Jack Henry & Associates Stock Earnings Reports

Key points for investors: Jack Henry reported solid Q3 FY25 results with non-GAAP revenue up 7% and non-GAAP operating margin expanding to 23% (207 basis points improvement year-over-year). Management raised the full-year deconversion revenue outlook to $22M–$28M due to accelerated industry consolidation, while lowering full-year non-GAAP revenue growth to 6%–6.5% (from 7%–8%) citing softer nonkey revenue (hardware and some nonrecurring projects) and cautious macro assumptions. Offsetting the revenue moderation, the company raised margin-expansion guidance (60–70 bps) and increased GAAP EPS guidance to $6.00–$6.09 for FY25. Strategic highlights: strong wins in core conversions with larger-asset institutions (28 core wins year-to-date, including 11 in Q3 totaling ~$30B in assets), continued migration to Jack Henry private cloud (76% of clients processing in private cloud; cloud & processing = 76% of revenue and grew ~9.8% year-over-year), and product momentum in payments and complementary offerings (notable growth in Zelle, RTP and FedNow adoption; expansion of Financial Crimes Defender and Banno digital platform with >13.7M registered users). Technology modernization is progressing ahead of plan: management remains on track to deliver a public cloud-native deposit-only core in H1 calendar 2026 (about 6 months ahead of prior schedule). Cash generation remains strong (Q3 operating cash flow $108M; trailing 12‑month free cash flow $303M and ~71% conversion); the company repurchased $18M of shares in the quarter. Risks/near-term headwinds: weaker hardware purchases and some delayed post-core/nonrecurring implementations, potential softness in debit transaction volumes tied to consumer spending, and shorter‑term macro uncertainty—management is taking a conservative near-term revenue stance while prioritizing margin expansion and disciplined expense/capex management.