Jack Henry & Associates, Inc. Reports Second Quarter Fiscal 2025 Results

Core Insights - Jack Henry & Associates, Inc. reported solid performance in the second quarter of fiscal year 2025, with record sales attainment for the second consecutive year and a robust sales pipeline for future opportunities [4][12] - The company is experiencing strong demand for its products from both new and existing clients, alongside significant progress in its technology modernization strategy [4][12] Financial Performance - For the three months ended December 31, 2024, GAAP revenue increased by 5.2% to $573.848 million compared to $545.701 million in the prior year [5][43] - Non-GAAP adjusted revenue for the same period increased by 6.1% to $573.779 million [13] - GAAP operating income rose by 3.4% to $123.002 million, while non-GAAP adjusted operating income increased by 7.3% to $123.624 million [13][43] - The company reported a GAAP EPS of $1.34 for the quarter, up from $1.26 in the prior year [9][43] Year-to-Date Performance - For the six months ended December 31, 2024, GAAP revenue increased by 5.2% to $1.174829 billion compared to $1.117069 billion in the prior year [5][43] - Non-GAAP adjusted revenue for the same period increased by 5.7% to $1.171063 billion [13] - GAAP operating income for the year-to-date period rose by 9.0% to $274.278 million [43] Segment Performance - Services and support revenue for the three months ended December 31, 2024, increased by 3.5% to $323.027 million, while processing revenue increased by 7.3% to $250.821 million [7][10] - For the six months ended December 31, 2024, services and support revenue increased by 3.9% to $679.706 million, and processing revenue increased by 7.0% to $495.123 million [7][10] Guidance for Fiscal Year 2025 - The company provided full-year fiscal 2025 guidance, projecting GAAP revenue between $2.369 billion and $2.391 billion, with an operating margin of 23.0% to 23.2% [2][29] - Non-GAAP adjusted revenue guidance is set between $2.353 billion and $2.375 billion, with adjusted operating income expected between $533 million and $542 million [29][30] Balance Sheet and Cash Flow - Cash and cash equivalents were reported at $26 million as of December 31, 2024, compared to $27 million a year earlier [35] - The company had $150 million in debt outstanding related to credit facilities as of December 31, 2024, down from $255 million a year earlier [35]