Marubeni Boosts Power Role in Singapore by Raising Senoko Stake
The trading house said in a statement on Wednesday it increased its stake from 30% after buying the shares in Lion Power 2008 Pte from its Japanese co-investors. Financial terms weren't disclosed. Following the acquisition, Marubeni will jointly hold Senoko with Singapore's Sembcorp Utilities Pte.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
24 minutes ago
- Yahoo
Fluent Announces Second Quarter 2025 Financial Results; Commerce Media Solutions Annual Revenue Run Rate Exceeds $80 Million
• Q2 2025 revenue of $44.7 million; H1 2025 revenue of $99.9 million • Q2 2025 Commerce Media Solutions revenue grew 121% to $16.1 million, representing 36% of consolidated revenue from $7.3 million or 12% of consolidated revenue in Q2 2024 • Commerce Media Solutions annual revenue run rate now exceeds $80 million, reflecting a 23% quarter-over-quarter increase and strong momentum in executing the Company's strategic pivot to this higher growth market • Expect adjusted EBITDA profitability in Q4 2025 as well as full-year double-digit revenue growth and full-year adjusted EBITDA profitability in 2026 • Subsequent to the quarter, raised $10.3 million from new investors and insiders NEW YORK, Aug. 19, 2025 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ: FLNT), a commerce media solutions provider, today reported unaudited financial results for the second quarter ended June 30, 2025. Don Patrick, Chief Executive Officer of Fluent, commented, "We saw continued strong performance from our Commerce Media Solutions business with revenue growth of 121% year-over-year and run rate growth of 23% compared to the first quarter of 2025. We expect to continue to drive substantial growth through the back half of the year as we go live with top-tier media partners like Authentic Brands Group. Commerce Media Solutions margins were lower than historical levels in the second quarter as we strategically expanded into new placements beyond post-transaction and offered early-term contract incentives to secure some longer-term media partner contracts. We expect margins to normalize over time as we continue to expand our list of top-tier media partners. 'As expected, owned and operated revenue declined in the quarter as we reallocate resources towards Commerce Media Solutions. As a percentage of revenue, Commerce Media Solutions contributed 36% to total revenue in the second quarter as compared to 23% of total revenue in the first quarter of 2025, demonstrating encouraging sequential growth. We expect Commerce Media Solutions to become the majority revenue contributor in the second half of 2025, representing a key milestone and inflection point for our business." Mr. Patrick concluded, "We are achieving meaningful progress and demonstrated success with our long-term growth strategy and remain committed to driving enhanced growth and value for our shareholders as we move into the second half of 2025. With our visibility today, we expect adjusted EBITDA profitability in the fourth quarter of 2025, as well as full-year double-digit consolidated revenue growth and full-year adjusted EBITDA profitability in 2026.' Second Quarter Financial Highlights • Revenue of $44.7 million, a decrease of 24%, compared to $58.7 million in Q2 2024 • Owned and Operated revenue decreased 49% to $21.4 million compared to $42.0 million in Q2 2024, as the Company continued its shift in focus and revenue mix to Commerce Media Solutions • Commerce Media Solutions revenue increased 121% to $16.1 million, compared to $7.3 million in Q2 2024 • Net loss of $7.2 million, or $0.30 per share, compared to a net loss of $11.6 million, or $0.75 per share, for Q2 2024. • Gross profit (exclusive of depreciation and amortization) of $10.3 million, a decrease of 18% compared to Q2 2024 and representing 23% of revenue. Commerce Media Solutions reported gross profit (exclusive of depreciation and amortization) of $2.9 million, an increase of 43% over Q2 2024 and representing 18% of revenue for Q2 2025. • Media margin of $11.9 million, a decrease of 24% compared to Q2 2024 and representing 26.7% of revenue. Commerce Media Solutions reported media margin of $3.2 million, an increase of 45% over Q2 2024 and representing 20.0% of revenue for Q2 2025. • Adjusted EBITDA loss of $2.8 million, an improvement of $1.7 million, compared to Q2 2024 and representing 6% of revenue • Adjusted net loss of $5.8 million, or $0.24 per share, compared to $7.3 million, or $0.47 per share, for Q2 2024 Six Months Ended June 30, 2025 Financial Highlights • Revenue of $99.9 million, a decrease of 20%, compared to $124.7 million in Q2 2024 • Owned and Operated revenue decreased 39% to $52.5 million compared to $86.7 million in H1 2024, as the Company continued its shift in focus and revenue mix to the more predictable commerce media business • Commerce Media Solutions revenue increased 110% to $28.7 million compared to $13.7 million in H1 2024 • Net loss of $15.5 million, or $0.68 per share, compared to a net loss of $17.9 million, or $1.11 per share, for H1 2024. • Gross profit (exclusive of depreciation and amortization) of $21.7 million, a decrease of 30% compared to H1 2024 and representing 22% of revenue. Commerce Media Solutions reported gross profit (exclusive of depreciation and amortization) of $5.7 million, an increase of 48% over H1 2024 and representing 20% of revenue. • Media margin of $25.7 million, a decrease of 32% compared to H1 2024 and representing 25.7% of revenue. Commerce Media Solutions reported media margin of $6.3 million, an increase of 50% over H1 2024 and representing 22.0% of revenue. • Adjusted EBITDA of negative $5.9 million, a decrease of $2.0 million compared to H1 2024 and representing 6% of revenue • Adjusted net loss of $12.5 million, or $0.55 per share, compared to $11.5 million, or $0.72 per share, for H1 2024 Business Outlook & Goals • Accelerate growth of Fluent's Commerce Media Solutions business and establish it as a leader in the performance marketing sector among both media partners and advertisers to capitalize on the growing demand for this advertising channel across numerous high-volume market verticals. • Win top-tier media partners in new, diverse market verticals that demonstrate Fluent's depth and breadth of commerce media offerings in this competitive, high growth market. • Leverage 14-year leadership position at the forefront of customer acquisition and robust database of first-party user data to differentiate Fluent from competitors in the commerce media space. • Position Fluent for long-term sustainable value creation supported by the growth of Commerce Media Solutions, which continues to grow at a triple-digit rate and scale as a percentage of consolidated revenue. • Leverage AI capabilities and proprietary first-party data to improve monetization of commerce media placements and return Commerce Media Solutions gross margin to the high twenties. • Given current visibility, the Company expects adjusted EBITDA profitability in the fourth quarter of 2025, as well as full-year double-digit consolidated revenue growth and full-year adjusted EBITDA profitability in 2026. Conference Call Fluent, Inc. will host a conference call on Tuesday, August 19, 2025, at 4:30 PM ET to discuss its 2025 second quarter financial results. The conference call can be accessed by phone after registering online at The call will also be webcast simultaneously on the Fluent website at Following the completion of the earnings call, a recorded replay of the webcast will be available for those unable to participate. To listen to the telephone replay, please connect via The replay will be available for one year, via the Fluent website About Fluent, Inc. Fluent, Inc. (NASDAQ: FLNT) is a commerce media solutions provider connecting top-tier brands with highly engaged consumers. Leveraging exclusive ad inventory, robust first-party data, and proprietary machine learning, Fluent unlocks additional revenue streams for partners and empowers advertisers to acquire their most valuable customers at scale. Founded in 2010, Fluent uses its deep expertise in performance marketing to drive monetization and increase engagement at key touchpoints across the customer journey. For more insights visit Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 The matters contained in this press release may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such statements include statements regarding the intent, belief or current expectations or anticipations of Fluent and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: • Compliance with the covenants of our credit agreement in light of current business conditions, the current uncertainty of which raises substantial doubt about our ability to continue as a going concern; • Ability to operate in a competitive, rapidly changing and highly regulated industry, which makes it difficult to evaluate our business and prospects; • Dependence on the gaming industry; • Unfavorable publicity and negative public perception about the digital marketing industry or us; • A sudden reduction in online marketing spend by our clients, a loss of clients or lower advertising yields; • Credit risk from certain clients; • Our relative inexperience in the post-transaction commerce media business, which is currently dominated by a major player; • Investment in growing our Commerce Media Solutions business may continue to compress margins, and our ability to improve profitability over time is uncertain; • Our need to continue investing in technology for our Commerce Media Solutions business; • Our competitive disadvantage due to our more selective approach to traffic sources; • A decline in the supply of media available to us through third parties or an increase in the price of such media; • Potential loss of competitiveness from slow mobile adoption and CRM dependence; • Our growing reliance on inbound calls for our Call Solutions business, particularly in the health plan vertical, which may become cost-prohibitive to sustain; • Challenges scaling infrastructure and products to support growth while maintaining profitability; • Global economic or political instability, including the potential impact of tariffs on our business; • Challenges managing the complexity of our international operations and workforce; • Strategic alternatives that could complicate operations or divert management's attention; • Dependence on our key personnel and ability to attract or retain employees; • Dependence upon third-party service providers and potential liability related to their actions or platform malfunctions; • Compliance with a significant number of governmental laws and regulations, including those regarding telemarketing, email marketing, text messaging, privacy, and data protection; • The outcome of litigation, inquiries, investigations, examinations, or other legal proceedings in which we are or may become involved, or in which our clients or competitors are involved; • Potential sales and use taxes and other taxes on our business; • Our actual or perceived failure to safeguard any personal information or user privacy; • Failure to adequately protect intellectual property rights or allegations of infringement of intellectual property rights; • Potential liability or expenses for legal claims based on the nature and content of the materials we create or distribute, including those provided by third parties, as a creator and a distributor of digital media content; • Our need to raise capital to fund our operations; • Our ability to maintain our listing on The Nasdaq Capital Market; • The volatility of our stock price and concentration of stock ownership; • Potential dilutive effect of any future issuances of shares of our common stock; • Lack of cash dividends for the foreseeable future; • Status of a smaller reporting company and non-accelerated filer, which involves certain reduced governance and disclosure requirements; and These and additional factors to be considered are set forth under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in our other filings with the Securities and Exchange Commission. Fluent undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations, except as required by law. FLUENT, BALANCE SHEETS(Amounts in thousands, except share and per share data)(unaudited) June 30, 2025 December 31, 2024 ASSETS: Cash and cash equivalents $ 4,929 $ 9,439 Accounts receivable, net of allowance for credit losses of $502 and $487, respectively 31,227 46,532 Prepaid expenses and other current assets 9,119 8,729 Current restricted cash 1,673 1,255 Total current assets 46,948 65,955 Non-current restricted cash 710 — Property and equipment, net 193 304 Operating lease right-of-use assets 3,214 1,570 Intangible assets, net 19,618 21,797 Other non-current assets 3,788 3,991 Total assets $ 74,471 $ 93,617 LIABILITIES AND SHAREHOLDERS' EQUITY: Accounts payable $ 8,715 $ 8,776 Accrued expenses and other current liabilities 19,696 21,905 Deferred revenue 335 556 Current portion of long-term debt 19,860 31,609 Current portion of operating lease liability 1,045 1,836 Total current liabilities 49,651 64,682 Long-term debt, net — 250 Convertible Notes, at fair value with related parties 3,322 3,720 Operating lease liability, net 2,375 9 Other non-current liabilities — 1 Total liabilities 55,348 68,662 Contingencies Shareholders' equity: Preferred stock — $0.0001 par value, 10,000,000 Shares authorized; Shares outstanding — 0 shares for both periods — — Common stock — $0.0005 par value, 200,000,000 Shares authorized; Shares issued — 25,037,334 and 20,791,431, respectively; and Shares outstanding — 24,268,739 and 20,022,836, respectively 50 47 Treasury stock, at cost — 768,595 and 768,595 Shares, respectively (11,407 ) (11,407 ) Additional paid-in capital 456,767 447,110 Accumulated deficit (426,287 ) (410,795 ) Total shareholders' equity 19,123 24,955 Total liabilities and shareholders' equity $ 74,471 $ 93,617 FLUENT, STATEMENTS OF OPERATIONS(Amounts in thousands, except share and per share data)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 44,706 $ 58,717 $ 99,916 $ 124,700 Costs and expenses: Cost of revenue (exclusive of depreciation and amortization) 34,426 46,109 78,201 93,457 Sales and marketing 3,218 4,605 7,288 9,417 Product development 2,941 4,717 6,339 9,557 General and administrative 8,748 8,856 17,330 19,221 Depreciation and amortization 2,479 2,567 4,940 5,138 Goodwill and intangible assets impairment — 2,241 — 2,241 Total costs and expenses 51,812 69,095 114,098 139,031 Loss from operations (7,106 ) (10,378 ) (14,182 ) (14,331 ) Interest expense, net (702 ) (1,015 ) (1,582 ) (2,430 ) Fair value adjustment of Convertible Notes with related parties 478 — 398 — Loss on early extinguishment of debt — (1,009 ) — (1,009 ) Loss before income taxes (7,330 ) (12,402 ) (15,366 ) (17,770 ) Income tax benefit (expense) 107 775 (126 ) (133 ) Net loss $ (7,223 ) $ (11,627 ) $ (15,492 ) $ (17,903 ) Basic and diluted loss per share: Basic $ (0.30 ) $ (0.75 ) $ (0.68 ) $ (1.11 ) Diluted $ (0.30 ) $ (0.75 ) $ (0.68 ) $ (1.11 ) Weighted average number of shares outstanding: Basic 24,061,803 15,534,989 22,661,951 16,115,293 Diluted 24,061,803 15,534,989 22,661,951 16,115,293 FLUENT, STATEMENTS OF CASH FLOWS(Amounts in thousands)(unaudited) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (15,492 ) $ (17,903 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 4,940 5,138 Non-cash loan amortization expense 365 837 Non-cash gain on contingent consideration — (250 ) Non-cash loss on early extinguishment of debt — 1,009 Share-based compensation expense 666 1,030 Fair value adjustment of Convertible Notes with related parties (398 ) — Goodwill impairment — 1,261 Impairment of intangible assets — 980 Non-cash loss on asset write-off 698 — Allowance for credit losses 18 71 Changes in assets and liabilities, net of business acquisitions: Accounts receivable 15,287 1,280 Prepaid expenses and other current assets (490 ) (1,579 ) Other non-current assets 134 191 Operating lease assets and liabilities, net (69 ) (168 ) Accounts payable (61 ) (3,140 ) Accrued expenses and other current liabilities (2,329 ) (1,443 ) Deferred revenue (221 ) 474 Other (1 ) (987 ) Net cash provided by (used in) operating activities 3,047 (13,199 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capitalized costs included in intangible assets (3,200 ) (3,542 ) Acquisition of property and equipment (31 ) — Net cash used in investing activities (3,231 ) (3,542 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of long-term debt, net of debt financing costs 34,332 42,917 Repayments of long-term debt (46,377 ) (44,475 ) Debt financing costs (125 ) (968 ) Proceeds from issuance of pre-funded and common stock warrants 8,972 9,900 Net cash (used in) provided by financing activities (3,198 ) 7,374 Net decrease in cash, cash equivalents, and restricted cash (3,382 ) (9,367 ) Cash, cash equivalents, and restricted cash at beginning of period 10,694 15,804 Cash, cash equivalents, and restricted cash at end of period $ 7,312 $ 6,437 Definitions, Reconciliations and Uses of Non-GAAP Financial Measures The following non-GAAP measures are used in this release: Media margin is defined as that portion of gross profit (exclusive of depreciation and amortization) reflecting variable costs paid for media and related expenses and excluding non-media cost of revenue. Gross profit (exclusive of depreciation and amortization) represents revenue minus cost of revenue (exclusive of depreciation and amortization). Media margin is also presented as a percentage of revenue. Adjusted EBITDA is defined as net income (loss), excluding (1) income taxes, (2) interest expense, net, (3) depreciation and amortization, (4) share-based compensation expense, (5) loss on early extinguishment of debt, (6) goodwill impairment, (7) impairment of intangible assets, (8) fair value adjustment of Convertible Notes with related parties, (9) acquisition-related costs, (10) restructuring and other severance costs, and (11) certain litigation and other related costs. Adjusted net income is defined as net income (loss) excluding (1) share-based compensation expense, (2) loss on early extinguishment of debt, (3) goodwill impairment, (4) impairment of intangible assets, (5) fair value adjustment of Convertible Notes with related parties (6) acquisition-related costs, (7) restructuring and other severance costs, and (8) certain litigation and other related costs. Adjusted net income is also presented on a per share (basic and diluted) basis. Below is a reconciliation of media margin from gross profit (exclusive of depreciation and amortization), which we believe is the most directly comparable U.S. GAAP measure. Three Months Ended June 30, Six Months Ended June 30, (In thousands, except percentages) 2025 2024 2025 2024 Revenue $ 44,706 $ 58,717 $ 99,916 $ 124,700 Less: Cost of revenue (exclusive of depreciation and amortization) 34,426 46,109 78,201 93,457 Gross profit (exclusive of depreciation and amortization) $ 10,280 $ 12,608 $ 21,715 $ 31,243 Gross profit (exclusive of depreciation and amortization) % of revenue 23 % 21 % 22 % 25 % Non-media cost of revenue(1) 1,663 3,057 3,959 6,561 Media margin $ 11,943 $ 15,665 $ 25,674 $ 37,804 Media margin % of revenue 26.7 % 26.7 % 25.7 % 30.3 % (1) Represents the portion of cost of revenue (exclusive of depreciation and amortization) not attributable to variable costs paid for media and related expenses. Below is a reconciliation of media margin from gross profit (exclusive of depreciation and amortization), which we believe is the most directly comparable U.S. GAAP measure, for Commerce Media Solutions. Three Months Ended June 30, Six Months Ended June 30, (In thousands, except percentages) 2025 2024 2025 2024 Revenue $ 16,080 $ 7,292 $ 28,740 $ 13,668 Less: Cost of revenue (exclusive of depreciation and amortization) 13,200 5,272 23,047 9,825 Gross profit (exclusive of depreciation and amortization) $ 2,880 $ 2,020 $ 5,693 $ 3,843 Gross profit (exclusive of depreciation and amortization) % of revenue 18 % 28 % 20 % 28 % Non-media cost of revenue(1) 337 199 635 375 Media margin $ 3,217 $ 2,219 $ 6,328 $ 4,218 Media margin % of revenue 20.0 % 30.4 % 22.0 % 30.9 % (1) Represents the portion of cost of revenue (exclusive of depreciation and amortization) not attributable to variable costs paid for media and related expenses. Below is a reconciliation of adjusted EBITDA from net loss, which we believe is the most directly comparable U.S. GAAP measure. Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2025 2024 2025 2024 Net loss $ (7,223 ) $ (11,627 ) $ (15,492 ) $ (17,903 ) Income tax (benefit) expense (107 ) (775 ) 126 133 Interest expense, net 702 1,015 1,582 2,430 Depreciation and amortization 2,479 2,567 4,940 5,138 Share-based compensation expense 331 430 666 1,030 Loss on early extinguishment of debt — 1,009 — 1,009 Goodwill impairment — 1,261 — 1,261 Impairment of intangible assets — 980 — 980 Fair value adjustment of Convertible Notes with related parties (478 ) — (398 ) — Acquisition-related costs(1) 1,213 25 1,094 807 Restructuring and other severance costs 10 611 1,325 1,276 Certain litigation and other related costs 300 — 300 — Adjusted EBITDA $ (2,773 ) $ (4,504 ) $ (5,857 ) $ (3,839 )(1 ) Balance includes compensation expense related to non-compete agreements and earn-out expense incurred as a result of business combinations, and non-cash loss on asset write-offs. The earn-out expense was ($9) and ($14) for the three months ended June 30, 2025 and 2024, respectively, and ($128) and $137 for the six months ended June 30, 2025 and 2024, respectively. The non-compete agreements expense was $412 and $412 for the three months ended June 30, 2025 and 2024, respectively, and $412 and $825 for the six months ended June 30, 2025 and 2024, respectively. Additionally, there was a non-cash loss on asset write-off in the amount of $698 for the three and six months ended June 30, 2025. Below is a reconciliation of adjusted net income and the related measure of adjusted net income per share from net income (loss), which we believe is the most directly comparable U.S. GAAP measure. Three Months Ended June 30, Six Months Ended June 30, (In thousands, except share and per share data) 2025 2024 2025 2024 Net loss $ (7,223 ) $ (11,627 ) $ (15,492 ) $ (17,903 ) Share-based compensation expense 331 430 666 1,030 Loss on early extinguishment of debt — 1,009 — 1,009 Goodwill impairment — 1,261 — 1,261 Impairment of intangible assets — 980 — 980 Fair value adjustment of Convertible Notes with related parties (478 ) — (398 ) — Acquisition-related costs(1) 1,213 25 1,094 807 Restructuring and other severance costs 10 611 1,325 1,276 Certain litigation and other related costs 300 — 300 — Adjusted net loss $ (5,847 ) $ (7,311 ) $ (12,505 ) $ (11,540 ) Adjusted net loss per share: Basic $ (0.24 ) $ (0.47 ) $ (0.55 ) $ (0.72 ) Diluted $ (0.24 ) $ (0.47 ) $ (0.55 ) $ (0.72 ) Weighted average number of shares outstanding: Basic 24,061,803 15,534,989 22,661,951 16,115,293 Diluted 24,061,803 15,534,989 22,661,951 16,115,293 (1 ) Balance includes compensation expense related to non-compete agreements and earn-out expense incurred as a result of business combinations, and non-cash loss on asset write-offs. The earn-out expense was ($9) and ($14) for the three months ended June 30, 2025 and 2024, respectively, and ($128) and $137 for the six months ended June 30, 2025 and 2024, respectively. The non-compete agreements expense was $412 and $412 for the three months ended June 30, 2025 and 2024, respectively, and $412 and $825 for the six months ended June 30, 2025 and 2024, respectively. Additionally, there was a non-cash loss on asset write-off in the amount of $698 for the three and six months ended June 30, 2025. We present media margin, adjusted EBITDA, and adjusted net income as supplemental measures of our financial and operating performance because we believe they provide useful information to investors. More specifically: Media margin, as defined above, is a measure of the efficiency of the Company's operating model. We use media margin and the related measure of media margin as a percentage of revenue as primary metrics to measure the financial return on our media and related costs, specifically to measure the degree by which the revenue generated from our digital marketing services exceeds the cost to attract the consumers to whom offers are made through our services. Media margin is used extensively by our management to manage our operating performance, including evaluating operational performance against budgeted media margin and understanding the efficiency of our media and related expenditures. We also use media margin for performance evaluations and compensation decisions regarding certain personnel. Adjusted EBITDA, as defined above, is another primary metric by which we evaluate the operating performance of our business, on which certain operating expenditures and internal budgets are based and by which, in addition to media margin and other factors, our senior management is compensated. The first three adjustments represent the conventional definition of EBITDA, and the remaining adjustments are items recognized and recorded under U.S. GAAP in particular periods but might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded. These adjustments include certain litigation and other related costs associated with legal matters outside the ordinary course of business. We consider items one-time in nature if they are non-recurring, infrequent or unusual and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules. There were no adjustments for one-time items in the periods presented. Adjusted net income, as defined above, excludes certain items that are recognized and recorded under U.S. GAAP in particular periods but might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded. We believe adjusted net income affords investors a different view of the overall financial performance of the Company than adjusted EBITDA and the U.S. GAAP measure of net (loss) income. Media margin, adjusted EBITDA, adjusted net income, and adjusted net income per share are non-GAAP financial measures with certain limitations regarding their usefulness. They do not reflect our financial results in accordance with U.S. GAAP, as they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations. Accordingly, these metrics are not indicative of our overall results or indicators of past or future financial performance. Further, they are not financial measures of profitability and are neither intended to be used as a proxy for the profitability of our business nor to imply profitability. The way we measure media margin, adjusted EBITDA, and adjusted net income may not be comparable to similarly titled measures presented by other companies and may not be identical to corresponding measures used in our various agreements. Annual Revenue Run Rate Annual Revenue Run Rate is an operational metric that represents the annualized revenue of the Company's media partnerships at current monetization levels, as of the end of the reporting period. The Company calculates Annual Revenue Run Rate as follows: • Media partners within Commerce Media Solutions with an active contract are assessed and assigned an annual media volume estimate based on the active term of the contract and the monetization rate at the end of the reporting period. The Company considers a media partner contract to be active when the contractual term commences (the "start date") until its right to serve the partner's commerce traffic ends. Even if the contract with the customer is executed before the start date, the contract will not count toward Annual Revenue Run Rate until the media partner's right to receive the benefit of the services has commenced. • As Annual Revenue Run Rate includes only contracts that are active at the end of the reporting period, it does not reflect assumptions or estimates regarding new business. For contracts expiring within 12 months of the period-end calculation date, Annual Revenue Run Rate does reflect expectations of renewal. • The Company's Commerce Media Solutions platform provides the technology to effectively monetize the partner's media by placing relevant ads at a contracted moment of consumer engagement. Although from inception to date, improvements in the platform's AI-powered technology have consistently driven increased rates of monetization, for the purpose of Annual Revenue Run Rate, the Company assumes a consistent monetization level to that as measured on each media partner at the end of the reporting period. The way the Company measures Annual Revenue Run Rate may not be comparable to similarly titled measures presented by other companies and should not be viewed as a projection of future revenue. Contact Information: Investor RelationsFluent,
Yahoo
24 minutes ago
- Yahoo
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
Bloomberg
38 minutes ago
- Bloomberg
BHP Banks on China Export Resilience and India Growth for Demand
China 's export resilience and policy support, together with strong growth in India, will underpin future commodity demand despite an uncertain global outlook, according to BHP Group Ltd. The world's biggest miner said that although China's economic growth could slow in the coming quarters from a high base, the country's exports will remain solid, according to its annual economic and commodity outlook published Tuesday.
