Jack Henry(US:JKHY)2025-11-07 21:53Revenue 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]