Qudian: Q1 Earnings Snapshot
On a per-share basis, the Xiamen, China-based company said it had net income of 12 cents.
The online micro-lending company posted revenue of $3.6 million in the period.
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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on QD at https://www.zacks.com/ap/QD
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13 minutes ago
- Yahoo
Keysight Technologies Reports Third Quarter 2025 Results
Strong execution drives above guidance results, full-year outlook improved SANTA ROSA, Calif., August 19, 2025--(BUSINESS WIRE)--Keysight Technologies, Inc. (NYSE: KEYS) today reported financial results for the third fiscal quarter ended July 31, 2025. "Keysight delivered strong results this quarter, exceeding the high end of our guidance for both revenue and earnings per share. We are executing our strategy and capitalizing on the opportunities in our end markets," said Satish Dhanasekaran, Keysight's President and CEO. "We are raising our outlook for the full year once again and continue to see solid demand and strong customer engagements." Third Quarter Financial Summary Revenue was $1.35 billion, compared with $1.22 billion in the third quarter of 2024. GAAP net income was $191 million, or $1.10 per share, compared with $389 million, or $2.22 per share, in the third quarter of 2024. Non-GAAP net income was $297 million, or $1.72 per share, compared with $275 million, or $1.57 per share in the third quarter of 2024. Cash flow from operations was $322 million, compared to $255 million last year. Free cash flow was $291 million, compared to $222 million in the third quarter of 2024. As of July 31, 2025, cash, cash equivalents, and restricted cash totaled $3.40 billion. Reporting Segments Communications Solutions Group (CSG) CSG reported revenue of $940 million in the third quarter, up 11 percent from the prior year, reflecting 13 percent growth in commercial communications and 8 percent growth in aerospace, defense, and government. Electronic Industrial Solutions Group (EISG) EISG reported revenue of $412 million in the third quarter, up 11 percent from the prior year, reflecting growth across semiconductor, general electronics and automotive and energy. Outlook Keysight's fourth fiscal quarter of 2025 revenue is expected to be in the range of $1.370 billion to $1.390 billion. Non-GAAP earnings per share for the fourth fiscal quarter of 2025 are expected to be in the range of $1.79 to $1.85, based on a weighted diluted share count of approximately 173 million shares. Fiscal year 2025 revenue growth is expected to be approximately 7 percent. At the midpoint of fourth quarter guidance, non-GAAP earnings per share growth for fiscal year 2025 is expected to be approximately 13 percent. Certain items impacting the GAAP tax rate pertain to future events and are not currently estimable with a reasonable degree of accuracy; therefore, no reconciliation of GAAP earnings per share to non-GAAP has been provided. Further information is discussed in the section titled "Use of Non-GAAP Financial Measures" below. Webcast Keysight's management will present more details about its third quarter FY2025 financial results and its fourth quarter FY2025 outlook on a conference call with investors today at 1:30 p.m. PT. This event will be webcast in listen-only mode. Listeners may log on to the call at under the "Upcoming Events" section and select "Q3 FY25 Keysight Technologies Inc. Earnings Conference Call" to participate. The call can also be accessed by dialing 1-404-975-4839 or 1-833-470-1428 toll-free (access code 819411). The webcast will remain on the company site for 90 days. Forward-Looking Statements This communication contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The words "assume," "expect," "intend," "will," "should," "outlook" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could significantly affect the expected results and are based on certain key assumptions of Keysight's management and on currently available information. Due to such uncertainties and risks, no assurances can be given that such expectations or assumptions will prove to have been correct, and readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Keysight undertakes no responsibility to publicly update or revise any forward-looking statement. The forward-looking statements contained herein include, but are not limited to, predictions, future guidance, projections, beliefs, and expectations about the company's goals, revenues, financial condition, earnings, and operations that involve risks and uncertainties that could cause Keysight's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, impacts of global economic conditions such as inflation or recession, slowing demand for products or services, volatility in financial markets, reduced access to credit, increased interest rates, impacts of geopolitical tension and conflict outside of the U.S., export control regulations and compliance, net zero emissions commitments, customer purchasing decisions and timing, tariff and trade policy impacts and order cancellations. In addition to the risks above, other risks that Keysight faces include those detailed in Keysight's filings with the Securities and Exchange Commission on Keysight's annual report on Form 10-K for the period ended October 31, 2024 and Keysight's quarterly report on Form 10-Q for the period ended April 30, 2025. Segment Data Segment data reflect the results of our reportable segments under our management reporting system. Segment data are provided on page 5 of the attached tables. Use of Non-GAAP Financial Measures In addition to financial information prepared in accordance with U.S. GAAP ("GAAP"), this document also contains certain non-GAAP financial measures based on management's view of performance, including: Non-GAAP Net Income/Earnings Non-GAAP Net Income per share/Earnings per share Free Cash Flow Net Income per share is based on weighted average diluted share count. See the attached supplemental schedules for reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure for the three and nine months ended July 31, 2025. Following the reconciliations is a discussion of the items adjusted from our non-GAAP financial measures and the company's reasons for including or excluding certain categories of income or expenses from our non-GAAP results. About Keysight Technologies At Keysight (NYSE: KEYS), we inspire and empower innovators to bring world-changing technologies to life. As an S&P 500 company, we're delivering market-leading design, emulation, and test solutions to help engineers develop and deploy faster, with less risk, throughout the entire product lifecycle. We're a global innovation partner enabling customers in communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics markets to accelerate innovation to connect and secure the world. Learn more at Keysight Newsroom and Source: IR-KEYS KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended Nine months ended July 31, July 31, 2025 2024 2025 2024 Orders $ 1,340 $ 1,249 $ 3,919 $ 3,688 Revenue $ 1,352 $ 1,217 $ 3,956 $ 3,692 Costs and expenses: Cost of products and services 518 462 1,488 1,361 Research and development 250 226 749 686 Selling, general and administrative 354 329 1,075 1,052 Other operating expense (income), net (4 ) (5 ) (15 ) (10 ) Total costs and expenses 1,118 1,012 3,297 3,089 Income from operations 234 205 659 603 Interest income 31 19 71 60 Interest expense (28 ) (21 ) (68 ) (61 ) Other income (expense), net 4 10 98 15 Income before taxes 241 213 760 617 Provision (benefit) for income taxes 50 (176 ) 143 (70 ) Net income $ 191 $ 389 $ 617 $ 687 Net income per share: Basic $ 1.11 $ 2.23 $ 3.58 $ 3.94 Diluted $ 1.10 $ 2.22 $ 3.56 $ 3.92 Weighted average shares used in computing net income per share: Basic 172 174 172 174 Diluted 173 175 173 175 Page 1 KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEET (In millions, except par value and share data) (Unaudited) PRELIMINARY July 31, 2025 October 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 2,636 $ 1,796 Accounts receivable, net 692 857 Inventory 1,021 1,022 Other current assets 1,255 582 Total current assets 5,604 4,257 Property, plant and equipment, net 766 774 Operating lease right-of-use assets 224 234 Goodwill 2,429 2,388 Other intangible assets, net 524 607 Long-term investments 157 110 Long-term deferred tax assets 392 378 Other assets 555 521 Total assets $ 10,651 $ 9,269 LIABILITIES AND EQUITY Current liabilities: Accounts payable 342 313 Employee compensation and benefits 290 295 Deferred revenue 557 561 Income and other taxes payable 144 90 Operating lease liabilities 48 43 Other accrued liabilities 179 125 Total current liabilities 1,560 1,427 Long-term debt 2,533 1,790 Retirement and post-retirement benefits 84 81 Long-term deferred revenue 208 206 Long-term operating lease liabilities 183 197 Other long-term liabilities 413 463 Total liabilities 4,981 4,164 Stockholders' equity: Preferred stock; $0.01 par value; 100 million shares authorized; none issued and outstanding — — Common stock; $0.01 par value; 1 billion shares authorized; 202 million and 201 million shares issued, respectively 2 2 Treasury stock, at cost; 30.2 million shares and 28.4 million shares, respectively (3,698 ) (3,422 ) Additional paid-in-capital 2,819 2,664 Retained earnings 6,842 6,225 Accumulated other comprehensive loss (295 ) (364 ) Total stockholders' equity 5,670 5,105 Total liabilities and equity $ 10,651 $ 9,269 Page 2 KEYSIGHT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In millions) (Unaudited) PRELIMINARY Nine months ended July 31, 2025 2024 Cash flows from operating activities: Net income $ 617 $ 687 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 97 94 Amortization 104 108 Share-based compensation 129 111 Deferred tax expense (benefit) (58 ) (21 ) Excess and obsolete inventory-related charges 30 26 Unrealized loss (gain) on equity and other investments (39 ) (7 ) Other non-cash expenses (income), net 5 2 Changes in assets and liabilities, net of effects of businesses acquired: Accounts receivable 173 130 Inventory (21 ) (51 ) Accounts payable 29 (4 ) Employee compensation and benefits (8 ) (69 ) Deferred revenue (12 ) (35 ) Income taxes payable 42 (24 ) Income taxes receivable 78 (161 ) Other assets and liabilities 18 (93 ) Net cash provided by operating activities(a) 1,184 693 Cash flows from investing activities: Investments in property, plant and equipment (90 ) (116 ) Acquisitions of businesses and intangible assets, net of cash acquired (3 ) (673 ) Other investing activities (4 ) 8 Net cash used in investing activities (97 ) (781 ) Cash flows from financing activities: Proceeds from issuance of common stock under employee stock plans 63 65 Payment of taxes related to net share settlement of equity awards (38 ) (31 ) Proceeds from issuance of long-term debt 748 — Acquisition of non-controlling interests — (458 ) Treasury stock repurchases, including excise tax payments (278 ) (289 ) Debt issuance costs (8 ) (7 ) Repayment of debt — (24 ) Other financing activities — (9 ) Net cash provided by (used in) financing activities 487 (753 ) Effect of exchange rate movements 9 2 Net increase (decrease) in cash, cash equivalents, and restricted cash 1,583 (839 ) Cash, cash equivalents, and restricted cash at beginning of period 1,814 2,488 Cash, cash equivalents, and restricted cash at end of period $ 3,397 $ 1,649 (a) Cash payments included in operating activities: Interest payments $ 39 $ 38 Income tax paid, net $ 74 $ 130 Page 3 KEYSIGHT TECHNOLOGIES, INC. NET INCOME AND DILUTED EPS RECONCILIATION (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended Nine months ended July 31, July 31, 2025 2024 2025 2024 Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS GAAP Net income $ 191 $ 1.10 $ 389 $ 2.22 $ 617 $ 3.56 $ 687 $ 3.92 Non-GAAP adjustments: Amortization of acquisition-related balances 33 0.19 31 0.18 100 0.58 106 0.60 Share-based compensation 32 0.18 32 0.18 131 0.75 118 0.68 Acquisition and integration costs 46 0.27 16 0.09 70 0.40 56 0.32 Restructuring and others (6 ) (0.04 ) 6 0.03 (4 ) (0.02 ) 44 0.25 Adjustment for taxes(a) 1 0.02 (199 ) (1.13 ) (5 ) (0.03 ) (203 ) (1.16 ) Non-GAAP Net income $ 297 $ 1.72 $ 275 $ 1.57 $ 909 $ 5.24 $ 808 $ 4.61 Weighted average shares outstanding - diluted 173 175 173 175 (a) For the three and nine months ended July 31, 2025, management uses a non-GAAP effective tax rate of 14%. For the three and nine months ended July 31, 2024, management uses a non-GAAP effective tax rate of 8% and 14%, respectively. Please refer to the last page for details on the use of non-GAAP financial measures. Page 4 KEYSIGHT TECHNOLOGIES, INC. SEGMENT RESULTS INFORMATION (In millions, except where noted) (Unaudited) PRELIMINARY Communications Solutions Group Percent Q3'25 Q3'24 Inc/(Dec) Revenue $ 940 $ 847 11% Gross margin, % 67 % 67 % Income from operations $ 246 $ 223 Operating margin, % 26 % 26 % Electronic Industrial Solutions Group Percent Q3'25 Q3'24 Inc/(Dec) Revenue $ 412 $ 370 11% Gross margin, % 57 % 58 % Income from operations $ 92 $ 74 Operating margin, % 22 % 20 % Segment revenue and income from operations are consistent with the respective non-GAAP financial measures as discussed on last page. Page 5 KEYSIGHT TECHNOLOGIES, INC. FREE CASH FLOW (In millions) (Unaudited) PRELIMINARY Three months ended Nine months ended July 31, July 31, 2025 2024 2025 2024 Net cash provided by operating activities $ 322 $ 255 $ 1,184 $ 693 Less: Investments in property, plant and equipment (31 ) (33 ) (90 ) (116 ) Free cash flow $ 291 $ 222 $ 1,094 $ 577 Please refer to the last page for details on the use of non-GAAP financial measures. Page 6 KEYSIGHT TECHNOLOGIES, INC. REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q3'25 Q3'24 Inc/(Dec) Aerospace, Defense and Government $ 296 $ 275 8% Commercial Communications 644 572 13% Electronic Industrial 412 370 11% Total Revenue $ 1,352 $ 1,217 11% Page 7 Non-GAAP Financial Measures Management uses both GAAP and non-GAAP financial measures to analyze and assess the overall performance of the business, to make operating decisions and to forecast and plan for future periods. We believe that our investors benefit from seeing our results "through the eyes of management" in addition to seeing our GAAP results. This information enhances investors' understanding of the continuing performance of our business and facilitates comparison of performance to our historical and future periods. Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, including industry peer companies, limiting the usefulness of these measures for comparative purposes. These non-GAAP measures should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. The discussion below presents information about each of the non-GAAP financial measures and the company's reasons for including or excluding certain categories of income or expenses from our non-GAAP results. In future periods, we may exclude such items and may incur income and expenses similar to these excluded items. Accordingly, adjustments for these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual. Core Revenue/Margin excludes the impact of foreign currency changes and revenue/expenses associated with acquisitions or divestitures completed within the last twelve months. We exclude from the current period, the impact of foreign currency changes as currency rates can fluctuate based on factors that are not within our control and can obscure growth trends. As the nature, size and number of acquisitions can vary significantly from period to period and as compared to our peers, we also exclude revenue/expenses associated with recently acquired businesses to facilitate comparisons of growth and analysis of underlying business trends. Free cash flow includes cash provided by operating activities adjusted for net investments in property, plant & equipment. Non-GAAP Income from Operations, Non-GAAP Net Income and Non-GAAP Diluted EPS may include the following types of adjustments: Acquisition-related Items: We exclude the impact of certain items recorded in connection with business combinations from our non-GAAP financial measures that are either non-cash or not normal, recurring operating expenses due to their nature, variability of amounts and lack of predictability as to occurrence or timing. These amounts may include non-cash items such as the amortization of acquired intangible assets and amortization of items associated with fair value purchase accounting adjustments. We also exclude other acquisition and integration costs associated with business acquisitions that are not normal recurring operating expenses, including gain/loss on foreign exchange contracts and legal, accounting and due diligence costs. We exclude these charges to facilitate a more meaningful evaluation of our current operating performance and comparisons to our past operating performance. Share-based Compensation Expense: We exclude share-based compensation expense from our non-GAAP financial measures because share-based compensation expense can vary significantly from period to period based on the company's share price, as well as the timing, size and nature of equity awards granted. Management believes the exclusion of this expense facilitates the ability of investors to compare the company's operating results with those of other companies, many of which also exclude share-based compensation expense in determining their non-GAAP financial measures. Restructuring and others: We exclude incremental expenses associated with restructuring initiatives including those of acquired entities, usually aimed at material changes in the business or cost structure. Such costs may include employee separation costs, asset impairments, facility-related costs, contract termination fees, and costs to move operations from one location to another. These activities can vary significantly from period to period based on the timing, size and nature of restructuring plans; therefore, we do not consider such costs to be normal, recurring operating also exclude "others," not normal, recurring, cash operating income/expenses from our non-GAAP financial measures. Such items are evaluated on an individual basis, based on both quantitative and qualitative factors and generally represent items that we do not anticipate occurring as part of our normal business. While not all-inclusive, examples of such items would include net unrealized gains on equity investments still held, significant non-recurring events like realized gains or losses associated with our employee benefit plans, costs and recoveries related to unusual events, gain on sale of assets/divestitures, adjustment attributable to non-controlling interest, etc. We believe that these costs do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of the company's current operating performance or comparisons to our operating performance in other periods. Estimated Tax Rate: We utilize a consistent methodology for long-term projected non-GAAP tax rate. When projecting this long-term rate, we exclude any tax benefits or expenses that are not directly related to ongoing operations and which are either isolated or cannot be expected to occur again with any regularity or predictability. Additionally, we evaluate our current long-term projections, current tax structure and other factors, such as existing tax positions in various jurisdictions and key tax holidays in major jurisdictions where Keysight operates. This tax rate could change in the future for a variety of reasons, including but not limited to significant changes in geographic earnings mix including acquisition activity, or fundamental tax law changes in major jurisdictions where Keysight operates. The above reasons also limit our ability to reasonably estimate the future GAAP tax rate and provide a reconciliation of the expected non-GAAP earnings per share for the fourth quarter of fiscal 2025 to the GAAP equivalent. Management recognizes these items can have a material impact on our cash flows and/or our net income. Our GAAP financial statements, including our Condensed Consolidated Statement of Cash Flows, portray those effects. Although we believe it is useful for investors to see core performance free of special items, investors should understand that the excluded costs are actual expenses that may impact the cash available to us for other uses. To gain a complete picture of all effects on the company's profit and loss from any and all events, management does (and investors should) rely upon the Condensed Consolidated Statement of Operations prepared in accordance with GAAP. The non-GAAP measures focus instead upon the core business of the company, which is only a subset, albeit a critical one, of the company's performance. Page 8 View source version on Contacts INVESTOR CONTACT:Investor Relations+1 MEDIA CONTACT:Andrea Mueller+ 1 Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
13 minutes ago
- Yahoo
Why Medtronic Stock Dropped Today
Key Points Medtronic beat on sales and earnings this morning. Management also upped its guidance for fiscal 2026 earnings. Sales and earnings are both growing by only single digits, and the stock costs 25 times earnings. 10 stocks we like better than Medtronic › Medtronic (NYSE: MDT) stock had declined 3.6% through 2:45 p.m. ET Tuesday despite beating forecasts for fiscal 2026 first-quarter earnings this morning. Heading into the report, analysts predicted Medtronic would earn $1.23 per share on under $8.4 billion in first-quarter revenue. In fact, earnings were $1.26 per share, and sales approached $8.6 billion. Medtronic Q1 earnings Sales at the Ireland-based maker of medical equipment grew 8% year over year, of which almost 5% was organic growth. Earnings, however, didn't. Medtronic's $0.81 per-share profit under generally accepted accounting principles (GAAP) was weaker than its adjusted number (its $1.26 headline figure). Earnings also increased only 1% year over year, far slower than sales growth. Is the stock a buy? The good news is that CEO Geoff Martha says revenue growth will probably accelerate in the second half of fiscal 2026. The bad news is that it also might not accelerate at all. Turning to guidance, the company forecasts 5% organic sales growth for the full year, a bit better than in the first quarter, but total revenue growth for the year of only 6.5% to 6.8%. And that's less than the 8% growth seen in the first quarter. Management says earnings will increase, and it's raising guidance to predict per-share profits between $5.60 and $5.66 this year. But these are only adjusted figures and represent only 4.5% earnings growth year over year -- which would be slower than sales growth and imply narrowing profit margins. The worst news of all for investors, though, is that Medtronic stock costs a rich 25 times trailing earnings today, and that's probably too much to pay for single-digit growth in both sales and earnings. Should you buy stock in Medtronic right now? Before you buy stock in Medtronic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Medtronic wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,466!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,633!* Now, it's worth noting Stock Advisor's total average return is 1,076% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 18, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy. Why Medtronic Stock Dropped Today was originally published by The Motley Fool
Yahoo
13 minutes ago
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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):3Current GAAP Low High Revenue $2,475 $2,504 Operating margin4 24.0 % 24.2 % EPS $6.32 $6.44Non-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,% ChangeYear Ended June 30,% Change2025202420252024 RevenueServices and Support $ 351,239$ 316,73910.9 %$ 1,361,737$ 1,275,9546.7 % Percentage of Total Revenue 57.1 %56.6 %57.3 %57.6 % Processing 264,133243,1738.6 %1,013,551939,5897.9 % Percentage of Total Revenue 42.9 %43.4 %42.7 %42.4 % REVENUE $ 615,372$ 559,9129.9 %$ 2,375,288$ 2,215,5437.2 % 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,%ChangeYear Ended June 30,% Change 2025202420252024Cost of Revenue $ 343,879$ 327,2725.1 %$ 1,360,747$ 1,299,4774.7 %Percentage of Total Revenue6 55.9 %58.5 %57.3 %58.7 %Research and Development 42,58039,8926.7 %162,771148,2569.8 %Percentage of Total Revenue6 6.9 %7.1 %6.9 %6.7 %Selling, General, and Administrative 73,21667,1229.1 %283,055278,4191.7 %Percentage of Total Revenue6 11.9 %12.0 %11.9 %12.6 %OPERATING EXPENSES 459,675434,2865.8 %1,806,5731,726,1524.7 % OPERATING INCOME $ 155,697$ 125,62623.9 %$ 568,715$ 489,39116.2 %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,% ChangeYear Ended June 30,% Change2025202420252024 Income Before Income Taxes $ 159,949$ 130,38422.7 %$ 586,036$ 498,01917.7 % Provision for Income Taxes 32,34529,31110.4 %130,288116,20312.1 % NET INCOME $ 127,604$ 101,07326.2 %$ 455,748$ 381,81619.4 % Diluted earnings per share $ 1.75$ 1.3826.4 %$ 6.24$ 5.2319.3 % 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,% ChangeYear Ended June 30,% Change2025202420252024 GAAP Revenue** $ 615,372$ 559,9129.9 %$ 2,375,288$ 2,215,5437.2 % Adjustments:Deconversion revenue (20,495)(6,693)(33,905)(16,554) NON-GAAP ADJUSTED REVENUE** $ 594,877$ 553,2197.5 %$ 2,341,383$ 2,198,9896.5 % GAAP Operating Income $ 155,697$ 125,62623.9 %$ 568,715$ 489,39116.2 % Adjustments:Operating (income) loss fromdeconversions (17,938)(5,594)(27,663)(13,146) VEDIP program expense* ———16,443 NON-GAAP ADJUSTEDOPERATING INCOME $ 137,759$ 120,03214.8 %$ 541,052$ 492,6889.8 % Non-GAAP Adjusted Operating Margin*** 23.2 %21.7 %23.1 %22.4 % GAAP Net Income $ 127,604$ 101,07326.2 %$ 455,748$ 381,81619.4 % Adjustments:Net (income) loss from deconversions (17,938)(5,594)(27,663)(13,146) VEDIP program expense* ———16,443 Tax impact of adjustments**** 4,3051,3436,640(790) NON-GAAP ADJUSTED NETINCOME $ 113,971$ 96,82217.7 %$ 434,725$ 384,32313.1 % *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 Months Ended June 30, 2025 (Unaudited, dollars in thousands) CorePaymentsComplementaryCorporateand OtherTotal 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 181,093222,474170,27621,034594,877 GAAP COST OF REVENUE 69,954116,12867,63590,162343,879 Non-GAAP adjustments* (731)(109)(440)(9)(1,289) NON-GAAP ADJUSTED COST OF REVENUE 69,223116,01967,19590,153342,590 GAAP SEGMENT INCOME $ 119,800$ 113,164$ 107,493$ (68,964) Segment Income Margin** 63.1 %49.4 %61.4 %(325.3) % NON-GAAP ADJUSTED SEGMENT INCOME $ 111,870$ 106,455$ 103,081$ (69,119) Non-GAAP Adjusted Segment Income Margin** 61.8 %47.9 %60.5 %(328.6) % Research and Development 42,580 Selling, General, and Administrative 73,216 Non-GAAP adjustments unassigned to a segment***(1,268) NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES457,118 NON-GAAP ADJUSTED OPERATING INCOME$ 137,759 *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 June 30, 2024 (Unaudited, dollars in thousands) CorePaymentsComplementaryCorporate and OtherTotal GAAP REVENUE $ 172,040$ 212,593$ 155,149$ 20,130$ 559,912 Non-GAAP adjustments* (2,407)(2,367)(1,777)(142)(6,693) NON-GAAP ADJUSTED REVENUE 169,633210,226153,37219,988553,219 GAAP COST OF REVENUE 69,900111,78763,08382,502327,272 Non-GAAP adjustments* (415)(66)(188)—(669) NON-GAAP ADJUSTED COST OF REVENUE 69,485111,72162,89582,502326,603 GAAP SEGMENT INCOME $ 102,140$ 100,806$ 92,066$ (62,372) Segment Income Margin** 59.4 %47.4 %59.3 %(309.8) % NON-GAAP ADJUSTED SEGMENT INCOME $ 100,148$ 98,505$ 90,477$ (62,514) Non-GAAP Adjusted Segment Income Margin 59.0 %46.9 %59.0 %(312.8) % Research and Development 39,892 Selling, General, and Administrative 67,122 Non-GAAP adjustments unassigned to a segment***(430) NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES433,187 NON-GAAP ADJUSTED OPERATING INCOME$ 120,032 *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. Year Ended June 30, 2025 (Unaudited, dollars in thousands) CorePaymentsComplementaryCorporate and OtherTotal GAAP REVENUE $ 739,277$ 873,498$ 675,209$ 87,304$ 2,375,288 Non-GAAP adjustments* (14,765)(11,159)(7,709)(272)(33,905) NON-GAAP ADJUSTED REVENUE 724,512862,339667,50087,0322,341,383 GAAP COST OF REVENUE 297,372460,151264,823338,4011,360,747 Non-GAAP adjustments* (2,096)(288)(1,119)(14)(3,517) NON-GAAP ADJUSTED COST OF REVENUE 295,276459,863263,704338,3871,357,230 GAAP SEGMENT INCOME $ 441,905$ 413,347$ 410,386$ (251,097) Segment Income Margin** 59.8 %47.3 %60.8 %(287.6) % NON-GAAP ADJUSTED SEGMENT INCOME $ 429,236$ 402,476$ 403,796$ (251,355) Non-GAAP Adjusted Segment Income Margin 59.2 %46.7 %60.5 %(288.8) % Research and Development 162,771 Selling, General, and Administrative 283,055 Non-GAAP adjustments unassigned to a segment***(2,725) NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES1,800,331 NON-GAAP ADJUSTED OPERATING INCOME$ 541,052 *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. Year Ended June 30, 2024 (Unaudited, dollars in thousands) CorePaymentsComplementaryCorporateand OtherTotal GAAP REVENUE $ 690,738$ 817,708$ 618,211$ 88,886$ 2,215,543 Non-GAAP adjustments* (7,292)(5,836)(3,217)(209)(16,554) NON-GAAP ADJUSTED REVENUE 683,446811,872614,99488,6772,198,989 GAAP COST OF REVENUE 287,349442,084251,085318,9591,299,477 Non-GAAP adjustments* (1,065)(259)(903)(4)(2,231) NON-GAAP ADJUSTED COST OF REVENUE 286,284441,825250,182318,9551,297,246 GAAP SEGMENT INCOME $ 403,389$ 375,624$ 367,126$ (230,073) Segment Income Margin** 58.4 %45.9 %59.4 %(258.8) % NON-GAAP ADJUSTED SEGMENT INCOME $ 397,162$ 370,047$ 364,812$ (230,278) Non-GAAP Adjusted Segment Income Margin 58.1 %45.6 %59.3 %(259.7) % Research and Development 148,256 Selling, General, and Administrative 278,419 Non-GAAP adjustments unassigned to a segment***(17,620) NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES1,706,301 NON-GAAP ADJUSTED OPERATING INCOME$ 492,688 *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 $16,443 and selling, general, and administrative deconversion costs of $1,177. The VEDIP program expense for the fiscal year ended June 30, 2024, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023. The table below shows our GAAP to non-GAAP guidance for the fiscal year ending June 30, 2026. Fiscal year 2026 non-GAAP guidance excludes the impacts of deconversion revenue and related operating expenses, the gain on sale of assets, and assumes no acquisitions or dispositions will be made during the fiscal to Non-GAAP GUIDANCE (Dollars in millions, except per share data)Annual FY'26LowHighGAAP REVENUE$ 2,475$ 2,504 Growth4.2 %5.4 %Deconversions*$ 16$ 16NON-GAAP ADJUSTED REVENUE**$ 2,459$ 2,488 Non-GAAP Adjusted Growth5.8 %7.0 %GAAP OPERATING EXPENSES$ 1,882$ 1,899 Growth4.2 %5.1 %Deconversion costs*$ 4$ 4Gain on sale of assets(7)(7)NON-GAAP ADJUSTED OPERATING EXPENSES**$ 1,885$ 1,902 Non-GAAP Adjusted Growth5.5 %6.4 %GAAP OPERATING INCOME$ 594$ 605 Growth4.4 %6.4 %GAAP OPERATING MARGIN24.0 %24.2 %NON-GAAP ADJUSTED OPERATING INCOME**$ 575$ 586 Non-GAAP Adjusted Growth6.7 %8.8 %NON-GAAP ADJUSTED OPERATING MARGIN23.4 %23.6 %GAAP EPS$ 6.32$ 6.44 Growth1.3 %3.3 %*Deconversion revenue and related operating expenses for fiscal year 2026 are based on the lowest actual recent historical results. See the Company's Form 8-K filed with the Securities and Exchange Commission on August 3, 2023. **GAAP to Non-GAAP revenue, operating expenses, and operating income may not foot due to rounding. Balance Sheet and Cash Flow Review Cash and cash equivalents were $102 million at June 30, 2025, and $38 million at June 30, 2024. Trade receivables were $318 million at June 30, 2025, compared to $333 million at June 30, 2024. The Company had no borrowings at June 30, 2025 compared to $150 million of borrowings at June 30, 2024. Deferred revenue was $363 million at June 30, 2025, and $389 million at June 30, 2024. Stockholders' equity increased to $2,131 million at June 30, 2025, compared to $1,842 million at June 30, 2024. *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 on pages 14 and 15. See the Use of Non-GAAP Financial Information section below for the definitions of Free Cash Flow and ROIC. **Free cash flow for fiscal year 2025 was higher than the expected range due to the timing of certain contractual payments and income tax amounts being made after the end of fiscal year 2025. The following table summarizes net cash from operating activities: (Unaudited, in thousands) Year Ended June 30,20252024 Net income $ 455,748$ 381,816 Depreciation 43,70046,342 Amortization 161,051153,562 Change in deferred income taxes (3,496)(909) Other non-cash expenses 30,35832,714 Change in receivables 15,05628,219 Change in deferred revenue (25,559)(10,797) Change in other assets and liabilities* (35,354)(62,906) NET CASH FROM OPERATING ACTIVITIES $ 641,504$ 568,041*For the fiscal year ended June 30, 2025, the change in other assets and liabilities includes the change in prepaid cost of product and other of $(50,933), accrued expenses of $(3,115), and income taxes of $16,048. For the year ended June 30, 2024, the change in other assets and liabilities includes the change in prepaid cost of product and other of $(115,558), the change in accrued expenses of $37,292, and income taxes of $9,925. The following table summarizes net cash from investing activities: (Unaudited, in thousands) Year Ended June 30,20252024 Capital expenditures (53,358)(58,118) Proceeds from dispositions 3904 Purchased software (5,363)(7,130) Computer software developed (172,445)(167,175) Purchase of investments (2,000)(8,646) Proceeds from investments 1,000— NET CASH FROM INVESTING ACTIVITIES $ (232,163)$ (240,165) The following table summarizes net cash from financing activities: (Unaudited, in thousands) Year Ended June 30,20252024 Borrowings on credit facilities $ 350,000$ 475,000 Repayments on credit facilities (500,000)(600,000) Purchase of treasury stock (35,051)(28,055) Dividends paid (164,644)(155,877) Net cash from issuance of stock and tax related to stock-based compensation 4,0237,097 NET CASH FROM FINANCING ACTIVITIES $ (345,672)$ (301,835) 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 the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures, including adjusted revenue, adjusted operating income, adjusted segment income, adjusted cost of revenue, adjusted operating expenses, adjusted operating margin, adjusted segment income margin, non-GAAP earnings before interest, taxes, depreciation, and amortization (non-GAAP EBITDA), free cash flow, return on invested capital (ROIC), and non-GAAP adjusted net income. 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, and adjusted net income 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. 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 nearly 50 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 7,400 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at 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. Quarterly Conference Call The Company will hold a conference call on August 20, 2025, at 7:45 a.m. Central Time, and investors are invited to listen at A webcast replay will be available approximately one hour after the event at and will remain available for one year. Condensed Consolidated Statements of Income (Unaudited) (Dollars in thousands, except per share data) Three Months Ended June 30,% ChangeYear Ended June 30,% Change2025202420252024 REVENUE $ 615,372$ 559,9129.9 %$ 2,375,288$ 2,215,5437.2 % Cost of Revenue 343,879327,2725.1 %1,360,7471,299,4774.7 % Research and Development 42,58039,8926.7 %162,771148,2569.8 % Selling, General, and Administrative 73,21667,1229.1 %283,055278,4191.7 % EXPENSES 459,675434,2865.8 %1,806,5731,726,1524.7 % OPERATING INCOME 155,697125,62623.9 %568,715489,39116.2 % Interest income 6,3548,647(26.5) %27,75925,01211.0 % Interest expense (2,102)(3,889)(46.0) %(10,438)(16,384)(36.3) % Interest Income (Expense), net 4,2524,758(10.6) %17,3218,628100.8 % INCOME BEFORE INCOME TAXES 159,949130,38422.7 %586,036498,01917.7 % Provision for Income Taxes 32,34529,31110.4 %130,288116,20312.1 % NET INCOME $ 127,604$ 101,07326.2 %$ 455,748$ 381,81619.4 % Diluted net income per share $ 1.75$ 1.38$ 6.24$ 5.23 Diluted weighted average shares outstanding 73,00573,06973,04573,025 Consolidated Balance Sheet Highlights (Unaudited) (In thousands) June 30,% Change20252024 Cash and cash equivalents $ 101,953$ 38,284166.3 % Receivables 317,977333,033(4.5) % Total assets 3,043,9702,924,4814.1 % Accounts payable and accrued expenses$ 245,299$ 226,0848.5 % Current and long-term debt —150,000(100.0) % Deferred revenue 363,374388,932(6.6) % Stockholders' equity 2,130,8321,842,36415.7 % Calculation of Non-GAAP Earnings Before Income Taxes, Depreciation and Amortization (Non-GAAP EBITDA)Three Months Ended June 30,% ChangeYear Ended June 30,% Change (Dollars in thousands) 2025202420252024 Net income $ 127,604$ 101,073$ 455,748$ 381,816 Net interest (4,252)(4,758)(17,321)(8,628) Taxes 32,34529,310130,288116,203 Depreciation and amortization 51,49050,690204,751199,904 Less: Net income before interest expense, taxes, depreciation and amortization attributable to eliminated one-time adjustments* (17,938)(5,594)(27,663)3,297 NON-GAAP EBITDA $ 189,249$ 170,72110.9 %$ 745,803$ 692,5927.7 % *The fiscal fourth quarter 2025 and 2024 adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions. The fiscal year 2025 and 2024 adjustments were for deconversions only in 2025 and deconversions and the VEDIP program expense in 2024 of $(13,146) and $16,443, respectively. The VEDIP program expense for the fiscal year ended June 30, 2024, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023. Calculation of Free Cash Flow (Non-GAAP)Year Ended June 30, (In thousands) 20252024 Net cash from operating activities$ 641,504$ 568,041 Capitalized expenditures (53,358)(58,118) Internal use software (5,363)(7,130) Proceeds from sale of assets 3904 Capitalized software (172,445)(167,175) FREE CASH FLOW $ 410,341$ 336,522 Net income $ 455,748$ 381,816 Operating cash conversion* 1.411.49 Free cash flow conversion (excluding proceeds from sale of assets)*90.0 %87.9 % *Operating cash conversion is net cash from operating activities divided by net income. Free cash flow conversion is free cash flow less proceeds from sale of assets of $3 for fiscal 2025 and $904 for fiscal 2024 divided by net income. Calculation of the Return on Average Shareholders' EquityJune 30, (In thousands) 20252024 Net income (trailing four quarters)$ 455,748$ 381,816 Average stockholder's equity (period beginning and ending balances)1,986,5981,725,437 RETURN ON AVERAGE SHAREHOLDERS' EQUITY22.9 %22.1 % Calculation of Return on Invested Capital (ROIC) (Non-GAAP) June 30, (In thousands) 20252024 Net income (trailing four quarters)$ 455,748$ 381,816 Average stockholder's equity (period beginning and ending balances)1,986,5981,725,437 Average current maturities of long-term debt and financing leases (period beginning and ending balances)45,00045,000 Average long-term debt (period beginning and ending balances)30,000167,500 Average invested capital $ 2,061,598$ 1,937,937 ROIC 22.1 %19.7 % FAQ for Analysts / Investors 1.) What are the opportunities and headwinds included in fiscal year 2026 non-GAAP revenue guidance? Recent industry consolidation continues to pressure short-term revenue growth, with deconversion outweighing new convert/merge activity. Several convert/merges are Jack Henry to Jack Henry thus limiting uplift in short-term revenue but securing long-term revenue opportunities. As previously discussed, in the first half of fiscal year 2025 we had several key large customer contracts that renewed with price compression that is contributing to the revenue headwinds in the short term but signifying long-term confidence in our solutions and technology direction. The industry has seen a slight slowing in the growth in the number of accounts for both banks and credit unions which impacts our contracts with account pricing. The Payments segment is under pressure from lower growth in risk management and third-party revenue. The restructure of a third-party agreement has resulted in a $16 million fiscal year-over-year revenue headwind, with $12 million of that coming in the first quarter. This restructuring has also resulted in a decrease of the related costs and the impact to margins is expected to be minimal. This has been adjusted for a consistent fiscal year-over-year comparison and is already contemplated in our fiscal year 2026 guidance (see page 9). We continue to gain market share in the industry through 51 new core wins in fiscal year 2025. We are also securing larger customers as they recognize the value of our technology roadmap along with the strategic partnerships and insight we provide. 2.) What is the expected quarterly cadence for non-GAAP revenue for Fiscal Year 2026? We expect the first quarter to be above the full year revenue guidance midpoint by approximately 100 bps. We expect the second quarter to be below the full year revenue guidance midpoint by approximately 100 bps. Our largest client event, Connect, along with its revenue and expense is moving from the second quarter in fiscal year 2025 to the first quarter in fiscal year 2026. Without this move the quarterly revenue cadence for the first half of fiscal year 2026 would be relatively consistent across the quarters. Connect will revert to the second quarter of fiscal year 2027 and thereafter. The third quarter of fiscal year 2026 is expected to be slightly weaker, followed by a slightly stronger fourth quarter. 3.) What is the impact of recent federal tax legislation on free cash flow? Full expensing of research and development costs (IRC 174) and 100% "bonus" tax depreciation will have a meaningful favorable impact on free cash flow. We will be making an election in the coming months on how we will implement the tax law changes and depending upon that election there are two scenarios: We could see a more significant impact in fiscal year 2026 with limited non-recurring impact in the future or, We could elect to take the benefit spread across fiscal years 2026 and 2027. Overall this legislation will allow Jack Henry to produce historical levels of free cash flow conversion of approximately 85% to 100% in future years. 4.) What is impacting GAAP EPS growth for fiscal year 2026? Starting in fiscal year 2024, we altered our methodology for deconversion guidance, starting the year with conservative guidance for deconversion revenue and adjusting the guidance throughout the year based on contracted volume. Decreased industry consolidation through the third quarter of fiscal year 2025 resulted in lower deconversion revenue, somewhat masking the effect of this change. Industry consolidation increased during fourth quarter fiscal year 2025 continuing into fiscal year 2026. We will continue to guide deconversion revenue conservatively at the beginning of each fiscal year and adjust the guidance quarterly, as necessary. This approach is the primary driver of the lower fiscal year-over-year growth in EPS. If deconversion revenue for fiscal year 2026 was flat compared to fiscal year 2025, it would add approximately $.16 to fiscal year 2026 GAAP EPS. View original content to download multimedia: SOURCE Jack Henry & Associates, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
