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

Core Insights - Jack Henry & Associates, Inc. reported solid overall performance in the third quarter of fiscal year 2025, with strong growth in key revenue areas such as public and private cloud and processing [5][12] - The company continues to focus on technology modernization and strategies for small and medium-sized businesses, maintaining confidence in demand and a robust sales pipeline [5] Financial Performance - For the three months ended March 31, 2025, GAAP revenue increased by 8.6% to $585.1 million compared to $538.6 million in the prior year [7][16] - Non-GAAP adjusted revenue for the same period increased by 7.0% to $575.4 million [16] - GAAP operating income rose by 23.8% to $138.7 million, while non-GAAP adjusted operating income increased by 17.6% to $131.9 million [7][16] - GAAP net income for the three months was $111.1 million, a 27.6% increase from $87.1 million in the prior year [11][16] Revenue Breakdown - Services and support revenue for the three months ended March 31, 2025, was $330.8 million, an increase of 8.5% year-over-year, driven by a 12.0% growth in data processing and hosting revenue within the cloud [6][14] - Processing revenue increased by 8.9% to $254.3 million, primarily due to growth in card revenue (8.1%), transaction and digital revenue (14.6%), and payment processing revenue (10.4%) [9][14] Guidance for Fiscal Year 2025 - The company provided full-year fiscal 2025 guidance, projecting GAAP revenue between $2,353 million and $2,370 million, with an operating margin of 23.5% to 23.7% and EPS between $6.00 and $6.09 [2][33] - Non-GAAP adjusted revenue guidance is set between $2,331 million and $2,342 million, with adjusted operating margin expectations of 23.0% to 23.1% [33] Balance Sheet and Cash Flow - Cash and cash equivalents increased to $39.9 million as of March 31, 2025, compared to $27.3 million a year earlier [7][36] - The company reduced its outstanding debt from $250 million to $170 million during the same period [7][36] - Stockholders' equity rose to $2,036 million from $1,780 million year-over-year [36]