Jack Henry(JKHY) - 2025 Q3 - Quarterly Report

Financial Performance - Revenue for the three months ended March 31, 2025, was $585,087,000, an increase of 8.6% compared to $538,562,000 for the same period in 2024[14] - Operating income for the three months ended March 31, 2025, was $138,740,000, representing a 23.7% increase from $112,099,000 in the prior year[14] - Net income for the three months ended March 31, 2025, was $111,108,000, up 27.5% from $87,099,000 for the same period in 2024[14] - Basic earnings per share for the three months ended March 31, 2025, increased to $1.53 from $1.20 in the same period last year, reflecting a 27.5% growth[14] - Net income for the nine months ended March 31, 2025, was $328,144,000, an increase from $280,743,000 in the same period of 2024, representing a growth of approximately 16.9%[19] - Total revenue for the nine months ended March 31, 2025, reached $1,759,916,000, compared to $1,655,631,000 for the same period in 2024, indicating a year-over-year increase of about 6.3%[40] - Diluted earnings per share for the nine months ended March 31, 2025, rose to $4.49 compared to $3.85 for the same period in 2024[80] - The company reported a segment income of $322,106,000 for Core Payments for the nine months ended March 31, 2025, indicating robust profitability in this segment[87] Assets and Liabilities - Total current assets decreased to $593,236,000 as of March 31, 2025, from $632,018,000 as of June 30, 2024[12] - Total liabilities decreased to $895,587,000 as of March 31, 2025, compared to $1,082,117,000 as of June 30, 2024[12] - Retained earnings increased to $3,287,370,000 as of March 31, 2025, from $3,081,690,000 as of June 30, 2024[12] - The company reported a total stockholders' equity of $2,036,431,000 as of March 31, 2025, up from $1,842,364,000 as of June 30, 2024[12] Expenses - Research and development expenses for the three months ended March 31, 2025, were $39,411,000, an increase of 9.9% from $35,993,000 in the same period last year[14] - Total expenses for the nine months ended March 31, 2025, were $1,346,899,000, with Selling, General, and Administrative expenses amounting to $209,839,000[86] - Research and Development expenses for the nine months ended March 31, 2025, totaled $120,192,000, highlighting the company's commitment to innovation[86] Cash Flow and Investments - Cash flows from operating activities for the nine months ended March 31, 2025, were $314,392,000, slightly down from $336,242,000 in 2024, reflecting a decrease of approximately 6.5%[19] - The company’s cash and cash equivalents at the end of the period were $39,870,000, an increase from $27,254,000 at the end of the previous year, showing a growth of about 46.4%[19] - The company’s net cash from investing activities for the nine months ended March 31, 2025, was $(176,317,000), compared to $(164,505,000) in 2024, reflecting an increase in cash outflow of approximately 7.1%[19] Dividends and Shareholder Returns - The company declared dividends of $0.58 per share for the three months ended March 31, 2025, compared to $0.55 per share in the same period in 2024[17] - The company declared a cash dividend of $0.58 per share on May 9, 2025, payable on June 18, 2025, to stockholders of record as of May 29, 2025[88] Taxation - The effective tax rate for the three months ended March 31, 2025, decreased to 21.7% from 23.7% in the prior year quarter[69] - For the nine months ended March 31, 2025, the effective tax rate decreased to 23.0% compared to 23.6% for the same period last fiscal year[70] - The company paid income taxes of $94,553 for the nine months ended March 31, 2025, compared to $70,686 for the same period in 2024[71] - As of March 31, 2025, the company had $22,851 of gross unrecognized tax benefits, with $20,735 potentially affecting the effective tax rate if recognized[71] Debt and Financing - The Company had $80,000 outstanding under the amended and restated credit facility as of March 31, 2025, up from $60,000 at June 30, 2024[64] - The Company entered into a term loan credit agreement with an outstanding balance of $90,000 as of March 31, 2025[65] - Interest paid by the Company during the nine months ended March 31, 2025, was $7,525, a decrease from $11,176 in the same period of 2024[68] - As of March 31, 2025, the company had $170,000,000 in outstanding debt with variable interest rates, with a potential increase in annual interest expense of $1,700,000 for a 1% rise in borrowing rates[152] Future Revenue Recognition - As of March 31, 2025, estimated revenue expected to be recognized in the future related to unsatisfied performance obligations totaled $7,412,480, with approximately 23% expected to be recognized over the next 12 months[46]