Technology

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

Published

1 year ago

February 4, 2025

Second quarter summary:

GAAP revenue increased 5.2% and GAAP operating income increased 3.4% for the fiscal three months ended December 31, 2024, compared to the prior fiscal year quarter.Non-GAAP adjusted revenue increased 6.1% and non-GAAP adjusted operating income increased 7.3% for the fiscal three months ended December 31, 2024, compared to the prior fiscal year quarter.1GAAP EPS was $1.34 per diluted share for the fiscal three months ended December 31, 2024, compared to $1.26 per diluted share in the prior fiscal year quarter.

Fiscal year-to-date summary:

GAAP revenue increased 5.2% and GAAP operating income increased 9.0% for the fiscal year-to-date period ended December 31, 2024, compared to the prior fiscal year-to-date period.Non-GAAP adjusted revenue increased 5.7% and non-GAAP adjusted operating income increased 4.2% for the fiscal year-to-date period ended December 31, 2024, compared to the prior fiscal year-to-date period.1GAAP EPS was $2.97 per diluted share for the fiscal year-to-date period ended December 31, 2024, compared to $2.65 per diluted share in the prior fiscal year-to-date period.Cash and cash equivalents were $26 million at December 31, 2024, and $27 million at December 31, 2023.Debt outstanding related to credit facilities was $150 million at December 31, 2024, and $255 million at December 31, 2023.

Full year fiscal 2025 guidance (In millions):2

Current

GAAP

Low

High

Revenue

$2,369

$2,391

Operating margin3

23.0 %

23.2 %

EPS

$5.78

$5.87

Non-GAAP4

Adjusted revenue

$2,353

$2,375

Adjusted operating margin

22.7 %

22.8 %

MONETT, Mo., Feb. 4, 2025 /PRNewswire/ — Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading financial technology provider, today announced results for fiscal second quarter ended December 31, 2024.

1 See tables below on page 4 reconciling non-GAAP financial measures to GAAP.

2 The full fiscal year guidance assumes no acquisitions or dispositions are made during fiscal year 2025.

3 Operating margin is calculated by dividing operating income by revenue.

4 See tables below on page 9 reconciling fiscal year 2025 GAAP to non-GAAP guidance.

5 See table below on page 14 reconciling net income to non-GAAP EBITDA.

According to Greg Adelson, President and CEO, “We are pleased to report solid performance in the second quarter of our fiscal year. We continued our positive sales momentum with record sales attainment in Q2 for the second consecutive year while maintaining a robust sales pipeline for future opportunities. We are seeing strong demand for our products from both new and existing clients and are making substantial progress with our technology modernization strategy. Our focus on a people-first culture, service excellence, technology innovation, and a well-executed strategy continues to differentiate us in the market.”

Operating Results

Revenue, operating expenses, operating income, and net income for the three and six months ended December 31, 2024, compared to the three and six months ended December 31, 2023, were as follows:

Revenue

(Unaudited, in thousands)

Three Months Ended

December 31,

%
Change

Six Months Ended

December 31,

%
Change

2024

2023

2024

2023

Revenue

Services and Support

$ 323,027

$ 311,992

3.5 %

$ 679,706

$ 654,197

3.9 %

Percentage of Total Revenue

56.3 %

57.2 %

57.9 %

58.6 %

Processing

250,821

233,709

7.3 %

495,123

462,872

7.0 %

Percentage of Total Revenue

43.7 %

42.8 %

42.1 %

41.4 %

REVENUE

$ 573,848

$ 545,701

5.2 %

$ 1,174,829

$ 1,117,069

5.2 %

Services and support revenue increased for the three months ended December 31, 2024, primarily driven by growth in data processing and hosting revenue of 11.8%, partially offset by a decrease in deconversion revenue of $4,813. Processing revenue increased for the three months ended December 31, 2024, primarily driven by growth in card revenue of 6.5%, transaction and digital revenue of 10.0%, and payment processing revenue of 10.1%.Services and support revenue increased for the six months ended December 31, 2024, primarily driven by growth in data processing and hosting revenue of 12.2%, partially offset by a decrease in hardware and deconversion revenues of 31.1% and 58.2%, respectively. Processing revenue increased for the six months ended December 31, 2024, primarily driven by growth in card revenue of 5.8% and transaction and digital revenue of 10.4%. Another driver was an increase in payment processing revenues.For the three months ended December 31, 2024, core segment revenue increased 4.6%, payments segment revenue increased 5.4%, complementary segment revenue increased 5.6%, and corporate and other segment revenue increased 4.7%. For the three months ended December 31, 2024, core segment non-GAAP adjusted revenue increased 5.8%, payments segment non-GAAP adjusted revenue increased 6.2%, complementary segment non-GAAP adjusted revenue increased 6.5%, and corporate and other non-GAAP adjusted segment revenue increased 4.9% (see revenue lines of segment break-out tables on pages 5 and 6 below for a reconciliation of segment non-GAAP adjusted revenue to GAAP segment revenue).For the six months ended December 31, 2024, core segment revenue increased 4.8%, payments segment revenue increased 5.8%, complementary segment revenue increased 6.0%, and corporate and other segment revenue decreased 2.8%. For the six months ended December 31, 2024, core segment non-GAAP adjusted revenue increased 5.5%, payments segment non-GAAP adjusted revenue increased 6.0%, complementary segment non-GAAP adjusted revenue increased 6.8%, and corporate and other non-GAAP adjusted segment revenue decreased 2.8% (see revenue lines of segment break-out tables on pages 7 and 8 below for a reconciliation of segment non-GAAP adjusted revenue to GAAP segment revenue).

Operating Expenses and Operating Income

(Unaudited, in thousands)

Three Months Ended

December 31,

%
Change

Six Months Ended

December 31,

%
Change

2024

2023

2024

2023

Cost of Revenue

$ 332,850

$ 320,979

3.7 %

$ 676,282

$ 643,981

5.0 %

Percentage of Total Revenue6

58.0 %

58.8 %

57.6 %

Research and Development

41,095

35,478

15.8 %

80,780

72,370

11.6 %

Percentage of Total Revenue6

7.2 %

6.5 %

6.9 %

6.5 %

Selling, General, and Administrative

76,901

70,277

9.4 %

143,489

149,051

(3.7) %

Percentage of Total Revenue6

13.4 %

12.9 %

12.2 %

13.3 %

OPERATING EXPENSES

450,846

426,734

5.7 %

900,551

865,402

4.1 %

OPERATING INCOME

$ 123,002

$ 118,967

3.4 %

$ 274,278

$ 251,667

9.0 %

Operating Margin6

21.4 %

21.8 %

23.3 %

22.5 %

Cost of revenue increased for the three months ended December 31, 2024, primarily due to higher direct costs generally consistent with increases in the related lines of revenue and higher personnel costs including benefits expenses from an increase in employee headcount in the trailing twelve months. Cost of revenue increased for the six months ended December 31, 2024, primarily due to higher direct costs generally consistent with increases in the related lines of revenue, higher personnel costs including benefits expenses from an increase in employee headcount in the trailing twelve months, higher internal licenses and fees from increased deployments and prices, and a rise in amortization from capital development projects placed into service in the trailing twelve months.Research and development expense increased for the three and six months ended December 31, 2024, primarily due to higher personnel costs (net of capitalization) including benefits expenses from an increase in employee headcount in the trailing twelve months.Selling, general, and administrative expense increased for the three months ended December 31, 2024, primarily due to higher personnel costs including benefits expenses from an increase in employee headcount in the trailing twelve months. Selling, general, and administrative expense decreased for the six months ended December 31, 2024, primarily due to the decrease in non-recurring personnel costs when compared to the prior fiscal year period.

Net Income

(Unaudited, in thousands,

except per share data)

Three Months Ended

December 31,

%
Change

Six Months Ended

December 31,

%
Change

2024

2023

2024

2023

Income Before Income Taxes

$ 127,381

$ 120,223

6.0 %

$ 284,179

$ 253,471

12.1 %

Provision for Income Taxes

29,536

28,258

4.5 %

67,143

59,827

12.2 %

NET INCOME

$ 97,845

$ 91,965

6.4 %

$ 217,036

$ 193,644

12.1 %

Diluted earnings per share

$ 1.34

$ 1.26

6.2 %

$ 2.97

$ 2.65

12.0 %

Effective tax rates for the three months ended December 31, 2024, and 2023, were 23.2% and 23.5%, respectively. Effective tax rates for the six months ended December 31, 2024, and 2023, were 23.6% and 23.6%, respectively.

According to Mimi Carsley, CFO and Treasurer, “Our second quarter results included non-GAAP revenue growth of over 6%, led by our key revenue areas of public and private cloud and processing, which combined to grow by nearly 9%. That strong revenue growth and the leverage provided by our SaaS business model led to non-GAAP operating income growth of over 7%.”

6Operating margin is calculated by dividing operating income by revenue. Operating margin plus operating expense components as a percentage of total revenue may not equal 100% due to rounding.

Impact of Non-GAAP Adjustments

The tables below show our revenue, operating income, and net income for the three and six months ended December 31, 2024, compared to the three and six months ended December 31, 2023, excluding the impacts of deconversions and the VEDIP program expense.*

(Unaudited, in thousands)

Three Months Ended
December 31,

%
Change

Six Months Ended
December 31,

%
Change

2024

2023

2024

2023

GAAP Revenue**

$ 573,848

$ 545,701

5.2 %

$ 1,174,829

$ 1,117,069

5.2 %

Adjustments:

Deconversion revenue

(69)

(4,882)

(3,766)

(9,018)

NON-GAAP ADJUSTED REVENUE**

$ 573,779

$ 540,819

6.1 %

$ 1,171,063

$ 1,108,051

5.7 %

GAAP Operating Income

$ 123,002

$ 118,967

3.4 %

$ 274,278

$ 251,667

9.0 %

Adjustments:

Operating (income) loss from deconversions

622

(3,803)

(2,873)

(7,558)

VEDIP program expense*

—

16,443

NON-GAAP ADJUSTED OPERATING INCOME

$ 123,624

$ 115,164

7.3 %

$ 271,405

$ 260,552

4.2 %

Non-GAAP Adjusted Operating Margin***

21.5 %

21.3 %

23.2 %

23.5 %

GAAP Net Income

$ 97,845

$ 91,965

6.4 %

$ 217,036

$ 193,644

12.1 %

Adjustments:

Net (income) loss from deconversions

622

(3,803)

(2,874)

(7,558)

VEDIP program expense*

—

16,443

Tax impact of adjustments****

(149)

913

690

(2,132)

NON-GAAP ADJUSTED NET INCOME

$ 98,318

$ 89,075

10.4 %

$ 214,852

$ 200,397

7.2 %

*The VEDIP program expense for the fiscal six months ended December 31, 2023, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.

**GAAP revenue is comprised of services and support and processing revenues (see page 2). Reducing services and support revenue by deconversion revenue for the three months ended December 31, 2024, and 2023 which was $69 for the current fiscal year quarter and $4,882 for the prior fiscal year quarter, results in non-GAAP adjusted services and support revenue growth of 5.2% quarter over quarter. There were no non-GAAP adjustments to processing revenue for the three months ended December 31, 2024, or 2023.

Reducing services and support revenue by deconversion revenue for the six months ended December 31, 2024, and 2023, which was $3,766 for the current fiscal year period and $9,018 for the prior fiscal year period, results in non-GAAP adjusted services and support revenue growth of 4.8% period over period. There were no non-GAAP adjustments to processing revenue for the six months ended December 31, 2024, or 2023.

***Non-GAAP adjusted operating margin is calculated by dividing non-GAAP adjusted operating income by non-GAAP adjusted revenue.

****The tax impact of adjustments is calculated using a tax rate of 24% for the three and six months ended December 31, 2024, and 2023. The tax rate for non-GAAP adjustment items takes a broad look at our recurring tax adjustments and applies them to non-GAAP revenue that does not have its own specific tax impacts.

The tables below show the segment break-out of revenue and cost of revenue for each period presented, as adjusted for the items above, and include a reconciliation to non-GAAP adjusted operating income presented above.

Three Months Ended December 31, 2024

(Unaudited, in thousands)

Core

Payments

Complementary

Corporate
and Other

Total

GAAP REVENUE

$ 173,173

$ 214,836

$ 160,937

$ 24,902

$ 573,848

Non-GAAP adjustments*

(34)

(60)

(69)

NON-GAAP ADJUSTED REVENUE

173,193

214,802

160,877

24,907

573,779

GAAP COST OF REVENUE

70,739

114,738

63,384

83,989

332,850

Non-GAAP adjustments*

(88)

(53)

(99)

—

(240)

NON-GAAP ADJUSTED COST OF REVENUE

70,651

114,685

63,285

83,989

332,610

GAAP SEGMENT INCOME

$ 102,434

$ 100,098

$ 97,553

$ (59,087)

Segment Income Margin**

59.2 %

46.6 %

60.6 %

(237.3) %

NON-GAAP ADJUSTED SEGMENT INCOME

$ 102,542

$ 100,117

$ 97,592

$ (59,082)

Non-GAAP Adjusted Segment Income Margin**

59.2 %

46.6 %

60.7 %

(237.2) %

Research and Development

41,095

Selling, General, and Administrative

76,901

Non-GAAP adjustments unassigned to a segment***

(451)

NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES

450,155

NON-GAAP ADJUSTED OPERATING INCOME

$ 123,624

*Revenue non-GAAP adjustments for all segments were deconversion revenue. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.

**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment.

***Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs.

Three Months Ended December 31, 2023

(Unaudited, in thousands)

Core

Payments

Complementary

Corporate
and Other

Total

GAAP REVENUE

$ 165,601

$ 203,839

$ 152,466

$ 23,795

$ 545,701

Non-GAAP adjustments*

(1,929)

(1,555)

(1,355)

(43)

(4,882)

NON-GAAP ADJUSTED REVENUE

163,672

202,284

151,111

23,752

540,819

GAAP COST OF REVENUE

69,370

111,623

62,825

77,161

320,979

Non-GAAP adjustments*

(321)

(51)

(249)

—

(621)

NON-GAAP ADJUSTED COST OF REVENUE

69,049

111,572

62,576

77,161

320,358

GAAP SEGMENT INCOME

$ 96,231

$ 92,216

$ 89,641

$ (53,366)

Segment Income Margin**

58.1 %

45.2 %

58.8 %

(224.3) %

NON-GAAP ADJUSTED SEGMENT INCOME

$ 94,623

$ 90,712

$ 88,535

$ (53,409)

Non-GAAP Adjusted Segment Income Margin

57.8 %

44.8 %

58.6 %

(224.9) %

Research and Development

35,478

Selling, General, and Administrative

70,277

Non-GAAP adjustments unassigned to a segment***

(458)

NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES

425,655

NON-GAAP ADJUSTED OPERATING INCOME

$ 115,164

*Revenue non-GAAP adjustments for all segments were deconversion revenues. Cost of revenue non-GAAP adjustments for the Core, Payments, and Complementary segments were deconversion costs.

***Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs.

Six Months Ended December 31, 2024

(Unaudited, in thousands)

Core

Payments

Complementary

Corporate
and Other

Total

GAAP REVENUE

$ 368,797

$ 426,758

$ 332,639

$ 46,635

$ 1,174,829

Non-GAAP adjustments*

(1,267)

(1,948)

(533)

(18)

(3,766)

NON-GAAP ADJUSTED REVENUE

367,530

424,810

332,106

46,617

1,171,063

GAAP COST OF REVENUE

152,159

227,757

129,352

167,014

676,282

Non-GAAP adjustments*

(125)

(71)

(159)

—

(355)

NON-GAAP ADJUSTED COST OF REVENUE

152,034

227,686

129,193

167,014

675,927

GAAP SEGMENT INCOME

$ 216,638

$ 199,001

$ 203,287

$ (120,379)

Segment Income Margin**

58.7 %

46.6 %

61.1 %

(258.1) %

NON-GAAP ADJUSTED SEGMENT INCOME

$ 215,496

$ 197,124

$ 202,913

$ (120,397)

Non-GAAP Adjusted Segment Income Margin

58.6 %

46.4 %

61.1 %

(258.3) %

Research and Development

80,780

Selling, General, and Administrative

143,489

Non-GAAP adjustments unassigned to a segment***

(538)

NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES

899,658

NON-GAAP ADJUSTED OPERATING INCOME

$ 271,405

*Revenue non-GAAP adjustments for all segments were deconversion revenue. Cost of revenue non-GAAP adjustments for the Core, Payments, and Complementary segments were deconversion costs.

***Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs.

Six Months Ended December 31, 2023

(Unaudited, in thousands)

Core

Payments

Complementary

Corporate
and Other

Total

GAAP REVENUE

$ 352,041

$ 403,195

$ 313,833

$ 48,000

$ 1,117,069

Non-GAAP adjustments*

(3,595)

(2,560)

(2,806)

(57)

(9,018)

NON-GAAP ADJUSTED REVENUE

348,446

400,635

311,027

47,943

1,108,051

GAAP COST OF REVENUE

145,296

220,449

123,783

154,453

643,981

Non-GAAP adjustments*

(425)

(98)

(367)

(1)

(891)

NON-GAAP ADJUSTED COST OF REVENUE

144,871

220,351

123,416

154,452

643,090

GAAP SEGMENT INCOME

$ 206,745

$ 182,746

$ 190,050

$ (106,453)

Segment Income Margin**

58.7 %

45.3 %

60.6 %

(221.8) %

NON-GAAP ADJUSTED SEGMENT INCOME

$ 203,575

$ 180,284

$ 187,611

$ (106,509)

Non-GAAP Adjusted Segment Income Margin

58.4 %

45.0 %

60.3 %

(222.2) %

Research and Development

72,370

Selling, General, and Administrative

149,051

Non-GAAP adjustments unassigned to a segment***

(17,012)

NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES

847,499

NON-GAAP ADJUSTED OPERATING INCOME

$ 260,552

*Revenue non-GAAP adjustments for all segments were deconversion revenues. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.

***Non-GAAP adjustments unassigned to a segment were VEDIP expenses of $16,443 and selling, general, and administrative deconversion costs of $569. The VEDIP program expense for the fiscal six months ended December 31, 2023, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.

The table below shows our GAAP to non-GAAP guidance for the fiscal year ending June 30, 2025. Fiscal year 2025 non-GAAP guidance excludes the impacts of deconversion revenue and related operating expenses and assumes no acquisitions or dispositions are made during the fiscal year.

GAAP to Non-GAAP GUIDANCE (In millions, except per share data)

Annual FY25

Low

High

GAAP REVENUE

$ 2,369

$ 2,391

Growth

6.9 %

7.9 %

Deconversions*

$ 16

NON-GAAP ADJUSTED REVENUE**

$ 2,353

$ 2,375

Non-GAAP Adjusted Growth

7.0 %

8.0 %

GAAP OPERATING EXPENSES

$ 1,823

$ 1,836

Growth

5.6 %

6.4 %

Deconversion costs*

$ 3

NON-GAAP ADJUSTED OPERATING EXPENSES**

$ 1,820

$ 1,833

Non-GAAP Adjusted Growth

6.7 %

7.4 %

GAAP OPERATING INCOME

$ 546

$ 555

Growth

11.6 %

13.3 %

GAAP OPERATING MARGIN

23.0 %

23.2 %

NON-GAAP ADJUSTED OPERATING INCOME**

$ 533

$ 542

Non-GAAP Adjusted Growth

8.2 %

9.9 %

NON-GAAP ADJUSTED OPERATING MARGIN

22.7 %

22.8 %

GAAP EPS***

$ 5.78

$ 5.87

Growth

10.6 %

12.3 %

Non-GAAP EPS***

$ 5.65

$ 5.74

Growth

7.3 %

9.0 %

*Deconversion revenue and related operating expenses are based on actual results for the six months ended December 31, 2024, and estimates for the remainder of fiscal year 2025, based on the lowest actual recent historical results. See the Company’s Form 8-K filed with the Securities and Exchange Commission on January 27, 2025.

**GAAP to Non-GAAP revenue, operating expenses, and operating income may not foot due to rounding.

***The GAAP to Non-GAAP EPS reconciliation table is below on page 15.

Balance Sheet and Cash Flow Review (In millions)

Cash and cash equivalents were $26 million at December 31, 2024, and $27 million at December 31, 2023.Trade receivables were $283 million at December 31, 2024, compared to $271 million at December 31, 2023.The Company had $150 million of borrowings at December 31, 2024 compared to $255 million of borrowings at December 31, 2023.Deferred revenue remained consistent at $269 million at December 31, 2024, and 2023.Stockholders’ equity increased to $1,976 million at December 31, 2024, compared to $1,724 million at December 31, 2023.

*See table below for Net Cash Provided by Operating Activities and on page 14 for Return on Average Shareholders’ Equity. Tables reconciling the non-GAAP measures Free Cash Flow and Return on Invested Capital (ROIC) to GAAP measures are also on page 14. See the Use of Non-GAAP Financial Information section below for the definitions of Free Cash Flow and ROIC.

The following table summarizes net cash from operating activities:

(Unaudited, in thousands)

Six Months Ended December 31,

2024

2023

Net income

$ 217,036

$ 193,644

Depreciation

22,731

23,765

Amortization

79,517

75,366

Change in deferred income taxes

(8,745)

(16,532)

Other non-cash expenses

15,535

15,693

Change in receivables

49,811

90,702

Change in deferred revenue

(119,463)

(130,529)

Change in other assets and liabilities*

(49,879)

(13,437)

NET CASH FROM OPERATING ACTIVITIES

$ 206,543

$ 238,672

*For the six months ended December 31, 2024, includes the change in prepaid cost of product and other of $(34,384), accrued expenses of $(19,450), and income taxes of $9,538. For the six months ended December 31, 2023, includes the change in prepaid cost of product and other of $(52,969), income taxes of $23,792, and the change in accrued expenses of $15,463.

The following table summarizes net cash from investing activities:

(Unaudited, in thousands)

Six Months Ended December 31,

2024

2023

Capital expenditures

(29,469)

(24,458)

Proceeds from dispositions

—

878

Purchased software

(3,528)

(2,971)

Computer software developed

(85,803)

(83,408)

Purchase of investments

(2,000)

(1,000)

Proceeds from investments

1,000

—

NET CASH FROM INVESTING ACTIVITIES

$ (119,800)

$ (110,959)

The following table summarizes net cash from financing activities:

(Unaudited, in thousands)

Six Months Ended December 31,

2024

2023

Borrowings on credit facilities

$ 165,000

$ 220,000

Repayments on credit facilities and financing leases

(165,000)

(240,000)

Purchase of treasury stock

(17,050)

(20,000)

Dividends paid

(80,193)

(75,722)

Net cash from issuance of stock and tax related to stock-based compensation

(2,131)

2,475

NET CASH FROM FINANCING ACTIVITIES

$ (99,374)

$ (113,247)

Use of Non-GAAP Financial Information

Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures, including adjusted revenue, adjusted operating income, adjusted segment income, adjusted cost of revenue, adjusted operating expenses, adjusted operating margin, adjusted segment income margin, non-GAAP earnings before interest, taxes, depreciation, and amortization (non-GAAP EBITDA), free cash flow, return on invested capital (ROIC), non-GAAP adjusted net income, and non-GAAP earnings per share (EPS).

We believe non-GAAP financial measures help investors better understand the underlying fundamentals and true operations of our business. Adjusted revenue, adjusted operating income, adjusted operating margin, adjusted segment income, adjusted segment income margin, adjusted cost of revenue, adjusted operating expenses, adjusted net income, and non-GAAP EPS eliminate one-time deconversion revenue and associated costs and the effects of the VEDIP program expense related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023, which management believes are not indicative of the Company’s operating performance. Such adjustments give investors further insight into our performance. Non-GAAP EBITDA is defined as net income attributable to the Company before the effect of interest expense, taxes, depreciation, and amortization, adjusted for net income before the effect of interest expense, taxes, depreciation, and amortization attributable to eliminated one-time deconversions and the VEDIP program expense. Free cash flow is defined as net cash from operating activities, less capitalized expenditures, internal use software, and capitalized software, plus proceeds from the sale of assets. ROIC is defined as net income divided by average invested capital, which is the average of beginning and ending long-term debt and stockholders’ equity for a given period. Management believes that non-GAAP EBITDA is an important measure of the Company’s overall operating performance and excludes certain costs and other transactions that management deems one time or non-operational in nature; free cash flow is useful to measure the funds generated in a given period that are available for debt service requirements and strategic capital decisions; and ROIC is a measure of the Company’s allocation efficiency and effectiveness of its invested capital. For these reasons, management also uses these non-GAAP financial measures in its assessment and management of the Company’s performance.

Non-GAAP financial measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. Non-GAAP financial measures have no standardized meaning prescribed by GAAP and therefore, are unlikely to be comparable with calculations of similar measures for other companies.

Any non-GAAP financial measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Reconciliations of the non-GAAP financial measures to related GAAP measures are included.

Quarterly Conference Call

The Company will hold a conference call on February 5, 2025, at 7:45 a.m. Central Time, and investors are invited to listen at www.jackhenry.com. A webcast replay will be available approximately one hour after the event at ir.jackhenry.com/corporate-events-and-presentations and will remain available for one year.

About Jack Henry & Associates, Inc.®

Jack Henry™ (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity — offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For more than 48 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,500 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.

Statements made in this news release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those discussed in the Company’s Securities and Exchange Commission filings, including the Company’s most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Any forward-looking statement made in this news release speaks only as of the date of the news release, and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.

Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except per share data)

Three Months Ended
December 31,

%
Change

Six Months Ended
December 31,

%
Change

2024

2023

2024

2023

REVENUE

$ 573,848

$ 545,701

5.2 %

$ 1,174,829

$ 1,117,069

5.2 %

Cost of Revenue

332,850

320,979

3.7 %

676,282

643,981

5.0 %

Research and Development

41,095

35,478

15.8 %

80,780

72,370

11.6 %

Selling, General, and Administrative

76,901

70,277

9.4 %

143,489

149,051

(3.7) %

EXPENSES

450,846

426,734

5.7 %

900,551

865,402

4.1 %

OPERATING INCOME

123,002

118,967

3.4 %

274,278

251,667

9.0 %

Interest income

7,159

5,121

39.8 %

15,506

9,866

57.2 %

Interest expense

(2,780)

(3,865)

(28.1) %

(5,605)

(8,062)

(30.5) %

Interest Income (Expense), net

4,379

1,256

248.6 %

9,901

1,804

448.8 %

INCOME BEFORE INCOME TAXES

127,381

120,223

6.0 %

284,179

253,471

12.1 %

Provision for Income Taxes

29,536

28,258

4.5 %

67,143

59,827

12.2 %

NET INCOME

$ 97,845

$ 91,965

6.4 %

$ 217,036

$ 193,644

12.1 %

Diluted net income per share

$ 1.34

$ 1.26

$ 2.97

$ 2.65

Diluted weighted average shares outstanding

73,082

72,984

73,080

72,999

Consolidated Balance Sheet Highlights (Unaudited)

(In thousands)

December 31,

%
Change

2024

2023

Cash and cash equivalents

$ 25,653

$ 26,709

(4.0) %

Receivables

283,223

270,551

4.7 %

Total assets

2,911,770

2,753,976

5.7 %

Accounts payable and accrued expenses

$ 209,926

$ 207,230

1.3 %

Current and long-term debt

150,000

255,000

(41.2) %

Deferred revenue

269,469

269,200

0.1 %

Stockholders’ equity

1,975,565

1,724,387

14.6 %

Calculation of Non-GAAP Earnings Before Income Taxes, Depreciation and Amortization (Non-GAAP EBITDA)

Three Months Ended
December 31,

%
Change

Six Months Ended
December 31,

%
Change

(In thousands)

2024

2023

2024

2023

Net income

$ 97,845

$ 91,965

$ 217,036

$ 193,644

Net interest

(4,379)

(1,256)

(9,901)

(1,804)

Taxes

29,536

28,258

67,143

59,827

Depreciation and amortization

51,754

49,896

102,248

99,131

Less: Net income before interest expense, taxes, depreciation and amortization attributable to eliminated one-time adjustments*

622

(3,802)

(2,873)

8,886

NON-GAAP EBITDA

$ 175,378

$ 165,061

6.3 %

$ 373,653

$ 359,684

3.9 %

*The fiscal second quarter 2025 and 2024 adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions. The fiscal year-to-date 2025 and 2024 adjustments were for deconversions in 2025 and deconversions and the VEDIP program expense in 2024 and were $(7,557) and $16,443, respectively. The VEDIP program expense for the fiscal six months ended December 31, 2023, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.

Calculation of Free Cash Flow (Non-GAAP)

Six Months Ended
December 31,

(In thousands)

2024

2023

Net cash from operating activities

$ 206,543

$ 238,672

Capitalized expenditures

(29,469)

(24,458)

Internal use software

(3,528)

(2,971)

Proceeds from sale of assets

—

878

Capitalized software

(85,803)

(83,408)

FREE CASH FLOW

$ 87,743

$ 128,713

Calculation of the Return on Average Shareholders’ Equity

December 31,

(In thousands)

2024

2023

Net income (trailing four quarters)

$ 405,208

$ 372,966

Average stockholder’s equity (period beginning and ending balances)

1,849,976

1,617,689

RETURN ON AVERAGE SHAREHOLDERS’ EQUITY

21.9 %

23.1 %

Calculation of Return on Invested Capital (ROIC) (Non-GAAP)

December 31,

(In thousands)

2024

2023

Net income (trailing four quarters)

$ 405,208

$ 372,966

Average stockholder’s equity (period beginning and ending balances)

1,849,976

1,617,689

Average current maturities of long-term debt and financing leases (period beginning and ending balances)

45,000

Average long-term debt (period beginning and ending balances)

157,500

265,000

Average invested capital

$ 2,052,476

$ 1,882,700

ROIC

19.7 %

19.8 %

GAAP to Non-GAAP EPS Reconciliation Table

FY25 Guidance

GAAP EPS

$5.78-$5.87

Excluded Activity, net of Tax:

Deconversion*

$0.13

Non-GAAP EPS

$5.65-$5.74

*We are not aware of any other discreet adjustments at this time. Deconversion revenue and related operating expenses are based on actual results for fiscal second quarter 2025 and estimates for the remainder of fiscal year 2025, based on the lowest actual recent historical results. See the Company’s Form 8-K filed with the Securities and Exchange Commission on January 27, 2025.

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SOURCE Jack Henry & Associates, Inc.

Technology

Mosaic Raises $18M Series A To Build AI-Driven Operating System For Deal Makers

Published

37 minutes ago

April 22, 2026

Radical Ventures leads financing to expand Mosaic’s deterministic deal modeling platform across investing workflows and asset classes

NEW YORK, April 22, 2026 /CNW/ — Mosaic, the AI-driven deal modeling platform built for private markets, today announced it has raised an $18 million Series A led by Radical Ventures. Mosaic will use the new funding to deepen product capabilities across private equity workflows and accelerate expansion into adjacent markets including investment banking and private credit.

Mosaic is building the operating system for the world’s most sophisticated investors and their advisors by automating the deal modeling analyses historically built and maintained manually in Excel. Mosaic combines deterministic, rules-based calculations with AI-driven ingestion and agentic workflows to help deal teams move faster, reduce spreadsheet errors, and focus on applying investment judgment rather than performing mechanical tasks.

Today, Mosaic is used by leading private market institutions including Warburg Pincus, Bridgepoint, CVC, New Mountain, and Evercore. Customers report up to 20x faster completion of core deal analyses such as LBOs and DCFs while completely eliminating spreadsheet “mis-link” errors through Mosaic’s rules-based modeling engine.

In 2025, Mosaic was selected by five of the top ten global private equity firms as their AI-driven deal modeling platform of choice, and by two of the world’s most prolific investment banks to reimagine how they model and analyze transactions for clients.

“Before Mosaic, thousands of investors (myself included) spent hundreds of hours iterating on generic spreadsheet templates to rebuild and refine the same calculation scaffolding for each new investment opportunity,” said Ian Gutwinski, Founder & CEO of Mosaic. “Yet all those hours do nothing to improve investment outcomes. We built Mosaic so investors and bankers can spend less time linking and more time thinking. Our platform gives users the speed of automation and the reliability of deterministic calculations, so they can trust the analysis every time.”

Unlike Excel copilots and other probabilistic approaches, Mosaic’s modeling engine is designed to produce replicable, audit-ready outputs that teams can standardize across workflows, creating a foundation for institutional memory and better decision-making over time. As all models are created and stored in a centralized, standardized database siloed to each client, firms can increasingly analyze underwriting patterns across their proprietary deal data and benchmark assumptions against actual outcomes.

Mosaic Autopilot: Agentic Modeling From a Single Email

Mosaic’s flagship agentic AI feature, Mosaic Autopilot, enables users to kick off model creation via an emailed prompt to Mosaic’s agent, “Mo,” who ingests supporting documents (including CIMs), applies firm-specific defaults, and generates an “MD-ready” model in an email reply within 5 minutes.

“When I worked in Investment Banking and Private Equity, I was always shocked at how much time some of the most expensive talent in the world spent trying to fix broken models with sheer brute force” said Ryan Shannon, Partner at Radical Ventures, who himself used to spend hundreds of hours updating deal models as an Associate at Private Equity giant TPG. “With Mosaic, that same expensive talent can instead spend their time thinking about the crucial decisions that separate good investments from great ones.”

Use of Funds

Mosaic will expand its New York-based team across:

Engineering & product, to expand workflow coverage and scale enterprise deploymentsCustomer enablement, to support training and adoption across enterprise clientsGo-to-market, to expand Mosaic’s presence across private equity, private credit, and investment banking firms

Mosaic currently has 16 employees and expects to grow to 40+ by the end of 2026.

Board Updates

As part of the Series A, Ryan Shannon, Partner at Radical Ventures, and Troy Pospisil, Founder & CEO of legal tech leader Ontra.ai (and Mosaic’s first investor), will join Mosaic’s Board of Directors. John Megrue, Vice Chairman of Radical Ventures and former CEO of Apax, will serve as a strategic advisor to Mosaic’s CEO.

“There’s a ton of noise in the financial services world right now when it comes to AI tools. Unfortunately, the vast majority of these offerings overpromise and underdeliver, and are not delivering real value to firms,” said John Megrue. “Mosaic is a rare exception of a team that deeply understands what the top investment banks, private equity funds, and private credit funds need, and is one of the few products actually delivering value today.”

“I’m excited to be joining Mosaic’s Board after backing the company early as a personal investor,” said Troy Pospisil. “Mosaic is tackling a complex problem for a market I care deeply about, and I believe Ian and the world-class team he’s assembled around him possess the unique mix of industry experience, technical depth, and relentlessness to actually change embedded behavior that hasn’t evolved in 50 years. Amidst an AI hype cycle, Mosaic is sticking to the first principles of entrepreneurship that I admire: being customer-obsessed and using every available technology and resource – whether AI, workflow, or world-class support – to deliver outcomes that its customers truly value.”

Learn More

To book a demo, visit https://www.mosaic.pe/demo

To explore open roles, visit https://mosaic.pe/careers

About Mosaic

Mosaic is the leading AI-driven deal modeling platform for private markets. The company automates and standardizes fundamental analyses, such as LBOs and DCFs, using deterministic, rules-based calculations combined with AI-powered ingestion and agentic workflows. Mosaic helps private equity firms, private credit firms, hedge funds, and investment banks reduce time spent on mechanical modeling work and increase time spent on investment judgment.

Less time linking, more time thinking.

About Radical Ventures

Radical Ventures is a Toronto-based venture capital firm focused exclusively on investing in artificial intelligence and deep technology. Founded in 2017, the firm partners with early and growth-stage companies building transformative AI applications across science, industry, and technology. Radical manages more than US$2.5 billion in assets and has invested in category leaders such as Cohere, Waabi, World Labs, and Writer AI.

Press Contact
Manasa Grandhi
Director of Operations
press@mosaic.pe
https://mosaic.pe

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SOURCE Investor Technology Group, Inc.

Technology

Best Premium Cooler for Outdoor Leaders and Enthusiasts (2026): Coleman Snap N’ Go Cooler Named World’s First Collapsible Hard-Sided Cooler by Consumer365

Published

37 minutes ago

April 22, 2026

NEW YORK, April 22, 2026 /PRNewswire/ — A recent article from Consumer365 highlights a growing shift in how outdoor equipment is designed, with a focus on solving everyday challenges like limited storage and difficult transport. At the center of the feature is the Coleman Snap N’ Go Collapsible Hard Cooler, presented as a new type of hard cooler that prioritizes storability without sacrificing performance.

Best Premium Cooler for Outdoor Leaders and Enthusiasts

Coleman Snap N’ Go Cooler – durable, collapsible hard cooler offering multi-day cold retention, compact storability, and versatile portability for outdoor leaders and enthusiasts managing trips, gear, and group outings efficiently

Outdoor leaders and enthusiasts are increasingly planning longer trips, coordinating group activities, and managing multiple pieces of equipment at once. In this context, a cooler is no longer just for keeping drinks cold. It plays a role in organization, transportability, and overall trip efficiency. This shift has led to greater attention on how gear performs not only during use, but also before and after each outing.

Coleman’s Snap N’ Go cooler reflects this change through an innovative design that combines durability with improved portability.

A New Approach to Hard Cooler Design

Traditional hard coolers are known for their strength and insulation, but their fixed size often creates storage challenges. Even when empty, they take up significant space in homes, vehicles, or storage areas. Soft coolers improve portability, yet they may not offer the same level of durability or cold retention.

The Snap N’ Go cooler introduces a different solution. Its structure allows it to collapse to 1/3 of its size in seconds, depending on the model. This feature improves storability while preserving the core function of a hard cooler when fully expanded.

Key design elements include:

Collapsible hard-sided construction for compact storageQuick transition between expanded and collapsed formsA multi-carrying system that supports portabilityA layout designed to improve transportability across different environments

This design allows users to store the cooler under beds, in closets, or alongside other gear without needing to dedicate permanent space to it.

Midway through the article, Consumer365 notes that this type of development reflects a growing need for equipment that adapts to real-life constraints rather than assuming unlimited storage capacity.

Balancing Durability with Everyday Portability

While the collapsible structure is a defining feature, performance remains a priority. The cooler is built with a fully insulated body and lid, supporting cold retention for up to 48 hours under standard use conditions. This makes it suitable for multi-day trips where consistent cooling is necessary.

Durability is also a central focus. When expanded, the cooler is engineered to support up to 200 pounds of weight. This reflects a reinforced build designed to handle regular outdoor use, including loading, unloading, and transport over uneven terrain.

For outdoor leaders, durability is essential. Equipment is often exposed to repeated handling and changing environments. A cooler that maintains structural integrity while improving portability offers a practical advantage, reducing the need to compromise between strength and convenience.

Designed for Easier Cleaning and Reuse

Maintenance is another important factor, particularly for users who rely on their gear frequently. The Snap N’ Go cooler includes a removable waterproof liner with antimicrobial protection. This feature helps reduce leaks and limit odor buildup over time.

After use, the liner can be removed, cleaned, and dried separately before being stored with the collapsed cooler. This supports better hygiene and simplifies post-trip routines, especially for those managing food and beverages across multiple outings.

The liner’s compatibility with the collapsible structure also contributes to overall storability, ensuring that all components remain compact and easy to manage between uses.

Size Options for Different Trip Demands

The Snap N’ Go series is available in three sizes, allowing users to select a model that fits their specific needs. Each size maintains the same core features, including insulation, durability, and portability.

35-quart model

Holds up to 64 cans without iceCollapses to half its sizeSuitable for short trips or smaller groups

45-quart model

Holds up to 76 cans without iceCompresses to 1/3 of its size in secondsBalances capacity with improved transportability

55-quart model

Holds up to 93 cans without iceCompresses to 1/3 of its size in secondsDesigned for extended trips and larger groups

This range allows users to prioritize either compact storage or higher capacity, depending on the type of outing. At the same time, the consistent design across all models ensures reliability regardless of size.

Why It Matters for Outdoor Leaders and Enthusiasts

For those organizing outdoor trips, managing equipment efficiently is often as important as the activity itself. A cooler that reduces storage space, improves portability, and maintains durability can simplify preparation and reduce logistical challenges.

The Snap N’ Go cooler addresses several of these needs:

Reduced storage requirements through its collapsible structureFaster setup and packing during tripsReliable cold retention for extended useImproved transportability across different settings

For enthusiasts, the cooler offers flexibility. It can be used across a range of scenarios, from casual day trips to longer outdoor stays, without requiring separate gear. This adaptability supports a more streamlined approach to packing and planning.

A More Flexible Option for Outdoor Trips

The development of a collapsible hard cooler reflects a practical response to the evolving needs of outdoor users. By combining durability, insulation, and compact storage into a single system, the Coleman Snap N’ Go cooler introduces a new way to think about traditional equipment.

As highlighted by the Consumer365 article, this innovative approach places equal importance on performance and storability. For outdoor leaders and enthusiasts, it represents a shift toward gear that is not only reliable in use but also easier to manage before and after every trip.

About Coleman

Coleman is an established outdoor brand known for producing equipment designed for camping, travel, and recreational use. Its product range includes coolers, tents, lighting, and cooking systems developed to support consistent performance in a variety of environments. The company focuses on practical and innovative design improvements that address real-world challenges, including portability, durability, and storability. Through continuous product development, Coleman aims to refine traditional outdoor gear to better suit modern travel needs and evolving user expectations.

About Consumer365.org: Consumer365 provides consumer news and industry insights. As an affiliate, Consumer365 may earn commissions from sales generated using links provided.

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SOURCE Consumer365.org

Technology

TE Connectivity delivers results above guidance with 15% sales growth and over 20% EPS growth in second quarter of fiscal 2026

Published

37 minutes ago

April 22, 2026

Third quarter guidance reflects double digit sales and EPS growth

GALWAY, Ireland, April 22, 2026 /PRNewswire/ — TE Connectivity plc (NYSE: TEL) today reported results for the fiscal second quarter ended March 27, 2026.

Second Quarter Highlights

Net sales were $4.74 billion, an increase of 15% on a reported basis year over year, driven by growth in both the Industrial and Transportation segments, and 7% organically.GAAP diluted earnings per share (EPS) from continuing operations was $2.90. Adjusted EPS was a record $2.73, an increase of 24% year over year.GAAP operating margin was 20%, an increase of 200 basis points year over year. Adjusted operating margin expanded 130 basis points year over year to 22%, driven by strong operational performance across both segments.Record orders of $5.3 billion, an increase of 25% year over year with double-digit order growth in both segments and growth in all businesses.Cash flow from operating activities during the first half of the fiscal year was $1.8 billion. Free cash flow was $1.3 billion, up 17% year over year.Returned $1.2 billion to shareholders during the first half and announced 10% increase in quarterly cash dividend.

“Our teams delivered another quarter of results above guidance, including double-digit sales growth and record adjusted EPS,” said CEO Terrence Curtin. “This performance and our record orders were driven by our strategic positioning in key trends including AI, next generation transportation and electric grid modernization, along with the broadening of growth across our portfolio. We’re well positioned to capitalize on the proliferation of data and power to provide our customers with leading interconnect technologies. Our strong margin performance reflects the resilience we’ve built to mitigate the dynamic environment we continue to operate in around the world.

“Looking ahead to the third quarter, our ongoing orders momentum across all businesses positions us to deliver double digit sales growth to $5 billion, with continued strong operational performance to drive a double-digit increase in EPS. We continue to invest in innovative products and technologies that support our global customers and fuel our future growth.”

Third Quarter FY26 Outlook
For the third quarter of fiscal 2026, the company expects sales of approximately $5 billion, an increase of 10% on a reported basis and 9% organically year over year. Adjusted EPS is expected to be approximately $2.83, an increase of 17% year over year. GAAP EPS from continuing operations is expected to be approximately $2.44, an increase of 14% year over year.

Information about TE Connectivity’s use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.

Conference Call and Webcast
The company will hold a conference call for investors today beginning at 8:30 a.m. ET. The conference call may be accessed in the following ways:

At TE Connectivity’s website: investors.te.comBy telephone: For both “listen-only” participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the United States is (800) 715-9871 and for international callers, the dial-in number is (646) 307-1963.A replay of the conference call will be available on TE Connectivity’s investor website at investors.te.com at 11:30 a.m. ET on April 22.

About TE Connectivity
TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Instagram.

Non-GAAP Financial Measures
We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.

The following provides additional information regarding our non-GAAP financial measures:

Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans.

Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans.

Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any.

Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects.

Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans.

Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow.

Forward-Looking Statements

This release contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity plc’s Annual Report on Form 10-K for the fiscal year ended Sept 26, 2025, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.

TE CONNECTIVITY PLC

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Quarters Ended

For the Six Months Ended

March 27,

March 28,

March 27,

March 28,

2026

2025

2026

2025

(in millions, except per share data)

Net sales

4,744

4,143

9,413

7,979

Cost of sales

2,999

2,684

5,929

5,160

Gross margin

1,745

1,459

3,484

2,819

Selling, general, and administrative expenses

536

454

1,074

881

Research, development, and engineering expenses

237

203

462

391

Acquisition and integration costs

Restructuring and other charges, net

Operating income

954

748

1,917

1,438

Interest income

Interest expense

(32)

(14)

(62)

(20)

Other income (expense), net

(1)

(2)

Income from continuing operations before income taxes

942

755

1,903

1,461

Income tax expense

(87)

(742)

(297)

(920)

Income from continuing operations

855

1,606

541

Loss from discontinued operations, net of income taxes

—

(1)

—

Net income

855

1,605

541

Basic earnings per share:

Income from continuing operations

2.92

0.04

5.46

1.81

Loss from discontinued operations

—

Net income

2.92

0.04

5.46

1.81

Diluted earnings per share:

Income from continuing operations

2.90

0.04

5.43

1.80

Loss from discontinued operations

—

Net income

2.90

0.04

5.42

1.80

Weighted-average number of shares outstanding:

Basic

293

298

294

299

Diluted

295

300

296

301

TE CONNECTIVITY PLC

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 27,

September 26,

2026

2025

(in millions, except share data)

Assets

Current assets:

Cash and cash equivalents

1,110

1,255

Accounts receivable, net of allowance for doubtful accounts of $52 and $44, respectively

3,454

3,403

Inventories

2,995

2,699

Prepaid expenses and other current assets

682

609

Total current assets

8,241

7,966

Property, plant, and equipment, net

4,473

4,312

Goodwill

7,437

7,126

Intangible assets, net

2,145

2,227

Deferred income taxes

2,337

2,507

Other assets

1,046

943

Total assets

25,679

25,081

Liabilities, redeemable noncontrolling interests, and shareholders’ equity

Current liabilities:

Short-term debt

102

852

Accounts payable

2,224

2,021

Accrued and other current liabilities

2,039

2,247

Total current liabilities

4,365

5,120

Long-term debt

5,553

4,842

Long-term pension and postretirement liabilities

750

767

Deferred income taxes

198

Income taxes

306

414

Other liabilities

1,125

1,010

Total liabilities

12,297

12,351

Commitments and contingencies

Redeemable noncontrolling interests

148

145

Shareholders’ equity:

Preferred shares, $1.00 par value, 2 shares authorized, none outstanding

—

Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding

—

Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 295,773,434 and 302,889,075
shares issued, respectively

Accumulated earnings

13,900

13,932

Ordinary shares held in treasury, at cost, 3,632,502 and 8,330,931 shares, respectively

(818)

(1,356)

Accumulated other comprehensive income

149

Total shareholders’ equity

13,234

12,585

Total liabilities, redeemable noncontrolling interests, and shareholders’ equity

25,679

25,081

TE CONNECTIVITY PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Quarters Ended

For the Six Months Ended

March 27,

March 28,

March 27,

March 28,

2026

2025

2026

2025

(in millions)

Cash flows from operating activities:

Net income

855

1,605

541

Loss from discontinued operations, net of income taxes

—

Income from continuing operations

855

1,606

541

Adjustments to reconcile income from continuing operations to net cash
provided by operating activities:

Depreciation and amortization

243

192

502

378

Deferred income taxes

603

159

701

Non-cash lease cost

Provision for losses on accounts receivable and inventories

Share-based compensation expense

Other

(29)

(25)

Changes in assets and liabilities, net of the effects of acquisitions and
divestitures:

Accounts receivable, net

(317)

(59)

(171)

Inventories

(30)

(14)

(331)

(132)

Prepaid expenses and other current assets

(34)

(14)

140

Accounts payable

(4)

177

146

Accrued and other current liabilities

(47)

(3)

(264)

(298)

Income taxes

(129)

(84)

Other

(109)

(7)

(74)

(44)

Net cash provided by operating activities

947

653

1,812

1,531

Cash flows from investing activities:

Capital expenditures

(270)

(230)

(528)

(435)

Proceeds from sale of property, plant, and equipment

Acquisition of businesses, net of cash acquired

(200)

(321)

Other

(3)

—

(7)

Net cash used in investing activities

(470)

(224)

(724)

(761)

Cash flows from financing activities:

Net increase in commercial paper

100

1,155

100

1,245

Proceeds from issuance of debt

750

773

750

773

Repayment of debt

(851)

(579)

(851)

(579)

Proceeds from exercise of share options

Repurchase of ordinary shares

(414)

(306)

(819)

(609)

Payment of ordinary share dividends to shareholders

(208)

(193)

(417)

(382)

Other

(12)

(6)

(58)

(33)

Net cash provided by (used in) financing activities

(615)

869

(1,231)

474

Effect of currency translation on cash

(3)

(2)

(9)

Net increase (decrease) in cash, cash equivalents, and restricted cash

(141)

1,300

(145)

1,235

Cash, cash equivalents, and restricted cash at beginning of period

1,251

1,254

1,255

1,319

Cash, cash equivalents, and restricted cash at end of period

1,110

2,554

1,110

2,554

Supplemental cash flow information:

Income taxes paid, net of refunds

135

115

223

164

TE CONNECTIVITY PLC

RECONCILIATION OF FREE CASH FLOW (UNAUDITED)

For the Quarters Ended

For the Six Months Ended

March 27,

March 28,

March 27,

March 28,

2026

2025

2026

2025

(in millions)

Net cash provided by operating activities

947

653

1,812

1,531

Capital expenditures, net

(267)

(229)

(524)

(433)

Free cash flow (1)

680

424

1,288

1,098

(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

SEGMENT DATA (UNAUDITED)

For the Quarters Ended

For the Six Months Ended

March 27,

March 28,

March 27,

March 28,

2026

2025

2026

2025

($ in millions)

Net Sales

Transportation Solutions

2,422

2,314

4,889

4,557

Industrial Solutions

2,322

1,829

4,524

3,422

Total

4,744

4,143

9,413

7,979

Operating

Income

Margin

Income

Margin

Income

Margin

Income

Margin

Transportation Solutions

503

20.8

445

19.2

1,004

20.5

891

19.6

Industrial Solutions

451

19.4

303

16.6

913

20.2

547

16.0

Total

954

20.1

748

18.1

1,917

20.4

1,438

18.0

Adjusted

Operating

Income (1)

Margin (1)

Income (1)

Margin (1)

Income (1)

Margin (1)

Income (1)

Margin (1)

Transportation Solutions

522

21.6

495

21.4

1,045

21.4

990

21.7

Industrial Solutions

507

21.8

351

19.2

1,020

22.5

640

18.7

Total

1,029

21.7

846

20.4

2,065

21.9

1,630

20.4

(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED)

Change in Net Sales for the Quarter Ended March 27, 2026

versus Net Sales for the Quarter Ended March 28, 2025

Net Sales

Organic Net Sales

Growth (Decline)

Growth (Decline) (1)

Translation (2)

Acquisition

($ in millions)

Transportation Solutions:

Automotive

1.6

(67)

(3.8)

—

Commercial transportation

21.3

17.1

—

Sensors

2.3

(7)

(3.0)

—

Total Transportation Solutions

108

4.7

(12)

(0.5)

120

—

Industrial Solutions:

Digital data networks

232

48.1

222

46.1

—

Automation and connected living

13.1

8.2

—

Aerospace, defense, and marine

9.1

5.4

—

Energy

166

59.5

11.2

120

Medical

(6)

(3.3)

(7)

(3.5)

—

Total Industrial Solutions

493

27.0

309

16.9

120

Total

601

14.5

297

7.2

184

120

Change in Net Sales for the Six Months Ended March 27, 2026

versus Net Sales for the Six Months Ended March 28, 2025

Net Sales

Organic Net Sales

Growth

Growth (Decline) (1)

Translation (2)

Acquisitions

($ in millions)

Transportation Solutions:

Automotive

190

5.5

1.3

145

—

Commercial transportation

134

20.0

113

16.7

—

Sensors

1.9

(12)

(2.7)

—

Total Transportation Solutions

332

7.3

146

3.2

186

—

Industrial Solutions:

Digital data networks

526

58.8

510

57.0

—

Automation and connected living

137

13.8

9.8

Aerospace, defense, and marine

11.4

8.0

—

Energy

356

71.9

12.7

271

Medical

0.6

0.4

—

Total Industrial Solutions

1,102

32.2

728

21.3

102

272

Total

1,434

18.0

874

11.0

288

272

(1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures.

(2) Represents the change in net sales resulting from changes in foreign currency exchange rates.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended March 27, 2026

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

503

—

522

Industrial Solutions

451

—

507

Total

954

—

1,029

Operating margin

20.1

21.7

Income tax expense

(87)

(2)

(12)

(114)

(213)

Effective tax rate

9.2

20.9

Income from continuing operations

855

(114)

804

Diluted earnings per share from
continuing operations

2.90

0.02

0.04

0.15

(0.39)

2.73

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents a net income tax benefit related primarily to the settlement of prior period tax matters.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended March 28, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

445

—

495

Industrial Solutions

303

—

351

Total

748

—

846

Operating margin

18.1

20.4

Income tax expense

(742)

(2)

(11)

(8)

574

(189)

Effective tax rate

98.3

22.2

Income from continuing operations

574

664

Diluted earnings per share from
continuing operations

0.04

0.03

0.11

1.91

2.21

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents income tax expense related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Six Months Ended March 27, 2026

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

1,004

—

1,045

Industrial Solutions

913

—

1,020

Total

1,917

114

—

2,065

Operating margin

20.4

21.9

Income tax expense

(297)

(3)

(1)

(23)

(114)

(438)

Effective tax rate

15.6

21.4

Income from continuing operations

1,606

(114)

1,613

Diluted earnings per share from
continuing operations

5.43

0.04

0.06

0.31

(0.39)

5.45

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents a net income tax benefit related primarily to the settlement of prior period tax matters.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Six Months Ended March 28, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

891

—

990

Industrial Solutions

547

—

640

Total

1,438

—

1,630

Operating margin

18.0

20.4

Income tax expense

(920)

(3)

(20)

(15)

587

(371)

Effective tax rate

63.0

22.4

Income from continuing operations

541

587

1,282

Diluted earnings per share from
continuing operations

1.80

0.05

0.25

0.22

1.95

4.26

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Includes income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $13 million related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended June 27, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

(Non-GAAP) (2)

($ in millions, except per share data)

Operating income:

Transportation Solutions

462

—

486

Industrial Solutions

395

467

Total

857

953

Operating margin

18.9

21.0

Income tax expense

(208)

(7)

(11)

(225)

Effective tax rate

24.6

23.9

Income from continuing operations

638

717

Diluted earnings per share from
continuing operations

2.14

0.08

0.05

0.14

2.41

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Year Ended September 26, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

1,818

—

1,963

Industrial Solutions

1,393

120

—

1,621

Total

3,211

126

190

—

3,584

Operating margin

18.6

20.8

Income tax expense

(1,361)

(12)

(13)

(37)

618

(805)

Effective tax rate

42.5

22.5

Income from continuing operations

1,843

113

153

618

2,772

Diluted earnings per share from
continuing operations

6.16

0.15

0.38

0.51

2.07

9.27

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES

TO FORWARD-LOOKING GAAP FINANCIAL MEASURES

As of April 22, 2026

(UNAUDITED)

Outlook for

Quarter Ending

June 26,

2026

Diluted earnings per share from continuing operations

2.44