Jack Henry & Associates Announces Fiscal Second Quarter 2025 Deconversion Revenue Results
Jack Henry & Associates (NASDAQ: JKHY) reported deconversion revenue of $0.1 million for the fiscal second quarter ended December 31, 2024. The company maintains its full-year fiscal 2025 deconversion revenue guidance at $16 million.
Deconversion revenue primarily occurs when a Jack Henry client is acquired by another financial institution, leading to contract termination. Since these revenues are driven by external factors and don't reflect the company's core operations, Jack Henry excludes deconversion revenue from its non-GAAP revenue reporting in quarterly and annual earnings releases.
Jack Henry & Associates (NASDAQ: JKHY) ha riportato un fatturato da deconversione di 0,1 milioni di dollari per il secondo trimestre fiscale conclusosi il 31 dicembre 2024. L'azienda mantiene la sua guida al fatturato da deconversione per l'intero anno fiscale 2025 a 16 milioni di dollari.
Il fatturato da deconversione si verifica principalmente quando un cliente di Jack Henry viene acquisito da un'altra istituzione finanziaria, portando alla risoluzione del contratto. Poiché questi ricavi sono influenzati da fattori esterni e non riflettono le operazioni principali dell'azienda, Jack Henry esclude il fatturato da deconversione dal suo reporting dei ricavi non-GAAP nei comunicati sugli utili trimestrali e annuali.
Jack Henry & Associates (NASDAQ: JKHY) reportó ingresos por deconversiones de 0,1 millones de dólares para el segundo trimestre fiscal que finalizó el 31 de diciembre de 2024. La compañía mantiene su guía de ingresos por deconversiones para todo el año fiscal 2025 en 16 millones de dólares.
Los ingresos por deconversiones ocurren principalmente cuando un cliente de Jack Henry es adquirido por otra institución financiera, lo que conduce a la terminación del contrato. Dado que estos ingresos son impulsados por factores externos y no reflejan las operaciones centrales de la empresa, Jack Henry excluye los ingresos por deconversiones de su informe de ingresos no-GAAP en los comunicados trimestrales y anuales.
잭 헨리 앤드 어소시에이츠 (NASDAQ: JKHY)는 2024년 12월 31일에 종료된 회계 연도 제2분기에 0.1백만 달러의 디컨버전 수익을 보고했습니다. 이 회사는 2025 회계 연도 전체에 대한 디컨버전 수익 안내를 1,600만 달러로 유지합니다.
디컨버전 수익은 주로 잭 헨리 고객이 다른 금융 기관에 인수되어 계약이 종료될 때 발생합니다. 이러한 수익은 외부 요인에 의해 영향을 받으며 회사의 주요 운영을 반영하지 않기 때문에, 잭 헨리는 분기별 및 연간 수익 발표에서 비GAAP 수익 보고에서 디컨버전 수익을 제외합니다.
Jack Henry & Associates (NASDAQ: JKHY) a rapporté des revenus de déconversion de 0,1 million de dollars pour le deuxième trimestre fiscal se terminant le 31 décembre 2024. L'entreprise maintient ses prévisions de revenus de déconversion pour l'année fiscale 2025 à 16 millions de dollars.
Les revenus de déconversion se produisent principalement lorsqu'un client de Jack Henry est acquis par une autre institution financière, ce qui entraîne la résiliation du contrat. Étant donné que ces revenus sont influencés par des facteurs externes et ne reflètent pas les opérations de base de l'entreprise, Jack Henry exclut les revenus de déconversion de son rapport de revenus non-GAAP dans les communiqués de résultats trimestriels et annuels.
Jack Henry & Associates (NASDAQ: JKHY) berichtete für das fiskalische zweite Quartal, das am 31. Dezember 2024 endete, von 0,1 Millionen USD an Deconversion-Einnahmen. Das Unternehmen behält seine Prognose für Deconversion-Einnahmen für das Gesamtjahr 2025 bei 16 Millionen USD.
Deconversion-Einnahmen entstehen hauptsächlich, wenn ein Jack Henry-Kunde von einer anderen Finanzinstitution übernommen wird, was zur Beendigung des Vertrags führt. Da diese Einnahmen von externen Faktoren abhängen und nicht die Kernaktivitäten des Unternehmens widerspiegeln, schließt Jack Henry die Deconversion-Einnahmen in seinen nicht-GAAP-Einnahmenberichten in den vierteljährlichen und jährlichen Ergebnissen aus.
- Maintained full-year deconversion revenue guidance of $16 million for fiscal 2025
- Low Q2 FY2025 deconversion revenue of $0.1 million indicates potential client losses through acquisitions
Insights
The reported
The minimal Q2 deconversion revenue could indicate either a temporary slowdown in banking sector consolidation or timing differences in revenue recognition. However, maintaining the
Deconversion revenue, while excluded from non-GAAP metrics, serves as a valuable indirect indicator of banking industry consolidation trends. The current pattern suggests:
- Potential timing shifts in planned bank mergers and acquisitions
- Possible impact of regulatory scrutiny on banking sector consolidation
- Strategic importance of diversifying revenue streams beyond deconversion fees
For investors, while these figures don't affect core business metrics, they provide insight into broader industry dynamics and potential future client churn. The substantial gap between Q2 results and full-year guidance warrants monitoring in upcoming quarters, as any significant shortfall could signal deeper industry consolidation challenges.
The majority of deconversion revenue is generated when one of Jack Henry's clients agrees to be acquired by another financial institution, resulting in the termination of the client's contract with Jack Henry. In these circumstances, Jack Henry's recognition of deconversion revenue is driven by factors outside Jack Henry's control, and this revenue does not represent the true operations of Jack Henry's ongoing business of providing services to clients. As a result, Jack Henry excludes deconversion revenue from non-GAAP revenue reported in its quarterly and annual earnings releases.
Statements made in this press 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 Jack Henry's Securities and Exchange Commission filings, including Jack Henry'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 current report speaks only as of the date of the current report, and Jack Henry's expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.
About Jack Henry & Associates, Inc.®
Jack Henry™ (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 more than 48 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 7,500 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.
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SOURCE Jack Henry & Associates, Inc.
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