Jack Henry & Associates Reports 8.6% Revenue Growth to $585.1 Million in Q3 Fiscal 2025

Jack Henry & Associates, Inc. reported a total revenue of $585.1 million for the third quarter of fiscal 2025, marking an increase of 8.6% compared to $538.6 million in the same quarter of the previous fiscal year. For the nine months ended March 31, 2025, revenue rose to $1.76 billion, a 6.3% increase from $1.66 billion in the prior year. The company's net income for the third quarter was $111.1 million, or $1.52 per diluted share, reflecting a 27.6% increase from $87.1 million, or $1.19 per diluted share, in the same quarter last year. For the nine-month period, net income increased by 16.9% to $328.1 million, or $4.49 per diluted share.

The company experienced notable growth in its services and support segment, which generated $330.8 million in the third quarter, up 8.5% year-over-year. This growth was driven by strong performance in data processing and hosting services, particularly within private and public cloud offerings. The processing segment also saw an 8.9% increase in revenue, totaling $254.3 million, attributed to higher card transaction volumes and payment processing services. However, the corporate and other segment reported a decline in revenue, decreasing 6.2% to $19.5 million, primarily due to lower hardware sales.

In terms of operational metrics, Jack Henry & Associates serves approximately 7,500 clients and employs around 7,200 associates. The company continues to focus on enhancing its product offerings through internal development and strategic acquisitions. As of March 31, 2025, the company had $25.8 million in non-current investments and maintained a strong balance sheet with cash and cash equivalents of $39.9 million. The company also repurchased 207 shares of its common stock during the first nine months of fiscal 2025, with a total cost of $1.9 million for treasury shares.

Looking ahead, Jack Henry & Associates expressed optimism about its growth trajectory, citing a strong sales pipeline and the ongoing demand for its technology solutions among community and regional financial institutions. The company anticipates continued organic growth in its revenue streams, particularly in data processing and payment processing services, while managing operating expenses effectively. The effective tax rate for the third quarter was reported at 21.7%, down from 23.7% in the prior year, contributing to the overall increase in net income. The company remains committed to delivering high-quality services and maintaining strong client relationships as it navigates the evolving financial technology landscape.