Group 1 - The 48th Annual Meeting of Stockholders of Jack Henry & Associates, Inc. was called to order by the Board Chair David Foss [1] - The meeting agenda includes the election of 10 directors and 4 other items of official business [1] - The Board of Directors present at the meeting includes Matthew C. Flanigan, Thomas H. Wilson Jr., Thomas A. Wimsett, Shruti S. Miyashiro, Wesley A. Brown, Curtis A. Campbell, Tammy S. LoCascio, Lisa M. Nelson, Gregory R. Adelson, and David B. Foss [2] Group 2 - Key company officers in attendance include Gregory Adelson (CEO and President), Mimi Carsley (CFO and Treasurer), Shanon McLachlan (Senior VP and COO), Craig Morgan (Chief Legal Officer and Corporate Secretary), Renee Swearingen (Senior VP, Chief Accounting Officer, and Assistant Treasurer), and Mary Stluka (Assistant Corporate Secretary) [3] - Representatives from the independent registered accounting firm PricewaterhouseCoopers LLP were also present [3]

Revenue and Income - Revenue for the three months ended September 30, 2025, was $644,738,000, an increase of 7.3% compared to $600,982,000 for the same period in 2024[14] - Net income for the same period was $143,986,000, representing a 20.8% increase from $119,191,000 year-over-year[14] - Basic earnings per share increased to $1.98, up from $1.63 in the prior year, reflecting a growth of 21.5%[14] - Operating income for the quarter was $184,065,000, an increase of 21.7% compared to $151,276,000 in the same quarter last year[14] - Total revenue for the fiscal three months ended September 30, 2025, was $644,738 million, up from $600,982 million in 2024, representing an increase of approximately 7.3%[43] - Revenue from Private and Public Cloud services rose to $195,609 million in 2025, compared to $182,260 million in 2024, marking an increase of about 7.5%[43] - For the three months ended September 30, 2025, net income was $143,986, compared to $119,191 for the same period in 2024, representing a year-over-year increase of approximately 20.8%[79] - Basic earnings per share for the three months ended September 30, 2025, was $1.98, up from $1.63 in the same period of 2024, reflecting a growth of 21.5%[79] Assets and Liabilities - Total current assets decreased to $651,655,000 from $681,464,000, a decline of 4.4%[12] - Total liabilities decreased to $874,238,000 from $913,138,000, a reduction of 4.3%[12] - Cash and cash equivalents at the end of the period were $36,239,000, down from $101,953,000, a decrease of 64.5%[12] - Contract assets totaled $154,755 million as of September 30, 2025, with current contract assets at $36,383 million and non-current at $118,372 million[45] - Deferred revenue liabilities decreased to $321,082 million as of September 30, 2025, from $363,374 million at June 30, 2025[45] - As of September 30, 2025, the Company had operating lease assets of $42,423 and total operating lease liabilities of $48,886, which included current liabilities of $9,372 and noncurrent liabilities of $39,514[56] Cash Flow and Expenses - Cash flows from operating activities were $120,590,000, slightly up from $116,896,000 in the same quarter of the previous year[20] - The Company’s total expenses for the three months ended September 30, 2025, were $460,673, compared to $449,706 for the same period in 2024, reflecting an increase of approximately 2.2%[91] - Operating lease costs for the fiscal three months ended September 30, 2025, were $2,769, including variable lease costs of $798[58] Tax and Financial Agreements - The effective tax rate for the fiscal three months ended September 30, 2025, was 24.3%, an increase from 24.0% in the prior year, primarily due to differences in tax impacts of stock-based compensation[67] - The Company paid income taxes of $16,316 for the fiscal three months ended September 30, 2025, compared to $3,006 in the same period of 2024[68] - The Company anticipates a significant reduction in cash tax payments for the current fiscal year due to changes in U.S. federal income tax law[69] - The Company reported a total of $20,000 in outstanding debt with variable interest rates as of September 30, 2025, with a potential increase in annual interest expense of $200 for a 1% rise in borrowing rates[137] Acquisitions and Investments - The Company acquired Victor Technologies, Inc. for $42,390 in cash on September 30, 2025, to enhance its capabilities in the Payments-as-a-Service market[80] - The acquisition of Victor resulted in identifiable intangible assets of $20,200, with goodwill recognized at $21,867, primarily due to expected synergies and growth potential[81] - The total identifiable net assets acquired from Victor Technologies amounted to $20,523 after accounting for total liabilities of $1,597[81] Shareholder Information - The company reported a total of 104,512,857 shares issued as of September 30, 2025, compared to 104,415,989 shares at June 30, 2025[18] - The company paid dividends of $42,145,000 during the quarter, with a declared dividend per share of $0.58[18] - The Company had $35,703 of compensation expense related to non-vested restricted stock unit and performance unit awards as of September 30, 2025, to be recognized over a weighted average period of 1.56 years[77] Other Financial Metrics - The allowance for credit losses increased to $6,804 million as of September 30, 2025, from $7,257 million in 2024, reflecting a current provision of $480 million[24] - Capitalized costs to obtain contracts with clients were $267,051 million as of September 30, 2025, slightly down from $267,726 million at June 30, 2025[50] - The total cost of treasury stock increased to $1,957,269 million as of September 30, 2025, from $1,895,224 million at June 30, 2025[29] - Accumulated amortization of intangible assets reached $1,468,896 million as of September 30, 2025, up from $1,436,825 million at June 30, 2025[27] - Future minimum rental payments on operating leases total $54,090, with $8,315 due in 2026 and $10,455 in 2027[61] - The weighted-average remaining lease term for the Company's operating leases was 67 months as of September 30, 2025[59]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors identify stocks with high potential for market outperformance [2] Zacks Style Scores Overview - The Zacks Style Scores rate stocks using an alphabetic system from A to F based on value, growth, and momentum characteristics [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's financial health and future growth potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings outlook, utilizing metrics like one-week price change and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to identify stocks with the best value, growth forecasts, and momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Stock Highlight: Jack Henry & Associates, Inc. (JKHY) - Jack Henry & Associates, Inc. is rated 2 (Buy) on the Zacks Rank and has a VGM Score of B [11] - The company is projected to have a year-over-year earnings growth of 2.4% for the current fiscal year, with upward revisions in earnings estimates [12] - The Zacks Consensus Estimate for JKHY has increased by $0.17 to $6.39 per share, with an average earnings surprise of +15% [12]

Core Insights - QCR Holdings, Inc. has selected Jack Henry to modernize its technology infrastructure and standardize operations across its four subsidiary banks, aiming for a data-driven growth strategy [1][3]. Company Overview - QCR Holdings, Inc. is a $9 billion financial services company with four community-focused banks operating in Iowa, Illinois, and Missouri, providing commercial, retail, and wealth management services [2]. Technology Transition - QCR Holdings is transitioning all four banks to Jack Henry's modern core processing platform, which will enhance technology foundations while maintaining each bank's autonomy [3]. - The integration of products like Enterprise Workflow and Synergy is expected to streamline operations and improve efficiency [3]. Strategic Alignment - The partnership with Jack Henry is seen as crucial for enhancing client and employee experiences, improving efficiency, and reducing costs while preserving the banks' independence [4]. - Jack Henry's Data Hub will provide real-time data access and facilitate efficient system integrations, supporting QCR Holdings' growth plans [4]. Future Growth Potential - QCR Holdings aims for sustainable growth beyond its near-term goal of $10 billion in assets, with Jack Henry's technology aligning with its future innovation strategy [4]. - The focus is on enhancing client relationships while maintaining the personal service that characterizes their community banking approach [4].

Group 1 - Top Wall Street analysts have revised their outlook on several prominent stocks, indicating a shift in market sentiment [1] - The article suggests that investors should consider buying CRL stock based on analysts' recommendations [1]

Core Insights - Jack Henry & Associates (JKHY) reported first-quarter fiscal 2026 GAAP earnings of $1.97 per share, exceeding the Zacks Consensus Estimate by 20.1% and reflecting a year-over-year increase of 20.9% [1][9] - The company's revenues reached $644.7 million, surpassing the Zacks Consensus Estimate by 1.2% and showing a year-over-year growth of 7.3% [1][9] - After adjusting for deconversion revenues of $8.6 million, non-GAAP revenues were $636.1 million, marking an 8.7% increase year over year [1] Revenue Breakdown - Revenues from Services and Support, accounting for 58.5% of total revenues, were $376.8 million, up 5.7% year over year, although this figure fell short of the consensus estimate of $379 million [3] - Processing revenues, which made up 41.5% of total revenues, were $267.9 million, reflecting a 9.7% year-over-year increase and exceeding the consensus estimate of $257 million [4] - Core segment revenues were $195.3 million, up 0.5% year over year, while Payments revenues rose 9% to $230.9 million, and Complementary revenues increased by 10.2% to $194.2 million [5] Profitability Metrics - Adjusted EBITDA for the first quarter was $225 million, representing a 14.6% year-over-year increase, with an adjusted EBITDA margin expanding by 220 basis points to 34.9% [6] - Adjusted operating income increased by 18.6% year over year to $173.2 million, with the adjusted operating margin also rising by 220 basis points to 27.2% [6] Balance Sheet and Cash Flow - As of September 30, 2025, the company's cash and cash equivalents stood at $36.2 million, a decrease from $102 million as of June 30, 2025 [7] Guidance Update - For fiscal 2026, Jack Henry & Associates updated its GAAP revenue guidance to a range of $2.51-$2.49 billion, an increase from the previous guidance of $2.50-$2.48 billion [8] - The company expects non-GAAP revenues of $2.48-$2.46 billion, slightly adjusted from the previous guidance of $2.48-$2.45 billion [8] - The Zacks Consensus Estimate for revenues is set at $2.49 billion, indicating a year-over-year rise of 4.9% [8] Earnings Forecast - The anticipated GAAP operating margin for fiscal 2026 is between 24.1% and 23.9%, while the adjusted operating margin is expected to be between 23.7% and 23.5% [10] - Management projects GAAP earnings in the range of $6.49-$6.38 per share, an increase from the previous guidance of $6.44-$6.32 per share [10]

Financial Data and Key Metrics Changes - The company reported record first-quarter non-GAAP revenue of $636 million, an increase of 8.7% compared to the same quarter last year, exceeding the anticipated growth of 7-7.5% [4][19] - Non-GAAP operating margin improved to 27.2%, reflecting a margin expansion of 227 basis points year-over-year [4][19] - GAAP revenue increased by 7%, while non-GAAP revenue rose by 9%, with a notable impact from the timing of the Connect client conference [19][20] Business Line Data and Key Metrics Changes - The core segment saw non-GAAP revenue growth of 6%, with operating margins increasing by 114 basis points [24] - The payment segment experienced an 8% increase in non-GAAP revenue, with a 170 basis points improvement in operating margins [24] - The complementary segment achieved a 9% increase in non-GAAP revenue, along with a 75 basis points margin expansion [24][16] Market Data and Key Metrics Changes - The number of financial institutions using faster payment solutions like Zelle, RTP, and FedNow increased by 20%, 25%, and 32% respectively over the past year [15] - Payment transaction volume through these channels surged by 55% compared to the previous year [15] - The Banno digital platform registered 14.7 million users, a 15% increase from 12.7 million users a year ago [17] Company Strategy and Development Direction - The company is focusing on migrating clients to its private cloud, with 77% of core clients now operating in this environment, which generates approximately twice the revenue compared to on-premise clients [5] - The acquisition of Victor Technologies is aimed at enhancing payment capabilities and creating new revenue streams [9][10] - The company is actively developing solutions for stablecoin and has completed a proof of concept for USDC transactions [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the overall performance and future growth, citing strong demand for technology solutions among clients [19][28] - The company anticipates continued investment in technology by clients, with 71% of banks reporting increased technology budgets for fiscal year 2025 [17] - Management noted that the competitive landscape remains stable, with no significant increase in pricing pressure [32] Other Important Information - The company ended the quarter with minimal debt and plans to remain debt-free barring any acquisitions [25] - The updated fiscal 2026 guidance includes an increase in GAAP revenue growth to a range of 4.9%-5.9% and non-GAAP revenue growth to 6%-7% [26][27] - The company is celebrating the 40th anniversary of its IPO with a bell ringing at NASDAQ [18] Q&A Session Summary Question: Sustainability of Margin Expansion - Management indicated that margin expansion is expected to continue due to disciplined spending and efficiencies from AI [30] Question: Competitive Environment and Core Conversions - Management noted that while there is ongoing core consolidation in the market, they do not see a significant increase in competitive pressure [32] Question: Sales Momentum and Private Cloud Conversions - Management confirmed that they expect to maintain a strong pipeline for private cloud migrations, with continued focus on selling outside the core [34][36] Question: Impact of M&A on Recurring Revenue - Management expects the number of core activity to remain stable despite M&A activity, with a strong pipeline supporting this outlook [38][40] Question: Trends in Customer Demand for Deposits and Lending - Management highlighted that maintaining deposit growth is currently a priority for clients, alongside increasing lending opportunities [44][46] Question: Revenue Growth and Pricing Compression - Management acknowledged that pricing compression has been a headwind but noted stabilization in pricing and improved sales processes [47][49] Question: Performance of New Payment Solutions - Management expressed optimism about the long-term growth potential of new payment solutions like Tap-to-Local and Rapid Transfers [55][57]

Core Financial Performance - Jack Henry reported revenue of $644.74 million for the quarter ended September 2025, reflecting a year-over-year increase of 7.3% [1] - The earnings per share (EPS) for the same period was $1.97, compared to $1.63 a year ago, indicating a significant increase [1] - The reported revenue exceeded the Zacks Consensus Estimate of $636.69 million by 1.26% [1] - The EPS surprise was notable at +20.12% against the consensus estimate of $1.64 [1] Segment Performance - Core revenue was reported at $195.29 million, slightly below the average estimate of $204.8 million, representing a year-over-year decline of 0.2% [4] - Corporate & Other revenue reached $24.33 million, surpassing the estimated $22.41 million, with a year-over-year increase of 12% [4] - Complementary revenue was $194.22 million, exceeding the average estimate of $186.67 million, marking a year-over-year growth of 13.1% [4] - Payments revenue was reported at $230.89 million, above the average estimate of $224.78 million, with a year-over-year increase of 9% [4] Segment Income Analysis - Segment income for Core was $122.16 million, slightly above the average estimate of $120.69 million [4] - Segment income for Corporate & Other was reported at -$60.18 million, better than the estimated -$64.01 million [4] - Segment income for Complementary was $121.96 million, exceeding the average estimate of $113.63 million [4] - Payments segment income was $112.23 million, compared to the average estimate of $101.49 million [4] Stock Performance - Jack Henry's shares have returned +2% over the past month, closely aligning with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Core Insights - Jack Henry & Associates experienced a 21% increase in first-quarter profit, driven by strong demand for its banking technology services [1] Company Summary - The company reported a significant profit growth of approximately 21% in the first quarter [1] - The increase in profit is attributed to resilient demand for its banking technology services [1]

Company Information - Jack Henry & Associates, Inc. reported deconversion revenue for the fiscal first quarter ended September 30, 2025[5] - The company is listed on the Nasdaq Global Select Market under the ticker symbol JKHY[3] - The address of the principal executive offices is 663 Highway 60, P.O. Box 807, Monett, MO 65708[1] - The Chief Financial Officer and Treasurer is Mimi L. Carsley, who signed the report[8] Financial Reporting - The press release regarding financial results was issued on October 28, 2025[5] - The fiscal first quarter results are part of the company's ongoing financial disclosures[5] - The report complies with the requirements of the Securities Exchange Act of 1934[8] - The document includes an interactive data file as part of its exhibits[6] Company Status - The company has not indicated any changes in its status as an emerging growth company[4] - No specific financial figures or performance metrics were detailed in the provided content[5]