Jack Henry Reports Significant Growth in Deconversion Revenue for Q2 Fiscal 2026

In a recent announcement, Jack Henry & Associates, Inc. (Nasdaq: JKHY) revealed impressive deconversion revenue results for its fiscal second quarter, concluding on December 31, 2025.

For this period, the company recorded deconversion revenue amounting to $6.2 million. This figure marks a strong contribution to the company's financial performance and indicates a noteworthy rise in deconversion revenue projections. Based on these results, Jack Henry has raised its estimates for total deconversion revenue to $28 million for the entire fiscal year 2026. This upward adjustment reflects the company's confidence in its financial outlook given the prevailing market conditions.

But what is deconversion revenue exactly? In essence, it primarily arises when a client of Jack Henry gets acquired by another financial institution, which leads to the discontinuation of their contractual relationship with Jack Henry. This adjustment process is primarily influenced by external factors beyond Jack Henry's control. Notably, this revenue does not entirely encapsulate the core operations of Jack Henry's long-term business strategy, specifically its commitment to providing ongoing services to clients.

Consequently, Jack Henry intentionally excludes deconversion revenue from its non-GAAP revenue figures when reporting quarterly and annual earnings. This approach offers a clearer view of the company’s operational performance, helping investors and stakeholders understand its true business health without the noise introduced by deconversion events.

It's essential to interpret such financial results carefully. The statement made by the company regarding their revenue highlights the importance of deconversion events and surrounding market dynamics, which can significantly impact their earnings. Jack Henry's proactive communication about these factors helps in managing investor expectations and underlines the inherent risks involving forward-looking statements. The company points out that future predictions contain uncertainties that may lead to actual results differing from those anticipated.

The bold projections by Jack Henry align with its long-term strategic focus on innovation and customer-centric financial technology solutions. With nearly half a century of experience in delivering tech solutions tailored for the financial services industry, Jack Henry remains committed to enhancing relationships between financial institutions and the clients they serve. Their extensive suite of services helps empower approximately 7,400 clients with innovative tools and solutions to keep pace with evolving market needs.

As businesses evolve and adapt, Jack Henry is focusing on facilitating rapid innovation that allows its clients to remain competitive in the digital age. Thus, the company’s emphasis on being open and collaborative resonates strongly with their ethos of putting clients first. With the success seen in the recent financial report, it indicates Jack Henry's potential to continue on this path, fostering robust growth in the financial technology sector.

For further details regarding the development of deconversion revenue estimates, Jack Henry advises interested parties to refer to its Current Report on Form 8-K filed with the Securities and Exchange Commission on August 3, 2023. This document provides insights into the company's guidance process and establishes a transparent communication channel with stakeholders.

Additionally, Jack Henry remains dedicated to public disclosures while acknowledging the risks associated with any forward-looking statements. By keeping aware of these factors, stakeholders can better understand the landscape in which Jack Henry operates and the strategic decisions that guide its fiscal trajectory. The commitment to maintain stakeholder communication is crucial in navigating the complexities of the financial technology arena, ensuring that all parties involved are informed and engaged with the company's ongoing developments.