#United States #Fintech #Fiscal 2025 #Jack Henry #Monett

Jack Henry & Associates Reports Strong Fiscal Q2 Results

Monett, Mo., February 4, 2025 - Jack Henry & Associates, a key player in financial technology, has reported its financial results for the second quarter of fiscal year 2025. The three-month period ending December 31, 2024, showcased impressive gains, highlighting the company's robust operational foundation and ongoing strategic initiatives.

Revenue Growth and Performance Overview

In the second quarter, Jack Henry reported a 5.2% increase in GAAP revenue, bringing the total to $573.8 million compared to $545.7 million a year prior. Moreover, the non-GAAP adjusted revenue experienced a higher growth rate of 6.1%, reaching $573.8 million. This positive trend indicates strong demand for both core and processing services, reflecting the company's growth strategy's success.

The operating income for the second quarter also followed an upward trajectory, with a 3.4% rise, marking $123 million compared to the previous year's $119 million. Notably, diluted EPS rose to $1.34, representing a 6.2% increase from last year's $1.26 per share.

Key Drivers of Growth

Jack Henry CEO, Greg Adelson, expressed satisfaction with the company's performance, emphasizing the sustained demand for their products from diverse clients, both new and existing. The results demonstrate a record sales achievement in Q2 for the second consecutive year, underpinned by a strong sales pipeline for future opportunities.

One of the primary contributors to revenue growth was the surge in revenue from data processing and hosting services, which increased by an impressive 11.8%. This growth was complemented by a 6.5% rise in card processing revenue and enhancements in transaction and digital revenue streams, each growing by approximately 10%.

Operating Expenses and Margin Analysis

Jack Henry's operating expenses increased 5.7% to $450.8 million, primarily attributed to overall increases in personnel costs, including benefits arising from an expanding workforce. Despite this rise, the operating margin remained resilient at 21.4%, slightly down from 21.8% a year earlier. Maintaining a robust operational strategy has allowed the company to buffer against rising costs while continuing to invest in innovation.

Long-term Financial Health

The fiscal year-to-date evaluation shows similarly promising results, with GAAP revenue increasing 5.2% year-over-year, amounting to $1.175 billion. The company’s financial position remains stable, with cash and cash equivalents reported at $26 million as of December 31, 2024, maintaining a solid balance sheet amid a landscape of increasing operational challenges.

Moreover, total debt has decreased considerably to $150 million, down from $255 million the previous year, suggesting improved leverage and cash flow management. The company also reported anticipated full-year guidance for fiscal year 2025, projecting GAAP revenues between $2.369 billion and $2.391 billion.

Conclusion

Jack Henry & Associates continues to demonstrate strong growth potential and commitment to innovation within the financial technology industry. The recent earnings report reaffirms their strategic focus on modernization, a people-first culture, and exceptional service, positioning the company as a differentiator in an increasingly competitive market. As the company looks ahead, ongoing efforts in enhancing its technology capabilities and service offerings will be critical for sustaining growth and meeting evolving client needs.

For further information and updates on their strategic initiatives, interested parties can visit Jack Henry's official website.