Results

Jack Henry & Associates Inc.

11/06/2026 | Press release | Distributed by Public on 11/06/2026 12:41

Quarterly Report for Quarter Ending September 30, 2026 (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, 2026.
OVERVIEW
Jack Henry & Associates, Inc. is a well-rounded financial technology company headquartered in Monett, Missouri, that employs approximately 7,300 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 7,200 clients and consist of integrated data processing systems solutions to U.S. banks ranging from de novo to multi-billion-dollar institutions with up to $55 billion in assets, core data processing solutions for credit unions of all sizes, and 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 through our cloud services.
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 cloud solutions. 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: "cloud services" (formerly "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 Automated Clearing House transactions; "faster payments" revenues from electronic payment services; "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 changed the name for our cloud services from "private and public cloud" to "cloud services" beginning in the first quarter of fiscal 2027 to simplify presentation and improve clarity. This does not represent any change to the products or services we offer or to previously reported financial results, and prior period amounts are presented on a consistent basis.
We have four reportable segments: Core, Payments, Complementary, and Corporate Services. 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 2027, total revenue increased 8.8%, or $56,809, compared to the same quarter in fiscal 2026. Total revenue less deconversion revenue of $17,918 and acquisition revenue of $1,451 for the current fiscal quarter and less deconversion revenue of $8,626 for the prior fiscal year first quarter results in an increase of 7.2% quarter over quarter. This increase was primarily driven by organic growth in our revenue lines including hosting, card, digital and transaction, and faster payments.
Operating expenses increased 7.3%, or $33,803, for the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026. Total operating expenses less deconversion operating expenses of $2,719 and operating expenses for the company acquired in the prior fiscal year of $2,210 for the current fiscal quarter and less deconversion operating expenses of $1,525 and a gain on certain assets, net, of $3,796 for the prior fiscal year first quarter results in an increase of 5.7% quarter over quarter. This increase was primarily driven by higher direct costs and higher personnel costs partly related to trailing twelve month headcount growth, partially offset by lower expenses related to the timing of our Connect conference, quarter over quarter, which was held in the first quarter of fiscal 2026, but was held in the second quarter of fiscal 2027.
Operating income increased 12.5%, or $23,006, for the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026. Total operating income less the impact of deconversion operating income of $15,199 and an operating loss for the company acquired in the prior fiscal year of $759 for the current fiscal quarter and less deconversion operating income of $7,101 and a gain on certain assets, net, of $3,796 for the prior fiscal year first quarter results in an increase of 11.2%, 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 controlling compensation, headcount, and infrastructure costs, quarter over quarter.
The provision for income taxes increased 8.4%, or $3,891, for the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026. This increase was primarily driven by the increase in income before income taxes. The effective tax rate for the current fiscal quarter was 23.8% compared to 24.3% for the same quarter a year ago.
Net income increased 11.4%, or $16,426, for the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026. The total net income increase, quarter over quarter, was lower when adjusted for the impact of deconversion net income and a net loss for the company acquired in the prior fiscal year in the current fiscal quarter and deconversion net income and a gain on certain assets, net, in the prior fiscal year first quarter. The increase, excluding these items, was primarily driven by net organic growth in our lines of revenue for the first quarter of fiscal 2027 partially offset by commensurate higher operating expenses detailed above that were tempered by our disciplined approach to controlling compensation, headcount, and infrastructure costs and the increased provision for income taxes.
As we move into the second quarter of fiscal 2027 - our 51st year 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 stockholders. 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 stockholders.
A detailed discussion of the major components of the results of operations for the fiscal three months ended September 30, 2026, follows.
Discussions compare the current fiscal year's three months ended September 30, 2026, to the prior fiscal year's three months ended September 30, 2025.
REVENUE
Services and Support Three Months Ended September 30, %
Change
2026 2025
Services and Support $ 404,961 $ 376,851 7.5 %
Percentage of total revenue 58 % 58 %
Services and support revenue increased 7.5% for the first quarter of fiscal 2027 compared to the same quarter a year ago. Total services and support revenue less deconversion revenue of $17,918 for the current fiscal quarter and less deconversion revenue of $8,626 for the prior fiscal year first quarter, results in growth of 5.1%, quarter over quarter. This increase was primarily driven by growth in hosting revenue as new and existing clients continue to migrate to the cloud and processing volumes expand, as well as higher software usage, partially offset by the decrease in revenue related to the timing of our Connect conference.
Processing Three Months Ended September 30, %
Change
2026 2025
Processing $ 296,586 $ 267,887 10.7 %
Percentage of total revenue 42 % 42 %
Processing revenue increased 10.7% for the first quarter of fiscal 2027 compared to the same quarter last fiscal year. Total processing revenue less processing revenue for the company acquired in the prior fiscal year of $1,451 for the current fiscal quarter, results in growth of 10.2%, quarter over quarter. This increase was primarily driven by improvement in card revenue from monthly service and risk management fees, increased digital and transaction revenues from a higher number of active users and the ramping up of additional products, and higher faster payments revenue from expanding transactional volumes.
OPERATING EXPENSES
Cost of Revenue Three Months Ended September 30, %
Change
2026 2025
Cost of Revenue $ 376,046 $ 348,566 7.9 %
Percentage of total revenue 54 % 54 %
Cost of revenue for the first quarter of fiscal 2027 increased 7.9% over the prior fiscal year first quarter. Total cost of revenue less deconversion costs of $1,507 and cost of revenue for the company acquired in the prior fiscal year of $1,532 for the current fiscal quarter and less deconversion costs of $904 for the prior fiscal year first quarter, results in a 7.3% 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 partly related to headcount growth in the trailing twelve months, higher cloud consumption, including artificial intelligence (AI) and security costs, increased amortization of intangible assets, and higher licenses and fees, including infrastructure costs, partially offset by the increase in labor cost deferral. Cost of revenue remained consistent as a percentage of total revenue compared to the prior fiscal year first quarter.
Research and Development Three Months Ended September 30, %
Change
2026 2025
Research and Development $ 45,781 $ 39,278 16.6 %
Percentage of total revenue 6 % 6 %
Research and development expense increased 16.6% for the first quarter of fiscal 2027 compared to the prior fiscal year first quarter. Total research and development costs less research and development costs for the company acquired in the prior fiscal year of $658 for the current fiscal quarter, results in a 14.9% increase, quarter over quarter. This increase was primarily due to higher personnel costs (net of capitalization) partly related to headcount growth in the trailing twelve months. Research and development remained consistent as a percentage of total revenue compared to the prior fiscal year first quarter.
Selling, General, and Administrative Three Months Ended September 30, %
Change
2026 2025
Selling, General, and Administrative $ 72,649 $ 72,829 (0.2) %
Percentage of total revenue 10 % 11 %
Selling, general, and administrative expense decreased 0.2% in the first quarter of fiscal 2027 compared to the same quarter in the prior fiscal year. Total selling, general, and administrative expense less deconversion costs of $1,212 and costs for the company acquired in the prior fiscal year of $20 for the current fiscal quarter and less deconversion costs of $621 and a gain on certain assets, net, of $3,796 for the prior fiscal year first quarter results in a 6.0% decrease, quarter over quarter. This decrease was primarily due to lower expenses related to the timing of
our Connect conference. Selling, general, and administrative expense decreased 1% as a percentage of total revenue compared to the prior fiscal year first quarter.
INTEREST INCOME
Three Months Ended September 30, %
Change
2026 2025
Interest Income $ 5,092 $ 7,139 (28.7) %
Interest Expense $ (1,528) $ (886) 72.5 %
Interest income decreased and interest expense increased due to lower interest-earning balances and higher credit line balances, respectively, for the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025.
PROVISION FOR INCOME TAXES Three Months Ended September 30, %
Change
2026 2025
Provision for Income Taxes $ 50,223 $ 46,332 8.4 %
Effective Rate 23.8 % 24.3 %
The provision for income taxes increased 8.4% for the first quarter of fiscal 2027, compared to the first quarter of fiscal 2026. The effective tax rate for the current fiscal quarter was 23.8% compared to 24.3% for the same quarter a year ago. The decrease in the Company's effective tax rate was primarily attributable to purchased tax credit benefits recognized during the current quarter that were not present in the prior-year quarter, as well as differences in the tax effects of stock-based compensation between the two periods.
NET INCOME Three Months Ended September 30,
%
Change
2026 2025
Net income $ 160,412 $ 143,986 11.4 %
Diluted earnings per share $ 2.28 $ 1.97 15.6 %
Net income increased 11.4% to $160,412, or $2.28 per diluted share, for the first quarter of fiscal 2027 compared to $143,986, or $1.97 per diluted share, in the same quarter of fiscal 2026. Diluted earnings per share increased at a higher rate than net income primarily due to a decrease in diluted weighted-average shares outstanding resulting from share repurchases. The total net income increase, quarter over quarter, was lower when adjusted for the impact of deconversion net income and a net loss for the company acquired in the prior fiscal year in the current fiscal quarter and the deconversion net income and a gain on certain assets, net, in the prior fiscal year first quarter. The increase excluding these items was primarily driven by net organic growth in our lines of revenue for the first quarter of fiscal 2027 partially offset by commensurate higher operating expenses detailed above that were tempered by our disciplined approach to controlling compensation, headcount, and infrastructure costs, as well as 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 Services (formerly "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, money movement and embedded payment capabilities, remote deposit capture processing, and risk management products and services. The Complementary segment provides additional software, hosting platforms, and services, including digital/mobile banking, treasury services, online account opening, fraud/AML and lending/deposit solutions that can be integrated with the Company's Core solutions, and
many can be used independently. The Corporate Services segment includes revenue and direct costs from hardware and other products and services and our technology infrastructure costs.
The Company's Chief Executive Officer, who is also the Company's CODM, regularly evaluates segment performance and makes strategic decisions on the allocation of resources to the segments based on various factors, including performance against trend, budget, and forecast for the fiscal three months ended September 30, 2026, and 2025. The CODM also uses 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, 2026, the Company transferred a product from the Core 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, 2026, to reclassify related revenue and cost of revenue recognized for the fiscal three months ended September 30, 2025, from the Core segment to the Complementary segment. Revenue reclassed for the fiscal three months ended September 30, 2025, was $5,292. Cost of revenue reclassed for the fiscal three months ended September 30, 2025, was $746.
Immaterial adjustments have been made between segments during the fiscal three months ended September 30, 2026, to reclassify cost of revenue that was recognized for the fiscal three months ended September 30, 2025. These reclasses were made to be consistent with the current allocation of cost of revenue by segment. Cost of revenue reclassed for the fiscal three months ended September 30, 2025, from the Core segment to the Corporate Services segment, was $757.
Core Three Months Ended September 30, % Change
2026 2025
Revenue $ 203,411 $ 190,001 7.1 %
Cost of Revenue $ 76,204 $ 71,634 6.4 %
Revenue in the Core segment increased 7.1% and cost of revenue increased 6.4% for the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025. Total Core revenue less Core deconversion revenue of $7,411 for the fiscal three months ended September 30, 2026, and less Core deconversion revenue of $3,219 for the fiscal three months ended September 30, 2025, results in a 4.9% increase, quarter over quarter. This increase was primarily driven by organic growth in our Core revenue lines including hosting as new and existing clients continue to migrate to the cloud and processing volumes expand. Total Core cost of revenue less Core deconversion costs of $888 for the fiscal three months ended September 30, 2026, and less Core deconversion costs of $443 for the fiscal three months ended September 30, 2025, results in a 5.8% increase, quarter over quarter. This increase was primarily due to higher Core direct costs generally consistent with increases in related Core lines of revenue, and higher Core personnel costs partly related to headcount growth in the trailing twelve months, partially offset by the increase in Core labor cost deferral. Core cost of revenue as a percentage of Core revenue decreased 1% for the first quarter of fiscal 2027 compared to the same quarter in fiscal 2026.
Payments Three Months Ended September 30, % Change
2026 2025
Revenue $ 252,111 $ 230,894 9.2 %
Cost of Revenue $ 125,318 $ 118,660 5.6 %
Revenue in the Payments segment increased 9.2% and cost of revenue increased 5.6% for the first quarter of fiscal 2027 compared to the same quarter last fiscal year. Total Payments revenue less Payments deconversion revenue of $4,313 and Payments revenue for the company acquired in the prior fiscal year of $1,451 for the first quarter of fiscal 2027 and Payments deconversion revenue of $3,483 for the first quarter of fiscal 2026, results in an 8.3% increase, quarter over quarter. This increase was primarily due to higher Payments card revenue from monthly service and risk management fees and higher Payments faster payments revenue from expanding transactional volumes. Total Payments cost of revenue less Payments cost of revenue for the company acquired in the prior fiscal year of $1,427 and Payments deconversion cost of revenue of $164 for the first quarter of fiscal 2027 and Payments deconversion cost of revenue of $151 for the first quarter of fiscal 2026, results in a 4.4% increase, quarter over quarter. This increase was primarily due to higher Payments direct costs generally consistent with increases in
Payments lines of revenue, and higher Payments personnel costs partly related to headcount growth in the trailing twelve months, partially offset by the increase in Payments labor cost deferral. Payments cost of revenue as a percentage of Payments revenue decreased 1% for the first quarter of fiscal 2027 compared to the same quarter in fiscal 2026.
Complementary Three Months Ended September 30, % Change
2026 2025
Revenue $ 220,176 $ 199,509 10.4 %
Cost of Revenue $ 74,776 $ 73,006 2.4 %
Revenue in the Complementary segment increased 10.4% and cost of revenue increased 2.4% for the first quarter of fiscal 2027 compared to the same quarter last fiscal year. Total Complementary revenue less Complementary deconversion revenue of $5,905 for the first quarter of fiscal 2027 and Complementary deconversion revenue of $1,876 for the first quarter of fiscal 2026, results in an 8.4% increase, quarter over quarter. This increase was primarily driven by organic growth in Complementary hosting revenue as new and existing clients continue to migrate to the cloud and processing volumes expand and Complementary digital and transaction revenues from a higher number of active users and the ramping up of additional products. Complementary cost of revenue less Complementary deconversion costs of $446 for the first quarter of fiscal 2027 and Complementary deconversion costs of $308 for the first quarter of fiscal 2026, results in a 2.2% increase, quarter over quarter. This increase was primarily driven by higher Complementary direct costs generally consistent with increases in related Complementary lines of revenue, and higher Complementary personnel costs partly related to headcount growth in the trailing twelve months, partially offset by the increase in Complementary labor cost deferral. Complementary cost of revenue as a percentage of Complementary revenue decreased 3% for the first quarter of fiscal 2027 compared to the same quarter in fiscal 2026.
Corporate Services
Three Months Ended September 30, % Change
2026 2025
Revenue $ 25,849 $ 24,334 6.2 %
Cost of Revenue $ 99,748 $ 85,266 17.0 %
Revenue classified in the Corporate Services segment includes revenues from hardware and other products and services. Revenue in the Corporate Services segment increased 6.2% for the first quarter of fiscal 2027 compared to the same quarter last fiscal year. Total Corporate Services revenue less Corporate Services deconversion revenue of $289 for the first quarter of fiscal 2027 and Corporate Services deconversion revenue of $48 for the first quarter of fiscal 2026, results in a 5.2% increase, quarter over quarter. This increase was primarily due to the growth in Corporate Services hardware revenue, on-premise support, digital and transaction, and hosting revenues, partially offset by the decrease in revenue related to the timing of our Connect conference, quarter over quarter. Cost of revenue for the Corporate Services segment includes direct costs from hardware and other products and services and our technology infrastructure costs. The Corporate Services cost of revenue in the first quarter of fiscal 2027 increased 17.0% when compared to the prior fiscal year quarter. Total Corporate Services cost of revenue less Corporate Services deconversion costs of $9 and Corporate Services cost of revenue for the company acquired in the prior fiscal year of $106 for the first quarter of fiscal 2027 and Corporate Services deconversion costs of $1 for the first quarter of fiscal 2026, results in a 16.9% increase, quarter over quarter. This increase was primarily due to higher Corporate Services cloud consumption, including AI, higher Corporate Services personnel costs partly related to headcount growth in the trailing twelve months, higher Corporate Services internal licenses and fees, including infrastructure costs, higher Corporate Services direct costs from hardware, and amortization of intangible assets, quarter over quarter.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash and cash equivalents increased to $25,356 at September 30, 2026, from $12,056 at June 30, 2026.
The following table summarizes net cash from operating activities in the statement of cash flows:
Three Months Ended
September 30,
2026 2025
Net income $ 160,412 $ 143,986
Non-cash expenses 71,770 93,389
Change in receivables 3,288 12,196
Change in deferred revenues
(39,724) (42,291)
Change in other assets and liabilities*
(34,493) (86,690)
Net cash provided by operating activities $ 161,253 $ 120,590
*For the fiscal three months ended September 30, 2026, the change in other assets and liabilities includes the change in accrued expenses of $(34,551), the change in prepaid expenses, deferred costs and other of $(31,640), and the change in accounts payable of $(4,123), partially offset by the change in income taxes of $35,821. 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), the change in income taxes of $(9,150), and the change in accounts payable of $(6,637).
Cash provided by operating activities for the first three months of fiscal 2027 increased 34% compared to the same period last fiscal year primarily due to the changes in income taxes and deferred income taxes quarter over quarter. Cash from operations is primarily used to repay debt, pay dividends, repurchase stock, make capital expenditures, and acquire companies. Cash used in investing activities for the first three months of fiscal 2027 totaled $75,321 and included: $49,784 for the ongoing enhancement and development of existing and new product and service offerings; capital expenditures for facilities and equipment of $26,960; $1,577 for the purchase and development of internal use software; and the purchase of investments of $1,000. Cash uses were partially offset by proceeds from investments of $4,000. Cash used in investing activities for the first three months of fiscal 2026 totaled $98,503 and included: $48,203 for the development of software; $42,390 for an acquisition, net; $8,880 for capital expenditures; $6,000 for the purchase of investments; and $1,509 for the purchase and development of internal use software. Cash uses were partially offset by proceeds from sale of assets of $7,479, and proceeds from investments of $1,000.
Financing activities used cash of $72,632 for the first three months of fiscal 2027 and included: repayments on credit facilities of $143,000; $70,903 for the purchase of treasury stock; dividends paid to stockholders of $42,768; and $3,961 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 $188,000. Financing activities used cash of $87,801 in the first three months of fiscal 2026 and included: $62,045 for the purchase of treasury stock; $42,145 for the payment of dividends; 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.
We believe that cash generated from operating activities, together with existing cash balances and amounts available under financing activities, will be sufficient to meet our anticipated working capital, capital expenditure, dividend, debt service, and other cash requirements for at least the next 12 months and over the longer term.
Capital Requirements and Resources
The Company generally uses existing resources and funds generated from operations to meet its capital requirements. Capital expenditures totaling $26,960 and $8,880 for the fiscal three months ended September 30, 2026, and September 30, 2025, respectively, were made primarily for additional equipment and the improvement of existing facilities. These additions were funded from available liquidity, including cash generated by operations and borrowings under our credit facilities. Total consolidated capital expenditures on facilities and equipment for the Company for fiscal year 2027 are expected to be between approximately $70,000 and $80,000 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 fiscal year ended June 30, 2026. There have been no material contractual obligations added for the fiscal three months ended September 30, 2026.
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 credit facilities. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At September 30, 2026, there were 34,989 shares in treasury stock and the Company had the remaining authority to repurchase up to 5,002 additional shares. The total cost of treasury stock at September 30, 2026, was $2,414,300. During the first three months of fiscal 2027, the Company repurchased 462 shares. At June 30, 2026, there were 34,527 shares in treasury stock and the Company had the remaining authority to repurchase up to 5,464 additional shares. The total cost of treasury stock at June 30, 2026, was $2,343,397. During the first three months of fiscal 2026, the Company repurchased 389 shares.
Credit facilities
On March 25, 2026, the Company entered into a five-year, revolving, unsecured credit agreement that replaced a prior credit agreement that was entered into on August 31, 2022. The credit agreement allows for borrowings of up to $1,000,000 and allows for additional revolving credit commitments and/or term loan commitments, pursuant to the terms and subject to certain limitations set forth in the credit agreement. The credit agreement bears interest at a variable rate equal to, at the option of the Company, either (a) a rate based on adjusted Term Secured Overnight Financing Rate ("SOFR") rate or (b) an alternate base rate (the highest of (i) 0.0%, (ii) U.S. Bank's prime rate, (iii) the Federal Funds Rate plus 0.50% and (iv) a one month adjusted Term SOFR rate plus 1.0%), plus an applicable percentage in each case determined based on 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, 2026, the Company was in compliance with all such covenants. The credit agreement terminates March 25, 2031. There was $85,000 and $40,000 outstanding under the credit facility at September 30, 2026 and June 30, 2026, respectively.
Other lines of credit
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 bore interest at the prime rate less 1.0%. The line of credit expired on July 17, 2026. There was no balance outstanding at June 30, 2026.
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