Jack Henry Announces Fiscal 2026 First Quarter Deconversion Revenue Results

Rhea-AI Summary

Jack Henry (Nasdaq: JKHY) reported deconversion revenue of $8.6 million for the fiscal first quarter ended Sept. 30, 2025 and raised its full‑year fiscal 2026 deconversion estimate to $20 million. The company said most deconversion revenue arises when a client is acquired and its contract terminates, so recognition is driven by external events and is excluded from non‑GAAP revenue in quarterly and annual releases. The release reiterates that forward‑looking statements are subject to risks and uncertainties and references SEC filings for factors affecting results.

Positive

• Q1 deconversion revenue of $8.6 million
• Fiscal 2026 guidance for deconversion revenue increased to $20 million

Negative

• Deconversion revenue recognition is driven by external acquisitions
• Company excludes deconversion from non‑GAAP revenue
• Deconversion revenue is unpredictable and not ongoing operations

MONETT, Mo., Oct. 28, 2025 /PRNewswire/ -- Jack Henry & Associates, Inc.^® (Nasdaq: JKHY) announced today that deconversion revenue for the fiscal first quarter, ended Sept. 30, 2025, was $8.6 million. Based on these results, deconversion revenue estimates have been increased to $20 million for full year fiscal 2026 guidance. For more information about how guidance is developed for deconversion revenue estimates, please see Jack Henry's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 3, 2023.

The majority of 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 with Jack Henry. In these circumstances, Jack Henry's recognition of deconversion revenue is driven by factors outside Jack Henry's control, and this revenue does not represent the true operations of Jack Henry's ongoing business of providing services to clients. As a result, Jack Henry excludes deconversion revenue from non-GAAP revenue reported in its quarterly and annual earnings releases.

Statements made in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those discussed in Jack Henry's Securities and Exchange Commission filings, including Jack Henry's most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Any forward-looking statement made in this current report speaks only as of the date of the current report, and Jack Henry's expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.

About Jack Henry & Associates, Inc.^®
Jack Henry™ (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity – offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For nearly 50 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,400 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.

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SOURCE Jack Henry & Associates, Inc.

FAQ

What did Jack Henry (JKHY) report for deconversion revenue in Q1 fiscal 2026?

Jack Henry reported $8.6 million of deconversion revenue for the quarter ended Sept. 30, 2025.

How did Jack Henry update its full‑year fiscal 2026 deconversion revenue guidance?

The company increased its deconversion revenue estimate to $20 million for fiscal 2026.

Why is deconversion revenue excluded from Jack Henry's non‑GAAP revenue?

Because it is generated by client acquisitions terminating contracts and is not from ongoing services.

When did Jack Henry's reported quarter end for the deconversion revenue announcement?

The fiscal first quarter ended on Sept. 30, 2025.

Does Jack Henry say deconversion revenue reflects its regular operations (JKHY)?

No; the company states deconversion revenue does not represent its ongoing services business.

Where can investors find more detail on Jack Henry's deconversion guidance methodology?

The company refers investors to its Form 8‑K filed Aug. 3, 2023 and other SEC filings for methodology and risk factors.