Jack Henry Reports $6.2 Million Deconversion Revenue in Q2
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: PRnewswire
- Deconversion Revenue Growth: Jack Henry reported $6.2 million in deconversion revenue for Q2 of fiscal 2025, indicating increased activity in client acquisitions compared to the previous year.
- Full-Year Revenue Guidance Raised: Following the strong Q2 performance, Jack Henry has raised its deconversion revenue estimate for fiscal 2026 to $28 million, reflecting a positive outlook on future market dynamics.
- Nature of Revenue Explained: The deconversion revenue primarily arises when clients are acquired by other financial institutions, highlighting that this revenue is influenced by external factors and does not accurately represent Jack Henry's core operational performance.
- Exclusion from Non-GAAP Revenue: Jack Henry excludes deconversion revenue from its non-GAAP revenue in quarterly and annual reports, emphasizing the stability and sustainability of its ongoing business operations.
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Analyst Views on JKHY
Wall Street analysts forecast JKHY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JKHY is 198.00 USD with a low forecast of 174.00 USD and a high forecast of 220.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
8 Buy
5 Hold
0 Sell
Moderate Buy
Current: 179.810
Low
174.00
Averages
198.00
High
220.00
Current: 179.810
Low
174.00
Averages
198.00
High
220.00
About JKHY
Jack Henry & Associates, Inc. is a financial technology company. The Company’s segments include Core, Payments, Complementary, and Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer/member information. The Payments segment provides secure payment processing tools and services, including automated teller machine, debit, and credit card processing services; online and mobile bill pay solutions; automated clearinghouse origination and remote deposit capture processing; and risk management products and services. The Complementary segment provides additional software, hosted processing platforms, and services, including digital/mobile banking, treasury services, online account opening, fraud/anti-money laundering and lending/deposit solutions that can be integrated with its core solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Jack Henry Reports $6.2 Million Deconversion Revenue in Q2
- Deconversion Revenue Growth: Jack Henry reported $6.2 million in deconversion revenue for Q2 of fiscal 2025, indicating increased activity in client acquisitions compared to the previous year.
- Full-Year Revenue Guidance Raised: Following the strong Q2 performance, Jack Henry has raised its deconversion revenue estimate for fiscal 2026 to $28 million, reflecting a positive outlook on future market dynamics.
- Nature of Revenue Explained: The deconversion revenue primarily arises when clients are acquired by other financial institutions, highlighting that this revenue is influenced by external factors and does not accurately represent Jack Henry's core operational performance.
- Exclusion from Non-GAAP Revenue: Jack Henry excludes deconversion revenue from its non-GAAP revenue in quarterly and annual reports, emphasizing the stability and sustainability of its ongoing business operations.
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Jack Henry Launches Transaction Enrichment Feature on Banno Platform
- Transaction Enrichment Launch: Jack Henry successfully rolled out its native transaction enrichment capabilities on the Banno Digital Platform in collaboration with Bud Financial, enabling banks and credit unions to provide clear transaction details, thereby enhancing users' everyday financial management.
- Data-Driven Decision Making: By integrating Bud's Enrich product, Jack Henry offers high-quality transaction categorization and merchant detection, helping financial institutions gain actionable data to personalize customer experiences and optimize decision-making processes.
- Enhanced User Experience: Julie Morlan, Assistant Vice President at Jack Henry, stated that this integration allows clients to gain clearer visibility into spending behaviors and merchant activities, thus delivering more relevant and trusted user experiences while advancing the evolution of human-focused user experience.
- Market Leadership: Bud Financial has rapidly scaled since 2015, processing tens of billions of transactions and focusing on providing intelligent transaction data to help financial institutions achieve personalized services and optimize operations, further solidifying its leading position in the fintech sector.
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