Jack Henry & Associates, Inc. Reports Second Quarter Fiscal 2025 Results
Jack Henry & Associates (JKHY) reported strong Q2 FY2025 results with GAAP revenue increasing 5.2% to $573.8 million and non-GAAP adjusted revenue growing 6.1%. GAAP operating income rose 3.4% to $123 million, while non-GAAP adjusted operating income increased 7.3%.
Key financial highlights include:
- GAAP EPS of $1.34 per diluted share, up from $1.26 in prior year quarter
- Services and Support revenue grew 3.5% to $323 million
- Processing revenue increased 7.3% to $250.8 million
- Operating margin was 21.4%
The company maintained its full-year FY2025 guidance with GAAP revenue expected between $2,369-$2,391 million and GAAP EPS projected at $5.78-$5.87. Management reported record Q2 sales attainment for the second consecutive year while maintaining a robust sales pipeline.
Jack Henry & Associates (JKHY) ha riportato risultati solidi per il secondo trimestre dell'anno fiscale 2025, con un fatturato GAAP che è aumentato del 5,2% raggiungendo i 573,8 milioni di dollari e il fatturato rettificato non GAAP che è cresciuto del 6,1%. Il reddito operativo GAAP è salito del 3,4% a 123 milioni di dollari, mentre il reddito operativo rettificato non GAAP è aumentato del 7,3%.
Le principali evidenze finanziarie includono:
- GAAP EPS di 1,34 dollari per azione diluita, in aumento rispetto a 1,26 dollari nello stesso trimestre dell'anno precedente
- Il fatturato da Servizi e Supporto è cresciuto del 3,5% raggiungendo i 323 milioni di dollari
- Il fatturato da Elaborazione è aumentato del 7,3% a 250,8 milioni di dollari
- Il margine operativo era del 21,4%
L'azienda ha mantenuto le previsioni per l'intero anno fiscale 2025, con un fatturato GAAP previsto tra 2.369 e 2.391 milioni di dollari e GAAP EPS stimato tra 5,78 e 5,87 dollari. La gestione ha riportato risultati record di vendite nel secondo trimestre per il secondo anno consecutivo, mantenendo un robusto portafoglio di vendite.
Jack Henry & Associates (JKHY) reportó resultados sólidos para el segundo trimestre del año fiscal 2025, con ingresos GAAP que aumentaron un 5,2% alcanzando los 573,8 millones de dólares, y los ingresos ajustados no GAAP crecieron un 6,1%. Los ingresos operativos GAAP subieron un 3,4% a 123 millones de dólares, mientras que el ingreso operativo ajustado no GAAP aumentó un 7,3%.
Los principales aspectos financieros incluyen:
- GAAP EPS de $1.34 por acción diluida, en comparación con $1.26 en el trimestre del año anterior
- Los ingresos por Servicios y Soporte crecieron un 3,5% a 323 millones de dólares
- Los ingresos por Procesamiento aumentaron un 7,3% a 250,8 millones de dólares
- El margen operativo fue del 21,4%
La compañía mantuvo su guía para todo el año fiscal 2025, con ingresos GAAP esperados entre 2,369 y 2,391 millones de dólares y GAAP EPS proyectado entre 5,78 y 5,87 dólares. La dirección reportó un récord de ventas en el segundo trimestre por segundo año consecutivo, mientras mantenía un sólido pipeline de ventas.
Jack Henry & Associates (JKHY)는 2025 회계 연도 2분기 실적을 발표했으며, GAAP 수익이 5.2% 증가하여 5억 7천 3백 80만 달러에 달하고 비 GAAP 조정 수익이 6.1% 성장했습니다. GAAP 운영 소득은 3.4% 증가하여 1억 2천 3백만 달러에 도달했고, 비 GAAP 조정 운영 소득은 7.3% 증가했습니다.
주요 재무 하이라이트는 다음과 같습니다:
- 주당 희석 GAAP EPS는 1.34달러로, 전년도 동분기 1.26달러에서 증가하였습니다.
- 서비스 및 지원 수익이 3.5% 증가하여 3억 2천 3백만 달러에 달했습니다.
- 처리 수익이 7.3% 증가하여 2억 5천 8백만 달러에 도달했습니다.
- 운영 마진은 21.4%였습니다.
회사는 2025 회계 연도 전체에 대한 가이던스를 유지하며, GAAP 수익은 23억 6천 9백만 달러에서 23억 9천 1백만 달러 사이에, GAAP EPS는 5.78달러에서 5.87달러까지 예상하고 있습니다. 경영진은 2년 연속으로 2분기 판매 기록을 보고하면서 강력한 판매 파이프라인을 유지하고 있습니다.
Jack Henry & Associates (JKHY) a rapporté des résultats solides pour le deuxième trimestre de l'exercice 2025, avec un chiffre d'affaires GAAP augmentant de 5,2 % pour atteindre 573,8 millions de dollars et un chiffre d'affaires ajusté non GAAP en hausse de 6,1 %. Le bénéfice d'exploitation GAAP a augmenté de 3,4 % pour atteindre 123 millions de dollars, tandis que le bénéfice d'exploitation ajusté non GAAP a progressé de 7,3 %.
Les principaux faits financiers incluent :
- GAAP EPS de 1,34 $ par action diluée, contre 1,26 $ au trimestre de l'année précédente
- Le chiffre d'affaires des Services et Support a augmenté de 3,5 % pour atteindre 323 millions de dollars
- Le chiffre d'affaires de Traitement a augmenté de 7,3 % pour atteindre 250,8 millions de dollars
- La marge opérationnelle était de 21,4 %
L'entreprise a maintenu ses prévisions pour l'exercice 2025, avec un chiffre d'affaires GAAP attendu entre 2 369 et 2 391 millions de dollars et un EPS GAAP projeté entre 5,78 et 5,87 $. La direction a signalé un record de ventes au deuxième trimestre pour la deuxième année consécutive, tout en maintenant un solide pipeline de ventes.
Jack Henry & Associates (JKHY) meldete starke Ergebnisse für das zweite Quartal des Geschäftsjahres 2025, mit GAAP-Umsatz, der um 5,2% auf 573,8 Millionen Dollar stieg, und einem non-GAAP bereinigten Umsatz, der um 6,1% wuchs. Der GAAP-Betriebsgewinn stieg um 3,4% auf 123 Millionen Dollar, während der non-GAAP bereinigte Betriebsgewinn um 7,3% anstieg.
Wichtigste Finanzkennzahlen sind:
- GAAP EPS von 1,34 Dollar pro verwässerter Aktie, im Vergleich zu 1,26 Dollar im Vorjahresquartal
- Die Umsätze aus Dienstleistungen und Support wuchsen um 3,5% auf 323 Millionen Dollar
- Die Verarbeitungsumsätze erhöhten sich um 7,3% auf 250,8 Millionen Dollar
- Die Betriebsrendite betrug 21,4%
Das Unternehmen bestätigte seine Prognose für das gesamte Geschäftsjahr 2025, mit einem GAAP-Umsatz, der zwischen 2.369 und 2.391 Millionen Dollar erwartet wird, und einem projektierten GAAP EPS von 5,78 bis 5,87 Dollar. Das Management berichtete von Rekordverkäufen im zweiten Quartal für das zweite Jahr in Folge und hielt eine starke Vertriebspipeline aufrecht.
- Q2 non-GAAP adjusted revenue grew 6.1% year-over-year
- Processing revenue increased 7.3% to $250.8 million
- GAAP EPS grew 6.2% to $1.34 per share
- Record Q2 sales attainment achieved
- Debt reduced to $150M from $255M year-over-year
- Operating margin declined to 21.4% from 21.8% year-over-year
- Research and Development expenses increased 15.8%
- Cash position decreased slightly to $26M from $27M year-over-year
Insights
Jack Henry's Q2 FY2025 results demonstrate robust operational execution and strategic progress in key growth areas. The 6.1% non-GAAP revenue growth was driven by particularly strong performance in high-margin recurring revenue streams:
Key performance indicators show encouraging trends:
- Public and private cloud services grew ~9%, highlighting successful cloud transformation strategy
- Record Q2 sales bookings for second consecutive year indicates strong market position
- R&D investment increased 15.8% to $41.1M, supporting technology modernization initiatives
- Debt reduction of $105M year-over-year strengthens financial flexibility
The 21.5% non-GAAP operating margin demonstrates pricing power and operational efficiency despite increased R&D investment. The robust sales pipeline and growing demand from both new and existing clients suggest sustainable growth momentum. Management's maintained full-year guidance reflects confidence in execution capabilities while acknowledging macro uncertainties.
The strategic focus on cloud transformation and technology modernization positions the company well in the competitive fintech landscape, though margin pressure from increased investment and personnel costs bears monitoring.
Second quarter summary:
- GAAP revenue increased
5.2% and GAAP operating income increased3.4% for the fiscal three months ended December 31, 2024, compared to the prior fiscal year quarter. - Non-GAAP adjusted revenue increased
6.1% and non-GAAP adjusted operating income increased7.3% for the fiscal three months ended December 31, 2024, compared to the prior fiscal year quarter.1 - GAAP EPS was
$1.34 $1.26
Fiscal year-to-date summary:
- GAAP revenue increased
5.2% and GAAP operating income increased9.0% for the fiscal year-to-date period ended December 31, 2024, compared to the prior fiscal year-to-date period. - Non-GAAP adjusted revenue increased
5.7% and non-GAAP adjusted operating income increased4.2% for the fiscal year-to-date period ended December 31, 2024, compared to the prior fiscal year-to-date period.1 - GAAP EPS was
$2.97 $2.65 - Cash and cash equivalents were
$26 million $27 million - Debt outstanding related to credit facilities was
$150 million $255 million
Full year fiscal 2025 guidance (In millions):2
Current | ||
GAAP | Low | High |
Revenue | ||
Operating margin3 | 23.0 % | 23.2 % |
EPS | ||
Non-GAAP4 | ||
Adjusted revenue | ||
Adjusted operating margin | 22.7 % | 22.8 % |
1 See tables below on page 4 reconciling non-GAAP financial measures to GAAP. |
2 The full fiscal year guidance assumes no acquisitions or dispositions are made during fiscal year 2025. |
3 Operating margin is calculated by dividing operating income by revenue. |
4 See tables below on page 9 reconciling fiscal year 2025 GAAP to non-GAAP guidance. |
5 See table below on page 14 reconciling net income to non-GAAP EBITDA. |
According to Greg Adelson, President and CEO, "We are pleased to report solid performance in the second quarter of our fiscal year. We continued our positive sales momentum with record sales attainment in Q2 for the second consecutive year while maintaining a robust sales pipeline for future opportunities. We are seeing strong demand for our products from both new and existing clients and are making substantial progress with our technology modernization strategy. Our focus on a people-first culture, service excellence, technology innovation, and a well-executed strategy continues to differentiate us in the market." |
Operating Results
Revenue, operating expenses, operating income, and net income for the three and six months ended December 31, 2024, compared to the three and six months ended December 31, 2023, were as follows:
Revenue | |||||||||||
(Unaudited, in thousands) | Three Months Ended December 31, | % | Six Months Ended December 31, | % | |||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Revenue | |||||||||||
Services and Support | $ 323,027 | $ 311,992 | 3.5 % | $ 679,706 | $ 654,197 | 3.9 % | |||||
Percentage of Total Revenue | 56.3 % | 57.2 % | 57.9 % | 58.6 % | |||||||
Processing | 250,821 | 233,709 | 7.3 % | 495,123 | 462,872 | 7.0 % | |||||
Percentage of Total Revenue | 43.7 % | 42.8 % | 42.1 % | 41.4 % | |||||||
REVENUE | $ 573,848 | $ 545,701 | 5.2 % | $ 1,174,829 | $ 1,117,069 | 5.2 % | |||||
- Services and support revenue increased for the three months ended December 31, 2024, primarily driven by growth in data processing and hosting revenue of
11.8% , partially offset by a decrease in deconversion revenue of$4,813 6.5% , transaction and digital revenue of10.0% , and payment processing revenue of10.1% . - Services and support revenue increased for the six months ended December 31, 2024, primarily driven by growth in data processing and hosting revenue of
12.2% , partially offset by a decrease in hardware and deconversion revenues of31.1% and58.2% , respectively. Processing revenue increased for the six months ended December 31, 2024, primarily driven by growth in card revenue of5.8% and transaction and digital revenue of10.4% . Another driver was an increase in payment processing revenues. - For the three months ended December 31, 2024, core segment revenue increased
4.6% , payments segment revenue increased5.4% , complementary segment revenue increased5.6% , and corporate and other segment revenue increased4.7% . For the three months ended December 31, 2024, core segment non-GAAP adjusted revenue increased5.8% , payments segment non-GAAP adjusted revenue increased6.2% , complementary segment non-GAAP adjusted revenue increased6.5% , and corporate and other non-GAAP adjusted segment revenue increased4.9% (see revenue lines of segment break-out tables on pages 5 and 6 below for a reconciliation of segment non-GAAP adjusted revenue to GAAP segment revenue). - For the six months ended December 31, 2024, core segment revenue increased
4.8% , payments segment revenue increased5.8% , complementary segment revenue increased6.0% , and corporate and other segment revenue decreased2.8% . For the six months ended December 31, 2024, core segment non-GAAP adjusted revenue increased5.5% , payments segment non-GAAP adjusted revenue increased6.0% , complementary segment non-GAAP adjusted revenue increased6.8% , and corporate and other non-GAAP adjusted segment revenue decreased2.8% (see revenue lines of segment break-out tables on pages 7 and 8 below for a reconciliation of segment non-GAAP adjusted revenue to GAAP segment revenue).
Operating Expenses and Operating Income | ||||||||||||
(Unaudited, in thousands) | Three Months Ended December 31, | % | Six Months Ended December 31, | % | ||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Cost of Revenue | $ 332,850 | $ 320,979 | 3.7 % | $ 676,282 | $ 643,981 | 5.0 % | ||||||
Percentage of Total Revenue6 | 58.0 % | 58.8 % | 57.6 % | 57.6 % | ||||||||
Research and Development | 41,095 | 35,478 | 15.8 % | 80,780 | 72,370 | 11.6 % | ||||||
Percentage of Total Revenue6 | 7.2 % | 6.5 % | 6.9 % | 6.5 % | ||||||||
Selling, General, and Administrative | 76,901 | 70,277 | 9.4 % | 143,489 | 149,051 | (3.7) % | ||||||
Percentage of Total Revenue6 | 13.4 % | 12.9 % | 12.2 % | 13.3 % | ||||||||
OPERATING EXPENSES | 450,846 | 426,734 | 5.7 % | 900,551 | 865,402 | 4.1 % | ||||||
OPERATING INCOME | $ 123,002 | $ 118,967 | 3.4 % | $ 274,278 | $ 251,667 | 9.0 % | ||||||
Operating Margin6 | 21.4 % | 21.8 % | 23.3 % | 22.5 % | ||||||||
- Cost of revenue increased for the three months ended December 31, 2024, primarily due to higher direct costs generally consistent with increases in the related lines of revenue and higher personnel costs including benefits expenses from an increase in employee headcount in the trailing twelve months. Cost of revenue increased for the six months ended December 31, 2024, primarily due to higher direct costs generally consistent with increases in the related lines of revenue, higher personnel costs including benefits expenses from an increase in employee headcount in the trailing twelve months, higher internal licenses and fees from increased deployments and prices, and a rise in amortization from capital development projects placed into service in the trailing twelve months.
- Research and development expense increased for the three and six months ended December 31, 2024, primarily due to higher personnel costs (net of capitalization) including benefits expenses from an increase in employee headcount in the trailing twelve months.
- Selling, general, and administrative expense increased for the three months ended December 31, 2024, primarily due to higher personnel costs including benefits expenses from an increase in employee headcount in the trailing twelve months. Selling, general, and administrative expense decreased for the six months ended December 31, 2024, primarily due to the decrease in non-recurring personnel costs when compared to the prior fiscal year period.
Net Income
(Unaudited, in thousands, except per share data) | Three Months Ended December 31, | % | Six Months Ended December 31, | % | |||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Income Before Income Taxes | $ 127,381 | $ 120,223 | 6.0 % | $ 284,179 | $ 253,471 | 12.1 % | |||||
Provision for Income Taxes | 29,536 | 28,258 | 4.5 % | 67,143 | 59,827 | 12.2 % | |||||
NET INCOME | $ 97,845 | $ 91,965 | 6.4 % | $ 217,036 | $ 193,644 | 12.1 % | |||||
Diluted earnings per share | $ 1.34 | $ 1.26 | 6.2 % | $ 2.97 | $ 2.65 | 12.0 % | |||||
- Effective tax rates for the three months ended December 31, 2024, and 2023, were
23.2% and23.5% , respectively. Effective tax rates for the six months ended December 31, 2024, and 2023, were23.6% and23.6% , respectively.
According to Mimi Carsley, CFO and Treasurer, "Our second quarter results included non-GAAP revenue growth of over |
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 |
Impact of Non-GAAP Adjustments
The tables below show our revenue, operating income, and net income for the three and six months ended December 31, 2024, compared to the three and six months ended December 31, 2023, excluding the impacts of deconversions and the VEDIP program expense.*
(Unaudited, in thousands) | Three Months Ended | % | Six Months Ended | % | |||||||
2024 | 2023 | 2024 | 2023 | ||||||||
GAAP Revenue** | $ 573,848 | $ 545,701 | 5.2 % | $ 1,174,829 | $ 1,117,069 | 5.2 % | |||||
Adjustments: | |||||||||||
Deconversion revenue | (69) | (4,882) | (3,766) | (9,018) | |||||||
NON-GAAP ADJUSTED REVENUE** | $ 573,779 | $ 540,819 | 6.1 % | $ 1,171,063 | $ 1,108,051 | 5.7 % | |||||
GAAP Operating Income | $ 123,002 | $ 118,967 | 3.4 % | $ 274,278 | $ 251,667 | 9.0 % | |||||
Adjustments: | |||||||||||
Operating (income) loss from deconversions | 622 | (3,803) | (2,873) | (7,558) | |||||||
VEDIP program expense* | — | — | — | 16,443 | |||||||
NON-GAAP ADJUSTED OPERATING INCOME | $ 123,624 | $ 115,164 | 7.3 % | $ 271,405 | $ 260,552 | 4.2 % | |||||
Non-GAAP Adjusted Operating Margin*** | 21.5 % | 21.3 % | 23.2 % | 23.5 % | |||||||
GAAP Net Income | $ 97,845 | $ 91,965 | 6.4 % | $ 217,036 | $ 193,644 | 12.1 % | |||||
Adjustments: | |||||||||||
Net (income) loss from deconversions | 622 | (3,803) | (2,874) | (7,558) | |||||||
VEDIP program expense* | — | — | — | 16,443 | |||||||
Tax impact of adjustments**** | (149) | 913 | 690 | (2,132) | |||||||
NON-GAAP ADJUSTED NET INCOME | $ 98,318 | $ 89,075 | 10.4 % | $ 214,852 | $ 200,397 | 7.2 % | |||||
*The VEDIP program expense for the fiscal six months ended December 31, 2023, 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 December 31, 2024, and 2023 which was |
Reducing services and support revenue by deconversion revenue for the six months ended December 31, 2024, and 2023, which was |
***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 |
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 December 31, 2024 | |||||||||
(Unaudited, in thousands) | Core | Payments | Complementary | Corporate | Total | ||||
GAAP REVENUE | $ 173,173 | $ 214,836 | $ 160,937 | $ 24,902 | $ 573,848 | ||||
Non-GAAP adjustments* | 20 | (34) | (60) | 5 | (69) | ||||
NON-GAAP ADJUSTED REVENUE | 173,193 | 214,802 | 160,877 | 24,907 | 573,779 | ||||
GAAP COST OF REVENUE | 70,739 | 114,738 | 63,384 | 83,989 | 332,850 | ||||
Non-GAAP adjustments* | (88) | (53) | (99) | — | (240) | ||||
NON-GAAP ADJUSTED COST OF REVENUE | 70,651 | 114,685 | 63,285 | 83,989 | 332,610 | ||||
GAAP SEGMENT INCOME | $ 102,434 | $ 100,098 | $ 97,553 | $ (59,087) | |||||
Segment Income Margin** | 59.2 % | 46.6 % | 60.6 % | (237.3) % | |||||
NON-GAAP ADJUSTED SEGMENT INCOME | $ 102,542 | $ 100,117 | $ 97,592 | $ (59,082) | |||||
Non-GAAP Adjusted Segment Income Margin** | 59.2 % | 46.6 % | 60.7 % | (237.2) % | |||||
Research and Development | 41,095 | ||||||||
Selling, General, and Administrative | 76,901 | ||||||||
Non-GAAP adjustments unassigned to a segment*** | (451) | ||||||||
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES | 450,155 | ||||||||
NON-GAAP ADJUSTED OPERATING INCOME | $ 123,624 | ||||||||
*Revenue non-GAAP adjustments for all segments were deconversion revenue. Cost of revenue non-GAAP adjustments for all segments were deconversion costs. |
**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment. |
***Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs. |
Three Months Ended December 31, 2023 | |||||||||
(Unaudited, in thousands) | Core | Payments | Complementary | Corporate | Total | ||||
GAAP REVENUE | $ 165,601 | $ 203,839 | $ 152,466 | $ 23,795 | $ 545,701 | ||||
Non-GAAP adjustments* | (1,929) | (1,555) | (1,355) | (43) | (4,882) | ||||
NON-GAAP ADJUSTED REVENUE | 163,672 | 202,284 | 151,111 | 23,752 | 540,819 | ||||
GAAP COST OF REVENUE | 69,370 | 111,623 | 62,825 | 77,161 | 320,979 | ||||
Non-GAAP adjustments* | (321) | (51) | (249) | — | (621) | ||||
NON-GAAP ADJUSTED COST OF REVENUE | 69,049 | 111,572 | 62,576 | 77,161 | 320,358 | ||||
GAAP SEGMENT INCOME | $ 96,231 | $ 92,216 | $ 89,641 | $ (53,366) | |||||
Segment Income Margin** | 58.1 % | 45.2 % | 58.8 % | (224.3) % | |||||
NON-GAAP ADJUSTED SEGMENT INCOME | $ 94,623 | $ 90,712 | $ 88,535 | $ (53,409) | |||||
Non-GAAP Adjusted Segment Income Margin | 57.8 % | 44.8 % | 58.6 % | (224.9) % | |||||
Research and Development | 35,478 | ||||||||
Selling, General, and Administrative | 70,277 | ||||||||
Non-GAAP adjustments unassigned to a segment*** | (458) | ||||||||
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES | 425,655 | ||||||||
NON-GAAP ADJUSTED OPERATING INCOME | $ 115,164 | ||||||||
*Revenue non-GAAP adjustments for all segments were deconversion revenues. Cost of revenue non-GAAP adjustments for the Core, Payments, and Complementary segments were deconversion costs. |
**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment. |
***Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs. |
Six Months Ended December 31, 2024 | |||||||||
(Unaudited, in thousands) | Core | Payments | Complementary | Corporate | Total | ||||
GAAP REVENUE | $ 368,797 | $ 426,758 | $ 332,639 | $ 46,635 | $ 1,174,829 | ||||
Non-GAAP adjustments* | (1,267) | (1,948) | (533) | (18) | (3,766) | ||||
NON-GAAP ADJUSTED REVENUE | 367,530 | 424,810 | 332,106 | 46,617 | 1,171,063 | ||||
GAAP COST OF REVENUE | 152,159 | 227,757 | 129,352 | 167,014 | 676,282 | ||||
Non-GAAP adjustments* | (125) | (71) | (159) | — | (355) | ||||
NON-GAAP ADJUSTED COST OF REVENUE | 152,034 | 227,686 | 129,193 | 167,014 | 675,927 | ||||
GAAP SEGMENT INCOME | $ 216,638 | $ 199,001 | $ 203,287 | $ (120,379) | |||||
Segment Income Margin** | 58.7 % | 46.6 % | 61.1 % | (258.1) % | |||||
NON-GAAP ADJUSTED SEGMENT INCOME | $ 215,496 | $ 197,124 | $ 202,913 | $ (120,397) | |||||
Non-GAAP Adjusted Segment Income Margin | 58.6 % | 46.4 % | 61.1 % | (258.3) % | |||||
Research and Development | 80,780 | ||||||||
Selling, General, and Administrative | 143,489 | ||||||||
Non-GAAP adjustments unassigned to a segment*** | (538) | ||||||||
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES | 899,658 | ||||||||
NON-GAAP ADJUSTED OPERATING INCOME | $ 271,405 | ||||||||
*Revenue non-GAAP adjustments for all segments were deconversion revenue. Cost of revenue non-GAAP adjustments for the Core, Payments, and Complementary segments were deconversion costs. |
**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment. |
***Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs. |
Six Months Ended December 31, 2023 | |||||||||
(Unaudited, in thousands) | Core | Payments | Complementary | Corporate | Total | ||||
GAAP REVENUE | $ 352,041 | $ 403,195 | $ 313,833 | $ 48,000 | $ 1,117,069 | ||||
Non-GAAP adjustments* | (3,595) | (2,560) | (2,806) | (57) | (9,018) | ||||
NON-GAAP ADJUSTED REVENUE | 348,446 | 400,635 | 311,027 | 47,943 | 1,108,051 | ||||
GAAP COST OF REVENUE | 145,296 | 220,449 | 123,783 | 154,453 | 643,981 | ||||
Non-GAAP adjustments* | (425) | (98) | (367) | (1) | (891) | ||||
NON-GAAP ADJUSTED COST OF REVENUE | 144,871 | 220,351 | 123,416 | 154,452 | 643,090 | ||||
GAAP SEGMENT INCOME | $ 206,745 | $ 182,746 | $ 190,050 | $ (106,453) | |||||
Segment Income Margin** | 58.7 % | 45.3 % | 60.6 % | (221.8) % | |||||
NON-GAAP ADJUSTED SEGMENT INCOME | $ 203,575 | $ 180,284 | $ 187,611 | $ (106,509) | |||||
Non-GAAP Adjusted Segment Income Margin | 58.4 % | 45.0 % | 60.3 % | (222.2) % | |||||
Research and Development | 72,370 | ||||||||
Selling, General, and Administrative | 149,051 | ||||||||
Non-GAAP adjustments unassigned to a segment*** | (17,012) | ||||||||
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES | 847,499 | ||||||||
NON-GAAP ADJUSTED OPERATING INCOME | $ 260,552 | ||||||||
*Revenue non-GAAP adjustments for all segments were deconversion revenues. Cost of revenue non-GAAP adjustments for all segments were deconversion costs. |
**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment. |
***Non-GAAP adjustments unassigned to a segment were VEDIP expenses of |
The table below shows our GAAP to non-GAAP guidance for the fiscal year ending June 30, 2025. Fiscal year 2025 non-GAAP guidance excludes the impacts of deconversion revenue and related operating expenses and assumes no acquisitions or dispositions are made during the fiscal year.
GAAP to Non-GAAP GUIDANCE (In millions, except per share data) | Annual FY25 | |||
Low | High | |||
GAAP REVENUE | $ 2,369 | $ 2,391 | ||
Growth | 6.9 % | 7.9 % | ||
Deconversions* | $ 16 | $ 16 | ||
NON-GAAP ADJUSTED REVENUE** | $ 2,353 | $ 2,375 | ||
Non-GAAP Adjusted Growth | 7.0 % | 8.0 % | ||
GAAP OPERATING EXPENSES | $ 1,823 | $ 1,836 | ||
Growth | 5.6 % | 6.4 % | ||
Deconversion costs* | $ 3 | $ 3 | ||
NON-GAAP ADJUSTED OPERATING EXPENSES** | $ 1,820 | $ 1,833 | ||
Non-GAAP Adjusted Growth | 6.7 % | 7.4 % | ||
GAAP OPERATING INCOME | $ 546 | $ 555 | ||
Growth | 11.6 % | 13.3 % | ||
GAAP OPERATING MARGIN | 23.0 % | 23.2 % | ||
NON-GAAP ADJUSTED OPERATING INCOME** | $ 533 | $ 542 | ||
Non-GAAP Adjusted Growth | 8.2 % | 9.9 % | ||
NON-GAAP ADJUSTED OPERATING MARGIN | 22.7 % | 22.8 % | ||
GAAP EPS*** | $ 5.78 | $ 5.87 | ||
Growth | 10.6 % | 12.3 % | ||
Non-GAAP EPS*** | $ 5.65 | $ 5.74 | ||
Growth | 7.3 % | 9.0 % | ||
*Deconversion revenue and related operating expenses are based on actual results for the six months ended December 31, 2024, and estimates for the remainder of fiscal year 2025, based on the lowest actual recent historical results. See the Company's Form 8-K filed with the Securities and Exchange Commission on January 27, 2025. |
**GAAP to Non-GAAP revenue, operating expenses, and operating income may not foot due to rounding. |
***The GAAP to Non-GAAP EPS reconciliation table is below on page 15. |
Balance Sheet and Cash Flow Review (In millions)
- Cash and cash equivalents were
$26 million $27 million - Trade receivables were
$283 million $271 million - The Company had
$150 million $255 million - Deferred revenue remained consistent at
$269 million - Stockholders' equity increased to
$1,976 million $1,724 million
*See table below for Net Cash Provided by Operating Activities and on page 14 for Return on Average Shareholders' Equity. Tables reconciling the non-GAAP measures Free Cash Flow and Return on Invested Capital (ROIC) to GAAP measures are also on page 14. See the Use of Non-GAAP Financial Information section below for the definitions of Free Cash Flow and ROIC. |
The following table summarizes net cash from operating activities:
(Unaudited, in thousands) | Six Months Ended December 31, | ||
2024 | 2023 | ||
Net income | $ 217,036 | $ 193,644 | |
Depreciation | 22,731 | 23,765 | |
Amortization | 79,517 | 75,366 | |
Change in deferred income taxes | (8,745) | (16,532) | |
Other non-cash expenses | 15,535 | 15,693 | |
Change in receivables | 49,811 | 90,702 | |
Change in deferred revenue | (119,463) | (130,529) | |
Change in other assets and liabilities* | (49,879) | (13,437) | |
NET CASH FROM OPERATING ACTIVITIES | $ 206,543 | $ 238,672 | |
*For the six months ended December 31, 2024, includes the change in prepaid cost of product and other of |
The following table summarizes net cash from investing activities:
(Unaudited, in thousands) | Six Months Ended December 31, | ||
2024 | 2023 | ||
Capital expenditures | (29,469) | (24,458) | |
Proceeds from dispositions | — | 878 | |
Purchased software | (3,528) | (2,971) | |
Computer software developed | (85,803) | (83,408) | |
Purchase of investments | (2,000) | (1,000) | |
Proceeds from investments | 1,000 | — | |
NET CASH FROM INVESTING ACTIVITIES | $ (119,800) | $ (110,959) | |
The following table summarizes net cash from financing activities:
(Unaudited, in thousands) | Six Months Ended December 31, | ||
2024 | 2023 | ||
Borrowings on credit facilities | $ 165,000 | $ 220,000 | |
Repayments on credit facilities and financing leases | (165,000) | (240,000) | |
Purchase of treasury stock | (17,050) | (20,000) | |
Dividends paid | (80,193) | (75,722) | |
Net cash from issuance of stock and tax related to stock-based compensation | (2,131) | 2,475 | |
NET CASH FROM FINANCING ACTIVITIES | $ (99,374) | $ (113,247) | |
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
We believe non-GAAP financial measures help investors better understand the underlying fundamentals and true operations of our business. Adjusted revenue, adjusted operating income, adjusted operating margin, adjusted segment income, adjusted segment income margin, adjusted cost of revenue, adjusted operating expenses, adjusted net income, and non-GAAP EPS eliminate one-time deconversion revenue and associated costs and the effects of the VEDIP program expense related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023, 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 and the VEDIP program expense. 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. ROIC is defined as net income divided by average invested capital, which is the average of beginning and ending long-term debt and stockholders' equity for a given period. 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 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.
Quarterly Conference Call
The Company will hold a conference call on February 5, 2025, 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.
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.
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.
Condensed Consolidated Statements of Income (Unaudited) | |||||||||||
(In thousands, except per share data) | Three Months Ended | % | Six Months Ended | % | |||||||
2024 | 2023 | 2024 | 2023 | ||||||||
REVENUE | $ 573,848 | $ 545,701 | 5.2 % | $ 1,174,829 | $ 1,117,069 | 5.2 % | |||||
Cost of Revenue | 332,850 | 320,979 | 3.7 % | 676,282 | 643,981 | 5.0 % | |||||
Research and Development | 41,095 | 35,478 | 15.8 % | 80,780 | 72,370 | 11.6 % | |||||
Selling, General, and Administrative | 76,901 | 70,277 | 9.4 % | 143,489 | 149,051 | (3.7) % | |||||
EXPENSES | 450,846 | 426,734 | 5.7 % | 900,551 | 865,402 | 4.1 % | |||||
OPERATING INCOME | 123,002 | 118,967 | 3.4 % | 274,278 | 251,667 | 9.0 % | |||||
Interest income | 7,159 | 5,121 | 39.8 % | 15,506 | 9,866 | 57.2 % | |||||
Interest expense | (2,780) | (3,865) | (28.1) % | (5,605) | (8,062) | (30.5) % | |||||
Interest Income (Expense), net | 4,379 | 1,256 | 248.6 % | 9,901 | 1,804 | 448.8 % | |||||
INCOME BEFORE INCOME TAXES | 127,381 | 120,223 | 6.0 % | 284,179 | 253,471 | 12.1 % | |||||
Provision for Income Taxes | 29,536 | 28,258 | 4.5 % | 67,143 | 59,827 | 12.2 % | |||||
NET INCOME | $ 97,845 | $ 91,965 | 6.4 % | $ 217,036 | $ 193,644 | 12.1 % | |||||
Diluted net income per share | $ 1.34 | $ 1.26 | $ 2.97 | $ 2.65 | |||||||
Diluted weighted average shares outstanding | 73,082 | 72,984 | 73,080 | 72,999 | |||||||
Consolidated Balance Sheet Highlights (Unaudited) | |||||||||||
(In thousands) | December 31, | % | |||||||||
2024 | 2023 | ||||||||||
Cash and cash equivalents | $ 25,653 | $ 26,709 | (4.0) % | ||||||||
Receivables | 283,223 | 270,551 | 4.7 % | ||||||||
Total assets | 2,911,770 | 2,753,976 | 5.7 % | ||||||||
Accounts payable and accrued expenses | $ 209,926 | $ 207,230 | 1.3 % | ||||||||
Current and long-term debt | 150,000 | 255,000 | (41.2) % | ||||||||
Deferred revenue | 269,469 | 269,200 | 0.1 % | ||||||||
Stockholders' equity | 1,975,565 | 1,724,387 | 14.6 % | ||||||||
Calculation of Non-GAAP Earnings Before Income Taxes, Depreciation and Amortization (Non-GAAP EBITDA) | |||||||||||
Three Months Ended | % | Six Months Ended | % | ||||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | |||||||
Net income | $ 97,845 | $ 91,965 | $ 217,036 | $ 193,644 | |||||||
Net interest | (4,379) | (1,256) | (9,901) | (1,804) | |||||||
Taxes | 29,536 | 28,258 | 67,143 | 59,827 | |||||||
Depreciation and amortization | 51,754 | 49,896 | 102,248 | 99,131 | |||||||
Less: Net income before interest expense, taxes, depreciation and amortization attributable to eliminated one-time adjustments* | 622 | (3,802) | (2,873) | 8,886 | |||||||
NON-GAAP EBITDA | $ 175,378 | $ 165,061 | 6.3 % | $ 373,653 | $ 359,684 | 3.9 % | |||||
*The fiscal second quarter 2025 and 2024 adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions. The fiscal year-to-date 2025 and 2024 adjustments were for deconversions in 2025 and deconversions and the VEDIP program expense in 2024 and were |
Calculation of Free Cash Flow (Non-GAAP) | Six Months Ended | ||||||||
(In thousands) | 2024 | 2023 | |||||||
Net cash from operating activities | $ 206,543 | $ 238,672 | |||||||
Capitalized expenditures | (29,469) | (24,458) | |||||||
Internal use software | (3,528) | (2,971) | |||||||
Proceeds from sale of assets | — | 878 | |||||||
Capitalized software | (85,803) | (83,408) | |||||||
FREE CASH FLOW | $ 87,743 | $ 128,713 | |||||||
Calculation of the Return on Average Shareholders' Equity | December 31, | ||||||||
(In thousands) | 2024 | 2023 | |||||||
Net income (trailing four quarters) | $ 405,208 | $ 372,966 | |||||||
Average stockholder's equity (period beginning and ending balances) | 1,849,976 | 1,617,689 | |||||||
RETURN ON AVERAGE SHAREHOLDERS' EQUITY | 21.9 % | 23.1 % | |||||||
Calculation of Return on Invested Capital (ROIC) (Non-GAAP) | December 31, | ||||||||
(In thousands) | 2024 | 2023 | |||||||
Net income (trailing four quarters) | $ 405,208 | $ 372,966 | |||||||
Average stockholder's equity (period beginning and ending balances) | 1,849,976 | 1,617,689 | |||||||
Average current maturities of long-term debt and financing leases (period beginning and ending balances) | 45,000 | 11 | |||||||
Average long-term debt (period beginning and ending balances) | 157,500 | 265,000 | |||||||
Average invested capital | $ 2,052,476 | $ 1,882,700 | |||||||
ROIC | 19.7 % | 19.8 % | |||||||
GAAP to Non-GAAP EPS Reconciliation Table | |
FY25 Guidance | |
GAAP EPS | |
Excluded Activity, net of Tax: | |
Deconversion* | |
Non-GAAP EPS | |
*We are not aware of any other discreet adjustments at this time. Deconversion revenue and related operating expenses are based on actual results for fiscal second quarter 2025 and estimates for the remainder of fiscal year 2025, based on the lowest actual recent historical results. See the Company's Form 8-K filed with the Securities and Exchange Commission on January 27, 2025. |
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SOURCE Jack Henry & Associates, Inc.
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