Jack Henry & Associates (JKHY) FY2025 10-K Annual Report

Filed: Aug 25, 2025
Information Technology
Services-Computer Integrated Systems DesignSEC EDGAR

Jack Henry & Associates (JKHY) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Aug 25, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Jack Henry & Associates FY2025 10-K Analysis

Business Overview

  • Core business: Financial technology provider serving ~7,400 banks and credit unions with integrated core processing and complementary payment/security solutions
  • New emphasis on public cloud-native platform "Jack Henry Platform™" offering API-first, scalable core and digital banking services
  • Strategic shift toward technology modernization with unified cloud-native platform integrating core processing, payments, and fraud detection
  • Client asset growth: average assets under management for banking cores rose from $1.26B to $1.29B; credit union cores $1.17B to $1.20B YoY
  • Acquisition highlight: 2023 purchase of Payrailz, LLC adding AI-powered, cloud-native digital payment capabilities aligned with modernization strategy

Management Discussion & Analysis

  • Revenue $2.38B, up 7.2% YoY; services and support $1.36B (+6.7%), processing $1.01B (+7.9%)
  • Net income $455.7M, up 19.4% YoY; operating expenses +4.7%, cost of revenue $1.36B (+4.7%); effective tax rate 22.2% vs 23.3%
  • Best segment: Complementary revenue $675.2M (+9.2%), cost +5.5%; Worst segment: Corporate & Other revenue $87.3M (-1.8%), cost +6.1%
  • Cash from operations $641.5M (+12.9%); capex $53.4M; dividends $164.6M; share repurchases $35.1M (207 shares)
  • Fiscal 2026 outlook confident on strong demand, healthy sales pipeline; new tax law implications being assessed for next fiscal year

Risk Factors

  • Regulatory oversight risk from SEC cybersecurity disclosure requirements affecting financial statement materiality
  • Cybersecurity threat risk managed by CISO with 20+ years experience, reporting quarterly to Board Risk and Compliance Committee
  • Operational risk from reliance on CISO-led incident response team for escalation and remediation of cybersecurity incidents
  • No specific competitor or market disruption risk detailed in cybersecurity section
  • No explicit financial or structural risk such as leverage or key-person dependency disclosed in cybersecurity oversight context

Jack Henry & Associates FY2025 Key Financial Metrics
XBRL

Revenue

$2.4B

+7.2% YoY

Net Income

$456M

+19.4% YoY

Operating Margin

23.9%

+185bp YoY

Net Margin

19.2%

+195bp YoY

ROE

21.4%

+66bp YoY

Total Assets

$3.0B

+4.1% YoY

EPS (Diluted)

$6.24

+19.3% YoY

Operating Cash Flow

$642M

+12.9% YoY

Source: XBRL data from Jack Henry & Associates FY2025 10-K filing on SEC EDGAR. All figures in USD.

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