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Jack Henry Announces Fiscal 2026 Third Quarter Deconversion Revenue Results

(Positive)
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Jack Henry (Nasdaq: JKHY) reported $18.7 million of deconversion revenue for the fiscal third quarter ended March 31, 2026, and raised its full‑year deconversion revenue estimate to $37 million for fiscal 2026.

The company notes deconversion revenue arises when a client is acquired and its contract terminates, is driven by factors outside Jack Henry's control, and is excluded from the company's non‑GAAP revenue metrics.

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Positive

  • Q3 deconversion revenue of $18.7 million
  • Full‑year deconversion guidance increased to $37 million

Negative

  • Deconversion revenue excluded from non‑GAAP revenue metrics
  • Revenue driven by third‑party client acquisitions, creating timing volatility

News Market Reaction – JKHY

+0.62%
+0.62% Session close to close

In the Apr 29 session, JKHY gained 0.62%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details $18.7 million in deconversion revenue for Q3 and raises the full-year fisc...
Analysis

This announcement details $18.7 million in deconversion revenue for Q3 and raises the full-year fiscal 2026 estimate to $37 million, while stressing that this line is non-core and excluded from non-GAAP revenue. Context from recent filings, including stronger operating results and a new $1.0 billion revolver, suggests a broader financial backdrop. Investors may watch upcoming earnings, further deconversion updates, and standard 10-K/10-Q risk-factor disclosures for additional clarity.

Key Figures

Q3 deconversion revenue: $18.7 million FY26 deconversion guidance: $37 million New revolver capacity: $1.0 billion +5 more
8 metrics
Q3 deconversion revenue $18.7 million Fiscal 2026 third quarter ended Mar. 31, 2026
FY26 deconversion guidance $37 million Updated full-year fiscal 2026 deconversion revenue estimate
New revolver capacity $1.0 billion Five-year unsecured revolving credit agreement per <b>Mar 26, 2026</b> 8-K
Prior revolver size $600 million Previous unsecured revolving credit facility replaced by new agreement
Refinanced balance $80 million Outstanding under prior revolver refinanced into new facility as of Mar 25, 2026
Quarterly revenue $619.3 million Quarter ended Dec. 31, 2025, per Form 10-Q
Quarterly net income $124.7 million Quarter ended Dec. 31, 2025, per Form 10-Q
Quarterly diluted EPS $1.72 Quarter ended Dec. 31, 2025, per Form 10-Q

Historical Context

5 past events · Latest: Apr 22 (Neutral)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Apr 22 Earnings call logistics Neutral -0.6% Set date and access details for upcoming fiscal 2026 Q3 earnings call.
Apr 20 ESG report release Positive -0.1% Published 2026 Sustainability Report outlining ESG priorities and disclosures.
Mar 24 Customer wins Positive -2.7% FM BANK and Quoin Financial chose Jack Henry core and digital platforms.
Mar 19 Product award Positive -0.4% Tap2Local named "Small Business Payments Solution of the Year" by FinTech awards.
Mar 06 Partnership expansion Positive +2.9% Financial Crimes Defender added to ICBA Preferred Service Provider program.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent operational and recognition-oriented announcements have often been followed by negative short-term price reactions, with only one of the clearly positive prior items showing a supportive move.

Recent Company History

Over the last two months, JKHY has highlighted multiple business milestones, including new bank wins on Mar 24, an industry award for Tap2Local on Mar 19, and an ICBA program expansion on Mar 06. Despite their generally positive tone, three of these four updates saw negative next-day reactions. The latest deconversion revenue and guidance update on Apr 28 fits into this cadence of frequent operational disclosures layered on top of solid financial results reported in the Feb 06 Form 10-Q.

Key Terms

non-gaap revenue, form 8-k, form 10-k, form 10-q, +1 more
5 terms
non-gaap revenue financial
"Jack Henry excludes deconversion revenue from non-GAAP revenue reported in its quarterly"
Non-GAAP revenue is a company’s sales figure that has been adjusted by management to remove certain items—such as one-time gains or accounting quirks—so the result is intended to show the company’s underlying sales performance. Investors watch it because it can make trends easier to see, like wiping mud off a windshield to view the road, but the adjustments differ by company so you must check what was excluded before comparing figures.
form 8-k regulatory
"please see Jack Henry's Current Report on Form 8-K filed with the Securities"
A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.
form 10-k regulatory
"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"
A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.
form 10-q regulatory
"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"
A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.
forward-looking statements regulatory
"Statements made in this press release that are not historical facts are "forward-looking statements" within the meaning"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MONETT, Mo., April 28, 2026 /PRNewswire/ -- Jack Henry & Associates, Inc.® (Nasdaq: JKHY) announced today that deconversion revenue for the fiscal third quarter, ended Mar. 31, 2026, was $18.7 million. Based on these results, the deconversion revenue estimate has been increased to $37 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 HenryTM (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.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/jack-henry-announces-fiscal-2026-third-quarter-deconversion-revenue-results-302755703.html

SOURCE Jack Henry & Associates, Inc.

FAQ

What did Jack Henry (JKHY) report for deconversion revenue in Q3 fiscal 2026?

Jack Henry reported $18.7 million of deconversion revenue for fiscal Q3 ended March 31, 2026. According to the company, this revenue results when a client is acquired and its contract with Jack Henry terminates.

How did Jack Henry (JKHY) change its fiscal 2026 deconversion revenue estimate?

Jack Henry increased its fiscal 2026 deconversion revenue estimate to $37 million. According to the company, this revision reflects year‑to‑date deconversion results and updated expectations for client contract terminations due to acquisitions.

Does Jack Henry (JKHY) count deconversion revenue in non‑GAAP revenue?

No, Jack Henry excludes deconversion revenue from its non‑GAAP revenue figures. According to the company, deconversion revenue is not considered part of ongoing service operations and is removed from non‑GAAP presentation.

Why is deconversion revenue volatile for Jack Henry (JKHY)?

Deconversion revenue is volatile because it depends on third‑party client acquisitions and contract terminations. According to the company, recognition timing is driven by events outside Jack Henry's control, creating unpredictability quarter to quarter.

What should investors consider about JKHY's deconversion revenue guidance?

Investors should note the guidance is an estimate tied to client acquisition activity and timing. According to the company, forward‑looking statements carry risks and actual deconversion revenue may differ materially from estimates.