Jack Henry & Associates, Inc. Reports Fourth Quarter and Full Year Fiscal 2025 Results
Fourth quarter summary:
GAAP revenue increased 9.9% and GAAP operating income increased 23.9% for the fiscal three months ended June 30, 2025, compared to the prior fiscal year quarter.
Non-GAAP adjusted revenue increased 7.5% and non-GAAP adjusted operating income increased 14.8% for the fiscal three months ended June 30, 2025, compared to the prior fiscal year quarter.1
GAAP EPS was $1.75 per diluted share for the fiscal three months ended June 30, 2025, compared to $1.38 per diluted share in the prior fiscal year quarter.
Fiscal year summary:
GAAP revenue increased 7.2% and GAAP operating income increased 16.2% for the fiscal year ended June 30, 2025, compared to the prior fiscal year.
Non-GAAP adjusted revenue increased 6.5% and non-GAAP adjusted operating income increased 9.8% for the fiscal year ended June 30, 2025, compared to the prior fiscal year.1
GAAP EPS was $6.24 per diluted share for the fiscal year ended June 30, 2025, compared to $5.23 per diluted share in the prior fiscal year.
Cash and cash equivalents were $102.0 million at June 30, 2025, and $38.3 million at June 30, 2024.
Debt outstanding related to credit facilities was zero at June 30, 2025, and $150.0 million at June 30, 2024.
Full year fiscal 2026 guidance (Dollars In millions):3
Current
GAAP
Low
High
Revenue
$2,475
$2,504
Operating margin4
24.0 %
24.2 %
EPS
$6.32
$6.44
Non-GAAP5
Adjusted revenue
$2,459
$2,488
Adjusted operating margin
23.4 %
23.6 %
MONETT, Mo., Aug. 19, 2025 /PRNewswire/ -- Jack Henry & Associates, Inc. (NASDAQ:JKHY), a leading financial technology provider, today announced results for fiscal fourth quarter and full fiscal year ended June 30, 2025.
1 See tables below on page 4 reconciling non-GAAP financial measures to GAAP.
2See table below on page 14 reconciling net income to non-GAAP EBITDA.
3 The full fiscal year guidance assumes no acquisitions or dispositions will be made during fiscal year 2026.
4Operating margin is calculated by dividing operating income by revenue.
5 See tables below on page 9 reconciling fiscal year 2026 GAAP to non-GAAP guidance.
According to Greg Adelson, President and CEO, "Our fourth quarter and full 2025 fiscal year results reflect solid overall performance. We again produced record revenue and operating income in fiscal year 2025. Our strong fourth-quarter sales wins for core, complementary and payment solutions, along with our ongoing success winning larger financial institutions and maintaining a very healthy pipeline for fiscal year 2026, demonstrate the continued strength in technology spending. We are now live with both Jack Henry Rapid Transfers™ and our Tap2Local™ merchant acquiring solution as we continue to deliver innovative solutions to our clients. As we enter our new fiscal year, we are well positioned for long-term growth through our unwavering focus on culture, service, innovation, strategy, and execution."
Operating Results
Revenue, operating expenses, operating income, and net income for the fiscal three months and fiscal year ended June 30, 2025, compared to the fiscal three months and fiscal year ended June 30, 2024, were as follows:
Revenue
(Unaudited, dollars in thousands)
Three Months Ended
June 30,
% Change
Year Ended
June 30,
% Change
2025
2024
2025
2024
Revenue
Services and Support
$ 351,239
$ 316,739
10.9 %
$ 1,361,737
$ 1,275,954
6.7 %
Percentage of Total Revenue
57.1 %
56.6 %
57.3 %
57.6 %
Processing
264,133
243,173
8.6 %
1,013,551
939,589
7.9 %
Percentage of Total Revenue
42.9 %
43.4 %
42.7 %
42.4 %
REVENUE
$ 615,372
$ 559,912
9.9 %
$ 2,375,288
$ 2,215,543
7.2 %
Services and support revenue increased for the fiscal three months ended June 30, 2025, primarily driven by growth in data processing and hosting revenue within cloud of 11.8%, higher deconversion revenue by $13,802, and an increase in consulting, work order, and release revenues of 11.9%. Processing revenue increased for the fiscal three months ended June 30, 2025, primarily driven by growth in card revenue of 6.7%, higher transaction and digital revenue of 16.4%, and an increase in payment processing revenues of 10.0%.
Services and support revenue increased for the fiscal year ended June 30, 2025, primarily driven by growth in data processing and hosting revenue within cloud of 12.0%, higher deconversion revenue by $17,351, and increased consulting, work order, and release revenues of 9.6% partially offset by a decrease in license and hardware revenues of 25.2%. Processing revenue increased for the fiscal year ended June 30, 2025, primarily driven by growth in card revenue of 6.6%, higher transaction and digital revenue of 13.0%, and an increase in payment processing revenues of 9.4%.
For the fiscal three months ended June 30, 2025, core segment revenue increased 10.3%, payments segment revenue increased 7.9%, complementary segment revenue increased 12.9%, and corporate and other segment revenue increased 5.3%. For the fiscal three months ended June 30, 2025, core segment non-GAAP adjusted revenue increased 6.8%, payments segment non-GAAP adjusted revenue increased 5.8%, complementary segment non-GAAP adjusted revenue increased 11.0%, and corporate and other non-GAAP adjusted segment revenue increased 5.2% (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 year ended June 30, 2025, core segment revenue increased 7.0%, payments segment revenue increased 6.8%, complementary segment revenue increased 9.2%, and corporate and other segment revenue decreased 1.8%. For the fiscal year ended June 30, 2025, core segment non-GAAP adjusted revenue increased 6.0%, payments segment non-GAAP adjusted revenue increased 6.2%, complementary segment non-GAAP adjusted revenue increased 8.5%, and corporate and other non-GAAP adjusted segment revenue decreased 1.9% (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).
Operating Expenses and Operating Income
(Unaudited, dollars in thousands)
Three Months Ended
June 30,
%Change
Year Ended
June 30,
% Change
2025
2024
2025
2024
Cost of Revenue
$ 343,879
$ 327,272
5.1 %
$ 1,360,747
$ 1,299,477
4.7 %
Percentage of Total Revenue6
55.9 %
58.5 %
57.3 %
58.7 %
Research and Development
42,580
39,892
6.7 %
162,771
148,256
9.8 %
Percentage of Total Revenue6
6.9 %
7.1 %
6.9 %
6.7 %
Selling, General, and Administrative
73,216
67,122
9.1 %
283,055
278,419
1.7 %
Percentage of Total Revenue6
11.9 %
12.0 %
11.9 %
12.6 %
OPERATING EXPENSES
459,675
434,286
5.8 %
1,806,573
1,726,152
4.7 %
OPERATING INCOME
$ 155,697
$ 125,626
23.9 %
$ 568,715
$ 489,391
16.2 %
Operating Margin6
25.3 %
22.4 %
23.9 %
22.1 %
Cost of revenue increased for the fiscal three months and fiscal year ended June 30, 2025, primarily due to higher direct costs generally consistent with increases in related lines of revenue and higher personnel costs, including compensation increases in the trailing twelve months.
Research and development expense increased for the fiscal three months and fiscal year ended June 30, 2025, primarily due to higher personnel costs (net of capitalization), including compensation increases and employee headcount additions in the trailing twelve months.
Selling, general, and administrative expense increased for the fiscal three months ended June 30, 2025, primarily due to higher personnel costs, including compensation increases and employee headcount additions in the trailing twelve months, and increased professional services, partially offset by the gain on sale of assets in the current fiscal year quarter compared to the loss on sale of assets in the prior fiscal year quarter. Selling, general, and administrative expense increased for the fiscal year ended June 30, 2025, primarily due to higher personnel costs, excluding severance, including compensation increases and employee headcount additions in the trailing twelve months, and increased professional services, partially offset by the decrease in severance this fiscal year compared to last fiscal year.
Net Income
(Unaudited, in thousands,
except per share data)
Three Months Ended
June 30,
% Change
Year Ended
June 30,
% Change
2025
2024
2025
2024
Income Before Income Taxes
$ 159,949
$ 130,384
22.7 %
$ 586,036
$ 498,019
17.7 %
Provision for Income Taxes
32,345
29,311
10.4 %
130,288
116,203
12.1 %
NET INCOME
$ 127,604
$ 101,073
26.2 %
$ 455,748
$ 381,816
19.4 %
Diluted earnings per share
$ 1.75
$ 1.38
26.4 %
$ 6.24
$ 5.23
19.3 %
Effective tax rates for the fiscal three months ended June 30, 2025, and 2024, were 20.2% and 22.5%, respectively. Effective tax rates for the fiscal year ended June 30, 2025, and 2024, were 22.2% and 23.3%, respectively.
According to Mimi Carsley, CFO and Treasurer, "Our full year results included strong growth in strategic recurring areas of revenue, led by public and private cloud at 11% and processing at nearly 8%. Those results were tempered somewhat by contraction in license and hardware revenues. Our overall revenue growth and our disciplined approach to controlling costs led to non-GAAP operating income growth of nearly 10%, delivering on our continued commitment of compounded margin expansion."
6Operating margin is calculated by dividing operating income by revenue. Operating margin plus operating expense components as a percentage of total revenue may not equal 100% due to rounding.
Impact of Non-GAAP Adjustments
The tables below show our revenue, operating income, and net income for the fiscal three months and fiscal year ended June 30, 2025, compared to the fiscal three months and fiscal year ended June 30, 2024, excluding the impacts of deconversions and the VEDIP program expense.*
(Unaudited, dollars in thousands)
Three Months Ended June 30,
% Change
Year Ended June 30,
% Change
2025
2024
2025
2024
GAAP Revenue**
$ 615,372
$ 559,912
9.9 %
$ 2,375,288
$ 2,215,543
7.2 %
Adjustments:
Deconversion revenue
(20,495)
(6,693)
(33,905)
(16,554)
NON-GAAP ADJUSTED REVENUE**
$ 594,877
$ 553,219
7.5 %
$ 2,341,383
$ 2,198,989
6.5 %
GAAP Operating Income
$ 155,697
$ 125,626
23.9 %
$ 568,715
$ 489,391
16.2 %
Adjustments:
Operating (income) loss fromdeconversions
(17,938)
(5,594)
(27,663)
(13,146)
VEDIP program expense*
—
—
—
16,443
NON-GAAP ADJUSTEDOPERATING INCOME
$ 137,759
$ 120,032
14.8 %
$ 541,052
$ 492,688
9.8 %
Non-GAAP Adjusted Operating Margin***
23.2 %
21.7 %
23.1 %
22.4 %
GAAP Net Income
$ 127,604
$ 101,073
26.2 %
$ 455,748
$ 381,816
19.4 %
Adjustments:
Net (income) loss from deconversions
(17,938)
(5,594)
(27,663)
(13,146)
VEDIP program expense*
—
—
—
16,443
Tax impact of adjustments****
4,305
1,343
6,640
(790)
NON-GAAP ADJUSTED NETINCOME
$ 113,971
$ 96,822
17.7 %
$ 434,725
$ 384,323
13.1 %
*The VEDIP program expense for the fiscal year ended June 30, 2024, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.
**GAAP revenue is comprised of services and support and processing revenues (see page 2). Reducing services and support revenue by deconversion revenue for the three months ended June 30, 2025, and 2024 which was $20,495 for the current fiscal year quarter and $6,693 for the prior fiscal year quarter, results in non-GAAP adjusted services and support revenue growth of 6.7% quarter over quarter. There were no non-GAAP adjustments to processing revenue for the fiscal three months ended June 30, 2025, or 2024.
Reducing services and support revenue by deconversion revenue for the fiscal year ended June 30, 2025, and 2024, which was $33,905 for the current fiscal year and $16,554 for the prior fiscal year, results in non-GAAP adjusted services and support revenue growth of 5.4% year over year. There were no non-GAAP adjustments to processing revenue for the fiscal year ended June 30, 2025, or 2024.
***Non-GAAP adjusted operating margin is calculated by dividing non-GAAP adjusted operating income by non-GAAP adjusted revenue.
****The tax impact of adjustments is calculated using a tax rate of 24% for the fiscal three months and fiscal year ended June 30, 2025, and 2024. The tax rate for non-GAAP adjustment items takes a broad look at the Company's recurring tax adjustments and applies them to non-GAAP revenue that does not have its own specific tax impacts.
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.
Three Months Ended June 30, 2025
(Unaudited, dollars in thousands)
Core
Payments
Complementary
Corporateand Other
Total
GAAP REVENUE
$ 189,754
$ 229,292
$ 175,128
$ 21,198
$ 615,372
Non-GAAP adjustments*
(8,661)
(6,818)
(4,852)
(164)
(20,495)
NON-GAAP ADJUSTED REVENUE
181,093
222,474
170,276
