10-Q - JACK HENRY & ASSOCIATES INC (0000779152) (Filer)

Mon, May 12, 6:35 PM (31 days ago)

**Jack Henry & Associates, Inc. (JKHY) Q3 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $585.1 million (up 8.6% YoY), driven by organic growth in data processing, hosting, card, and payment processing services. - **Net Income:** $111.1 million (up 27.6% YoY), or $1.52 per diluted share. - **Operating Income:** $138.7 million (up 23.8% YoY). - **Profit Margins:** Operating margin at 23.7%, net margin at 19.0%. - **Cash Flow:** $314.4 million from operating activities (down 6% YoY due to changes in receivables). **Segment Performance:** - **Core:** Revenue up 8.4%, cost of revenue up 4.3%. - **Payments:** Revenue up 7.7%, cost of revenue up 5.8%. - **Complementary:** Revenue up 12.2%, cost of revenue up 5.6%. - **Corporate & Other:** Revenue down 6.2%, cost of revenue down 0.9%. **Liquidity & Capital Resources:** - **Cash & Cash Equivalents:** $39.9 million (up from $38.3 million). - **Debt:** $170,000 outstanding under credit facilities, $90,000 under term loan. - **Capital Expenditures:** $41.2 million for the nine months ended March 31, 2025. **Future Operations & Uncertainties:** - **Outlook:** Positive, with recurring revenue streams and a strong sales pipeline. - **Risks:** Regulatory and operational challenges faced by clients, potential changes in statutes of limitations, and examination closures. **Trends & Discussion:** - **Revenue Growth:** Driven by organic growth in key areas, partially offset by decreases in license and hardware revenues. - **Expense Management:** Increased operating expenses due to higher personnel and direct costs, partially offset by labor cost deferral. - **Taxes:** Effective tax rate decreased to 21.7% for the quarter, primarily due to timing of federal tax return filing and return-to-provision adjustments. **Notable Changes:** - **Share Repurchases:** 107,246 shares repurchased in Q3 2025 at an average price of $167.86. - **Dividends:** Declared a cash dividend of $0.58 per share, payable on June 18, 2025. **Ticker:** JKHY