Jack Henry Announces Fiscal 2026 Second Quarter Deconversion Revenue Results

Rhea-AI Summary

Jack Henry (Nasdaq: JKHY) reported deconversion revenue of $6.2 million for the fiscal second quarter ended Dec. 31, 2025, and raised its full-year deconversion revenue estimate to $28 million for fiscal 2026. Deconversion revenue arises when a client is acquired and its contract terminates.

The company says deconversion amounts are driven by events outside its control and are excluded from non-GAAP revenue; forward-looking statements remain subject to risks disclosed in SEC filings.

Positive

• Q2 deconversion revenue of $6.2 million
• Fiscal 2026 deconversion guidance raised to $28 million

Negative

• Deconversion revenue driven by events outside company control
• Deconversion excluded from non-GAAP revenue measures
• Guidance subject to forward-looking risks and uncertainty

MONETT, Mo., Jan. 27, 2026 /PRNewswire/ -- Jack Henry & Associates, Inc.^® (Nasdaq: JKHY) announced today that deconversion revenue for the fiscal second quarter, ended Dec. 31, 2025, was $6.2 million. Based on these results, deconversion revenue estimates have been increased to $28 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 Aug. 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

How much deconversion revenue did Jack Henry (JKHY) report for Q2 fiscal 2026?

Jack Henry reported $6.2 million of deconversion revenue for the quarter ended Dec. 31, 2025. According to the company, this revenue is recognized when a client is acquired and its contract with Jack Henry terminates.

What is Jack Henry's (JKHY) full-year fiscal 2026 deconversion revenue guidance?

Jack Henry increased its fiscal 2026 deconversion revenue estimate to $28 million. According to the company, this reflects updated results and expectations for acquisition-related contract terminations during the year.

Why does Jack Henry (JKHY) exclude deconversion revenue from non-GAAP revenue?

Deconversion revenue is excluded because it is driven by external acquisition events and not ongoing service operations. According to the company, it does not reflect the true operations of its client services business.

When is deconversion revenue recognized by Jack Henry (JKHY)?

Deconversion revenue is recognized when a Jack Henry client is acquired and its contract terminates. According to the company, recognition timing depends on factors outside Jack Henry's control tied to those transactions.

Does the Jack Henry (JKHY) press release describe risks to its deconversion guidance?

Yes. The company states forward-looking statements are subject to inherent risks and uncertainties that could change actual results. According to the company, see its SEC filings for a fuller list of risk factors.

How should investors view Jack Henry's (JKHY) deconversion revenue relative to ongoing business performance?

Investors should treat deconversion revenue as event-driven and not core operating revenue. According to the company, these amounts are excluded from non-GAAP revenue because they do not represent routine client-services operations.