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

Penetron Strengthens Global Research Collaboration at ICSHM 2026

Published

14 minutes ago

July 19, 2026

PHILADELPHIA, July 19, 2026 /PRNewswire/ — Penetron participated in the 10th International Conference on Self-Healing Materials (ICSHM 2026), held July 8–10, 2026, at Drexel University in Philadelphia, Pennsylvania. The international event brought together leading researchers, engineers, and industry representatives to present and discuss the latest advances in self-healing materials and related technologies.

A global delegation of Penetron executives attended the conference, representing the United States, Greece, Italy, Brazil, India, Chile, the United Arab Emirates, Belgium, and Singapore.

“For over 50 years, Penetron has provided self-healing concrete solutions to the industry that optimize concrete durability by sealing cracks and reducing concrete permeability to limit maintenance requirements, extend structural service life, and help protect infrastructure exposed to groundwater, chemicals, chlorides, and other aggressive conditions,” says Christopher Chen, Director of The Penetron Group. “Our participation at the ICSHM reinforces Penetron’s long-standing commitment to international research collaboration and allows us to better understand emerging research and develop leading-edge solutions for real-world construction challenges.”

Hosted at Drexel University’s Bossone Research Enterprise Center, ICSHM 2026 welcomed specialists from more than 18 countries across six continents and featured over 70 technical presentations, including keynote addresses, plenary sessions, research presentations, and an interactive poster program. The conference opened with remarks from Drexel University President Antonio Merlo and ICSHM Chair Dr. Nele De Belie. Finally, the conference provided valuable opportunities for researchers and industry specialists to strengthen cooperation between academia and the construction sector to further develop self-healing technologies.

“Extending the service life of concrete infrastructure requires cooperation between universities, materials specialists, engineers, and industry,” said Jozef Van Beeck, Director of International Sales and Marketing for The Penetron Group. “ICSHM 2026 provided an important forum for connecting scientific research with the practical requirements of the global construction industry.”

The Penetron Group is a leading manufacturer of specialty construction products for concrete waterproofing, concrete repairs, and floor preparation systems. The Group operates through a global network, offering support to the design and construction community through its regional offices, representatives, and distribution channels.

For more information on Penetron waterproofing solutions, please visit penetron(dot)com or Facebook(dot)com/ThePenetronGroup, email CRDept(at)penetron(dot)com or contact the Corporate Relations Department at 631-941-9700.

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SOURCE The Penetron Group

Technology

Singtel Receives Four Frost & Sullivan 2026 Recognitions for Leadership in Enterprise Connectivity, Cybersecurity, and Digital Transformation

Published

2 hours ago

July 19, 2026

The recognitions highlight Singtel’s leadership in secure connectivity, network transformation, IoT innovation, and cybersecurity, delivering customer value through intelligent digital infrastructure and AI-enabled enterprise services.

SAN ANTONIO, July 19, 2026 /CNW/ — Frost & Sullivan is pleased to honor Singtel with the 2026 Southeast Asia IoT Connectivity Service Provider Company of the Year, 2026 Singapore Network Transformation Customer Value Leadership, 2026 Singapore Cybersecurity Services Company of the Year, and 2026 Singapore SD-WAN and SASE Service Provider Company of the Year recognitions. These acknowledgements reflect Singtel’s outstanding achievements in delivering secure, intelligent, and scalable digital infrastructure that enables enterprises to modernize operations, simplify complexity, and accelerate digital transformation across Singapore and Southeast Asia. They underscore the company’s consistent leadership in strategy execution, customer value creation, and innovation across enterprise connectivity, cybersecurity, software-defined networking, and IoT connectivity services.

Frost & Sullivan evaluates companies through a rigorous benchmarking process across two core dimensions: strategy effectiveness and strategy execution. Singtel excelled in both, demonstrating its ability to anticipate evolving enterprise requirements while consistently translating long-term vision into measurable customer outcomes. Through platforms such as Singtel CUBΣ (CUBE) and its multidomestic IoT connectivity architecture, the company continues to unify networking, cybersecurity, automation, and AI-driven intelligence into integrated solutions that address the growing complexity of hybrid, multicloud, and connected environments. “Singtel has established itself as a benchmark for enterprise digital infrastructure by converging connectivity, cybersecurity, network intelligence, and IoT orchestration into a unified, customer-centric ecosystem. Its disciplined execution, platform-led innovation, and commitment to simplifying complex enterprise environments continue to strengthen operational resilience and deliver sustained value for organizations across the region,” said Kenny Yeo, Director at Frost & Sullivan.

Guided by a long-term strategy focused on digital innovation, intelligent infrastructure, and customer-centric transformation, Singtel has moved well-beyond traditional telecommunications to a trusted technology partner for enterprises navigating increasingly connected and data-driven environments. Its strategic investments in AI-enabled operations, cloud-native platforms, secure connectivity, and ecosystem partnerships enable organizations to modernize critical infrastructure while maintaining the flexibility to support future business growth.

The company’s strategic agility and sustained investment in integrated digital platforms have enabled it to scale innovative services across local, regional, and global enterprise environments. Innovation remains central to Singtel’s approach through solutions including the CUBΣ connected intelligence platform, multidomestic IoT connectivity powered by eSIM orchestration, managed cybersecurity services, AI-driven network automation, and network-as-a-service capabilities. These solutions simplify network and security management, strengthen cyber resilience, improve operational visibility, and provide enterprises with scalable, secure, and high-performing connectivity across cloud, edge, IoT, and hybrid infrastructures.

By streamlining service delivery through intelligent automation, centralized orchestration, proactive monitoring, and flexible managed and co-managed service models, Singtel continues to help organizations reduce operational complexity while improving service reliability and business agility. Its ability to integrate best-of-breed technologies in a unified operational framework, combined with strong regional network ownership and localized expertise, enables customers to confidently scale digital initiatives while maintaining security, governance, and operational excellence.

Frost & Sullivan commends Singtel for setting a high standard in competitive strategy, execution, and customer value across multiple technology domains. By combining intelligent networking, secure digital infrastructure, AI-enabled operations, and cross-border IoT capabilities in an integrated platform strategy, the company is shaping the future of enterprise connectivity while helping organizations build resilient, future-ready digital ecosystems.

Each year, Frost & Sullivan presents its Company of the Year and Customer Value Leadership recognitions to organizations that demonstrate outstanding strategy development and implementation, resulting in measurable improvements in customer satisfaction, competitive positioning, and business performance. These recognitions honor forward-thinking companies that continuously raise industry standards through innovation, operational excellence, and long-term value creation.

Frost & Sullivan Best Practices Recognition
Frost & Sullivan’s Best Practices Recognitions honor companies across regional and global markets that exhibit exceptional achievement and consistent excellence in areas such as leadership, technological innovation, customer experience, and strategic product development. Each recognition is the result of a rigorous analytical process in which Frost & Sullivan industry experts benchmark performance through comprehensive interviews, deep-dive analysis, and extensive secondary research. The goal is to identify true best-in-class organizations that are driving transformative growth and setting new industry standards.
Contact us: Start the discussion.

Contact:
Tarini Singh
E: Tarini.Singh@frost.com

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SOURCE Frost & Sullivan

Technology

Emdoor Launches “Ailyn” AI Hub at WAIC 2026: Unifying Intelligence Across Every Device

Published

6 hours ago

July 19, 2026

SHANGHAI, July 18, 2026 /PRNewswire/ — Emdoor, a leading provider of intelligent computing devices, unveiled its latest innovation — Ailyn, an integrated software-hardware AI hub — at the World Artificial Intelligence Conference (WAIC) 2026. Under the theme “Intelligence in All Things, Boundless Edge Intelligence”, Emdoor’s Booth X1B-804 showcases four immersive scenarios spanning personal, home, enterprise, and industrial use cases, demonstrating how AI can flow seamlessly across devices.

With decades of experience across cloud, edge, device, and wearable form factors, Emdoor has established one of the industry’s most comprehensive intelligent hardware portfolios. Yet the company recognized a critical gap: while individual devices grow smarter, they often operate in isolation.

Ailyn is Emdoor’s answer to this challenge. Introduced on the WAIC Magic Box stage, Ailyn serves as a unified intelligence layer that orchestrates storage, computing power, AI models, and data across PCs, NAS systems, computing boxes, and IoT devices. The result is a scalable, centrally managed intelligence platform that delivers seamless cross-device collaboration, data privacy, and AI capabilities that improve with use.

At its core, Ailyn follows a device-first, multi-device connected philosophy. By prioritizing on-device model deployment, it reduces costs while preserving privacy, minimizing latency, and enabling offline functionality. Key capabilities include unified data access, uninterrupted task handoff between devices, intelligent multi-model routing, and dynamic compute scaling — plus built-in features for knowledge accumulation, skill expansion, persona customization, and automated task execution.

Four Scenarios, One Intelligent Ecosystem

The enterprise lineup features high-performance AI workstations, AI servers, AI NAS, Mini PCs, and motherboards. Workstations support up to 96-core processors and four double-width GPUs with integrated BMC remote management. AI servers run dual Intel Xeon scalable processors with up to eight mainstream AI accelerators. The single-GPU workstation series offers dual-platform compatibility with both Intel and AMD, featuring a PCIe 5.0 ×16 slot and up to 128GB DDR5 memory. Available in two form factors — a 23.9L tower chassis and a 15.3L compact chassis with tempered glass side panel — it delivers balanced performance for both creative workloads and local AI inference. The AI NAS unifies storage and AI computing power in one device, with192GB of octa-channel LPDDR5X memory to support local large model deployment. Ailyn unifies these resources into a private computing backbone, intelligently offloading heavy workloads so users get instant on-device responsiveness with datacenter-grade power on demand.

For individual users, the showcase includes Mini PCs, AI PCs, AI tablets, and multimodal wearables. The AP16, powered by Intel’s 3rd Generation Core™ Ultra processor, delivers 180 TOPS of AI performance with sustained 54W output — capable of running large models locally. Multimodal wearable solutions built on Qualcomm and BES chips offer faster time-to-market for brand partners. Within the Ailyn ecosystem, PCs handle heavy computing while wearables provide continuous environmental awareness, each device strengthening the whole.

Industrial visitors will find AI BOX units, rugged AI notebooks, handheld terminals, and industrial PCs. AI BOX devices come preloaded with industry-specific models for production line visual inspection. Rugged notebooks deliver reliable performance for mobile field operations. Industrial PCs feature industrial-grade architecture for 24/7 uptime. Through Ailyn, these connected devices break down traditional data silos, enabling intelligent resource orchestration and a closed-loop perception-decision-execution system that accelerates industrial digital transformation.

At the center of the home scenario are AI tablets and home NAS, connected to a full-house AIoT network. The NAS acts as the family’s private data and computing hub, while the tablet serves as the primary interface for senior health reminders and children’s learning support. Ailyn weaves these devices into a cohesive system covering family memories, health care, companionship, and home security — bringing intelligence into daily life without intruding on it.

The launch of Ailyn marks a significant evolution for Emdoor — shifting from a hardware manufacturer to a builder of intelligent infrastructure. It represents the convergence of the company’s deep hardware heritage and its AI innovation roadmap. Moving forward, Emdoor will continue investing in edge AI technology and expanding the Ailyn ecosystem alongside partners, bringing distributed intelligence from the showroom into everyday life.

Company: Emdoor Digital Technology Co.,Ltd.
Contact Person: Yao Zhou
Email: marketing.digi@emdoor.com
Website: http://www.emdoordigi.com/
City: Shenzhen, China

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SOURCE Emdoor Digital