JKHY Filings — Jack Henry & Associates, Inc. - FilingSpy
JKHY
Jack Henry & Associates, Inc.
A maker of banking software that helps thousands of community banks and credit unions run their daily operations, offering core processing systems like SilverLake and Symitar along with digital banking, payments, and fraud tools. It was founded in 1976 in Monett, Missouri, when two data-processing managers, Jack Henry and Jerry Hall, sketched their business plan on the back of a napkin after finding existing bank software too pricey for smaller institutions. Its Banno digital-banking platform is a hit with credit unions, a fitting twist since the company's name doesn't actually belong to one of its founders.
Q3 FY2026 revenue rose 8.7% to $636.2M with operating income up 11.8% to $155.0M
growth outpaced for a third straight quarter. Revenue rose 8.7% to $636.2M and was $1.71 as cloud, digital, card, and faster payments drove the increase, while was 42.8%, up 1.0 point from a year earlier. The company carries $90M debt after a year debt-free, but recovered to $186.0M this quarter.
Key takeaways
rose 11.8% to $155.0M as growth outpaced a 7.8% rise in operating expenses, with organic operating growth of 7.3% after adjusting for one-time items.
rose 8.7% to $636.2M (7.3% organic excluding deconversion and acquisition impacts), led by services and support up 10.4% on private cloud migration and processing revenue up 6.6% on digital, card, and faster payments volumes.
was $1.71, up 12.5% , and was 42.8%, up 1.0 point from Q3 FY2025 but down 0.5 point from Q2 FY2026's 45.9%.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 revenue rose 8.7% to $636M, driven by organic growth in cloud, digital, card, and faster payments; operating income up 11.8%.
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Total increased 8.7% to $636.2M, with (excluding deconversion and acquisition impacts) of 7.3%, led by private and public cloud hosting, Jack Henry digital and transaction, card, and faster payments.
Services and support grew 10.4% , driven by data processing and hosting as clients migrate to the private cloud and processing volumes expand.
rose 72.5% to $186.0M and rose 76.3% to $169.5M; nine-month operating cash flow rose 46% to $459.3M, primarily from a change in .
The company entered a new $1B and had $90M outstanding at quarter-end, after ending FY2025 debt-free; was $90M, up 350% from the $20M at Q2 FY2026.
The company acquired Victor, a cloud-native embedded payments provider, with $42.4M spent in Q1 and Q2 FY2026, and repurchased $62.0M and $125.2M of stock in the prior two quarters.
What changed
Processing growth was 6.6% this quarter versus 9.7% in Q1 FY2026 and 9.1% in Q2 FY2026, falling back below the prior 9-11% range flagged to watch.
The $90M term loan repayment by May 2025 was completed and FY2025 ended debt-free; this quarter rose to $90M via a new $1B facility, reversing that position.
Nine-month of $459.3M is up 46% , recovering toward the FY2025 $641.5M annual run-rate after the Q1 dip to $120.6M.
No Payrailz charge has been recorded through Q3 FY2026 despite the $230.2M acquisition and $117.3M addition remaining on the watch list.
Victor acquisition integration continues after $84.8M spent across the first two quarters of FY2026, with no flagged.
What to watch
Q4 FY2026 processing growth to see if the 6.6% pace rebounds toward the prior 9-11% range.
Any Payrailz charge in upcoming periods after the $230.2M acquisition and $117.3M addition.
Financial contribution and integration of the Victor acquisition funded with $84.8M through the first half of FY2026.
Q4 FY2026 to confirm the $186.0M quarterly level sustains toward the FY2025 $641.5M annual run-rate.
Processing grew 6.6% , driven by higher active users and add-on products in digital and transaction, card monthly service and risk management fees, and expanding faster payments volumes.
increased 11.8% to $154.3M, with of 7.3% after adjusting for one-time items, as growth outpaced a 7.8% rise in operating expenses.
Net rose 46% to $459.3M for the nine months, primarily due to a change in ; the company entered a new $1B and had $90M outstanding at quarter-end.
Management expressed confidence in durable growth, citing strong technology spending by financial institutions, a healthy sales pipeline, and an ability to win deals with larger institutions.
Quantitative and Qualitative Disclosures About Market Risk
Dollar amounts in this item are in thousands. Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors such as liquidity, will result in losses for a certain financial inst…
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Dollar amounts in this item are in thousands.
Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors such as liquidity, will result in losses for a certain financial instrument or group of financial instruments. We are currently exposed to credit risk on credit extended to clients and interest risk on outstanding debt. We do not currently use any derivative financial instruments. We actively monitor these risks through a variety of controlled procedures involving senior management.
Based on the controls in place and the credit worthiness of the client base, we believe the credit risk associated with the extension of credit to our clients will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows.
We had $90,000 outstanding debt with variable interest rates as of March 31, 2026, and a 1% increase in our borrowing rate would increase our annual interest expense by $900.
We are subject to various routine legal proceedings and claims arising in the ordinary course of our business. In the opinion of management, any liabilities resulting from current lawsuits are not expected, either individually or in the aggregate, to have a material adverse effe…
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We are subject to various routine legal proceedings and claims arising in the ordinary course of our business. In the opinion of management, any liabilities resulting from current lawsuits are not expected, either individually or in the aggregate, to have a material adverse effect on our consolidated financial statements. In accordance with U.S. GAAP, we record a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These liabilities are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case or proceeding.
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