Jack Henry & Associates 10-Q 2025-09-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

OR
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from ______________ to ________________

Commission file number 0-14112

JACK HENRY & ASSOCIATES, INC.

(Exact name of registrant as specified in its charter)

Delaware						43-1128385
(State or Other Jurisdiction of Incorporation)						(I.R.S. Employer Identification No.)

663 Highway 60, P.O. Box 807, Monett, MO 65708

(Address of Principal Executive Offices)

(Zip Code)

417-235-6652

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol			Name of each exchange on which registered
Common Stock ($0.01 par value)			JKHY			Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” ”accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer			☒			Accelerated filer			☐
Non-accelerated filer			☐			Smaller reporting company			☐
Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes ☐ No ☒

As of October 24, 2025, the Registrant had 72,377,132 shares of Common Stock outstanding ($0.01 par value).

TABLE OF CONTENTS

						Page Reference
PART I			FINANCIAL INFORMATION
ITEM 1.			Condensed Consolidated Balance Sheets as of September 30, 2025, and June 30, 2025 (Unaudited)			4
			Condensed Consolidated Statements of Income for the Three Months Ended September 30, 2025 and 2024 (Unaudited)			5
			Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended September 30, 2025 and 2024 (Unaudited)			6
			Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 30, 2025 and 2024 (Unaudited)			7
			Notes to Condensed Consolidated Financial Statements (Unaudited)			8
ITEM 2.			Management's Discussion and Analysis of Financial Condition and Results of Operations			20
ITEM 3.			Quantitative and Qualitative Disclosures about Market Risk			27
ITEM 4.			Controls and Procedures			27
PART II			OTHER INFORMATION			27
ITEM 1.			Legal Proceedings			27
ITEM 2.			Unregistered Sales of Equity Securities and Use of Proceeds			28
ITEM 5.			Other Information			28
ITEM 6.			Exhibits			29
			Signatures			30

In this report, all references to “Jack Henry,” the “Company,” “we,” “us,” and “our,” refer to Jack Henry & Associates, Inc., and its wholly owned subsidiaries.

FORWARD LOOKING STATEMENTS

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, 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 (the “Exchange Act”). Forward-looking statements may appear throughout this report, including without limitation, in Management's Discussion and Analysis of Financial Condition and Results of Operations. Forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “seek,” “anticipate,” “estimate,” “future,” “intend,” “plan,” “strategy,” “predict,” “likely,” “should,” “will,” “would,” “could,” “can,” “may,” and similar expressions. Forward-looking statements are based only on management’s current beliefs, expectations and assumptions regarding the future of the Company, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. 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 this Quarterly Report on Form 10-Q, those discussed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, in particular, those included in Item 1A, “Risk Factors” of such report, and those discussed in other documents we file with the Securities and Exchange Commission (“SEC”). Any forward-look

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This discussion and analysis should be read in conjunction with the condensed consolidated financial statements and the accompanying notes to the condensed consolidated financial statements included in this Form 10-Q for the fiscal quarter ended September 30, 2025.

OVERVIEW

Jack Henry & Associates, Inc. is a well-rounded financial technology company headquartered in Monett, Missouri, that employs approximately 7,200 full-time and part-time associates nationwide, and is a leading provider of technology solutions and payment processing services primarily to community and regional banks and credit unions. Our solutions serve approximately 7,400 clients and consist of integrated data processing systems solutions to U.S. banks ranging from de novo to multi-billion-dollar institutions with assets up to $55 billion, core data processing solutions for credit unions of all sizes, and non-core highly specialized core-agnostic products and services that enable banks and credit unions of every asset size and charter, and diverse corporate entities outside the financial services industry, to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. Our integrated solutions are available for on-premise installation and delivery in our private and public cloud.

Each of our solutions shares the fundamental commitment to provide high-quality business systems, service levels that consistently exceed client expectations, and integration of solutions and practical new technologies. The quality of our solutions, our high service standards, and the fundamental way we do business typically foster long-term client relationships, attract prospective clients, and have enabled us to capture substantial market share.

Through internal product development, disciplined acquisitions, and alliances with companies offering niche solutions that complement our proprietary solutions, we regularly introduce new products and services and generate new cross-sales opportunities. We provide compatible computer hardware for our on-premise installations and secure processing environments for our outsourced solutions in our private and public cloud. We perform data conversions, software implementations, initial and ongoing client training, and ongoing client support services.

We believe our primary competitive advantage is client service. Our support infrastructure and strict standards provide service levels that generate high levels of client satisfaction and retention. We consistently measure client satisfaction using a variety of surveys, such as an annual survey on the client's anniversary date and randomly-generated surveys initiated each day by routine support requests. Dedicated surveys are also used to grade specific aspects of our client experience, including product implementation, education, and consulting services.

Our two primary revenue streams are “services and support” and “processing.” Services and support includes: “private and public cloud” revenues that predominantly have contract terms of six years at inception; “product delivery and services” revenues, which include revenues from the sales of licenses, implementation services, deconversions, consulting, and hardware; and “on-premise support” revenues, composed of maintenance fees that primarily contain annual contract terms. Processing includes: "remittance” revenues from payment processing, remote capture, and ACH transactions; “card” revenues, including card transaction processing and monthly fees; and “transaction and digital” revenues, which include transaction and mobile processing revenues. We continually seek opportunities to increase revenue while at the same time containing costs to expand margins.

We have four reportable segments: Core, Payments, Complementary, and Corporate and Other. The respective segments include all related revenues along with the related cost of revenue.

A detailed discussion of the major components of the results of operations follows. All amounts in the following discussion are in thousands, except per share amounts.

RESULTS OF OPERATIONS

For the first quarter of fiscal 2026, total revenue increased 7.3%, or $43,756, compared to the same quarter in fiscal 2025. Total revenue less deconversion revenue of $8,626 for the current fiscal quarter and less revenue related to a contractual change of $12,248 and deconversion revenue of $3,697 for the prior fiscal year first quarter results in an increase of 8.7% quarter over quarter. This increase was primarily driven by organic growth in our revenue lines including data processing and hosting within private and public cloud, card, Jack Henry digital, including Banno, and payment processing, including PayCenter products. Increased user group revenue related to the timing of our Connect conference was also a driver.

Operating expenses increased 2.4%, or $10,967, for the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025. Total operating expenses less the gain on sale of assets of $3,796 and deconversion operating expenses of $1,525 for the current fiscal quarter and less operating expenses related to a contractual change of $10,443 and deconversion operating expenses of $202 for the prior fiscal year first quarter results in an increase of 5.4% quarter over quarter. This increase was primarily driven by higher direct costs, increased expenses related to our Connect conference, higher personnel costs tempered by lower benefits costs, and increased amortization of intangible assets.

Operating income increased 21.7%, or $32,789, for the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025. Total operating income less the gain on sale of assets of $3,796 and deconversion operating income of $7,101 for the current fiscal quarter and less operating income related to a contractual change of $1,805 and deconversion operating income of $3,495 for the prior fiscal year first quarter results in an increase of 18.6%, quarter over quarter. This increase was primarily driven by organic revenue growth partially offset by increased operating expenses detailed above tempered by our disciplined approach to compensation, headcount and infrastructure costs.

The provision for income taxes increased 23.2%, or $8,725, for the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025. This increase was primarily driven by the increase in income before income taxes. The effective tax rate for the current fiscal quarter was 24.3% compared to 24.0% for the same quarter a year ago.

Net income increased 20.8%, or $24,795, for the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025. The total net income increase, quarter over quarter, was lower when adjusted for the gain on sale of assets and deconversion net income in the current fiscal quarter and the net income related to a contractual change and deconversion net income in the prior fiscal year first quarter The increase excluding these one-time items was primarily due to net organic growth in our lines of revenue for the first quarter of fiscal 2026 partially offset by commensurate higher operating expenses and the increased provision for income taxes.

As we move into the second quarter of fiscal 2026 – our 50th year in business – we are excited and confident about our future, and we remain well-positioned to deliver durable, consistent growth and attractive results for our shareholders. Technology spending by financial institutions remains strong, and there is clear demand for our differentiated and innovative technology solutions. We have a very healthy sales pipeline and a proven ability to attract and win deals, especially with larger financial institutions. Our unwavering focus on culture, service, innovation, strategy, and execution continues to set us apart in the market and will enable us to drive continued industry-leading revenue growth with strong margin expansion, benefiting our associates, clients, and shareholders.

A detailed discussion of the major components of the results of operations for the fiscal three months ended September 30, 2025, follows.

Discussions compare the current fiscal year's three months ended September 30, 2025, to the prior fiscal year's three months ended September 30, 2024.

REVENUE

Services and Support			Three Months Ended September 30,												% Change
			2025						2024
Services and Support			$	376,851					$	356,679					5.7		%
Percentage of total revenue			58		%				59		%

Services and support revenue increased 5.7% for the first quarter of fiscal 2026 compared to the same quarter a year ago. Total services and support revenue less deconversion revenue of $8,626 for the current fiscal quarter and less revenue related to a contractual change of $12,248 and deconversion revenue of $3,697 for the prior fiscal year first quarter, results in growth of 8.1% quarter over quarter. This increase was primarily driven by growth in data processing and hosting revenues within private and public cloud as new and existing clients continue to migrate to our private cloud and processing volumes expand, user group revenue related to the timing of our Connect conference, work order revenue, and implementation revenue.

Processing			Three Months Ended September 30,												% Change
			2025						2024
Processing			$	267,887					$	244,303					9.7		%
Percentage of total revenue			42		%				41		%

Processing revenue increased 9.7% for the first quarter of fiscal 2026 compared to the same quarter last fiscal year. This increase was primarily driven by growth in card revenue from monthly service and risk management fees, improvement in Jack Henry digital revenue (including Banno) from a higher number of active users and from the ramping up of add-on products, higher payment processing revenues, including PayCenter products — Zelle, RTP (Real Time Payments), and FedNow — from expanding active users and new client revenue. Deconversion and other one-time revenue did not significantly affect processing revenue quarter over quarter.

OPERATING EXPENSES

Cost of Revenue			Three Months Ended September 30,												% Change
			2025						2024
Cost of Revenue			$	348,566					$	343,432					1.5		%
Percentage of total revenue			54		%				57		%

Cost of revenue for the first quarter of fiscal 2026 increased 1.5% over the prior fiscal year first quarter. Total cost of revenue less deconversion costs of $904 for the current fiscal quarter and less costs related to a contractual change of $10,443 and deconversion costs of $115 for the prior fiscal year first quarter, results in a 4.4% increase quarter over quarter. This increase was primarily due to higher direct costs generally consistent with increases in the related lines of revenue, higher personnel costs primarily related to an increase in headcount during the trailing twelve months tempered by a decrease in benefit costs, and increased amortization of intangible assets. Cost of revenue decreased 3% as a percentage of total revenue compared to the prior fiscal year first quarter.

Research and Development			Three Months Ended September 30,												% Change
			2025						2024
Research and Development			$	39,278					$	39,686					(1.0)		%
Percentage of total revenue			6		%				7		%

Research and development expense decreased 1.0% for the first quarter of fiscal 2026 compared to the prior fiscal year first quarter. This slight decrease was primarily due to a tempered personnel cost increase (net of capitalization) from lower compensation increases and employee headcount additions in the trailing twelve months. Deconversion and other one-time costs did not significantly affect research and development expenses quarter over quarter. Research and development expense decreased 1% as a percentage of total revenue compared to the prior fiscal year first quarter.

Selling, General, and Administrative			Three Months Ended September 30,												% Change
			2025						2024
Selling, General, and Administrative			$	72,829					$	66,588					9.4		%
Percentage of total revenue			11		%				11		%

Selling, general, and administrative expense increased 9.4% in the first quarter of fiscal 2026 compared to the same quarter in the prior fiscal year. Total selling, general, and administrative expense less the gain on sale of assets of $3,796 and deconversion costs of $621 for the current fiscal quarter and deconversion costs of $87 for the prior fiscal year first quarter results in a 14.3% increase quarter over quarter. This increase was primarily due to higher expenses related to the timing of our user group meeting, increased professional services expense, and higher personnel costs related to an increase in employee headcount in the trailing twelve months tempered by lower commissions and benefit costs. Selling, general, and administrative expense remained consistent as a percentage of total revenue compared to the prior fiscal year first quarter.

INTEREST INCOME			Three Months Ended September 30,												% Change
			2025						2024
Interest Income			$	7,139					$	8,347					(14.5)		%
Interest Expense			$	(886)					$	(2,825)					(68.6)		%

Interest income and interest expense decreased due to lower interest-earning and credit line balances, respectively, for the fiscal three months ended September 30, 2025, compared to the fiscal three months ended September 30, 2024.

PROVISION FOR INCOME TAXES			Three Months Ended September 30,												% Change
			2025						2024
Provision for Income Taxes			$	46,332					$	37,607					23.2		%
Effective Rate			24.3		%				24.0		%

The provision for income taxes increased 23.2% for the first quarter of fiscal 2026, compared to the first quarter of fiscal 2025. The effective tax rate for the current fiscal quarter was 24.3% compared to 24.0% for the same quarter a year ago.

NET INCOME			Three Months Ended September 30,												% Change
			2025						2024
Net income			$	143,986					$	119,191					20.8		%
Diluted earnings per share			$	1.97					$	1.63					21.1		%

Net income increased 20.8% to $143,986, or $1.97 per diluted share, for the first quarter of fiscal 2026 compared to $119,191, or $1.63 per diluted share, in the same quarter of fiscal 2025. The total net income increase, quarter over quarter, was lower when adjusted for the gain on sale of assets and deconversion net income in the current fiscal quarter and the net income related to a contractual change and deconversion net income in the prior fiscal year first quarter. The increase excluding these one-time items was primarily due to net organic growth in our lines of revenue for the first quarter of fiscal 2026 partially offset by commensurate higher operating expenses and the increased provision for income taxes.

REPORTABLE SEGMENT DISCUSSION

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 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, ACH origination and 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 and Other segment includes revenue and costs from hardware and other products not attributed to any of the other three segments, as well as operating expenses not directly attributable to the other three segments.

The Company's Chief Executive Officer, who is also the Company's 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 three months ended September 30, 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 three months ended September 30, 2025, the Company transferred a product from the Corporate and Other segment to the Complementary segment, due to better alignment with the Complementary segment. As a result of this transfer, adjustments were made during the fiscal three months ended September 30, 2025, to reclassify related revenue and cost of revenue recognized for the fiscal three months ended September 30, 2024, from the Corporate and Other segment to the Complementary segment. Revenue and cost of revenue reclassed for the fiscal three months ended September 30, 2024, was $3,242 and $704, respectively.

Immaterial adjustments have been made between segments during the fiscal three months ended September 30, 2025, to reclassify revenue and cost of revenue that was recognized for the fiscal three months ended September 30, 2024. These reclasses were made to be consistent with the current allocation of revenue and cost of revenue by segment. Revenue and cost of revenue reclassed for the fiscal three months ended September 30, 2024, from the Core segment to the Complementary segment, was $1,337 and $473, respectively.

Core			Three Months Ended September 30,												% Change
			2025						2024
Revenue			$	195,293					$	194,287					0.5		%
Cost of Revenue			$	73,137					$	80,947					(9.6)		%

Revenue in the Core segment increased 0.5% and cost of revenue decreased 9.6% for the fiscal three months ended September 30, 2025, compared to the fiscal three months ended September 30, 2024. Core revenue less deconversion revenue of $3,219 for the fiscal three months ended September 30, 2025, and less revenue related to a contractual change of $12,248 and deconversion revenue of $1,287 for the fiscal three months ended September 30, 2024, results in a 6.3% increase quarter over quarter. This increase was primarily driven by organic growth in our Core revenue lines including data processing and hosting revenues within private and public cloud as new and existing clients continue to migrate to our private cloud and processing volumes expand. Core cost of revenue less deconversion costs of $443 for the fiscal three months ended September 30, 2025, and less costs related to a contractual change of $10,443 and deconversion costs of $37 for the fiscal three months ended September 30, 2024, results in a 3.2% increase quarter over quarter. This increase was primarily due to higher direct costs generally consistent with increases in related lines of revenue. Core cost of revenue decreased 4% as a percentage of Core revenue for the first quarter of fiscal 2026 compared to the same quarter in fiscal 2025.

Payments			Three Months Ended September 30,												% Change
			2025						2024
Revenue			$	230,894					$	211,923					9.0		%
Cost of Revenue			$	118,660					$	113,020					5.0		%

Revenue in the Payments segment increased 9.0% and cost of revenue increased 5.0% for the first quarter of fiscal 2026 compared to the same quarter last fiscal year. Payments revenue less deconversion revenue in both quarters, which totaled $3,483 for the first quarter of fiscal 2026 and $1,914 for the first quarter of fiscal 2025, results in an 8.3% increase quarter over quarter. This increase was primarily due to higher card revenue from an increase in volume and higher payment processing revenues, including PayCenter products — Zelle, RTP, and FedNow — from expanding active users and new client revenue. The Payments cost of revenue increase was primarily due to higher direct costs generally consistent with increases in lines of revenue. Deconversion and one-time costs did not significantly affect Payments cost of revenue quarter over quarter. Payments cost of revenue as a percentage of Payments revenue decreased 2% for the first quarter of fiscal 2026 compared to the same quarter in fiscal 2025.

Complementary			Three Months Ended September 30,												% Change
			2025						2024
Revenue			$	194,217					$	176,281					10.2		%
Cost of Revenue			$	72,260					$	67,144					7.6		%

Revenue in the Complementary segment increased 10.2% and cost of revenue increased 7.6% for the first quarter of fiscal 2026 compared to the same quarter last fiscal year. Complementary revenue less deconversion revenue in both quarters, which totaled $1,876 for the first quarter of fiscal 2026 and $473 for the first quarter of fiscal 2025, results in a 9.4% increase quarter over quarter. This increase was primarily driven by organic growth in hosting revenue as new and existing clients continue to migrate to our private cloud and processing volumes expanded and Jack Henry digital revenue (including Banno) from a higher number of active users and the ramping up of add-on

products. Complementary cost of revenue less deconversion costs in both quarters, which totaled $308 for the first quarter of fiscal 2026 and $60 for the first quarter of fiscal 2025, results in a 7.3% increase quarter over quarter. This increase was primarily driven by higher direct costs generally consistent with increases in related lines of revenue and increased amortization of intangibles. Complementary cost of revenue as a percentage of Complementary revenue decreased 1% for the first quarter of fiscal 2026 compared to the same quarter in fiscal 2025.

Corporate and Other			Three Months Ended September 30,												% Change
			2025						2024
Revenue			$	24,334					$	18,491					31.6		%
Cost of Revenue			$	84,509					$	82,321					2.7		%

Revenue classified in the Corporate and Other segment includes revenues from other products and services and hardware not specifically attributed to the other three segments. Revenue in the Corporate and Other segment increased 31.6% for the first quarter of fiscal 2026 compared to the same quarter last fiscal year. Corporate and Other revenue less deconversion revenue in both quarters, which totaled $48 for the first quarter of fiscal 2026 and $23 for the first quarter of fiscal 2025, results in a 31.5% increase quarter over quarter. This increase was primarily due to the increase in user group revenue related to the timing of our Connect conference quarter over quarter. Cost of revenue for the Corporate and Other segment includes operating expenses not directly attributable to the other three segments. The Corporate and Other cost of revenue in the first quarter of fiscal 2026 increased 2.7% when compared to the prior fiscal year quarter. This increase was primarily due to higher cloud consumption costs and increased compensation cost primarily related to headcount increases over the trailing twelve months. Deconversion and one-time costs did not significantly affect Corporate and Other cost of revenue quarter over quarter.

LIQUIDITY AND CAPITAL RESOURCES

The Company's cash and cash equivalents decreased to $36,239 at September 30, 2025, from $101,953 at June 30, 2025.

The following table summarizes net cash from operating activities in the statement of cash flows:

			Three Months Ended
			September 30,
			2025						2024
Net income			$	143,986					$	119,191
Non-cash expenses			93,389						53,085
Change in receivables			12,196						26,373
Change in deferred revenues			(42,291)						(69,358)
Change in other assets and liabilities*			(86,690)						(12,395)
Net cash provided by operating activities			$	120,590					$	116,896

*For the fiscal three months ended September 30, 2025, the change in other assets and liabilities includes the change in accrued expenses of $(36,567), the change in prepaid expenses, deferred costs and other of $(34,336), and the change in income taxes of $(9,150). For the fiscal three months ended September 30, 2024, the change in other assets and liabilities includes the change in accrued expenses of $(23,067), the change in prepaid expenses, deferred costs and other of $(18,788), partially offset by the change in income taxes of $38,576.

Cash provided by operating activities for the first three months of fiscal 2026 increased 3% compared to the same period last year. Cash from operations is primarily used to repay debt, to pay dividends, to repurchase stock, for capital expenditures, and for acquisitions.

Cash used in investing activities for the first three months of fiscal 2026 totaled $98,503 and included: $48,203 for the ongoing enhancement and development of existing and new product and service offerings; $42,390 for an acquisition; capital expenditures for facilities and equipment of $8,880; the purchase of investments of $6,000, and $1,509 for the purchase and development of internal use software. Cash uses were partially offset by proceeds from the sale of assets of $7,479 and proceeds from investments of $1,000. Cash used in investing activities for the first three months of fiscal 2025 totaled $58,736 and included: $42,259 for the development of software; $12,801 for capital expenditures; $2,676 for the purchase and development of internal use software; and $2,000 for the purchase of investments. Cash uses were partially offset by proceeds from investments of $1,000.

Financing activities used cash of $87,801 for the first three months of fiscal 2026 and included: $62,045 for the purchase of treasury stock; dividends paid to stockholders of $42,145; and $3,611 net cash outflow from the issuance of stock and tax withholding related to stock-based compensation. Cash uses were partially offset by borrowings on credit facilities of $20,000. Financing activities used cash of $53,232 in the first three months of fiscal 2025 and included: $85,000 for the repayments on credit facilities; $40,104 for the payment of dividends; and $3,128 net cash outflow from the issuance of stock and tax withholding related to stock-based compensation. Cash uses were partially offset by borrowings on credit facilities of $75,000.

Capital Requirements and Resources

The Company generally uses existing resources and funds generated from operations to meet its capital requirements. Capital expenditures totaling $8,880 and $12,801 for the fiscal three months ended September 30, 2025, and September 30, 2024, respectively, were made primarily for additional equipment and the improvement of existing facilities. These additions were funded from cash generated by operations. Total consolidated capital expenditures on facilities and equipment for the Company for fiscal year 2026 are expected to be between approximately $80,000 and $90,000 and have been or will be funded from our credit facilities and cash generated by operations.

On September 30, 2025, the Company acquired substantially all the assets of 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.

Contractual obligations are discussed in our Annual Report on Form 10-K for the year ended June 30, 2025. There have been no material contractual obligations added for the fiscal three months ended September 30, 2025.

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 borrowings on its existing line of credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At September 30, 2025, there were 31,969 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,022 additional shares. The total cost of treasury stock at September 30, 2025, was $1,957,269. During the first three months of fiscal 2026, the Company repurchased 389 shares. At June 30, 2025, there were 31,580 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,411 additional shares. The total cost of treasury stock at June 30, 2025, was $1,895,224. During the first three months of fiscal 2025, the Company repurchased no shares.

Credit facilities

On August 31, 2022, the Company entered into a five-year senior, unsecured amended and restated credit agreement. The credit agreement allows for borrowings of up to $600,000, which may be increased to $1,000,000 by the Company at any time until maturity. The credit agreement bears 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%, (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 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 September 30, 2025, the Company was in compliance with all such covenants. The credit facility terminates August 31, 2027. There was $20,000 and $0 outstanding under the credit facility at September 30, 2025, and June 30, 2025, respectively.

Other lines of credit

On October 31, 2024, the Company entered into a discretionary line of credit demand note, which provides for funding of up to $50,000 and bears interest at the prime rate less 2.0%. The note does not constitute a committed line of credit. The line of credit expired on October 31, 2025. There was no balance outstanding at September 30, 2025, or 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 bears interest at the prime rate less 1.0%. The line of credit expires on July 17, 2026. There was no balance outstanding at September 30, 2025.

Dollar amounts in this item are in thousands.

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors such as liquidity, will result in losses for a certain financial instrument or group of financial instruments. We are currently exposed to credit risk on credit extended to clients and interest risk on outstanding debt. We do not currently use any derivative financial instruments. We actively monitor these risks through a variety of controlled procedures involving senior management.

Based on the controls in place and the credit worthiness of the client base, we believe the credit risk associated with the extension of credit to our clients will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

We had $20,000 outstanding debt with variable interest rates as of September 30, 2025, and a 1% increase in our borrowing rate would increase our annual interest expense by $200.

As of the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of our management, including the Company's Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon that evaluation (required in Exchange Act Rules 13a-15(b) and 15d-15(b)), the CEO and CFO concluded that our disclosure controls and procedures are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. For this purpose, disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed under the Exchange Act is accumulated and communicated to the Company's management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

During the fiscal quarter ended September 30, 2025, there were no changes in the Company's internal control over financial reporting which were identified in connection with management’s evaluation required by Rules 13a-15(d) and 15d-15(d) under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

We are subject to various routine legal proceedings and claims arising in the ordinary course of our business. In the opinion of management, any liabilities resulting from current lawsuits are not expected, either individually or in the aggregate, to have a material adverse effect on our consolidated financial statements. In accordance with U.S. GAAP, we record a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These liabilities are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case or proceeding.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following shares of the Company were repurchased during the quarter ended September 30, 2025:

			Total Number of Shares Purchased						Average Price of Share						Total Number of Shares Purchased as Part of Publicly Announced Plans						Maximum Number of Shares that May Yet Be Purchased Under the Plans (1)
July 1 — July 31, 2025			—						—						—						3,411,018
August 1 — August 31, 2025			175,204						$	160.97					175,204						3,235,814
September 1 — September 30, 2025			214,188						158.00						214,188						3,021,626
Total			389,392						$	159.34					389,392						3,021,626

(1) Total stock repurchase authorizations approved by the Company's Board of Directors as of May 14, 2021, were for 35,000,000 shares. Under these authorizations, the Company has repurchased and not re-issued 31,968,990 shares and has repurchased and re-issued 9,384 shares. These authorizations have no specific dollar or share price targets and no expiration dates.

Rule 10b-5(1) Trading Plans

During the fiscal three months ended September 30, 2025, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

31.1 Certification of the Chief Executive Officer.

31.2 Certification of the Chief Financial Officer.

32.1 Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350.

32.2 Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350.

101.INS* XBRL Instance Document- the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document

101.SCH* XBRL Taxonomy Extension Schema Document

101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF* XBRL Taxonomy Extension Definition Linkbase Document

101.LAB* XBRL Taxonomy Extension Label Linkbase Document

101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document

104* Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

• Furnished with this quarterly report on Form 10-Q are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets at September 30, 2025, and June 30, 2025, (ii) the Condensed Consolidated Statements of Income for the three months ended September 30, 2025, and 2024, (iii) the Condensed Consolidated Statements of Changes in Shareholders' Equity for the three months ended September 30, 2025, and 2024, (iv) the Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2025, and 2024, and (v) Notes to Condensed Consolidated Financial Statements.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.

									JACK HENRY & ASSOCIATES, INC.
Date:			November 7, 2025						/s/ Gregory R. Adelson
									Gregory R. Adelson
									Chief Executive Officer and President
Date:			November 7, 2025						/s/ Mimi L. Carsley
									Mimi L. Carsley
									Chief Financial Officer and Treasurer