Jack Henry & Associates Inc.
11/07/2025 | Press release | Distributed by Public on 11/07/2025 15:54
Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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 50thyear 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 |
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| 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 |
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| 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 |
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| 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 |
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| 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.
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INTEREST INCOME
|
Three Months Ended September 30, |
% Change |
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| 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 |
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| 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
|
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| 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%), plusan 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 rateless2.0%. 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 less1.0%. The line of credit expires on July 17, 2026. There was no balance outstanding at September 30, 2025.
Jack Henry & Associates Inc. published this content on November 07, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 07, 2025 at 21:54 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]