Jack Henry Announces Fiscal 2027 First Quarter Deconversion Revenue Results

Most deconversion revenue arises from client acquisitions that result in contract terminations, rather than ongoing client services.

Rhea-AI Summary

Jack Henry & Associates (JKHY) reported $17.9 million in deconversion revenue for its fiscal first quarter ended September 30, 2026.

Based on those results, the company estimates fiscal 2027 deconversion revenue of $30 million. Most deconversion revenue arises when a client agrees to be acquired by another financial institution, resulting in termination of its Jack Henry contract. Recognition in these cases depends on factors outside Jack Henry's control. The company excludes this revenue from quarterly and annual non-GAAP revenue because it does not represent ongoing client-service operations.

Positive

• Minor pointFiscal first-quarter deconversion revenue was $17.9 million for the period ended September 30, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 deconversion revenue is estimated at $30 million based on first-quarter results.

Negative

• Minor pointMost deconversion revenue arises from client acquisitions resulting in termination of Jack Henry contracts.
• Minor pointDeconversion revenue recognition in these cases depends on factors outside Jack Henry's control.

Key Figures

Q1 deconversion revenue: $17.9 million Fiscal-year deconversion revenue estimate: $30 million

Q1 deconversion revenue

$17.9 million

Fiscal 2027 first quarter ended September 30, 2026

Fiscal-year deconversion revenue estimate

$30 million

Fiscal 2027 estimate

Key Terms

form 8-k, non-gaap

2 terms

form 8-k regulatory

"Current Report on Form 8-K filed with the Securities and Exchange Commission"

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.

non-gaap financial

"excludes deconversion revenue from non-GAAP revenue reported in its quarterly"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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

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MONETT, Mo., Oct. 29, 2026 /PRNewswire/ -- Jack Henry & Associates, Inc.^® (Nasdaq: JKHY) announced today that deconversion revenue for the fiscal first quarter, ended September 30, 2026, was $17.9 million. Based on these results, the deconversion revenue estimate for fiscal year 2027 is $30 million. 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.

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 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 more than 7,200 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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much deconversion revenue did Jack Henry report for its fiscal 2027 first quarter?

Jack Henry reported $17.9 million in deconversion revenue for the fiscal first quarter ended September 30, 2026.

What is Jack Henry's fiscal 2027 deconversion revenue estimate?

Jack Henry estimates $30 million in deconversion revenue for fiscal 2027, based on its first-quarter results.