AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 18/10/2026
Moat63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Detailed conversion, testing and training requirements, reinforced by typical six-year hosted and payment contracts, demonstrate meaningful incumbent switching friction. This supports a narrow advantage without establishing network effects or cost leadership.
durability · 2/4 · Multiyear contracts and implementation complexity support persistence, but renewal renegotiation and realized price compression limit evidence of durable economic protection across successive contract cycles.
customer dependency · 3/4 · Core-system conversion and ongoing processing and support indicate substantial operational embeddedness. Continued migration by existing clients supports relevance indirectly; standalone complementary products need not share the same dependency.
erosion resilience · 2/4 · Adjusted core growth and three years of rising revenue and operating income show current resilience. Renewal compression is realized erosion of pricing, while point-solution displacement remains a prospective risk.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 1/4 · Certain renewals have produced price compression, and contracts often include incentives that reduce transaction prices. These are observed weak pricing outcomes; their aggregate magnitude and any offsetting increases are undisclosed.
retention · 3/4 · Implementation friction and long contracts strongly support repeat demand, with continued existing-client cloud migration providing indirect operating corroboration. Management's high-retention assertion is supplementary; no numerical retention rate is inferred.
margin resilience · 3/4 · Revenue and operating income rose across fiscal 2024–2026, with operating income growing faster. More conservatively, quarterly revenue and expenses each grew 7.3% after the disclosed adjustments. This demonstrates operating resilience, while revealing no standalone proof of pricing strength.
contractual freedom · 1/4 · Long client contracts can limit supplier-cost pass-through, and renewal gives clients an opportunity to renegotiate prices and services. Exact escalator provisions are missing, but the disclosed constraints warrant a low grade.
Predictability99
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 0.22
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 3.62
Financial strength—
Missing required inputs: netDebtEbitGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 100.00
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 33.35
- Debt / FCF (x)
- 0.06
- Current ratio (x)
- 1.17
- cashInterestPaid
- 4.61
- cashInterestCoverage
- 165.43
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- -0.48
- 3-year average SBC / revenue (%)
- 1.26
- cashConversionGrade
- 100.00
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Fiscal 2026 operating cash flow of $761.96 million supported development, equipment and acquisition spending, while share counts declined in the supplied interim comparison. However, $618.578 million of repurchases and dividends exceeded operating cash flow less $277.738 million of net investing outflows. Cash-flow growth benefited primarily from deferred taxes, and the extended cloud commitment adds obligations. Returns on these allocations remain unproven.
incentive alignment · 3/4 · Actual fiscal 2026 long-term grants allocated approximately 60% to performance shares with three-year vesting and relative shareholder-return, organic-growth and margin metrics. Annual bonuses also link to operating performance. This demonstrates meaningful alignment in compensation design, tempered by adjustment discretion and absent executive ownership and realized vesting evidence.
execution · 3/4 · Three-year revenue and operating-income growth, adjusted quarterly growth and continued cloud migration demonstrate successful operating execution. Attribution to management is indirect; forward-looking pipeline claims and projected acquisition synergies are unnecessary to this grade.
governance · 3/4 · Existing majority-independent board oversight, independent committees and chair, executive sessions and an adopted related-party policy establish substantive governance safeguards. The financial-statement audit adds reporting assurance; these disclosures do not establish exceptional governance outcomes.
Evidence
The majority of our support and services revenue is derived from our private and public cloud services for our hosted clients that are typically on a six-year contract, recurring electronic payment solutions that are generally on a contract term of six years, and our on-premise clients that are typically on a one-year contract.
Business: typical hosted, payment and on-premise contract terms · Filed 28/08/2026
A complete core system implementation typically includes detailed planning, project management, data conversion, and testing.
Implementation and Training: core implementation requirements · Filed 28/08/2026
Our experienced implementation teams travel to client facilities or work remotely with clients to help manage the implementation process and ensure that all data is transferred from the legacy system to the Jack Henry system.
Implementation and Training: legacy data transfer · Filed 28/08/2026
We perform data conversions, software implementations, initial and ongoing client training, and ongoing client support services.
Business overview: conversion, training and ongoing support · Filed 28/08/2026
Total Core revenue less Core deconversion revenue of $7,506 for the fiscal three months ended March 31, 2026, and less Core deconversion revenue of $4,838 and less Core revenue related to a contractual change of $1,201 for the fiscal three months 26 Table of Contents ended March 31, 2025, results in a 8.6% increase, quarter over quarter.
MD&A: Core quarterly revenue growth excluding deconversion and contract-change revenue · Filed 07/05/2026
This increase was primarily driven by organic growth in our Core revenue lines including data processing and hosting within private and public cloud as new and existing clients continue to migrate to our private cloud and processing volumes expand.
MD&A: new and existing client cloud migration and processing-volume expansion · Filed 07/05/2026
Renewal time presents our clients with the opportunity to consider other providers or to renegotiate their contracts with us, including reducing the services we provide or negotiating the prices paid for our services.
Risk factors: renewal opportunities to switch or renegotiate · Filed 28/08/2026
Certain of our renewals have resulted in price compression between the former and renegotiated contracts.
Risk factors: realized price compression on certain renewals · Filed 28/08/2026
We may experience increased costs for services from our third-party service providers due to inflation or other cost expansion, but because our client contracts typically have longer terms than our third-party service provider contracts, our ability to pass on those higher costs to clients may be limited.
Risk factors: contractual limits on passing through supplier cost increases · Filed 28/08/2026
In addition, increased adoption of specialized point solutions may reduce demand for broader integrated offerings and result in the replacement of components of our existing product suite.
Risk factors: possible component replacement by specialized point solutions · Filed 28/08/2026
Our core solutions compete with large vendors that provide information and transaction processing solutions to banks and credit unions, including Fidelity National Information Services, Inc.; Fiserv, Inc.; Corelation, Inc.; and Finastra.
Competition: named core-system competitors · Filed 28/08/2026
Some of our current competitors have longer operating histories, larger client bases, and greater financial resources.
Competition: some competitors have larger client bases and financial resources · Filed 28/08/2026
Our support infrastructure and strict standards provide service levels that generate high levels of client satisfaction and retention.
Business overview: management assertion of high satisfaction and retention · Filed 28/08/2026
63 Table of Contents Year Ended June 30, 2026 Core Payments Complementary Corporate Services Total REVENUE Services and Support $ 722,703 $ 100,157 $ 552,755 $ 72,388 $ 1,448,003 Processing 45,749 835,849 199,459 15,279 1,096,336 Total Revenue 768,452 936,006 752,214 87,667 2,544,339 Cost of Revenue 304,886 479,539 286,726 362,500 1,433,651 Research and Development 176,445 Selling, General, and Administrative 299,210 Total Expenses 1,909,306 SEGMENT INCOME $ 463,566 $ 456,467 $ 465,488 $ (274,833) OPERATING INCOME 635,033 INTEREST INCOME 17,757 INCOME BEFORE INCOME TAXES $ 652,790 Year Ended June 30, 2025 Core Payments Complementary Corporate Services Total REVENUE Services and Support $ 690,731 $ 93,480 $ 514,888 $ 62,638 $ 1,361,737 Processing 42,193 780,018 179,883 11,457 1,013,551 Total Revenue 732,924 873,498 694,771 74,095 2,375,288 Cost of Revenue 295,239 460,151 269,657 335,700 1,360,747 Research and Development 162,771 Selling, General, and Administrative 283,055 Total Expenses 1,806,573 SEGMENT INCOME $ 437,685 $ 413,347 $ 425,114 $ (261,605) OPERATING INCOME 568,715 INTEREST INCOME 17,321 INCOME BEFORE INCOME TAXES $ 586,036 64 Table of Contents Year Ended June 30, 2024 Core Payments Complementary Corporate Services Total REVENUE Services and Support $ 643,693 $ 84,655 $ 479,701 $ 67,905 $ 1,275,954 Processing 41,569 733,053 156,383 8,584 939,589 Total Revenue 685,262 817,708 636,084 76,489 2,215,543 Cost of Revenue 285,304 442,084 255,693 316,396 1,299,477 Research and Development 148,256 Selling, General, and Administrative 278,419 Total Expenses 1,726,152 SEGMENT INCOME $ 399,958 $ 375,624 $ 380,391 $ (239,907) OPERATING INCOME 489,391 INTEREST INCOME 8,628 INCOME BEFORE INCOME TAXES $ 498,019 NOTE 15.
Note 14: fiscal 2024–2026 segment revenue and consolidated operating results · Filed 28/08/2026
Total revenue less deconversion revenue of $18,665 and acquisition revenue of $1,651 for the current fiscal quarter and less deconversion revenue of $9,644 and revenue related to a contractual change of $1,201 for the prior fiscal year third quarter results in an increase of 7.3% quarter over quarter.
MD&A: quarterly revenue growth excluding specified nonrecurring and acquisition effects · Filed 07/05/2026
Total operating expenses less deconversion operating expenses of $4,030 and operating expenses for the acquired company of $2,484 for the current fiscal quarter and less operating expenses related to deconversion operating expenses of $2,794 and a contractual change of $992 for the prior fiscal year third quarter results in an increase of 7.3% quarter over quarter.
MD&A: quarterly operating-expense growth excluding specified effects · Filed 07/05/2026
The following table summarizes net cash from operating activities in the consolidated statements of cash flows: Year Ended June 30, 2026 2025 Net income $ 502,776 $ 455,748 Non-cash expenses 374,296 231,613 Change in receivables (29,268) 15,056 Change in deferred revenues 9,099 (25,559) Change in other assets and liabilities (94,943) (35,354) Net cash provided by operating activities $ 761,960 $ 641,504 Cash provided by operating activities for fiscal 2026 increased 18.8% compared to fiscal 2025, primarily due to the change in deferred income taxes fiscal year over fiscal year.
Liquidity: operating cash flow and deferred-tax contribution to its increase · Filed 28/08/2026
Cash used in investing activities for fiscal 2026 totaled $277,738 and included: $184,243 for the ongoing enhancements and development of existing and new product and service offerings; capital expenditures on facilities and equipment of $67,103, mainly for the purchase of computer equipment; $42,390 for an acquisition; $13,721 for the purchase of investments; and $4,108 for the purchase and development of internal use software.
Liquidity: development, equipment, acquisition and other investing expenditures · Filed 28/08/2026
Financing activities used cash of $574,119 for fiscal 2026 and included: $448,173 for the purchase of treasury shares and $170,405 for dividends paid to stockholders.
Liquidity: fiscal 2026 repurchases and dividends · Filed 28/08/2026
On December 23, 2025, the Company signed a contract addendum with a cloud services provider for $450,000 in contractual purchase obligations for the period of December 30, 2025, through June 30, 2033.
Capital Requirements and Resources: cloud-services purchase commitment through June 2033 · Filed 07/05/2026
This commitment replaced $182,000 of the total contractual purchase obligations that were reported in the Company's Annual Report on Form 10-K for the year ended June 30, 2025.
Capital Requirements and Resources: portion of prior commitments replaced · Filed 07/05/2026
In fiscal 2026, the HC&C Committee allocated the long-term incentive award value at approximately 60% performance shares and 40% time-based restricted stock units.
Compensation Discussion and Analysis: actual fiscal 2026 long-term award allocation · Filed 02/10/2026
These three specific grants of performance shares in fiscal 2026 to the Named Executives vest at the end of a three-year performance period based on the following: (1) the total shareholder return over the three-year period in comparison to the companies in the S&P 900 (“TSR Peer Group”) (comprising approximately one-third of the total performance shares grant value); (2) the Company’s compound organic annual revenue growth rate (“CAGR”) for revenue calculated over four periods (three consecutive one-year periods and one three-year period, with each period accounting for one-quarter each of the total goal), with the revenue for each period measured against a target Organic Revenue Growth CAGR, where Organic Revenue Growth removes the impact of deconversion fees, acquisitions and divestitures, and, as approved by the HC&C Committee, any other one-time non-GAAP adjustments that management makes in the Company’s earnings releases for the relevant periods (comprising approximately one-third of the total performance 38 2026 Proxy Statement shares grant value); and (3) the expansion of the Company’s non-GAAP adjusted operating margin calculated over four periods (three consecutive one-year periods and one three-year period, with each period accounting for one-quarter each of the total goal), with such margin for each period measured against a target non-GAAP adjusted operating margin expansion, where non-GAAP operating margin removes the impact of deconversion fees, acquisitions and divestitures, sales of assets, and, as approved by the HC&C Committee, any other one-time non-GAAP adjustments that management makes in the Company’s earnings releases for the relevant periods (comprising approximately one-third of the total performance shares grant value).
Compensation Discussion and Analysis: granted performance awards, three-year vesting and metrics · Filed 02/10/2026
Page 34 Annual Incentive Cash Bonus Variable cash compensation tied 75% to annual adjusted operating income versus budget target and 25% tied to achievement of strategic goals, with the strategic goal achievement subject to an individual modifier.
Fiscal 2026 Compensation Components: annual bonus metrics · Filed 02/10/2026
Corporate Governance Highlights •A majority of the Company's directors are independent in accordance with Nasdaq standards and all members of Board committees are independent.
Corporate Governance Highlights: current board and committee independence · Filed 02/10/2026
•The Board Chair is independent. •Executive sessions of independent directors are led by the independent Board Chair at each Board meeting.
Corporate Governance Highlights: independent chair and executive sessions · Filed 02/10/2026
20 2026 Proxy Statement CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS Related Party Transaction Policy The Board has adopted a written policy administered by the Audit Committee.
Related Party Transaction Policy: adopted policy administered by Audit Committee · Filed 02/10/2026
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2026 in conformity with accounting principles generally accepted in the United States of America.
Independent auditor report: financial-statement opinion · Filed 28/08/2026
March 31, 2026 June 30, 2025 Receivables, net $ 282,463 $ 317,977 Contract Assets - Current 37,313 36,221 Contract Assets - Non-current 128,154 121,675 Contract Liabilities (Deferred Revenue) - Current 128,999 290,485 Contract Liabilities (Deferred Revenue) - Non-current 79,743 72,889 Contracts with our clients often include upfront incentive payments or credits provided to clients at or near the inception of an arrangement.
Revenue recognition: client contracts often include upfront incentives or credits · Filed 07/05/2026
These amounts are accounted for as a reduction to the transaction price and are recognized as a reduction to revenue over the term of the related agreement as the services are delivered.
Revenue recognition: incentives reduce transaction price and recognized revenue · Filed 07/05/2026
Three Months Ended March 31, Nine Months Ended March 31, 2026 2025 2026 2025 Net Income $ 122,894 $ 111,108 $ 391,549 $ 328,144 Common share information: Weighted average shares outstanding for basic earnings per share 71,767 72,851 72,262 72,893 Dilutive effect of stock options, restricted stock units, and performance units 211 162 171 165 Weighted average shares outstanding for diluted earnings per share 71,978 73,013 72,433 73,058 Basic earnings per share $ 1.71 $ 1.53 $ 5.42 $ 4.50 Diluted earnings per share $ 1.71 $ 1.52 $ 5.41 $ 4.49 Per share information is based on the weighted average number of common shares outstanding for the fiscal three and nine months ended March 31, 2026, and 2025.
Note 9: weighted-average share counts and award dilution · Filed 07/05/2026
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.
Segment information: complementary products can integrate with core or operate independently · Filed 07/05/2026
