Jack Henry & Associates Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Core Insights - Jack Henry & Associates (JKHY) reported fourth-quarter fiscal 2025 GAAP earnings of $1.75 per share, exceeding the Zacks Consensus Estimate by 19.9% and reflecting a year-over-year increase of 26.4% [1][9] - The company's revenues for the quarter reached $615.4 million, surpassing the Zacks Consensus Estimate by 1.6% and showing a year-over-year growth of 9.9% [1][9] - Non-GAAP revenues, after adjusting for deconversion revenues of $20.5 million, were $594.9 million, representing a 7.5% increase year over year [1] Revenue Breakdown - Revenues from Services and Support, accounting for 57.1% of total revenues, were $351.2 million, up 10.9% year over year, driven by growth in data processing and hosting revenues [3] - Processing revenues, which made up 42.9% of total revenues, were $264.1 million, an increase of 8.6% year over year, primarily due to growth in card, transaction, and digital payment processing revenues [4] - Core segment revenues were $189.7 million, up 10.3% year over year, while Payments revenues rose 7.9% to $229.3 million, and Complementary revenues increased 12.9% to $175.1 million [5] Profitability Metrics - Adjusted EBITDA for the fourth quarter was $189.2 million, reflecting a year-over-year increase of 10.9%, with an adjusted EBITDA margin expanding by 100 basis points to 31.8% [6] - Adjusted operating income rose 14.8% year over year to $137.8 million, with the adjusted operating margin increasing by 150 basis points to 23.2% [6] Balance Sheet and Cash Flow - As of June 30, 2025, the company's cash and cash equivalents stood at $102 million, a significant increase from $39.9 million as of March 31, 2025 [7] Future Guidance - For fiscal 2026, Jack Henry & Associates has initiated GAAP revenue guidance of $2.50-$2.48 billion, with non-GAAP revenues expected to be $2.48-$2.46 billion [8] - The Zacks Consensus Estimate for revenues is $2.53 billion, indicating a year-over-year growth of 6.7% [8] - GAAP earnings are projected to be in the range of $6.44-$6.32 per share, with a year-over-year increase of 5.1% expected [10]