance with all such covenants. The amended and restated credit facility terminates August 31, 2027. There was $80,000 and $60,000 outstanding under the amended and restated credit facility at March 31, 2025 and June 30, 2024, respectively.
Current wording
On August 31, 2022, the Company entered into a five-year senior, unsecured amended and restated credit agreement. The credit agreement allows for borrowings of up to $600,000, which may be increased to $1,000,000 by the Company at any time until maturity. The credit agreement bears interest at a variable rate equal to (a) a rate based on an adjusted SOFR term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such dayplus 0.50% per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit agreement. As of September 30, 2025, the Company was in compliance with all such covenants. The credit facility terminates August 31, 2027. There was $20,000 and $0 outstanding under the credit facility at September 30, 2025, and June 30, 2025, respectively.
Previous wording
On October 31, 2024, the Company entered into a discretionary line of credit demand note, which provides for funding of up to $50,000 and bears interest at the prime rate less 2.0%. The note does not constitute a committed line of credit. The line of credit expires on October 31, 2025. There was no balance outstanding at March 31, 2025.
Current wording
On October 31, 2024, the Company entered into a discretionary line of credit demand note, which provides for funding of up to $50,000 and bears interest at the prime rate less 2.0%. The note does not constitute a committed line of credit. The line of credit expired on October 31, 2025. There was no balance outstanding at September 30, 2025, or June 30, 2025.
Previous wording
The Company has an unsecured bank credit line, which provides for funding of up to $5,000 and bears interest at the prime rate less 1.0%. The credit line expired on April 30, 2025. There was no balance outstanding at March 31, 2025, or June 30, 2024.
Current wording
On July 18, 2025, the Company entered into an unsecured committed revolving line of credit facility with a commercial bank in the amount of $50,000, which bears interest at the prime rate less 1.0%. The line of credit expires on July 17, 2026. There was no balance outstanding at September 30, 2025.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Processing revenue increased 7.6% for the nine months ended March 31, 2025 compared to the same period in fiscal 2024. This increase was primarily driven by growth in card revenue primarily from monthly service and risk management fees, improvement in Jack Henry digital revenue (including Banno) from a higher number of active users and expanding volumes and from the ramping up of add-on products, and higher payment processing revenues, including PayCenter products — Zelle, RTP, and FedNow — from expanding volumes and new client revenue. Deconversion revenue did not significantly affect processing revenue period over period.
Previous report — wording carried elsewhere
On May 16, 2023, the Company entered into a term loan credit agreement with a syndicate of financial institutions, with an original principal balance of $180,000. Borrowings under the term loan facility bear interest at a variable rate equal to (a) a rate based on an adjusted SOFR term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such dayplus 0.50% per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 0.75%), plus an applicable percentage in each case determined by the Company's leverage ratio. The term loan credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the term loan credit agreement. As of March 31, 2025, the Company was in compliance with all such covenants. The term loan credit agreement has a maturity date of May 16, 2025, and the Company intends to repay the outstanding balance of the term loan with a combination of cash on hand and a borrowing under its revolving credit facility. There was $90,000 outstanding under the term loan at March 31, 2025 and June 30, 2024.