Jack Henry & Associates, Inc. (JKHY) SEC Filings & Earnings Calls

Customer Concentration Risk

“Several of our directors serve as executive officers or directors of other financial institutions or commercial entities with which the Company engages in routine, ordinary course business.” · word for word

Competition Risk

“the degree and nature of our competition”

Financial Institution Consolidation

“Consolidation and failures of financial institutions will continue to reduce the number of our clients and potential clients.” · word for word

Regulatory Compliance Costs

“We will be required to apply substantial research and development and other corporate resources to adapt our products to this evolving, complex, and often unpredictable regulatory environment.” · word for word

Cybersecurity and Data Privacy

“If we fail to comply with such requirements, we could be subject to reputational harm, regulatory enforcement, and litigation.” · word for word

Labor Cost Pressure

“Competition for these professionals has led to wage inflation in the technology sector.” · word for word

Interest Rate Risk

“Increases in interest rates on our variable-rate debt would increase our interest expense, which could negatively impact our results of operations.” · word for word

Deconversion revenue declined significantly ($11.2M in Q4, $42.8M FY26 vs $33.9M FY25) indicating potential client losses or conversion timing.

“Decrease in deconversion revenue of $11,168 (thousands) in Q4; FY26 deconversion revenue $42.8M vs $33.9M prior year.”

Cash position dropped sharply from $102M to $12.1M due to aggressive share repurchases ($448M) and debt draw ($40M).

“Cash and cash equivalents were $12.1 million at June 30, 2026, and $102.0 million at June 30, 2025. Debt outstanding for credit facilities was $40 million at June 30, 2026, and $0 at June 30, 2025.” · word for word

Deconversion revenue is driven by client M&A, outside company control.

“Deconversion revenue is generated when one of Jack Henry’s clients agrees to be acquired by another financial institution, resulting in the termination of the client’s contract.” · word for word

Competitive uncertainty and technology spending shifts could impact future growth

“Sales pipeline is increasing, fueled by increased technology spending and competitive uncertainty” · word for word

Increased leverage capacity with financial covenants (min EBITDA/interest 3.5x, max net leverage 3.5x).

“minimum ratio of Consolidated EBITDA to Consolidated Interest Expense of 3.50 to 1.00 and a maximum Net Leverage Ratio of 3.50 to 1.00”

Tax law change impact on cash taxes

“The Company does anticipate a significant reduction in cash tax payments and income taxes payable for the current fiscal year as well as a decrease in deferred tax assets related to the key provisions cited above.” · word for word

IRS examination

“The Internal Revenue Service ("IRS") is currently conducting an examination of the Company's U.S. federal income tax return for the fiscal 2023 tax year.” · word for word

No material risk signals identified; strong financial performance and guidance raise.

Deconversion revenue is unpredictable and driven by client M&A activity, not core operations.

“this revenue does not represent the true operations of Jack Henry’s ongoing business of providing services to clients.” · word for word

Deconversion revenue volatility

“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.” · word for word

Tax law change impact on cash taxes

“The Company does anticipate a significant reduction in cash tax payments and income taxes payable for the current fiscal year as well as a decrease in deferred tax assets related to the key provisions cited above.” · word for word

Deconversion revenue is unpredictable and driven by external M&A activity

“Recognition of deconversion revenue is driven by factors outside Jack Henry's control” · word for word