Company Announcement - Jack Henry & Associates, Inc. will host a live webcast for its fourth quarter and full fiscal year 2025 earnings conference call on August 20, 2025 [1] - The press release for fiscal 2025 earnings will be issued after market close on August 19, 2025 [1] Webcast Details - The live webcast will start at 7:45 a.m. Central (8:45 a.m. Eastern) and can be accessed on the Jack Henry website [2] - Participants are advised to log on 10 minutes prior to the call, with US dial-in number (833) 630-0605 and international number +1 412-317-1830 [2] - An archived replay of the earnings call will be available approximately one hour after the live call [2] Deconversion Revenue - The company will release quarterly deconversion revenue results prior to the earnings results, with the press release scheduled for August 11, 2025 [3] Company Overview - Jack Henry is a financial technology company that connects financial institutions with their clients, serving approximately 7,500 clients [4] - The company has been providing technology solutions for nearly 50 years, focusing on innovation, collaboration, and user-centric services [4]

Core Insights - Abound Credit Union has selected Jack Henry's Symitar core platform to modernize its banking experience for over 130,000 members in Kentucky [1][2] - The credit union, with $2.4 billion in assets, aims to attract younger generations and meet evolving member needs through a flexible technology platform [2][3] - Jack Henry's open, cloud-native platform will enable Abound to integrate third-party solutions and enhance its service offerings [3][4] Company Overview - Jack Henry & Associates, Inc. is a financial technology company listed on Nasdaq, focusing on strengthening connections between financial institutions and their clients [5] - The company has been providing technology solutions for nearly 50 years, empowering around 7,500 clients to innovate and compete effectively [5]

Core Insights - First Mid Bank & Trust, with nearly $8 billion in assets, is modernizing its technology infrastructure through a partnership with Jack Henry to enhance operational efficiency and support growth [1][2][4] - The bank has expanded from a rural institution to a full-service financial entity with over 80 branches across multiple states, focusing on both retail and commercial customers [2][6] - Jack Henry's technology will provide a scalable and flexible foundation, reducing manual tasks and streamlining workflows, while offering access to over 950 API-integrated third-party fintechs [3][4] Company Overview - First Mid Bank & Trust has a diversified portfolio that includes a full-service insurance agency and a wealth management division, reflecting its aggressive growth strategy over the past decade [2][6] - Jack Henry is an S&P 500 financial technology company that has been providing technology solutions for nearly 50 years, focusing on innovation and collaboration with financial institutions [5] Strategic Importance - The modernization of First Mid's technology stack is crucial for maintaining competitiveness in a rapidly changing environment, allowing the bank to innovate and better serve its customers [4][6] - Jack Henry's commitment to providing a future-ready platform aligns with First Mid's growth strategy, enabling the bank to continue expanding organically and through acquisitions [4][5]

Core Insights - The article discusses the journey to financial independence through disciplined living and strategic investing, highlighting the transition from financial struggle to freedom within a six-year period [2]. Group 1: Financial Independence Journey - The individual began blogging in 2011 about achieving financial independence by living below means and investing wisely [2]. - Achieved financial freedom at the age of 33 after starting from a position of being "below broke" at age 27 [2]. Group 2: Investment Focus - The content created focuses on dividend growth investing, emphasizing the importance of living off dividends and identifying undervalued high-quality dividend growth stocks [2]. - The strategy includes exploring high-yield investment opportunities and other long-term investment prospects [2].

Summary of Jack Henry & Associates (JKHY) 2025 Conference Call Company Overview - **Company**: Jack Henry & Associates (JKHY) - **Date of Conference**: June 11, 2025 - **Speaker**: Mimi Karzly, CFO and Treasurer Key Points Industry Demand and Performance - The current demand environment is characterized as healthy, with expectations of achieving 50 to 55 core wins for the year, consistent with multi-year trends [4][5] - Year-to-date results show approximately 26 to 28 wins, totaling over $30 billion in assets, indicating a strong fourth quarter ahead [4] - Despite economic uncertainties, banks are focused on driving efficiency, deposit gathering, and loan growth, necessitating innovation in technology [6][7] Migration to Private Cloud - Jack Henry is experiencing a long-term trend of migration from on-premise hosting to their private cloud environment, with expectations of 40 to 50 migrations [9] - Currently, 76% of clients have migrated to the private cloud, with a potential revenue uplift of 2x as clients transition [10][12] - The migration is influenced by factors such as the age of technology and internal priorities of financial institutions [10] Consumer Sentiment and Economic Impact - Approximately 25% of Jack Henry's business is tied to consumer sentiment, particularly in the payment and card processing space, with 90% of card business being debit [14] - There was a noted softness in consumer sentiment, leading to a reduction in guidance for card volume expectations [15] Regulatory Environment and M&A - There is a de-escalation in regulatory pressure, providing clarity for financial institutions, which is favorable for Jack Henry's operations [20][21] - The company is not directly benefiting from increased regulation but acknowledges the importance of oversight for consumer protection [22] - M&A remains a key focus, with Jack Henry always looking for opportunities that align with their strategic goals, particularly in digital and cloud-native solutions [71][73] Competitive Positioning and Strategy - Jack Henry has seen a doubling in aggregate assets of new core takeaways, with a focus on larger institutions [23] - The company emphasizes transparency in its direction and has over 70 roadmaps to guide clients [25] - The integration of new technologies and outstanding customer support are key factors resonating with larger clients [26] Payment Solutions and Innovations - The partnership with Move for merchant acquiring is expected to enhance offerings for small and medium businesses, reducing friction in payment processing [47][49] - The closed beta for Move is operational, with positive feedback from banks and credit unions [48] - Jack Henry aims to empower banks to serve their customers better, particularly in the underserved small business segment [61] Future Outlook and Capital Allocation - Jack Henry is working towards returning to an 80% to 100% free cash flow conversion rate, with ongoing efforts to address R&D tax credits [69][70] - The company maintains a healthy dividend policy and is open to share buybacks and M&A opportunities as part of its capital allocation strategy [75] Conclusion - Jack Henry & Associates is positioned well within the fintech space, focusing on innovation, customer service, and strategic growth through technology and partnerships, while navigating regulatory changes and economic uncertainties.

Core Insights - Triangle Credit Union has selected Jack Henry's Symitar platform to enhance member services and maintain competitive positioning in the market [1][3] Company Overview - Triangle Credit Union operates eight branches and serves nearly 58,000 members, managing $839 million in assets, a significant increase from $70 million in assets in 1993 [2] - The credit union offers a comprehensive range of personal and business financial services, focusing on progressive and cost-efficient solutions [2] Technology Adoption - Triangle Credit Union sought a reliable technology provider to support its growth and service expansion, valuing Jack Henry's open infrastructure for third-party integrations [3] - The credit union aims to streamline its business lending processes by utilizing Jack Henry LoanVantage, replacing multiple vendors with a single platform [3] Decision-Making Process - The decision to partner with Jack Henry involved thorough stakeholder feedback, ensuring all departments contributed to the selection process [4] - The culture and support provided by Jack Henry, including transparent communication and accessibility to executives, were significant factors in the decision [4] Future Outlook - Jack Henry's technology infrastructure is expected to shape the future of Triangle Credit Union, supporting its business goals and competitive position [5] - Triangle plans to adopt the cloud-native, API-first Jack Henry Platform to unify its services into a single ecosystem for innovation [4]

Core Viewpoint - Jack Henry's shares have increased by approximately 5.7% over the past month, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1]. Estimates Movement - Estimates for Jack Henry have trended downward over the past month, indicating a potential shift in investor sentiment [2]. VGM Scores - Jack Henry currently holds a subpar Growth Score of D, a strong Momentum Score of A, and a Value Score of D, placing it in the bottom 40% for the value investment strategy. The aggregate VGM Score for the stock is D, which is significant for investors not focused on a single strategy [3]. Outlook - The downward trend in estimates suggests a cautious outlook for Jack Henry, which has a Zacks Rank of 3 (Hold). The expectation is for an in-line return from the stock in the upcoming months [4]. Industry Performance - Jack Henry is part of the Zacks Computers - IT Services industry. CoStar Group, a peer in the same industry, has seen a 2.3% gain over the past month, reporting revenues of $732.2 million for the quarter ended March 2025, reflecting a year-over-year increase of 11.6% [5]. CoStar's Earnings Expectations - For the current quarter, CoStar is projected to report earnings of $0.14 per share, which represents a decline of 6.7% from the previous year. The Zacks Consensus Estimate for CoStar has remained unchanged over the last 30 days, and it holds a Zacks Rank of 4 (Sell) [6].

Core Viewpoint - Jack Henry (JKHY) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock prices [2][4]. - An increase in earnings estimates typically results in higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock price movements [4]. Company Performance and Investor Sentiment - Rising earnings estimates for Jack Henry suggest an improvement in the company's underlying business, which should encourage investors to push the stock price higher [5]. - The Zacks Consensus Estimate for Jack Henry indicates expected earnings of $5.81 per share for the fiscal year ending June 2025, reflecting an 11.1% year-over-year increase [8]. Zacks Rank System and Historical Performance - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of Jack Henry to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - The payments segment constitutes 37% of total revenue, with core and complementary segments each making up roughly one-third of total revenue [7][21] - The company reported a growth rate of approximately 10% in its key revenue, which accounts for 76% of overall revenue [28][29] - The company is targeting a headcount increase of less than 1.5% while maintaining a growth rate of 6-7% [97][100] Business Line Data and Key Metrics Changes - The payments business, which includes card services, is performing well, with card transactions making up 60% of the payments segment [19][72] - The pay center business, which focuses on real-time payments, is growing the fastest among the payment services [73] - The bill pay and remote deposit capture businesses are experiencing steady growth in the mid to lower single digits [74] Market Data and Key Metrics Changes - The company has about 40% of all real-time payment customers live in the market, indicating a strong position in the fast-growing payments sector [73] - Consumer confidence is waning, impacting debit transactions, which make up 90% of the card business [20] Company Strategy and Development Direction - The company is focusing on the SMB market, aiming to provide solutions that enhance deposit growth and customer retention [63][64] - A tech modernization strategy is in place, with a goal to transition clients from on-premise to private and public cloud solutions [41][50] - The company is rationalizing its product offerings, aiming to streamline operations and improve efficiency [102] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic challenges affecting consulting and hardware sales, leading to a slowdown in non-key revenue [11][12] - The company is optimistic about its core business growth and competitive wins, particularly in larger institutions [29][90] - Regulatory changes are expected to facilitate faster acquisition approvals, which could positively impact the market environment [92] Other Important Information - The company has a strong succession planning process, which has facilitated a smooth transition in leadership [8] - The company is ahead of schedule in delivering a full deposit-only core in the public cloud, expected to be available by next year [44][51] Q&A Session Summary Question: How is the macro environment affecting the business? - Management indicated that macro challenges have led to a pullback in consulting services and hardware sales, impacting non-key revenue [11][12] Question: What is the outlook for core business growth? - The core business is expected to continue growing at close to 10%, with a strong pipeline of competitive wins [28][29] Question: How does the company plan to address the SMB market? - The company is developing solutions that provide instantaneous approval and multiple settlement windows to enhance SMB offerings [63][66] Question: What is the strategy for transitioning to cloud services? - The company is focused on moving clients to private and public cloud solutions, with expected revenue lifts from these transitions [41][45] Question: How is the company managing costs in a slower environment? - The company is implementing business process automation and maintaining a cautious approach to headcount growth to manage costs effectively [97][100]

Company Overview - Jack Henry & Associates, Inc. is a financial technology company listed on Nasdaq under the ticker JKHY, providing technology solutions to financial institutions for over 48 years [2] - The company serves approximately 7,500 clients, focusing on innovation, personal service, and insight-driven solutions to enhance financial health [2] Upcoming Events - Greg Adelson, President & CEO of Jack Henry, will present at Bernstein's 41st Annual Strategic Decisions Conference on May 28th at 11:00 a.m. ET [1] - A live webcast of the presentation will be available, with a replay accessible on the company's investor relations website following the event [1]