RT Alucard (@Alucard_eth)My @Starknet Card:AURA: 88ATK: 92DEF: 84Who wants a nomination? https://t.co/7eHgOA13AZ ...

Core Insights - Jack Henry & Associates reported Q4 fiscal 2025 GAAP earnings of $1.75 per share, exceeding estimates by 19.9% and showing a year-over-year increase of 26.4% [2] - Revenues for the same quarter reached $615.4 million, surpassing estimates by 1.6% and reflecting a 9.9% year-over-year growth [2] - Adjusted EBITDA for Q4 was $189.2 million, up 10.9% year over year, with an adjusted EBITDA margin of 31.8%, an increase of 100 basis points [6] Revenue Breakdown - Service and Support revenues accounted for 57.1% of total revenues, totaling $351.2 million, a 10.9% increase year over year [3] - Processing revenues made up 42.9% of total revenues, amounting to $264.1 million, an 8.6% year-over-year growth [4] - Core segment revenues were $189.7 million, up 10.3% year over year, while Payments revenues reached $229.3 million, increasing by 7.9% [5] Financial Guidance - For fiscal 2026, Jack Henry has set GAAP revenue guidance between $2.50 billion and $2.48 billion, with non-GAAP revenues expected to be between $2.48 billion and $2.46 billion [8] - The anticipated GAAP operating margin is between 24.2% and 24%, while the adjusted operating margin is expected to range from 23.6% to 23.4% [8] Market Performance - Over the past month, Jack Henry's shares have declined by approximately 2.5%, underperforming the S&P 500 [1] - Estimates for the company have trended downward recently, indicating a potential shift in market sentiment [10][12] Industry Context - Jack Henry operates within the Zacks Computers - IT Services industry, where Serve Robotics Inc. has recently reported a revenue increase of 36.2% year over year [13] - Serve Robotics Inc. has a Zacks Rank of 4 (Sell), contrasting with Jack Henry's Zacks Rank of 3 (Hold), suggesting differing market perceptions within the same industry [14]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 3% compared to the previous quarter, with growth in Card, ACH, and Output Solutions [6] - GAAP net income was reported at $600,000 or $0.02 per share, including a $1.5 million ERC benefit, marking the third consecutive quarter of positive GAAP net income [6][7] - Total dollars processed exceeded $1.9 billion in Q4, representing a 36% increase year-over-year, while total dollars processed for the full year reached $7.1 billion, up 33% [7][8] - Operating cash flow generated in Q4 was $2.9 million, with a year-end cash position exceeding $8 million [8][9] Business Line Data and Key Metrics Changes - Card processing dollars increased by 15% in Q4, with transactions processed up 34%, leading to a record full-year processing volume of over $1.5 billion, a 10% increase from fiscal 2023 [19] - ACH electronic transaction volumes rose by 34% in Q4, marking its fifth consecutive quarter of growth, while electronic check dollars processed increased by 44% [27] - Output Solutions saw electronic documents processed rise by 86%, with total pieces mailed exceeding 5.4 million in Q4, leading to a record year for electronic documents processed [29][30] - Card issuing added nearly 70 new client partner agreements in 2024, with prepaid dollars loaded exceeding $100 million for the sixth consecutive quarter [31][32] Market Data and Key Metrics Changes - PayFac business within Card processing saw a 44% increase in dollars processed in Q4, contributing to a 28% increase in PayFac volume for the full year [19][20] - The company is experiencing a steady flow of new accounts, which has helped offset variability in performance due to implementation timing [21] Company Strategy and Development Direction - The company announced the "Usio One" initiative to unify and integrate all products and services under one brand, aiming to enhance customer understanding and cross-selling opportunities [13][14] - The initiative includes a new client onboarding system and a proprietary checkout page tool, with a focus on leveraging AI for improved efficiency and fraud protection [16][17] - The company is committed to improving profitability through better margins and operating leverage while continuing to fund operations through positive cash flow [10][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving organic revenue growth of 14% to 16% in 2025, supported by a widespread customer base rather than reliance on a few large customers [35][39][40] - The company is actively looking at M&A opportunities while balancing share repurchases and reinvestment in the business [43] Other Important Information - The Board of Directors approved a new share repurchase program, adding $4 million to the original authorization [34][35] Q&A Session Summary Question: What does the visibility look like for 2025 and revenue cadence throughout the year? - Management expects great growth with implementations starting to come live, indicating a loaded growth pattern [39] Question: Is the growth reliant on a single or a few large customers? - Management confirmed that the growth is widespread [40] Question: How is the company prioritizing repurchases versus reinvestment or M&A? - Management stated that they are authorized to repurchase up to $4 million and are always looking at M&A deals while generating cash [42][43] Question: Any changes in sales conversations with local or state governments due to federal administration changes? - Management noted that while the PayFac side is not affected, there may be potential opportunities in the disbursement space [46]