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

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2 years ago

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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 %

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*

20

(34)

(60)

5

(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.

**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.

 

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.

**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.

 

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.

**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 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

$        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

$          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

11

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.

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Faith: The Spark Born by the Yudu Riverside

Published

6 hours ago

on

October 18, 2026

By

BEIJING, Oct. 18, 2026 /PRNewswire/ — An interview from China.org.cn with Wang Xiaohui and David Ferguson on the Long March:

David Ferguson:

This is the Yudu River. One dusk in October, 1934, more than 86,000 soldiers of the Red Army crossed this river and embarked on the Long March, a two-year saga that has left its mark in history.

Yet, lingering here by the river, I am struck by a simple question: If you have faith in a bright future, and reality seems to thwart you at every turn, where do you find the moral strength to keep believing?

Wang Xiaohui:

At dusk on Oct. 17, 1934, an army of more than 86,000 troops gathered along the banks of the Yudu River. Over 800 boats of all sizes floated on the water, bound together with planks collected from villagers’ home gates, timber beams, and even coffin boards reserved for elderly locals. The people of Yudu built this pontoon bridge, determined to help the army led by the Communist Party of China (CPC) cross the river.

At that time, no one knew that the great expedition embarked upon by the banks of the Yudu River would go on to transform China and exert far-reaching influence across the world.

China in the 1920s and 1930s was plagued by chaos and despair.

The Kuomintang (KMT), the ruling party back then, was not capable of unifying the nation, leaving warlords locked in endless fighting. In 1931, Japanese invaders launched an assault on northeastern China, beginning their invasion. Crushed under domestic turbulence and foreign aggression, countless civilians were displaced, with many even starving to death on the streets; in certain regions, severe drought resulted in zero harvests, yet the farmers were forced to pay land taxes assessed for more than a decade into the future.

Amid this turmoil, the only glimmer of hope for the Chinese nation was kindled by the revolution ignited by the Communist Party of China.

The CPC, dedicated to winning liberation for the people and national independence, built contingents of workers’ and peasants’ Red Army troops and revolutionary base areas across the countryside. Impoverished farmers were granted land ownership, as well as unprecedented political dignity. On Nov. 7, 1931, the Chinese Soviet Republic was officially proclaimed in Ruijin, then a small village in southeastern China’s Jiangxi Province, establishing a Soviet system under which workers, peasants and soldiers elected representatives to run regional affairs and make policies.

The communist ideal of a fair society free from exploitation and equality for all blazed like a spark in the darkness; it kindled hopes among impoverished Chinese and became the wellspring of faith that enabled the Red Army — a force made up of poor workers and peasants — to overcome all hardships in the days to come.

Yet, bright as the spark was, it burned thin and fragile at times. Could this flame still endure when the ideals it carried were repeatedly battered by harsh reality?

In September 1933, flocks of warplanes clouded the skies over the Red Army’s revolutionary base areas. By then, Japanese invaders were steadily advancing towards North China, but Chiang Kai-shek’s KMT turned a blind eye to the looming national crisis. They mobilized over a million troops and more than 200 aircraft to launch a massive offensive at the Red Army’s base areas. Over the previous three years, Chiang Kai-shek had mounted four major military “encirclement” campaigns aimed at exterminating the Red Army, but all ended in failure. He was desperate for a pivotal victory to restore his prestige and to wipe out the CPC and the Red Army.

At the time, the commander of the Red Army abandoned mobile warfare tactics pioneered by Mao Zedong and other commanders, opting instead for rigid positional warfare involving conventional head-on clashes. But the reality was, some Red Army units didn’t even possess a single light machine gun; how could they confront the heavily-armed KMT army head-on?

Zhong Ming, a Red Army medic, could never erase the memories of gravely wounded soldiers being carried to his aid station. He remembered how a soldier whose chest was blown open begged his comrades to end his life. At the frontline, a whole battalion of Red Army soldiers religiously followed orders to defend crude earth-and-wood bunkers, but under the constant barrage of KMT artillery and airstrikes, every soldier in the battalion laid down their lives; not a single man survived.

What’s more heart-wrenching is that no matter how fearlessly the Red Army fought, the steep imbalance in military strength, paired with erroneous military command led to irreversible losses. By October 1934, the KMT’s iron-clad encirclement closed menacingly around Ruijin.

Faced with this dead-end, what decision would you make?

This stood as the most agonizing decision for the Red Army. The biggest challenge lay not in sacrificing one’s life for an ideal, but in finding a way to keep the revolutionary cause alive.

To stay meant defeat — the Red Army had no room to maneuver within the Central Revolutionary Base Area. To break through the encirclement, however slim the odds, offered a fighting chance. Preserving the Red Army as a living force mattered much more than clinging to isolated strongholds. Where the spark survives, the path ahead remains lit.

The air already turned chilly in October. Units of the Central Red Army assembled in Yudu to prepare for a strategic shift. The plan was kept strictly classified; none of the soldiers knew they were evacuating the base areas, only sensing an unusual vibe.

At dusk on Oct. 17, crowds lined up at the Yudu riverbank. Tens of thousands of villagers flocked from every corner to see the Red Army off. They walked alongside the marching columns, slipping food like eggs and glutinous rice balls into the soldiers’ pockets, praying for their swift homecoming.

The main force of the Central Red Army set off. Within days, they left behind revolutionary base areas where they had survived, grown and taken root. No one anticipated that the journey they embarked on would become the Long March, a trek spanning over 10 provinces. Still less could anyone imagine that this journey would ultimately pave the way for a brand-new China.

Looking back on this chapter of history, many claim that the Red Army only set out on this expedition because the enemies left them no other choice. To a degree, yes, the Long March was indeed a forced strategic shift, yet this fact does nothing to diminish its greatness and glory.

The ordinary Red Army soldiers had no idea how far they would march, or where they were heading. But they clung firmly to their founding mission: to deliver liberation for the people and independence to the nation. This unswerving conviction kept them from disintegrating through countless perils, sustaining them as they marched into the unknown with resolve.

David Ferguson:

I now realize that faith and ideals untested by harsh reality may have no true substance.

Since its founding, the Communist Party of China has always upheld the realization of communism as its fundamental goal. Despite devastating losses and extreme adversity, the Red Army continued to press forward resolutely and never faltered. Its inner strength came from an unshakable belief in the cause, an unwavering commitment to the founding aspiration, and a profound sense of mission. The Red Army was never fleeing pursuers in search of safety; it was marching forward to a future in which it had a steadfast belief.

Wang Xiaohui:

The Long March went on for two years. The Red Army trekked 25,000 li across some of China’s harshest terrain, but they kept their heads high, seeking hope amid despair and marching towards light through unending darkness. The lofty ideals and sense of mission they upheld have also become the torch that guides generations of CPC members in the following centennial, tempering them into steel as they press forward unswervingly toward national rejuvenation.

That spark lit along the Yudu River has never dimmed since.

China Mosaic
http://www.china.org.cn/video/node_7230027.htm

Faith: The Spark Born by the Yudu Riverside
http://www.china.org.cn/2026-10/16/content_118736835.shtml

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SOURCE China.org.cn

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Linktel Technologies Highlights Breakthrough 1.6T LPO Performance & Strong Market Pull at OCP 2026

Published

7 hours ago

on

October 18, 2026

By

SAN JOSE, Calif., Oct. 18, 2026 /PRNewswire/ — At the recent 2026 OCP Global Summit, Linktel Technologies showcased its cutting-edge optical interconnect portfolios engineered specifically for next-generation AI computing networks. Among the heavy lineup, Linktel’s 1.6T Linear Pluggable Optics (LPO) solutions commanded immense industry attention, drawing heavy customer interest for their unprecedented energy efficiency, ultra-low latency, and supply-chain resilience.

Spotlight: 1.6T LPO Performance & High Customer Traction

AI data centers face immense scaling pressures, demanding higher bandwidth densities with tighter thermal and power budgets. Linktel’s 1.6T LPO solutions—highlighted by the 1.6T LPO 2DR4—delivered standout performance metrics that captured the spotlight at the summit:

Ultra-Low Power Consumption: Operates with power consumption as low as an impressive 10W, drastically mitigating data center cooling and power loads.Minimal Latency: Features a linear optics architecture that cuts down signal processing delays, making it a critical asset for high-performance AI scale-out fabrics.Enhanced Supply-Chain Resilience: Eliminating the optical DSP mitigates component choke points, ensuring robust scalability for mass deployments.Proven Interoperability: Following its breakthrough performance and multi-switch platform interoperability at the early September 2026 1.6T LPO-MSA Plugfest, Linktel has laid a solid foundation for the 200G-per-wavelength ecosystem.

Surging Market Interest

Throughout OCP 2026, Linktel’s live demonstrations of its 1.6T LPO, LRO, and FRO modules drew crowds of data center architects and industry partners. With volume production already in place, Linktel is fully equipped to meet the exploding market demand for energy-efficient, high-density 1.6T connectivity.

Overview of Other Innovations at OCP 2026

In addition to the heavily requested 1.6T LPO lineup, Linktel showcased two other major high-speed architectural pillars:

12.8T Liquid-Cooled XPO:Featured a live thermal demonstration integrating advanced liquid cooling to guarantee stable operations in high-density AI nodes.As a founding member of the XPO MSA, Linktel is actively scaling XPO series with FRO, LRO, and LPO variants for comprehensive scale-up, scale-out, and scale-across frameworks.6.4T/7.2T NPO Modules:Displayed with covers removed to reveal internal architectural designs supporting both ELS and ILS configurations.Combines compact high density with low power and low latency, backed by an established 6.4T/7.2T NPO roadmap.DMD Technology & Executive Presentation:Linktel Engineer Director Dr. Grace Zhang hosted a heavily attended Executive Session titled “Dispersion Managed Transceiver for Next-Gen AI Fabrics,” detailing cost-effective 800G (20km) and 1.6T (10km) solutions for OCS SuperPOD architectures, as well as the feasibility of 400G per lambda (3km).With its DMD product line already in volume production, Linktel actively calls upon ecosystem partners to join forces in collaborative development. To drive ecosystem maturity, Linktel is open to sharing its U.S.-filed patents, paving the way for industry-wide adoption and advancements in next-gen AI fabrics.

About Linktel Technologies

Linktel Technologies is a global leader in optical transceiver development and manufacturing, supplying high-speed optical I/O connectivity—including pluggable transceivers, optical engines, and ODM/JDM services.

For more information, visit www.linktel.com or follow Linktel Technologies on LinkedIn.

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SOURCE Linktel Technologies

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Advanced Manufacturing in Focus: Smart Life and Robotics Take the Spotlight at 140th Canton Fair

Published

8 hours ago

on

October 18, 2026

By

GUANGZHOU, China, Oct. 18, 2026 /CNW/ — Phase 1 of the 140th Canton Fair, themed “Advanced Manufacturing,” opened on October 15 and will run through October 19. As one of the event’s most closely watched sections, the Consumer Electronics and Information Products zone once again serves as a showcase for the latest achievements in China’s manufacturing and technology industries.

Smart Life Solutions Address an Aging and Globalized Market

A highlight of this section is the focus on smart living, which brings together smart solutions designed to support healthier, safer, and more independent lifestyles.

For example, wearable devices and continuous glucose monitoring systems enable convenient tracking of key health indicators such as heart rate and blood glucose levels. Meanwhile, wearable exoskeletons and other AI-powered devices support mobility training and functional recovery. For home and elderly care, companion robots, electric nursing beds and home-use hyperbaric oxygen chambers, offer a combination of daily care, wellness support and lifestyle assistance. All these solutions highlight a growing shift toward technology-enabled living, where health management, personal care, and independent living are becoming more accessible and connected.

Service Robots Demonstrate Expanding Real-World Applications

The Service Robot Zone remains one of the fair’s most popular attractions in this edition.

Among the crowd favorites is a humanoid robot standing roughly 70–80 centimeters tall. With its expressive movements and playful appearance, the robot draws constant attention as it dances, approaches visitors and occasionally performs flips to the delight of onlookers. Behind the product is a company that has overcome key challenges in compact joint modules and modular humanoid robot development. Its independently developed high-power-density joints deliver remarkable agility and explosive movement, while modular architecture provides flexibility for a wide range of future applications.

More broadly, the Service Robot Zone features exhibits spanning a wide range of application areas, including embodied intelligence, specialized operations, urban services, and smart living. Full-size humanoid robots, dexterous hands with multimodal sensing capabilities and wheeled robots highlight the latest advances in artificial intelligence, perception technologies and motion control. For demanding industrial and emergency environments, exhibitors are presenting robotic inspection systems, live-line maintenance robots and underwater propulsion robots designed to improve safety and operational efficiency.

The commercial services sector is also well represented through reception robots, façade-cleaning robots and fully automated coffee kiosks, while everyday life applications include wearable exoskeletons, robotic lawn mowers and educational robots for home use. Together, these exhibits demonstrate how China’s robotics industry is accelerating its transition from technological innovation to large-scale commercialization.

As the 140th Canton Fair gets underway, the showcased innovations highlight China’s growing strength in advanced manufacturing, turning cutting-edge technologies into practical, market-ready solutions for global customers.

For more convenient attendance, please click here for pre-registration:
https://buyer.cantonfair.org.cn/register/buyer/email?source_type=16

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SOURCE Canton Fair

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