Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to Financial Statements

			Report of Independent Registered Public Accounting Firm			38
			Management's Annual Report on Internal Control over Financial Reporting			40
			Financial Statements
			Consolidated Statements of Income,
			Years Ended June 30, 2026, 2025, and 2024			41
			Consolidated Balance Sheets,
			June 30, 2026, and 2025			42
			Consolidated Statements of Changes in Stockholders' Equity,
			Years Ended June 30, 2026, 2025, and 2024			43
			Consolidated Statements of Cash Flows,
			Years Ended June 30, 2026, 2025, and 2024			44
			Notes to Consolidated Financial Statements			45

Financial Statement Schedules

There are no schedules included because they are not applicable, or the required information is shown in the consolidated financial statements or notes thereto.

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of Jack Henry & Associates, Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Jack Henry & Associates, Inc. and its subsidiaries (the "Company") as of June 30, 2026 and 2025, and the related consolidated statements of income, of changes in stockholders’ equity and of cash flows for each of the three years in the period ended June 30, 2026, including the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2026 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue Recognition – estimating variable consideration

As described in Notes 1 and 2 to the consolidated financial statements, the Company recorded revenue of $2.544 billion for the year ended June 30, 2026. The Company enters into contracts with its clients that may include multiple types of goods and services. The amount of revenue recognized is based on the consideration the Company expects to receive in exchange for transferring goods and services to the client. The Company’s contracts with its clients frequently contain some component of variable consideration. Management estimates variable consideration in its contracts primarily using the expected value method, based on both historical and current information. Where appropriate, the Company may constrain the estimated variable consideration included in the transaction price in the event of a high degree of uncertainty as to the final consideration amount. At contract inception, management assesses the solutions and services promised in its contracts with clients and identifies a performance obligation for each promise to transfer to the client a solution or service (or bundle of solutions or services) that is distinct - that is, if the solution or service is separately identifiable from other items in the arrangement and if the client can benefit from the solution or service on its own or together with other resources that are readily available. The Company recognizes revenue when or as it satisfies each performance obligation by transferring control of a solution or service to the client. Significant judgment is used in the estimate of variable consideration of client contracts that are long-term and include varying transactional volumes.

The principal considerations for our determination that performing procedures relating to the estimation of variable consideration is a critical audit matter are significant judgment by management to estimate the variable consideration, principally, the varying volume of transactional activity. This in turn resulted in a high degree of auditor judgment, subjectivity, and effort in performing our audit procedures and in evaluating the audit evidence obtained.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including the estimation of variable consideration. These procedures also included, among others, evaluating and testing management’s process for determining the variable consideration and testing the reasonableness of management’s estimation of variable consideration. Testing the estimation of variable consideration included evaluating the terms and conditions of the long-term contracts and the related significant assumptions used in the estimate of the variable consideration, principally, the use of historical transaction volumes to estimate the varying volume of transactional activity. The procedures for testing variable consideration included evaluation of the terms and conditions for a sample of contracts.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

August 28, 2026

We have served as the Company’s auditor since 2015.

MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of Jack Henry & Associates, Inc. is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(e). The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s consolidated financial statements for external reporting purposes in accordance with U.S. GAAP.

The Company’s internal control over financial reporting includes policies and procedures pertaining to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets of the Company; provide reasonable assurance transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with U.S. GAAP, and receipts and expenditures of the Company are being made only in accordance with authorizations of management and the directors of the Company; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the Company’s consolidated financial statements. All internal controls, no matter how well designed, have inherent limitations. Therefore, even where internal control over financial reporting is determined to be effective, it can provide only reasonable assurance. Projections of any evaluation of effectiveness to future periods are subject to the risk controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

As of June 30, 2026, management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting based on the framework established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on this assessment, management has concluded the Company’s internal control over financial reporting as of June 30, 2026, was effective.

The Company’s internal control over financial reporting as of June 30, 2026, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report appearing in this Item 8.

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)
			Year Ended
			June 30,
			2026						2025						2024
REVENUE			$	2,544,339					$	2,375,288					$	2,215,543
EXPENSES
Cost of Revenue			1,433,651						1,360,747						1,299,477
Research and Development			176,445						162,771						148,256
Selling, General, and Administrative			299,210						283,055						278,419
Total Expenses			1,909,306						1,806,573						1,726,152
OPERATING INCOME			635,033						568,715						489,391
INTEREST INCOME
Interest Income			23,144						27,759						25,012
Interest Expense			(5,387)						(10,438)						(16,384)
Total Interest Income			17,757						17,321						8,628
INCOME BEFORE INCOME TAXES			652,790						586,036						498,019
PROVISION FOR INCOME TAXES			150,014						130,288						116,203
NET INCOME			$	502,776					$	455,748					$	381,816
Basic earnings per share			$	7.00					$	6.25					$	5.24
Basic weighted average shares outstanding			71,866						72,874						72,867
Diluted earnings per share			$	6.98					$	6.24					$	5.23
Diluted weighted average shares outstanding			72,043						73,045						73,025

See notes to consolidated financial statements.

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Data)
			June 30, 2026						June 30, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			$	12,056					$	101,953
Receivables, net			349,111						317,977
Income tax receivable			6,899						—
Prepaid expenses and other			193,488						180,151
Deferred costs			78,369						75,777
Assets held for sale			9,172						5,606
Total current assets			649,095						681,464
PROPERTY AND EQUIPMENT, net			220,470						220,964
OTHER ASSETS:
Non-current deferred costs			226,853						207,861
Computer software, net of amortization			656,288						617,029
Other non-current assets			504,884						443,624
Customer relationships, net of amortization			42,419						48,440
Other intangible assets, net of amortization			17,962						19,791
Goodwill			827,740						804,797
Total other assets			2,276,146						2,141,542
Total assets			$	3,145,711					$	3,043,970
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable			$	34,935					$	28,186
Accrued expenses			226,541						207,434
Accrued income taxes			—						9,679
Deferred revenues			294,763						290,485
Total current liabilities			556,239						535,784
LONG-TERM LIABILITIES:
Non-current deferred revenues			77,709						72,889
Deferred income tax liability			366,058						240,026
Debt			40,000						—
Other long-term liabilities			53,756						64,439
Total long-term liabilities			537,523						377,354
Total liabilities			1,093,762						913,138
STOCKHOLDERS' EQUITY
Preferred stock - $1 par value; 500,000 shares authorized, none issued			—						—
Common stock - $0.01 par value; 250,000,000 shares authorized; 104,597,621 shares issued at June 30, 2026; 104,415,989 shares issued at June 30, 2025			1,046						1,044
Additional paid-in capital			689,135						652,218
Retained earnings			3,705,165						3,372,794
Less treasury stock at cost 34,526,862 shares at June 30, 2026; 31,579,598 shares at June 30, 2025			(2,343,397)						(1,895,224)
Total stockholders' equity			2,051,949						2,130,832
Total liabilities and equity			$	3,145,711					$	3,043,970

See notes to consolidated financial statements.

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(In Thousands, Except Share and Per Share Data)
			Year Ended June 30,
			2026						2025						2024
PREFERRED SHARES:			—						—						—
COMMON SHARES:
Shares, beginning of year			104,415,989						104,245,089						104,088,784
Shares issued for equity-based payment arrangements			88,203						91,252						65,766
Shares issued for Employee Stock Purchase Plan			93,429						79,648						90,539
Shares, end of year			104,597,621						104,415,989						104,245,089
COMMON STOCK - PAR VALUE $0.01 PER SHARE:
Balance, beginning of year			$	1,044					$	1,042					$	1,041
Shares issued for equity-based payment arrangements			1						1						—
Shares issued for Employee Stock Purchase Plan			1						1						1
Balance, end of year			$	1,046					$	1,044					$	1,042
ADDITIONAL PAID-IN CAPITAL:
Balance, beginning of year			$	652,218					$	619,805					$	583,836
Shares issued for equity-based payment arrangements			(1)						—						—
Tax withholding related to share-based compensation			(7,177)						(7,726)						(5,378)
Shares issued for Employee Stock Purchase Plan			11,635						11,747						12,474
Stock-based compensation expense			32,460						28,392						28,873
Balance, end of year			$	689,135					$	652,218					$	619,805
RETAINED EARNINGS:
Balance, beginning of year			$	3,372,794					$	3,081,690					$	2,855,751
Net income			502,776						455,748						381,816
Dividends			(170,405)						(164,644)						(155,877)
Balance, end of year			$	3,705,165					$	3,372,794					$	3,081,690
TREASURY STOCK:
Balance, beginning of year			$	(1,895,224)					$	(1,860,173)					$	(1,832,118)
Purchase of treasury shares			(448,173)						(35,051)						(28,055)
Balance, end of year			$	(2,343,397)					$	(1,895,224)					$	(1,860,173)
TOTAL STOCKHOLDERS' EQUITY			$	2,051,949					$	2,130,832					$	1,842,364
Dividends declared per share			$	2.38					$	2.26					$	2.14

See notes to consolidated financial statements.

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
			Year Ended
			June 30,
			2026						2025						2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income			$	502,776					$	455,748					$	381,816
Adjustments to reconcile net income from operations to net cash from operating activities:
Depreciation			42,103						43,700						46,342
Amortization			171,138						161,051						153,562
Change in deferred income taxes			126,032						(3,496)						(909)
Expense for stock-based compensation			32,460						28,392						28,873
Gain on disposal of assets			2,563						1,966						3,841
Changes in operating assets and liabilities:
Change in receivables			(29,268)						15,056						28,219
Change in prepaid expenses, deferred costs and other			(85,512)						(50,933)						(115,558)
Change in accounts payable			(1,431)						2,646						5,435
Change in accrued expenses			6,322						(3,115)						37,292
Change in income taxes			(14,322)						16,048						9,925
Change in deferred revenues			9,099						(25,559)						(10,797)
Net cash from operating activities			761,960						641,504						568,041
CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for acquisitions			(42,390)						—						—
Capital expenditures			(67,103)						(53,358)						(58,118)
Proceeds from sale of assets			32,827						3						904
Purchased software			(4,108)						(5,363)						(7,130)
Computer software developed			(184,243)						(172,445)						(167,175)
Proceeds from investments			1,000						1,000						—
Purchase of investments			(13,721)						(2,000)						(8,646)
Net cash from investing activities			(277,738)						(232,163)						(240,165)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on credit facilities			480,000						350,000						475,000
Repayments on credit facilities			(440,000)						(500,000)						(600,000)
Purchase of treasury stock			(448,173)						(35,051)						(28,055)
Dividends paid			(170,405)						(164,644)						(155,877)
Proceeds from stock issued for equity-based payment arrangements			1						2						—
Tax withholding payments related to share-based compensation			(7,177)						(7,726)						(5,378)
Proceeds from sale of common stock			11,635						11,747						12,475
Net cash from financing activities			(574,119)						(345,672)						(301,835)
NET CHANGE IN CASH AND CASH EQUIVALENTS			$	(89,897)					$	63,669					$	26,041
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			$	101,953					$	38,284					$	12,243
CASH AND CASH EQUIVALENTS, END OF PERIOD			$	12,056					$	101,953					$	38,284

See notes to consolidated financial statements.

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, Except Per Share Amounts)

NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF THE COMPANY

Jack Henry & Associates, Inc. and subsidiaries ("Jack Henry" or the "Company") is a well-rounded financial technology company. Jack Henry was founded in 1976 as a provider of core processing solutions for banks. Today, the Company’s extensive array of products and services includes processing transactions, automating business processes, and managing information for over 7,200 banks, credit unions, and diverse corporate entities.

CONSOLIDATION

The consolidated financial statements include the accounts of Jack Henry and all its subsidiaries, which are wholly owned, and all intercompany accounts and transactions have been eliminated.

USE OF ESTIMATES

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

REVENUE RECOGNITION

The Company generates "Services and Support" revenue through private cloud core and complementary software solutions, professional services, software licensing and related services, and hardware sales. The Company generates "Processing" revenue through processing of remittance transactions, electronic payment services, card transactions and monthly fees, and digital transactions.

Identification of performance obligations

The Company enters into contracts with clients that may include multiple types of goods and services. At contract inception, the Company assesses the solutions and services promised in its contracts with clients and identifies a performance obligation for each promise to transfer to the client a solution or service (or bundle of solutions or services) that is distinct - that is, if the solution or service is separately identifiable from other items in the arrangement and if the client can benefit from the solution or service on its own or together with other resources that are readily available. Judgment is used in the identification and accounting for all performance obligations.

Determination of transaction price

The amount of revenue recognized is based on the consideration the Company expects to receive in exchange for transferring goods and services to the client. The Company’s contracts with its clients frequently contain some component of variable consideration. The Company estimates variable consideration in its contracts primarily using the expected value method, based on both historical and current information. Where appropriate, the Company may constrain the estimated variable consideration included in the transaction price in the event of a high degree of uncertainty as to the final consideration amount. Significant judgment is used in the estimate of variable consideration of client contracts that are long-term and include varying transactional volumes.

Allocation of transaction price

The transaction price, once determined, is allocated between the various performance obligations in the contract based upon their relative standalone selling prices. The standalone selling prices are determined based on the prices at which the Company separately sells each good or service. For items that are not sold separately, the Company estimates the standalone selling prices using all information that is reasonably available, including reference to historical pricing data.

COMPUTER SOFTWARE DEVELOPMENT

The Company capitalizes new product development costs incurred for software to be sold from the point at which technological feasibility has been established through the point at which the product is ready for general availability. Software development costs that are capitalized are evaluated on a product-by-product basis annually for impairment and are assigned an estimated economic life based on the type of product, market characteristics, and maturity of the market for that particular product. These costs are amortized based on current and estimated future revenue from the product or on a straight-line basis, whichever yields greater amortization expense.

The Company capitalizes development costs for internal use software beginning at the start of application development. Amortization begins on the date the software is placed in service and the amortization period is based on estimated useful life. All the above amortization expense is included within components of operating income, primarily cost of revenue. Capitalized development costs for software to be sold and internal use software are included within computer software, net of amortization in the Company's consolidated balance sheets.

CASH EQUIVALENTS

The Company considers all highly liquid investments with maturities of three months or less at the time of acquisition to be cash equivalents.

ACCOUNTS RECEIVABLE

Receivables are recorded at the time of billing. The Company monitors trade and other receivable balances and contract assets and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events.

The following table summarizes allowance for credit losses activity for the fiscal years ended June 30, 2026, and 2025:

			Year Ended June 30,
			2026						2025
Allowance for credit losses - beginning balance			$	6,659					$	7,477
Current provision for expected credit losses			1,920						2,320
Write-offs charged against allowance			(2,250)						(2,977)
Other			(68)						(161)
Allowance for credit losses - ending balance			$	6,261					$	6,659

PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS

Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets.

Intangible assets consist of goodwill, customer relationships, computer software, and trade names acquired in business acquisitions in addition to internally developed computer software. The amounts are amortized, with the exception of those with an indefinite life (goodwill), over an estimated economic benefit period, generally three to twenty years.

The Company reviews its long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances have indicated that it is more likely than not that the carrying amount of its assets might not be recoverable. The Company evaluates goodwill for impairment of value on an annual basis as of January 1 and between annual tests if events or changes in circumstances indicate that it is more likely than not that the asset might be impaired.

PURCHASE OF INVESTMENTS

At June 30, 2026, and 2025, the Company had $33,460 and $25,750 in non-current investments, respectively. These investments were recorded at cost and are included within other non-current assets on the Company's consolidated balance sheets. The fair values of these investments have not been estimated, as estimation is not practicable due to limited investors which reduces available comparative information. There have been no events or changes in circumstances that would indicate an impairment and no price changes resulting from observing similar or identical investments. An impairment and/or an observable price change would be an adjustment to recorded cost. Fair values will not be estimated unless there are identified events or changes in circumstances that may have a significant effect on the fair values of the investments. Equity transactions are monitored quarterly to assess whether there are indicators that fair value may be below carrying value.

COMPREHENSIVE INCOME

Comprehensive income for each of the fiscal years ending June 30, 2026, 2025, and 2024, equals the Company’s net income.

REPORTABLE SEGMENT INFORMATION

In accordance with U.S. GAAP, the Company's operations are classified as four reportable segments: Core, Payments, Complementary, and Corporate Services (see Note 14). Substantially all the Company’s revenues are derived from operations and assets located within the United States of America.

COMMON STOCK

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or short-term borrowings on its existing credit facilities. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. During fiscal 2026, the Board of Directors authorized an increase of 5,000 shares to the existing share repurchase program. At June 30, 2026, there were 34,527 shares in treasury stock and the Company had the remaining authority to repurchase up to 5,464 additional shares of its common stock. The total cost of treasury shares at June 30, 2026, was $2,343,397. During fiscal 2026, the Company repurchased 2,947 shares of its common stock for $448,173 to be held in treasury. At June 30, 2025, there were 31,580 shares in treasury stock and the Company had authority to repurchase up to 3,411 additional shares of its common stock.

EARNINGS PER SHARE

Per share information is based on the weighted average number of common shares outstanding during the year. Stock options, restricted stock units, and performance units have been included in the calculation of income per diluted share to the extent they are dilutive. The difference between basic and diluted weighted average shares outstanding is the dilutive effect of outstanding stock options, restricted stock units, and performance units (see Note 11).

INCOME TAXES

Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement and tax bases of assets and liabilities. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based upon the technical merits of the position. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Also, interest and penalties expense are recognized on the full amount of unrecognized benefits for uncertain tax positions. The Company's policy is to include interest and penalties related to unrecognized tax benefits in income tax expense.

RECENT ACCOUNTING PRONOUNCEMENTS

Recently Adopted Accounting Guidance

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The ASU requires additional disclosure related to rate reconciliation, income taxes paid, and other disclosures to improve the effectiveness of income tax disclosures. The Company adopted this ASU for the fiscal year ending June 30, 2026, with prospective application. Additional information regarding the Company's income tax rate reconciliations, including the application of the provisions of ASU 2023-09 for the fiscal year ending June 30, 2026, is included in Note 8 to the consolidated financial statements.

Not Adopted at Fiscal Year End

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires more detailed disclosures of certain categories of expenses such as employee compensation, depreciation, and intangible asset amortization that are components of existing expense captions presented on the face of the consolidated statements of income. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which amends guidance related to the accounting for internal-use software development costs. The amendments are intended to modernize the recognition and capitalization framework to reflect current software development practices, including iterative and agile methodologies, by removing references to "development stages". It also clarifies the criteria for capitalization, which begins when both of the following occur: (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The ASU is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

NOTE 2. REVENUE AND DEFERRED COSTS

Revenue Recognition

The Company generates revenue from data processing, transaction processing, professional services, software licensing and related services, and hardware sales.

The Company recognizes revenue when or as it satisfies each performance obligation by transferring control of a solution or service to the client.

The following describes the nature of the Company’s primary types of revenue:

Processing

Processing revenue is generated from transaction-based fees for electronic deposit and payment services, electronic funds transfers and debit and credit card processing. The Company’s arrangements for these services typically require the Company to “stand-ready” to provide specific services on a when and if needed basis by processing an unspecified number of transactions over the contractual term. The fees for these services may be fixed or variable (based upon performing an unspecified quantity of services), and pricing may include tiered pricing structures. Amounts of revenue allocated to these services are recognized as those services are performed. Clients are typically billed monthly for transactions processed during the month. The Company evaluates tiered pricing to determine if a material right exists. If, after that evaluation, it determines a material right does exist, it assigns value to the material right based upon standalone selling price after estimation of breakage associated with the material right.

Private and public cloud

Private and public cloud revenue is generated from data and item processing services and hosting fees. The Company’s arrangements for these services typically require the Company to “stand-ready” to provide specific services on a when and if needed basis. The fees for these services may be fixed or variable (based upon performing an unspecified quantity of services), and pricing may include tiered pricing structures. Amounts of revenue allocated to these services are recognized as those services are performed. Data and item processing services are typically billed monthly. The Company evaluates tiered pricing to determine if a material right exists. If, after that evaluation, it determines a material right does exist, it assigns value to the material right based upon standalone selling price.

Product delivery and services

Product delivery and services revenue is generated primarily from software licensing and related professional services and hardware delivery. Software licenses, along with any professional services from which they are not considered distinct, are recognized as they are delivered to the client. Hardware revenue is recognized upon delivery. Professional services that are distinct are recognized as the services are performed.

Deconversion fees are also included within product delivery and services. Deconversion fees are amounts due from the early termination of our Private and Public Cloud, Processing Services and long-term On-premise Support contracts. Although our contracts generally permit the client to voluntarily terminate, an early termination most commonly occurs due to the acquisition of one of our clients by another financial institution. These terminations are considered contract modifications. At the time the termination is signed, we evaluate the contract modification. For the majority of terminations, there is a period of time after the termination has been signed but before services are concluded. Because the future services to be delivered are distinct from those already delivered, the newly modified transaction price (which we refer to as deconversion revenue or fees) is allocated to all remaining performance obligations under the contract and is recognized as those services are delivered.

On-premise support

On-premise support revenue is generated from software maintenance for ongoing client support and software usage, which includes a license and ongoing client support. The Company’s arrangements for these services typically require the Company to “stand-ready” to provide specific services on a when and if needed basis. The fees for these services may be fixed or variable (based upon performing an unspecified quantity of services). Software maintenance fees are typically billed to the client annually in advance and recognized ratably over the maintenance term. Software usage is typically billed annually in advance, with the license delivered and recognized at the outset, and the maintenance fee recognized ratably over the maintenance term. Accordingly, the Company utilizes the practical expedient which allows entities to disregard the effects of a financing component when the contract period is one year or less.

Taxes collected from clients and remitted to governmental authorities are not included in revenue. The Company includes reimbursements from clients for expenses incurred in providing services (such as for postage, travel and telecommunications costs) in revenue, while the related costs are included in cost of revenue.

Disaggregation of Revenue

The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 14 – Reportable Segment Information for disaggregated revenue by type and reportable segment. The majority of the Company’s revenue is earned domestically, with revenue from clients outside the United States comprising less than 1% of total revenue.

			Year Ended June 30,
			2026						2025						2024
Private and Public Cloud			$	816,097					$	756,879					$	682,146
Product Delivery and Services			295,076						251,730						238,723
On-Premise Support			336,830						353,128						355,085
Services and Support			1,448,003						1,361,737						1,275,954
Processing			1,096,336						1,013,551						939,589
Total Revenue			$	2,544,339					$	2,375,288					$	2,215,543

Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with clients.

			June 30, 2026						June 30, 2025
Receivables, net			$	349,111					$	317,977
Contract Assets - Current			40,331						36,221
Contract Assets - Non-current			138,202						121,675
Contract Liabilities (Deferred Revenue) - Current			294,763						290,485
Contract Liabilities (Deferred Revenue) - Non-current			77,709						72,889

Contracts with our clients often include upfront incentive payments or credits provided to clients at or near the inception of an arrangement. These amounts are accounted for as a reduction to the transaction price and are recognized as a reduction to revenue over the term of the related agreement as the services are delivered. They are included in contract assets, the current portion is reported within prepaid expenses and other in the consolidated balance sheets, and the non-current portion is included in other non-current assets. Contract liabilities (deferred

revenue) primarily relate to consideration received from clients in advance of delivery of the related goods and services to the client. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period.

The Company analyzes contract language to identify if a significant financing component does exist and would adjust the transaction price for any material effects of the time value of money if the timing of payments provides either party to the contract with a significant benefit of financing the transaction.

For the fiscal years ended June 30, 2026, 2025, and 2024, the Company recognized revenue of $228,518, $252,710, and $270,241, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods.

Amounts recognized that relate to performance obligations satisfied (or partially satisfied) in prior periods were immaterial for each period presented. These adjustments are primarily the result of transaction price re-allocations due to changes in estimates of variable consideration.

Transaction Price Allocated to Remaining Performance Obligations

As of June 30, 2026, estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period totaled $8,440,905. The Company expects to recognize approximately 23% over the next 12 months, 18% in 13 - 24 months, and the balance thereafter.

Contract Costs

The Company incurs incremental costs to obtain a contract as well as costs to fulfill contracts with clients that are expected to be recovered. These costs consist primarily of sales commissions, which are incurred only if a contract is obtained, and client conversion or implementation-related costs. Capitalized costs to obtain contracts with clients are included within prepaid expenses and other (current portion) and other non-current assets (non-current portion) in the Company's consolidated balance sheets. Capitalized costs to fulfill contracts with clients are included within deferred costs (current portion) and non-current deferred costs (non-current portion) in the Company's consolidated balance sheets. Capitalized costs are amortized based on the transfer of goods or services to which the asset relates, in line with the percentage of revenue recognized for each performance obligation to which the costs are allocated. Capitalized contract costs as of June 30, 2026, and 2025, were as follows:

			June 30, 2026						June 30, 2025
Capitalized costs to obtain contracts with clients1			$	301,521					$	267,726
Capitalized costs to fulfill contracts with clients			298,008						273,988

1 Includes current and non-current capitalized costs of $74,596 and $226,925 at June 30, 2026, respectively, and $82,441 and $185,285 at June 30, 2025, respectively.

During the fiscal years ended June 30, 2026, 2025, and 2024, amortization of capitalized contract costs totaled $195,671, $192,439, and $175,029, respectively. There were no impairment losses in relation to capitalized costs for the periods presented.

NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS

For cash equivalents, certificates of deposit, amounts receivable or payable, and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities.

The Company's estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows:

Level 1: inputs to the valuation are quoted prices in an active market for identical assets.

Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly.

Level 3: valuation is based on significant inputs that are unobservable in the market and the Company's own estimates of assumptions that we believe market participants would use in pricing the asset.

Fair values of financial assets and liabilities are as follows:

						Estimated Fair Value Measurements																		Total Fair
						Level 1						Level 2						Level 3						Value
June 30, 2026
Financial Assets:
Certificates of Deposit						$	—					$	9,701					$	—					$	9,701
Financial Liabilities:
Credit facilities						$	—					$	40,000					$	—					$	40,000
June 30, 2025
Financial Assets:
Certificates of Deposit						$	—					$	4,620					$	—					$	4,620
Financial Liabilities:
Credit facilities						$	—					$	—					$	—					$	—

NOTE 4. LEASES

The Company determines if an arrangement is a lease, or contains a lease, at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The lease term is used to determine lease classification as an operating or finance lease and is used to calculate straight-line expense for operating leases.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and equipment leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. ROU assets also include prepaid lease payments and exclude lease incentives received. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date for both real estate and equipment leases. The determination of the incremental borrowing rate requires judgment. The Company determines the incremental borrowing rate using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term.

The Company leases certain office space, data centers and equipment. The Company’s leases have remaining terms of 6 months to 7 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance, and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the lease liability to the extent they are variable in nature. These variable lease costs are recognized as a variable lease expense when incurred. Certain leases include options to purchase the leased asset at the end of the lease term, which is assessed as a part of the Company’s lease classification determination. The depreciable life of the ROU asset and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option.

At June 30, 2026, and 2025, the Company had operating lease assets of $31,806 and $44,761, respectively. At June 30, 2026, total operating lease liabilities of $37,821 were comprised of current operating lease liabilities of $8,971 and noncurrent operating lease liabilities of $28,850. At June 30, 2025, total operating lease liabilities of $51,187 were comprised of current operating lease liabilities of $9,397 and noncurrent operating lease liabilities of $41,790.

Operating lease assets are included within other non-current assets and operating lease liabilities are included with accrued expenses (current portion) and other long-term liabilities (noncurrent portion) in the Company’s consolidated balance sheets. Operating lease assets were recorded net of accumulated amortization of $43,879 and $41,229 as of June 30, 2026, and 2025, respectively.

Operating lease costs for the fiscal years ended June 30, 2026, 2025, and 2024, were $11,017, $11,420, and $10,598, respectively. Total operating lease costs for the fiscal years ended June 30, 2026, 2025, and 2024, included variable lease costs of $5,956, $2,744, and $4,087, respectively. Operating lease expense is included within cost of revenue, research and development, and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s consolidated statements of income.

For the fiscal years ended June 30, 2026, 2025, and 2024, operating cash flows for payments on operating leases were $11,284, $10,612, and $9,306, respectively, and ROU assets obtained in exchange for operating lease liabilities were $3,302, $7, and $19,222, respectively.

As of June 30, 2026, 2025, and 2024, the weighted-average remaining lease terms for the Company's operating leases were 55 months, 69 months, and 78 months, respectively, and the weighted-average discount rates were 2.85%, 2.71%, and 2.70%, respectively.

Maturity of Lease Liabilities under ASC 842

Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at June 30, 2026:

Due Dates (fiscal year)						Future Minimum Rental Payments
2027						$	10,275
2028						9,982
2029						7,379
2030						6,061
2031						4,777
Thereafter						3,137
Total lease payments						$	41,611
Less: interest						(3,790)
Present value of lease liabilities						$	37,821

During the fiscal year ended June 30, 2026, the Company terminated a lease agreement that, in prior periods, included $5,464 in future lease payments related to an option to extend. Following this termination, the Company has no remaining future lease payments related to options to extend lease terms that are reasonably certain of being exercised. At June 30, 2026, there were $5,920 of material legally binding lease payments for leases signed but not yet commenced.

NOTE 5. PROPERTY AND EQUIPMENT

The classification of property and equipment, together with their estimated useful lives is as follows:

			June 30,
			2026						2025						Estimated Useful Life
Land			$	11,498					$	16,357
Land improvements			19,656						24,679						5 - 20 years
Buildings			92,157						138,898						20 - 30 years
Leasehold improvements			42,356						50,376						5 - 30 years			1
Equipment and furniture			409,348						461,826						3 - 10 years
Aircraft and equipment			67,882						24,959						4 - 10 years
Construction in progress			16,774						3,797
			659,671						720,892
Less accumulated depreciation			439,201						499,928
Property and equipment, net			$	220,470					$	220,964

1 Lesser of lease term or estimated useful life.

The change in property and equipment in accrued liabilities was an increase of $6,960 and $227 for the fiscal years ended June 30, 2026, and 2025, respectively. These amounts were excluded from capital expenditures on the consolidated statements of cash flows.

No material impairments of property and equipment were recorded in the fiscal years ended June 30, 2026, 2025, or 2024.

During the fiscal year ended June 30, 2026, the Company received an offer to purchase one of its facilities and management has committed to a plan to sell the facility. At June 30, 2026, the facility included assets with a carrying value of approximately $9,172. At June 30, 2025, held for sale assets included two aircraft and related equipment with a carrying value of approximately $5,606. The sales of these assets were completed during the fiscal year ended June 30, 2026, which resulted in a gain of $6,829. Total assets held for sale by the Company at June 30, 2026, and 2025, were $9,172 and $5,606, respectively, and were included in assets held for sale on the Company's consolidated balance sheets and were not included in property and equipment, net.

NOTE 6. OTHER ASSETS

Goodwill

The carrying amount of goodwill for the fiscal years ended June 30, 2026, and 2025, by reportable segments, is as follows:

			June 30,
Core			2026						2025
Beginning balance			$	195,578					$	195,578
Goodwill, acquired during the year			—						—
Goodwill, adjustments related to dispositions			—						—
Ending balance			$	195,578					$	195,578
Payments
Beginning balance			$	442,665					$	442,665
Goodwill, acquired during the year			22,943						—
Goodwill, adjustments related to dispositions			—						—
Ending balance			$	465,608					$	442,665
Complementary
Beginning balance			$	166,554					$	166,554
Goodwill, acquired during the year			—						—
Goodwill, adjustments related to dispositions			—						—
Ending balance			$	166,554					$	166,554

Goodwill acquired during fiscal 2026 and 2025 was $22,943 and $0, respectively. Goodwill consists largely of the growth potential, synergies and economies of scale expected from combining the operations of the Company with those of the entities or assets acquired, together with their assembled workforces. No goodwill has been assigned to the Company's Corporate Services reportable segment.

Other intangible assets

Information regarding other identifiable intangible assets is as follows:

			June 30, 2026
			Gross Carrying Amount						Accumulated Amortization						Net
Customer relationships			$	300,383					$	(257,964)					$	42,419
Computer software			$	1,880,903					$	(1,224,615)					$	656,288
Other intangible assets			$	105,305					$	(87,343)					$	17,962
			June 30, 2025
			Gross Carrying Amount						Accumulated Amortization						Net
Customer relationships			$	306,036					$	(257,596)					$	48,440
Computer software			$	1,705,697					$	(1,088,668)					$	617,029
Other intangible assets			$	110,352					$	(90,561)					$	19,791

Customer relationships have useful lives ranging from 5 to 20 years.

Computer software includes cost of software to be sold, leased, or marketed, net of amortization, of $163,495 and costs of internal-use software, net of amortization, of $492,793 at June 30, 2026. At June 30, 2025, costs of software to be sold, leased, or marketed, net of amortization, totaled $182,757, and costs of internal-use software, net of amortization, totaled $434,272.

Computer software includes the unamortized cost of software products developed or acquired by the Company, which are capitalized and amortized over useful lives generally ranging from 5 to 15 years. Amortization expense for

computer software totaled $154,212, $148,734, and $137,958 for the fiscal years ended June 30, 2026, 2025, and 2024, respectively. There were no material impairments in fiscal years ended June 30, 2026, 2025, and 2024.

The Company's other intangible assets have useful lives ranging from 3 to 20 years.

Amortization expense for all intangible assets was $171,138, $161,051, and $153,562 for the fiscal years ended June 30, 2026, 2025, and 2024, respectively. The estimated aggregate future amortization expense for each of the next five years for all intangible assets remaining as of June 30, 2026, is as follows:

Years Ending June 30,			Computer Software						Customer Relationships						Other Intangible Assets						Total
2027			$	149,147					$	8,052					$	5,794					$	162,993
2028			123,700						8,021						3,846						135,567
2029			100,023						7,976						2,872						110,871
2030			73,818						7,456						1,559						82,833
2031			38,909						3,077						1,072						43,058

NOTE 7. DEBT

The Company had $40,000 outstanding debt at June 30, 2026, related to credit facilities. The Company had no outstanding debt at June 30, 2025.

Credit facilities

On March 25, 2026, the Company entered into a five-year, revolving, unsecured credit agreement that replaced the prior credit agreement described below. The credit agreement allows for borrowings of up to $1,000,000 and allows for additional revolving credit commitments and/or term loan commitments, pursuant to the terms and subject to certain limitations set forth in the credit agreement. The credit agreement bears interest at a variable rate equal to, at the option of the Company, either (a) a rate based on adjusted Term Secured Overnight Financing Rate ("SOFR") rate or (b) an alternate base rate (the highest of (i) 0.0%, (ii) U.S. Bank's prime rate, (iii) the Federal Funds Rate plus 0.50% and (iv) a one month adjusted Term SOFR rate plus 1.0%), plus an applicable percentage in each case determined based on the Company's leverage ratio. The credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit agreement. As of June 30, 2026, the Company was in compliance with all such covenants. The credit agreement terminates March 25, 2031. There was $40,000 outstanding under the credit facility at June 30, 2026.

The credit agreement described above replaced a prior five-year senior, unsecured amended and restated credit agreement that was entered into on August 31, 2022. The prior credit agreement allowed for borrowings of up to $600,000, which could be increased to $1,000,000 by the Company at any time until maturity. The prior credit agreement bore interest at a variable rate equal to (a) a rate based on an adjusted SOFR term rate or (b) an alternate base rate (the highest of (i) 0.0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The prior credit agreement was guaranteed by certain subsidiaries of the Company and was subject to various financial covenants that required the Company to maintain certain financial ratios as defined in the prior credit agreement. The prior credit agreement's termination date was August 31, 2027. There was no balance outstanding under the prior credit facility at June 30, 2025.

Other lines of credit

On October 31, 2024, the Company entered into a discretionary line of credit demand note, which provided for funding of up to $50,000 and bore interest at the prime rate less 2.0%. The note did not constitute a committed line of credit. The line of credit expired on October 31, 2025. There was no balance outstanding at June 30, 2025.

On July 18, 2025, the Company entered into an unsecured committed revolving line of credit facility with a commercial bank in the amount of $50,000, which bore interest at the prime rate less 1.0%. The line of credit expired on July 17, 2026. There was no balance outstanding at June 30, 2026.

Interest

The Company paid interest of $4,606, $10,044, and $15,757 during the fiscal years ended June 30, 2026, 2025, and 2024, respectively.

NOTE 8. INCOME TAXES

The provision for income taxes consists of the following:

			Year Ended June 30,
			2026						2025						2024
Current:
Federal			$	2,696					$	109,633					$	93,890
State			21,286						24,151						23,222
Deferred:
Federal			117,316						(5,159)						(1,615)
State			8,716						1,663						706
			$	150,014					$	130,288					$	116,203

The tax effects of temporary differences related to deferred taxes shown on the consolidated balance sheets were:

			June 30,
			2026						2025
Deferred tax assets:
Contract and service revenues			$	25,410					$	25,489
Expense reserves and accruals (bad debts and compensation)			23,562						17,022
Leasing liabilities			9,298						12,590
Developed software and research and development amortization			—						14,244
Net operating loss and tax credit carryforwards			358						212
Other, net			1,821						2,503
Total gross deferred tax assets			60,449						72,060
Valuation allowance			(213)						(182)
Net deferred tax assets			60,236						71,878
Deferred tax liabilities:
Property and equipment depreciation			(18,719)						(24,232)
Acquired intangibles amortization			(99,799)						(101,123)
Developed software and research and development amortization			(114,643)						(5,960)
Contract and service costs			(185,314)						(169,579)
Leasing right-of-use assets			(7,819)						(11,010)
Total gross deferred liabilities			(426,294)						(311,904)
Net deferred tax liability			$	(366,058)					$	(240,026)

An income tax rate reconciliation pursuant to the disclosure requirements of ASU 2023-09 for the fiscal year ended June 30, 2026, is as follows:

			Year Ended June 30,
			2026
			Amount						Percent
U.S. federal statutory income tax rate			$	137,086					21.0		%
State and local income taxes, net of federal effect 1			23,702						3.6		%
Tax credits
Research and development tax credits			(12,674)						(1.9)		%
Nontaxable and nondeductible items			4,223						0.7		%
Foreign reconciling items			—						—		%
Worldwide changes in prior year unrecognized tax benefits			(2,323)						(0.4)		%
Total			$	150,014					23.0		%

1 State taxes in California, Illinois, Michigan, Minnesota, New York, Pennsylvania, Tennessee and Texas made up the majority (greater than 50 percent) of the tax effect in this category.

A reconciliation of the U.S. federal statutory income tax rate to the Company's effective income tax rate for the fiscal years ended June 30, 2025, and 2024, is as follows:

						Year Ended June 30,
									2025						2024
Computed "expected" tax expense									21.0		%				21.0		%
Increase (reduction) in taxes resulting from:
State income taxes, net of federal income tax benefits									3.5		%				3.8		%
Research and development credit									(2.2)		%				(2.6)		%
Changes to prior year uncertain tax positions									(0.3)		%				0.6		%
Other (net)									0.2		%				0.5		%
									22.2		%				23.3		%

The Company paid income taxes, net of refunds, in the following jurisdictions for the fiscal year ended June 30, 2026:

			Year Ended June 30,
			2026
U.S. federal			$	19,354
U.S. state and local:
California			2,017
New York			2,042
Pennsylvania			2,019
Other			13,436
Total state income taxes			19,514
Total cash paid for income taxes, net of refunds received			$	38,868

The amount of income taxes paid, net of refunds, for the fiscal years ended June 30, 2025, and 2024, was $117,581 and $106,966, respectively.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, introducing significant changes to U.S. federal income tax law. Key provisions affecting the Company include the permanent restoration of immediate expensing for domestic research and development (“R&D”) expenditures, an election to deduct the unamortized balance of domestic R&D expenditures that were previously capitalized under the Tax Cuts and Jobs Act of 2017 (“TCJA”), and the reinstatement of 100% bonus depreciation for qualified property placed in service after January 19, 2025. The legislation did not materially impact the effective tax rate in the current period, and the Company does not anticipate a material impact in future periods. However, the Company had a significant reduction in cash tax payments and income taxes payable for the current fiscal year as well as a decrease in deferred tax assets related to the key provisions cited above. All tax effects of the change in tax law on current or deferred tax balances have been recorded as a component of the income tax provision related to continuing operations.

As of June 30, 2026, the Company has state net operating loss and tax credit carryforwards with a tax-effected value of $93 and $265, respectively. The state net operating loss and tax credit carryover have varying expiration dates, ranging from fiscal 2027 to 2046. Based on state tax rules which restrict utilization of these losses and tax credits, the Company believes it is more likely than not that $213 of these losses and tax credits will expire unutilized. Accordingly, valuation allowances of $213 and $182 have been recorded against the state net operating losses and tax credit carryforwards as of June 30, 2026, and 2025, respectively.

At June 30, 2026, the Company had $23,639 of gross unrecognized tax benefits, $21,189 of which, if recognized, would affect its effective tax rate. At June 30, 2025, the Company had $21,723 of gross unrecognized tax benefits, $19,526 of which, if recognized, would affect its effective tax rate. The Company had accrued interest and penalties of $5,266 and $4,375 related to uncertain tax positions at June 30, 2026, and 2025, respectively. The gross unrecognized tax benefits and accrued interest and penalties are recorded as other long-term liabilities in the Company’s consolidated balance sheets, except for $3,999 and $3,449 recorded as a reduction to deferred income tax assets at June 30, 2026 and 2025, respectively. The income tax provision included interest expense and penalties (or benefits) on unrecognized tax benefits of $705, $796, and $1,132 in the fiscal years ended June 30, 2026, 2025, and 2024, respectively.

A reconciliation of the unrecognized tax benefits for the fiscal years ended June 30, 2026, 2025, and 2024, follows:

			Unrecognized Tax Benefits
Balance at July 1, 2023			$	12,005
Additions for current year tax positions			3,924
Additions for prior year tax positions			4,672
Reductions for prior year tax positions			—
Reductions related to expirations of statute of limitations			(1,524)
Balance at June 30, 2024			19,077
Additions for current year tax positions			4,480
Additions for prior year tax positions			834
Reductions for prior year tax positions			(27)
Reductions related to expirations of statute of limitations			(2,641)
Balance at June 30, 2025			21,723
Additions for current year tax positions			4,256
Additions for prior year tax positions			720
Reductions for prior year tax positions			(82)
Reductions related to expirations of statute of limitations			(2,978)
Balance at June 30, 2026			$	23,639

The U.S. federal and state income tax returns for fiscal 2023 and all subsequent years remain subject to examination as of June 30, 2026, under statute of limitations rules. In addition, certain U.S. state income tax returns remain subject to examination as of June 30, 2026, under the statute of limitation rules for fiscal 2016 through 2022. The Internal Revenue Service (“IRS”) is currently conducting an examination of the Company’s U.S. federal income tax returns for the fiscal tax years 2023, 2024, and 2025. The IRS examination of fiscal year 2023 was initiated during the first quarter of fiscal year 2026, and the Company was notified the examination would include fiscal years 2024 and 2025 during the fourth quarter of fiscal year 2026. As of June 30, 2026, these examinations are still ongoing and the Company does not anticipate any findings that would be material to the consolidated financial statements.

NOTE 9. INDUSTRY AND SUPPLIER CONCENTRATION

The Company sells its products to banks, credit unions, and financial institutions throughout the United States and generally does not require collateral. Billings to clients are typically due 30 days from date of billing. Reserves are maintained for potential credit losses. Client-related risks are moderated through the inclusion of credit mitigation clauses in the Company's contracts and through the monitoring of timely payments.

In addition, some of the Company’s key solutions are dependent on technology manufactured by third parties. Termination of the Company’s relationship with one or more of these third parties could have a negative impact on the operations of the Company.

NOTE 10. STOCK-BASED COMPENSATION

The Company's pre-tax operating income for the fiscal years ended June 30, 2026, 2025, and 2024, includes $32,460, $28,392, and $28,873, respectively, of equity-based compensation costs, of which $29,685, $25,757, and $26,361, respectively, relates to the equity incentive plans. Costs are recorded net of estimated forfeitures. The total income tax benefits from equity-based compensation for the fiscal years ended June 30, 2026, 2025, and 2024, were $4,806, $4,479, and $4,495, respectively. These income tax benefits from stock option exercises and restricted stock vestings included income tax net shortfalls of $739 and $184 for the fiscal years ended June 30, 2026 and June 30, 2024, respectively, and income tax net excess benefits of $283 for the fiscal year ended June 30, 2025.

On November 10, 2015, the Company adopted the 2015 Equity Incentive Plan (“2015 EIP”) for its associates and non-employee directors. The plan expired on November 10, 2025. The plan allowed for grants of stock options, stock appreciation rights, restricted stock shares or units, and performance shares or units. The maximum number of shares that were authorized for issuance under the plan was 3,000.

On November 12, 2025, the Company adopted the 2025 Equity Incentive Plan ("2025 EIP") for its associates and non-employee directors. The plan allows for grants of stock options, restricted stock shares or units, and performance shares or units. The maximum number of shares authorized for issuance under the plan is 4,700.

Restricted stock unit and performance unit awards

The Company issued unit awards under the 2015 EIP until November 10, 2025, the date on which the 2015 EIP expired. Subsequent to this expiration, unit awards were issued under the 2025 EIP. With respect to awards of restricted stock units and performance units, it is the intention of the Company to settle the unit awards in shares of the Company’s stock. Restricted stock unit awards (which are unit awards that have service requirements only and are not tied to performance measures) generally vest over a period of 1 to 3 years. Performance unit awards are awards that have performance measures in addition to service requirements.

The following table summarizes non-vested restricted stock unit awards and performance unit awards as of June 30, 2026, as well as activity for the fiscal year then ended:

Unit awards			Shares						Weighted Average Grant Date Fair Value						Aggregate Intrinsic Value
Outstanding July 1, 2023			303						$	190.08
Granted1			160						177.95
Vested			(99)						170.25
Forfeited2			(39)						194.11
Outstanding July 1, 2024			325						189.68
Granted1			162						171.90
Vested			(122)						183.64
Forfeited2			(17)						182.81
Outstanding July 1, 2025			348						183.88
Granted1			175						168.37
Vested			(122)						187.85
Forfeited2			(40)						217.56
Outstanding June 30, 2026			361						$	171.30					$	49,653

1 Granted includes restricted stock unit awards and performance unit awards with market conditions at 100% achievement.

2 Forfeited includes restricted stock unit awards and performance unit awards forfeited for service requirements not met and performance unit awards not settled due to underachievement of performance measures.

Of the 175 unit awards granted in fiscal 2026, 124 were restricted stock unit awards and 51 were performance unit awards. The payout at release of a portion of the performance unit awards will be determined based on the Company's compound annual growth rate for revenue (excluding adjustments) for the first fiscal year vesting period, second fiscal year vesting period, third fiscal year vesting period, and the cumulative fiscal three-year vesting period compared against goal thresholds as defined in the award agreement. The payout at release of a portion of the performance unit awards will be determined based on the expansion of the Company's non-GAAP operating margin over the first fiscal year vesting period, second fiscal year vesting period, third fiscal year vesting period, and the cumulative fiscal three-year vesting period. The payout at release of a portion of the performance unit awards will be determined based on market conditions.

The restricted stock unit awards were valued at the weighted average fair value of the non-vested units based on the fair market value of the Company’s equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period, consistent with the methodology for calculating compensation expense on such awards. 20 of the performance unit awards granted in fiscal 2026 were valued at grant by estimating 100% payout at release and using the fair market value of the Company equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period. 31 of the performance unit awards have market conditions and were valued at grant using a Monte Carlo pricing model as of the measurement date customized to the specific provisions of the Company’s plan design. Per the Company's award vesting and settlement provisions, the performance unit awards that utilized a Monte Carlo pricing model were valued at grant on the basis of Total Shareholder Return ("TSR") in comparison to the Standard and Poor's 900 Index ("S&P 900") participant companies for fiscal year 2026. For fiscal years 2025 and 2024, TSR was in comparison to the compensation peer group made up of participants approved by the Human Capital & Compensation Committee of the Company's Board of Directors. TSR is defined as the change in the stock price through the performance period plus dividends per share paid during the performance period, all divided by the stock price at the beginning of the performance period.

The Monte Carlo inputs used in the model to estimate fair value at the measurement date and resulting values for these performance unit awards are as follows:

			Year Ended June 30,
Monte Carlo award inputs:			2026						2025						2024
Compensation Peer Group:1
Volatility			23.6		%				24.5		%				25.6		%
Risk free interest rate			3.66		%				3.72		%				4.48		%
Annual dividend based on most recent quarterly dividend			$	2.32					$	2.20					$	2.08
Dividend yield			1.4		%				1.3		%				1.2		%
Beginning average percentile rank for TSR			20		%				41		%				74		%

1 For fiscal 2026, this group consisted of the S&P 900 participants. For fiscal 2025 and 2024, this group consisted of participants approved by the Human Capital & Compensation Committee of the Board of Directors.

At June 30, 2026, there was $18,355 of compensation expense that has yet to be recognized related to non-vested restricted stock unit and performance unit awards, which will be recognized over a weighted-average remaining contractual term of 1 year.

The fair values of restricted stock units and performance units at release totaled $21,214, $22,591, and $16,544 for the fiscal years ended June 30, 2026, 2025, and 2024, respectively.

NOTE 11. EARNINGS PER SHARE

The following table reflects the reconciliation between basic and diluted earnings per share.

			Year Ended June 30,
			2026						2025						2024
Net Income			$	502,776					$	455,748					$	381,816
Common share information:
Weighted average shares outstanding for basic earnings per share			71,866						72,874						72,867
Dilutive effect of stock options, restricted stock units, and performance units			177						171						158
Weighted average shares outstanding for diluted earnings per share			72,043						73,045						73,025
Basic earnings per share			$	7.00					$	6.25					$	5.24
Diluted earnings per share			$	6.98					$	6.24					$	5.23

Per share information is based on the weighted average number of common shares outstanding for each of the fiscal years. Stock options, restricted stock units, and performance units have been included in the calculation of earnings per share to the extent they are dilutive. The two-class method for computing EPS has not been applied

because no outstanding awards contain non-forfeitable rights to participate in dividends. There were 6 anti-dilutive weighted average shares excluded from the weighted average shares outstanding for diluted earnings per share for fiscal 2026, 18 shares were excluded for fiscal 2025, and 33 shares were excluded for fiscal 2024.

NOTE 12. EMPLOYEE BENEFIT PLANS

The Company established an employee stock purchase plan (the "Plan") in 2006. On January 1, 2024, the Plan was amended and restated, and allows substantially all associates the opportunity to directly purchase shares of the Company at 85% of the lesser of the fair market value, as defined by the Plan, of the Company's stock on the first trading day or on the last trading day of a three-month offering period, which represents an option. Prior to January 1, 2024, the Plan allowed substantially all associates the opportunity to directly purchase shares of the Company at 85% of the closing price of the Company's stock on or around the fifteenth day of each month. During the fiscal years ended June 30, 2026, 2025, and 2024, associates purchased 93, 80, and 90 shares under the Plan at average prices of $125.84, $147.49, and $137.78, respectively. As of June 30, 2026, approximately 790 shares remained available for future issuance under the Plan. The Plan is considered compensatory, and beginning January 1, 2024, compensation expense is determined based on the option's grant date fair value as estimated by applying the Black-Scholes option-pricing model and is recognized over the offering period. Prior to January 1, 2024, the Company recorded the total dollar value of the stock discount given to associates under the Plan as expense.

The Company has a defined contribution plan for its associates: the 401(k) Retirement Savings Plan (the “Plan”). The Plan is subject to the Employee Retirement Income Security Act of 1975 (“ERISA”) as amended. Under the Plan, the Company matches 100% of full-time associate contributions up to 5% of eligible compensation. Beginning July 1, 2024, in order to receive matching contributions, associates must be at least 18 years of age and be employed for at least thirty days. Prior to July 1, 2024, associates must have been 18 years of age and been employed for at least six months. The Company has the option of making a discretionary contribution; however, none has been made for any of the three most recent fiscal years. The total matching contributions for the Plan were $36,916, $34,751, and $31,995 for the fiscal years ended June 30, 2026, 2025, and 2024, respectively.

NOTE 13. BUSINESS ACQUISITION

Victor Technologies, Inc.

On September 30, 2025, the Company acquired substantially all the assets of Victor Technologies, Inc. ("Victor") for $42,390 paid in cash. The primary reason for the acquisition was to expand the Company's capabilities in the Payments-as-a-Service market. Victor is a cloud-native, API-first provider of direct-to-core embedded payments solutions.

Management has completed a purchase price allocation and assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired, and liabilities assumed, based on their fair values as of September 30, 2025, are set forth below:

Current assets			$	1,866
Identifiable intangible assets			18,800
Total liabilities assumed			(1,219)
Total identifiable net assets			19,447
Goodwill			22,943
Net assets acquired			$	42,390

The amounts shown above include a measurement period adjustment made during the second quarter of fiscal 2026, which resulted in an adjustment to the amount recorded for goodwill.

The goodwill of $22,943 arising from this acquisition consists largely of the growth potential, synergies, and economies of scale expected from combining the operations of the Company with the acquired operations of Victor, together with the value of Victor's assembled workforce. The goodwill from this acquisition has been allocated to our Payments segment and $22,943 is deductible for income tax purposes.

Identifiable intangible assets from this acquisition consist of customer relationships of $2,700, computer software of $15,300, and other intangible assets of $800. The amortization period for acquired customer relationships, computer software, and other intangible assets is over a term of 10 years.

The fair value of current assets acquired included accounts receivable of $1,866, none of which were expected to be uncollectible.

Costs incurred related to the acquisition of Victor were immaterial for the fiscal year ended June 30, 2026.

The accompanying consolidated statements of income for the fiscal year ended June 30, 2026, do not include any revenues and expenses related to this acquisition prior to the acquisition date. The impact of this acquisition was considered immaterial to both the current and prior periods of our consolidated financial statements and pro forma financial information has not been provided.

NOTE 14. REPORTABLE SEGMENT INFORMATION

The Company is a well-rounded financial technology company and is a leading provider of technology solutions and payment processing services primarily to community and regional banks and credit unions.

The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate Services. Prior to the third quarter of fiscal 2026, Corporate Services was referred to as Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized accountholder information. The Payments segment provides secure payment processing tools and services, including ATM, debit, and credit card processing services, online and mobile bill pay solutions, money movement and embedded payment capabilities, remote deposit capture processing, and risk management products and services. The Complementary segment provides additional software, hosted processing platforms, and services, including digital/mobile banking, treasury services, online account opening, fraud/anti-money laundering (“AML”) and lending/deposit solutions that can be integrated with the Company's Core solutions, and many can be used independently. The Corporate Services segment includes revenue and direct costs from hardware and other products and services and our technology infrastructure costs.

The Company's Chief Executive Officer, who is also the Company's chief operating decision maker ("CODM"), regularly evaluated segment performance and made strategic decisions on the allocation of resources to them based on various factors, including performance against trend, budget, and forecast for the fiscal years ended June 30, 2026, 2025, and 2024. The CODM also used reportable segment revenue, costs of revenue, and segment income to evaluate segment performance and allocate resources. The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the CODM.

During the fiscal year ended June 30, 2026, the Company realigned a product from the Corporate Services segment to the Complementary segment. As a result of this realignment, adjustments were made during the fiscal year ended June 30, 2026, to reclassify related revenue and cost of revenue recognized for the fiscal years ended June 30, 2025 and 2024, from the Corporate Services segment to the Complementary segment. Revenue reclassed for the fiscal years ended June 30, 2025 and 2024, was $13,209 and $12,402, respectively. Cost of revenue reclassed for the fiscal years ended June 30, 2025 and 2024, was $2,970 and $2,840, respectively.

Immaterial adjustments have been made between segments during the fiscal year ended June 30, 2026, to reclassify revenue and cost of revenue that was recognized for the fiscal years ended June 30, 2025 and 2024. These reclasses were made to be consistent with the current allocation of revenue and cost of revenue by segment. Revenue reclassed for the fiscal years ended June 30, 2025 and 2024, from the Core segment to the Complementary segment, was $6,353 and $5,471, respectively. Revenue reclassed for the fiscal year ended June 30, 2024, from the Core segment to the Corporate Services segment, was $5. Cost of revenue reclassed for the fiscal years ended June 30, 2025 and 2024, from the Core segment to the Complementary segment, was $1,864 and $1,768, respectively. Cost of revenue reclassed for the fiscal years ended June 30, 2025 and 2024, from the Core segment to the Corporate Services segment, was $269 and $277, respectively.

			Year Ended
			June 30, 2026
			Core						Payments						Complementary						Corporate Services						Total
REVENUE
Services and Support			$	722,703					$	100,157					$	552,755					$	72,388					$	1,448,003
Processing			45,749						835,849						199,459						15,279						1,096,336
Total Revenue			768,452						936,006						752,214						87,667						2,544,339
Cost of Revenue			304,886						479,539						286,726						362,500						1,433,651
Research and Development																											176,445
Selling, General, and Administrative																											299,210
Total Expenses																											1,909,306
SEGMENT INCOME			$	463,566					$	456,467					$	465,488					$	(274,833)
OPERATING INCOME																											635,033
INTEREST INCOME																											17,757
INCOME BEFORE INCOME TAXES																											$	652,790

			Year Ended
			June 30, 2025
			Core						Payments						Complementary						Corporate Services						Total
REVENUE
Services and Support			$	690,731					$	93,480					$	514,888					$	62,638					$	1,361,737
Processing			42,193						780,018						179,883						11,457						1,013,551
Total Revenue			732,924						873,498						694,771						74,095						2,375,288
Cost of Revenue			295,239						460,151						269,657						335,700						1,360,747
Research and Development																											162,771
Selling, General, and Administrative																											283,055
Total Expenses																											1,806,573
SEGMENT INCOME			$	437,685					$	413,347					$	425,114					$	(261,605)
OPERATING INCOME																											568,715
INTEREST INCOME																											17,321
INCOME BEFORE INCOME TAXES																											$	586,036

			Year Ended
			June 30, 2024
			Core						Payments						Complementary						Corporate Services						Total
REVENUE
Services and Support			$	643,693					$	84,655					$	479,701					$	67,905					$	1,275,954
Processing			41,569						733,053						156,383						8,584						939,589
Total Revenue			685,262						817,708						636,084						76,489						2,215,543
Cost of Revenue			285,304						442,084						255,693						316,396						1,299,477
Research and Development																											148,256
Selling, General, and Administrative																											278,419
Total Expenses																											1,726,152
SEGMENT INCOME			$	399,958					$	375,624					$	380,391					$	(239,907)
OPERATING INCOME																											489,391
INTEREST INCOME																											8,628
INCOME BEFORE INCOME TAXES																											$	498,019

NOTE 15. SUBSEQUENT EVENTS

On August 21, 2026, the Company's Board of Directors declared a cash dividend of $0.61 per share on its common stock, payable on September 23, 2026, to stockholders of record on September 7, 2026.