Jack Henry Study Reveals Confidence Gaps and Growth Opportunities for Small and Medium-Sized Businesses
Rhea-AI Summary
Jack Henry (Nasdaq: JKHY) released its 2025 Financial Sentiment Study: SMB Report on Feb. 10, 2026, using a survey of 431 SMBs to map confidence, needs, and segment differences.
Key findings: 71% overall satisfaction, 65% confident on cash flow, segment gap with Momentum Makers 83% and Startup Sparks 57%, and 91% prioritizing rates, fees, ease, and service. The firm highlights product solutions like Tap2Local and Rapid Transfers to strengthen bank–SMB relationships.
Positive
- 71% of SMB owners report overall financial satisfaction
- 65% of SMB owners confident managing cash flow
- 91% of SMBs prioritize interest rates, fees, ease, and service
- Momentum Makers segment shows 83% satisfaction, indicating strong growth-stage confidence
Negative
- Startup Sparks report only 57% satisfaction, indicating weaker financial infrastructure
- Clear confidence gap in income tracking and cash-flow management across segments
News Market Reaction
On the day this news was published, JKHY declined 0.55%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
JKHY was down 1.04% while peers showed mixed moves: CACI +2.55%, AUR
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 03 | Earnings release | Positive | -7.3% | Strong Q2 revenue and EPS growth with raised full-year guidance. |
| Jan 28 | Product enhancement | Positive | +0.5% | Launch of transaction enrichment on Banno Digital Platform with Bud Financial. |
| Jan 27 | Revenue update | Positive | +0.5% | Reported deconversion revenue and increased full-year deconversion estimate. |
| Jan 26 | Partnership news | Positive | -1.2% | CorServ credit card management embedded into Jack Henry’s digital platform. |
| Jan 21 | Earnings call notice | Neutral | +0.5% | Announcement of webcast details for upcoming Q2 fiscal 2026 earnings call. |
Recent history shows that strong fundamental or strategic news has not always translated into positive next-day moves, with notable divergence on earnings and partnership headlines.
Over the past few weeks, Jack Henry released several updates. On Feb 3, 2026, fiscal Q2 2026 results showed revenue of $619.3M and EPS of $1.72, yet the stock fell 7.27%. A deconversion revenue update on Jan 27 and a transaction enrichment rollout on Jan 28 both saw modestly positive reactions around 0.47%. A CorServ integration announcement on Jan 26 coincided with a 1.17% decline. The current SMB sentiment study fits into this stream of strategic and product-oriented communications rather than being a direct financial catalyst.
Market Pulse Summary
This announcement centers on Jack Henry’s 2025 Financial Sentiment Study: SMB Report, surveying 431 businesses and revealing confidence gaps, especially around cash-flow and income tracking. It reinforces the company’s focus on embedded payments and digital banking solutions like Tap2Local and Rapid Transfers. In the context of recent earnings growth and product integrations, investors may watch how financial institutions adopt these tools and whether SMB engagement metrics or segment penetration data are highlighted in future updates.
Key Terms
cloud-native technical
merchant acquiring financial
tap-to-pay technical
digital banking technical
AI-generated analysis. Not financial advice.
Banks and credit unions have significant opportunity to help SMBs navigate financial complexity
Key findings from the study:
SMBs are generally optimistic, but confidence is uneven.
71% of SMB owners are satisfied with their business's financial situation, but this varies widely by segment.- Momentum Makers (mid‑stage, growth‑oriented businesses) report the highest satisfaction (
83% ), while Startup Sparks (often sole proprietors with low revenue and limited financial infrastructure) are significantly less satisfied (57% ).
Cash flow and income tracking represent major opportunities.
65% of SMB owners feel confident managing cash flow, despite its strong correlation with overall financial satisfaction.- Improving confidence in income tracking and cash‑flow management would meaningfully increase satisfaction across all segments.
SMBs value low costs, ease, and service above all else.
- When engaging with new financial products, SMBs consistently prioritize low/no fees, interest rates, ease of process, and customer service.
91% of SMBs consider interest rates, fees, ease, and service their top criteria.
Business needs diverge sharply by segment.
- Startup Sparks struggle most with cash flow, networking, and taxes – and are the least confident across nearly all aspects of business management.
- Momentum Makers seek support with taxes and marketing strategy.
- Power Players (large, established SMBs – typically corporations with
$20M + in revenue and 250+ employees) require help with compliance, complaint management, and more complex operational needs.
Jack Henry's SMB strategy helps banks and credit unions strengthen relationships with local businesses by embedding modern payments and money‑movement capabilities directly into the digital banking experience. Solutions such as Tap2Local™ and Jack Henry™ Rapid Transfers are designed to meet SMBs where they work – enabling simple, secure ways to accept payments and move money without added complexity. Tap2Local, a cloud‑native merchant acquiring solution, allows small businesses to accept tap‑to‑pay card payments through their financial institution, while Rapid Transfers supports fast, secure money transfers for businesses and consumers.
"SMB owners are looking for more than products; they're looking for partners who understand where they are in their journey and can help them move forward with confidence," said Jeff VanDeVelde, senior director of marketing at Jack Henry. "This research makes clear that when financial institutions focus on strengthening financial clarity and simplifying the day-to-day realities of running a business, they become far more integral to an SMB's success."
"What stood out in this study is the disconnect between how important cash flow and income tracking are to SMB success and how confident many owners actually feel in managing them," said Lee Wetherington, senior director of corporate strategy at Jack Henry. "That gap creates real consequences for satisfaction and growth, but it also creates opportunity. When financial institutions help business owners build confidence, they don't just improve financial outcomes; they fundamentally reshape how SMBs perceive their bank or credit union as a strategic partner."
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 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.
Statements made in this news release that are not historical facts are "forward-looking statements." 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 the Company's Securities and Exchange Commission filings, including the Company'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 news release speaks only as of the date of the news release, and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.
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SOURCE Jack Henry & Associates, Inc.
FAQ
What did Jack Henry (JKHY) report in the 2025 SMB Financial Sentiment Study on Feb. 10, 2026?
How do SMB segments differ in satisfaction in Jack Henry's JKHY 2025 study?
What cash-flow and income tracking issues did Jack Henry (JKHY) identify for SMBs?
Which product solutions did Jack Henry (JKHY) highlight to support SMBs?
What do SMBs prioritize when choosing financial products, per Jack Henry's 2025 study?
