Client Relationship Retention and Steady Sales Momentum Make Jack Henry & Associates (JKHY) a Resilient Business

Group 1: Market Overview - In 2025, US equities experienced solid returns with double-digit gains across all major indices, despite underlying conditions revealing extreme volatility and market leadership [1] - Conestoga Capital Advisors' SMid Cap Strategy underperformed the Russell 2500 Growth Index in Q4 2025, returning -2.71% compared to the Index's 0.33% [1] - For the full year, the composite delivered a total return of -4.71% net of fees, while the benchmark returned 10.31% [1] Group 2: Performance Analysis - Negative stock selection in the Industrials and Real Estate sectors contributed to the underperformance in Q4 2025 [1] - An underweight position in the volatile biotechnology industry also impacted relative returns [1] - Positive stock selection in Financials and Basic Materials helped to counterbalance losses [1] Group 3: Company Spotlight - Jack Henry & Associates, Inc. - Jack Henry & Associates, Inc. (NASDAQ:JKHY) is a leading provider of technology solutions and payment processing services primarily for community banks and credit unions [3] - As of February 19, 2026, Jack Henry's stock closed at $161.14 per share, with a one-month return of -12.95% and a decline of 5.84% over the past twelve months [2] - The company reported solid fiscal first-quarter results, characterized by steady top-line growth and successful contract wins for its modernization solutions [3] - Despite industry consolidation headwinds, Jack Henry's consistent sales momentum and ability to secure long-term client relationships highlight the resilience of its business model [3]