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Jack Henry & Associates Reports Deconversion Revenue

In the latest announcement by Jack Henry & Associates, Inc.® (NASDAQ: JKHY), the financial technology company has unveiled its deconversion revenue results for the fiscal second quarter, concluding on December 31, 2024. The reported deconversion revenue stands at $0.1 million, signaling a notable fluctuation in fiscal performance as the company navigates through various economic challenges.

Understanding Deconversion Revenue

Deconversion revenue for Jack Henry arises primarily from client contracts terminated due to acquisitions by other financial institutions. When a client is acquired, they discontinue their services with Jack Henry, leading to recognition of this finite revenue stream. Despite the $0.1 million reported for the quarter, the company maintains a steady estimate of $16 million for the entire fiscal year 2025. This figure serves as guidance and reflects the management’s outlook based on current market operations and client trajectories.

Implications and Strategic Insights

It is crucial to note that the deconversion revenue is somewhat outside of Jack Henry’s direct control. The dynamics influencing this revenue include external acquisitions, which can impact projections and actual earnings. Thus, Jack Henry excludes deconversion revenue from its non-GAAP revenue figures presented in its quarterly and annual earnings reports. This approach aims to provide a clearer picture of the company's ongoing operational performance without the interruptions caused by client turnover due to external factors.

Forward-Looking Statements

In line with best practices outlined in the Private Securities Litigation Reform Act of 1995, Jack Henry has issued forward-looking statements, asserting that actual results may vary significantly from projected outcomes due to inherent risks and uncertainties. These considerations include comprehensive risk factors examined in the company’s filings with the Securities and Exchange Commission, especially within their most recent Form 10-K and Form 10-Q submissions.

About Jack Henry & Associates

For over 48 years, Jack Henry & Associates has been at the forefront of financial technology innovation. With a clear mission to enhance the relationship between banks, credit unions, and their clients, the company operates under a framework of collaboration, transparency, and a focus on user experience. Currently, Jack Henry serves approximately 7,500 clients, helping them improve their service offerings and compete effectively in the modern digital landscape.

The company continues to prioritize innovation and client service, ensuring that it remains responsive to the evolving needs of the financial market. For more insights and updates about Jack Henry & Associates, you can visit their website at jackhenry.com.

In conclusion, the deconversion revenue results for Q2 2025 reveal both the potential and unpredictability associated with financial technology services. Stakeholders are encouraged to keep track of the updates in Jack Henry’s operations as they continue to evolve in the dynamic landscape of financial services.