UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

ANNUAL REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

(Mark One)


☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended June 30, 2025


OR
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from ______________ to ________________

Commission file number 0-14112

JACK HENRY & ASSOCIATES, INC.

(Exact name of registrant as specified in its charter)


Delaware						43-1128385
(State or Other Jurisdiction of Incorporation)						(I.R.S. Employer Identification No.)

663 Highway 60, P.O. Box 807, Monett, MO 65708

(Address of Principal Executive Offices)

(Zip Code)

417-235-6652

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock ($0.01 par value)	JKHY	Nasdaq Global Select Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.

Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” ”accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes ☐ No ☒

On December 31, ~~2023~~2024, the aggregate market value of the Common Stock held by persons other than those who may be deemed affiliates of Registrant was $1112,~~835~~705,~~584~~842,~~815~~343 (based on the closing stock price on Nasdaq on December 31, ~~2023~~2024).

As of August 158, ~~2024~~2025, the Registrant had 72,~~908~~871,~~319~~385 shares of Common Stock outstanding ($0.01 par value).

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Company's Proxy Statement for its ~~2024~~2025 Annual Meeting of Stockholders (the "Proxy Statement") are incorporated by reference into Part III of this Report to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission ("SEC") within 120 days of the Company's fiscal year ended June 30, ~~2024~~2025.

TABLE OF CONTENTS

		Page Reference
PART I
ITEM 1.	BUSINESS	5
ITEM 1A.	RISK FACTORS	14
ITEM 1B.	UNRESOLVED STAFF COMMENTS	20
ITEM 1C.	CYBERSECURITY	20
ITEM 2.	PROPERTIES	21
ITEM 3.	LEGAL PROCEEDINGS	2122
ITEM 4.	MINE SAFETY DISCLOSURES	2122
PART II
ITEM 5.	MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	2223
ITEM 6.	[RESERVED]	2324
ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	2425
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	3234
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	3334
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	5961
ITEM 9A.	CONTROLS AND PROCEDURES	5961
ITEM 9B.	OTHER INFORMATION	5961
ITEM 9C.	DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS	5961
PART III
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	6062
ITEM 11.	EXECUTIVE COMPENSATION	6062
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	6062
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	6062
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	6062
PART IV
ITEM 15	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	6163
ITEM 16	FORM 10-K SUMMARY	6365

In this report, all references to "Jack Henry," the “Company," “we," “us," and “our," refer to Jack Henry & Associates, Inc., and its wholly owned subsidiaries. Unless otherwise stated, references to particular years, quarters, months, or periods refer to the Company's fiscal years ended in June and the associated quarters, months, and periods of those fiscal years.

FORWARD LOOKING STATEMENTS

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, 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 (the "Exchange Act"). Forward-looking statements may appear throughout this report, including without limitation, in Management's Discussion and Analysis of Financial Condition and Results of Operations. Forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “seek,” “anticipate,” “estimate,” “future,” “intend,” “plan,” “strategy,” “predict,” “likely,” “should,” “will,” “would,” “could,” “can,” “may,” and similar expressions. Forward-looking statements are based only on management’s current beliefs, expectations and assumptions regarding the future of the Company, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. 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 this Annual Report on Form 10-K, in particular, those included in Item 1A, “Risk Factors” of this report, and those discussed in other documents we file with the SEC. Any forward-looking statement made in this report speaks only as of the date of this report, 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.

PART I

ITEM 1. BUSINESS

Jack Henry & Associates, Inc.® is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. For ~~more~~nearly ~~than~~50 48 years, we have provided technology solutions to help banks and credit unions innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,~~500~~400 financial institutions and diverse corporate entities with people-inspired innovation, personal service, and insight-driven solutions.

Mission Statement

We strengthen the connections between people and their financial institutions through technology and services that reduce the barriers to financial health.

This ~~philosophy~~mission has always been part of the foundation on which Jack Henry was built. Our founders, Jack Henry and Jerry Hall, were committed to their community and believed they could help financial institutions better serve the needs of ~~people~~their ~~and~~accountholders ~~businesses~~by using more innovative technology and services.

Since our founding in 1976, much has changed, but our commitment to supporting community and regional ~~financial~~banks ~~institutions~~and credit unions remains unwavering. We continue to be guided by our founding ~~principles~~philosophy: do the right thing, do whatever it takes, and have fun.

Who We Serve

We provide products and services primarily to community and regional ~~financial~~banks ~~institutions~~and credit unions (see "Our Industry" below):

•Core bank integrated data processing systems are provided to over ~~940~~950 banks. Our banking solutions support both on-premise and private cloud operating environments with functionality for core processing platforms and integrated complementary solutions.

•Core credit union data processing solutions are provided to credit unions of all sizes, with a client base of approximately ~~720~~715 credit unions. We offer a flagship core processing platform and integrated complementary solutions that support both on-premise and private cloud operating environments.

•Non-core highly specialized core-agnostic products and services are also provided to ~~financial~~banks ~~institutions~~and credit unions. We offer complementary solutions that include highly specialized financial performance, imaging and ~~payments~~payment ~~processing~~solutions, information security and risk management, retail delivery, and online and mobile functionality. These products and services enhance the performance of traditional ~~financial~~banks ~~services~~and ~~organizations~~credit unions of all asset sizes and charters, and non-traditional diverse corporate entities. In total, we serve ~~over~~approximately 1,~~660~~670 bank and credit union core clients and over 5,~~870~~710 non-core clients.

Our products and services provide our clients with solutions that can be tailored to support their unique growth, service, operational, and performance goals. Our well-rounded solutions also enable ~~financial~~banks ~~institutions~~and credit unions to offer the high-demand products and services required by their accountholders to compete more successfully and to capitalize on evolving trends shaping the financial services industry.

We are committed to exceeding our clients’ expectations. We measure and monitor their satisfaction using a variety of surveys, such as an annual survey on the client's anniversary date and randomly-generated online surveys initiated each day by routine support requests to ensure feedback is received throughout the year. The survey results are analyzed and provided to operational areas to ensure our service consistently exceeds our clients’ expectations. We believe this process ensures we understand the Voice of the Customer which contributes to our excellent retention rates.

We are focused on establishing long-term client relationships, continually expanding and strengthening those relationships. We do so with cross sales of additional products and services that support our clients' strategy, earning new financial and non-financial clients, and ensuring our product offerings are highly competitive.

The majority of our support and services revenue is derived from our private and public cloud services for our hosted clients that are typically on a six-year contract, recurring electronic payment solutions that are generally on a contract term of six years, and our on-premise clients that are typically on a one-year contract. Less predictable software license fees, paid by clients implementing our software solutions on-premise, and hardware sales, including all non-software products that we re-market in order to support our software systems, complement our primary revenue sources. Information regarding the classification of our business into four separate segments is set forth in Note 14 to the consolidated financial statements (see Item 8).

We recognize that our associates and their collective contributions are ultimately responsible for Jack Henry's past, present, and future success. Recruiting and retaining high-quality associates is essential to our ongoing growth and financial performance, and we believe we have established an organizational culture that sustains high levels of associate engagement. For further discussion of our human capital considerations, see "Human Capital" below.

Our Industry

Our core banking solutions ~~currently~~generally serve commercial banks and savings institutions with up to $5055 billion and above in assets. ~~Our~~and ~~systems~~ are designed to be capable of serving institutions with up to $~~100~~150 billion in assets,. ~~and~~We we complete annual, third-party testing to validate this capability each August. According to the Federal Deposit Insurance Corporation (“FDIC”), there were approximately 4,~~540~~440 commercial banks and savings institutions in the ~~less than~~ $5055 billion and under asset range as of December 31, ~~2023~~2024, and we currently support over ~~940~~950 of these banks with one of our three core information processing platforms and a significant number of complementary/payment products and services.

Our core credit union solutions serve credit unions of all asset sizes. According to America's Credit Unions ("ACU") (formerly Credit Union National Association), there were ~~approximately~~ 4,~~700~~550 domestic credit unions as of December 31, ~~2023~~2024, and we currently support approximately ~~720~~715 of these credit unions with one flagship core information processing platform and a significant number of complementary/payment products and services.

Our non-core solutions serve ~~financial~~banks ~~services~~and ~~organizations~~credit unions of all asset sizes and charters and other diverse corporate entities. We ~~currently~~ support ~~financial~~these ~~institutions~~organizations with specialized solutions for generating additional revenue and growth, increasing security, mitigating operational risks, and controlling operating costs.

The FDIC reports the number of commercial banks and savings institutions declined 1513% from the ~~beginning~~end of calendar year ~~2018~~2019 to the end of calendar year ~~2023~~2024, due mainly to mergers and acquisitions. Although the number of banks continued to decline at a 3% compound annual rate during this period, aggregate assets increased at a compound annual rate of 65% and totaled $2324.71 trillion as of December 31, ~~2023~~2024. There were six new bank charters issued in calendar year ~~2023,~~2024 ~~compared~~and tosix 15issued in the ~~2022~~2023 calendar year. Comparing calendar years ~~2023~~2024 to ~~2022~~2023, the number of transactions of FDIC-insured banks acquiring or merging with other banks or credit unions decreased 2018%.

ACU reports the number of credit unions declined 1415% from the ~~beginning~~end of calendar year ~~2018~~2019 to the end of calendar year ~~2023~~2024. Although the number of credit unions declined at a 3% compound annual rate during this period, aggregate assets increased at a compound annual rate of 98% and totaled $2.3 trillion as of December 31, ~~2023~~2024.

~~Community~~Despite ~~and~~continued ~~regional~~industry ~~financial~~consolidation, ~~institutions~~Jack ~~are~~Henry ~~vitally~~net ~~important~~core tofootprints ~~the~~increased ~~communities,~~year-over-year ~~consumers,~~from ~~and~~calendar ~~businesses~~year ~~they~~2023 ~~serve as well as~~ to ~~the~~calendar ~~local~~year ~~economies~~2024 ~~where~~in ~~they~~both ~~operate.~~bank ~~Bank customers~~ and credit union ~~members~~client ~~rely~~bases. ~~on these institutions to provide personalized~~Furthermore, ~~relationship-based~~the ~~service~~average ~~and~~assets ~~competitive~~under ~~financial~~management ~~products~~for ~~and~~our ~~services~~banking ~~available~~core ~~through~~clients ~~the~~grew ~~accountholders'~~from ~~delivery~~$1.26 ~~channel~~billion ofto ~~choice~~$1. ~~Institutions~~29 ~~are~~billion, ~~recognizing that attracting~~ and ~~retaining~~the ~~customers~~average ~~and~~assets ~~members~~under inmanagement ~~today’s~~for ~~highly~~our ~~competitive~~credit ~~financial~~union ~~industry~~core ~~and~~clients ~~realizing~~grew ~~near-term~~from ~~and~~$1.17 ~~long-term~~billion ~~performance~~to ~~goals are often technology dependent~~$1.20 ~~Financial institutions must implement technological solutions that enable them to:~~billion.

~~•Offer~~Community ~~e-commerce~~and regional banks and credit unions are vitally important to the communities, ~~mobile~~consumers, and ~~digital~~businesses ~~strategies~~they ~~that~~serve ~~provide~~as well as to the ~~convenience~~local economies where they operate. Bank and credit union accountholders rely on these institutions to provide personalized, relationship-~~driven~~based service and competitive financial products and services ~~required~~available through the accountholders' delivery channel of choice. Institutions are recognizing that attracting and retaining accountholders in today’s ~~financial~~highly ~~services~~competitive financial industry and realizing near-term and long-term performance goals are often technology dependent. Banks and credit unions must implement technological solutions that enable them to:

•Offer digital strategies that provide the convenience-driven services required in today’s financial services industry.

•Maximize performance with accessible, accurate, and timely business intelligence information.

•Provide the high-demand products and services needed to successfully compete with traditional and non-traditional competitors created by convergence within the financial services industry.

•~~Enhance~~Foster ~~the~~growth ~~customer/member~~and ~~experience~~efficiency atthrough ~~multiple~~delivering ~~points~~accountholders ofexceptional ~~contact~~user experiences.

•Expand existing ~~customer/member~~accountholder relationships and strengthen exit barriers by cross selling additional products and services.

•Capitalize on new revenue, and deposit and loan portfolio growth opportunities.

•Increase operating efficiencies and reduce operating costs.

•Protect mission-critical information assets and operational infrastructure.

•Protect accountholders with various security tools from fraud and related financial losses.

•Maximize the day-to-day use of technology and return on technology investments.

•Ensure full regulatory compliance.

Jack Henry’s extensive product and service offerings help diverse ~~financial~~banks ~~institutions~~and credit unions meet business challenges and capitalize on opportunities. We strive to get to know our clients, understand their strategies and challenges, and provide innovative solutions that help them achieve short- and long-term success.

Business Strategy

Our fundamental business strategy is to generate organic revenue and earnings growth augmented by strategic acquisitions. Our strategy for the next three to five years is to enable banks and credit unions to win on exceptional user experience and trust through open, innovative technology, data-driven insights, and service, resulting in greater growth and efficiency. We intend to execute this strategy by:

•Providing community and regional ~~financial~~banks ~~institutions~~and credit unions with core processing systems that provide excellent functionality and support on-premise and private cloud delivery environments with identical functionality.

•Expanding each core client relationship by cross-selling complementary/payment products and services that enhance the functionality provided by our core processing systems.

•Delivering non-core highly specialized core-agnostic complementary/payment products and services to ~~financial~~banks ~~institutions~~and credit unions, including institutions not utilizing one of our core processing systems, and diverse corporate entities.

•Developing and deploying a long-term technology modernization strategy to provide public cloud-native solutions that provide clients with greater flexibility, optionality, open integration, speed to market, and other benefits.

•Upholding a company-wide commitment to service that consistently exceeds our clients’ expectations and generates high levels of retention.

•Carrying out a large client strategy that focuses on deep engagement with banks and credit unions to align objectives, optimize revenue streams, and foster collaborative growth and innovation through continuous engagement and commitment to excellence.

•Growing our market share of services to small and medium-sized businesses offering features through banks and credit unions.

•Building, maintaining, and enhancing a protected environment and tools that help our clients and Jack Henry protect accountholder data, assets, and comply with regulations.

•Maintaining a disciplined acquisition strategy.

Technology Modernization Strategy

Our public cloud-native technology modernization strategy seeks to enable our bank and credit union clients to innovate faster, differentiate themselves in the markets they serve, and meet the evolving needs of their accountholders.

The Jack Henry PlatformTM is the centerpiece of this strategy and operates as a single public cloud-native, API-first platform, which we are developing into a fully functional modern alternative for existing core functions. The platform includes services like wire transfers, a centralized data hub for reporting and analysis, exception item processing, general ledger, deposit servicing, and entitlements. These services can be combined with other Jack Henry public cloud-native solutions, such as digital banking, digital payments, and fraud detection, as well as third-party provider solutions on a single, unified platform.

The Jack Henry Platform leverages public cloud advantages, including high system availability, rapid processing, modern security standards, easily deployable upgrades, and scalability.

Acquisition Strategy

We have a disciplined approach to acquisitions and have been successful in supplementing our organic growth with 35 strategic acquisitions since the end of fiscal year 1999. We continue to explore acquisitions that have the potential to:

•Expand our suite of complementary/payment products and services.

•Provide products and services that can be sold to both existing core and non-core clients as well as outside our core base to new clients.

•Accelerate our internal development efforts for technology modernization.

•Provide selective opportunities to sell outside our traditional markets in the financial services industry.

After 48nearly 50 years in business, we have very few gaps in our product line, so it is increasingly difficult to find proven products or services that would enable our clients and prospects to better optimize their business opportunities or solve specific operational issues. In addition, we see few acquisition opportunities that would ~~expand our market or enable our entry into adjacent markets within the financial services industry that are fairly priced or that we could assimilate into our Company without material distractions.~~

expand our market or enable our entry into adjacent markets within the financial services industry that are fairly priced or that we could assimilate into our Company without material distractions.

We have a solid track record of executing acquisitions from both a financial and operational standpoint, and we will continue to pursue acquisition opportunities that support our strategic direction, complement and accelerate our organic growth, and generate long-term profitable growth for our stockholders. While we seek to identify appropriate acquisition opportunities, we will continue to explore alternative ways to leverage our cash position and balance sheet to the benefit of our stockholders, such as continued investment in new products and services for our clients, repurchases of our stock, and continued payment of dividends.

Our most recent acquisition was:


Fiscal Year	Company or Product Name	Products and Services
2023	Payrailz, LLC ("Payrailz")	Provider of cloud-native modern digital payment capabilities leveraging AI and machine learning features for the financial services industry.

Solutions

•Our core banking solutions support commercial banks with information and transaction processing platforms that provide enterprise-wide automation. We have three functionally distinct core bank processing systems and ~~more~~many ~~than 140~~ fully integrated complementary/payment solutions, including business intelligence and bank management, retail and business banking, digital and mobile internet banking and electronic payment solutions, fraud and risk management and protection, account origination, and item and document imaging solutions. Our core banking solutions have state-of-the-art functional capabilities, and we can re-market the hardware required by on-premise use of each software system. Our banking solutions can be delivered on-premise or through our private cloud delivery model and are backed by a company-wide commitment to provide exceptional client support.

7•Our core credit union solutions support credit unions of all sizes with an information and transaction processing platform that provides enterprise-wide automation. Our solution includes one flagship core processing system and many fully integrated complementary/payment solutions, including business intelligence and credit union management, accountholder and accountholder business services, digital and mobile internet banking and electronic payment solutions, fraud and risk management and protection, account origination, and item and document imaging solutions. Our credit union solution also has state-of-the-art functional capabilities. We also re-market the hardware required by on-premise use of the software system. Our credit union solution can be delivered on-premise, through our private cloud, or through our partner private cloud delivery models. Each is backed by our company-wide commitment to provide exceptional client support.

•Our non-core ~~banking~~ solutions ~~have~~for ~~state~~banks, credit unions, and diverse corporate entities are specialized products and services assembled primarily through our focused diversification acquisition strategy. These core-agnostic solutions are compatible with a wide variety of~~-the-art~~ ~~functional~~information ~~capabilities~~technology platforms and operating environments and offer a large number of complementary/payment solutions, including proven solutions for generating additional revenue and wegrowth, ~~can~~increasing resecurity and mitigating operational risks, and/or controlling operating costs. Our non-~~market~~core products and services enhance the ~~hardware~~performance ~~required~~of bybanks ~~on-premise~~and ~~use~~credit unions of ~~each~~all ~~software~~asset ~~system~~sizes and charters, and diverse corporate entities. ~~Our~~These ~~banking~~distinct ~~solutions~~products and services can be ~~delivered~~implemented ~~on-premise~~individually or ~~through~~as ~~our~~solution ~~private~~suites ~~cloud~~to ~~delivery~~address ~~model~~specific ~~and~~business ~~are~~problems ~~backed~~or byneeds aand ~~company-wide~~enable ~~commitment~~effective responses to ~~provide~~dynamic ~~exceptional~~industry ~~client support~~trends.

•Our core credit union solutions support credit unions of all sizes with an information and transaction processing platform that provides enterprise-wide automation. Our solution includes one flagship core processing system and more than 100 fully integrated complementary/payment solutions, including business intelligence and credit union management, member and member business services, digital and mobile internet banking and electronic payment solutions, fraud and risk management and protection, account origination, and item and document imaging solutions. Our credit union solution also has state-of-the-art functional capabilities. We also re-market the hardware required by on-premise use of the software system. Our credit union solution can be delivered on-premise, through our private cloud, or through our partner private cloud delivery models. Each is backed by our company-wide commitment to provide exceptional client support.

•Our non-core solutions for financial institutions and diverse corporate entities are specialized products and services assembled primarily through our focused diversification acquisition strategy. These core-agnostic solutions are compatible with a wide variety of information technology platforms and operating environments and offer more than 100 complementary/payment solutions, including proven solutions for generating additional revenue and growth, increasing security and mitigating operational risks, and/or controlling operating costs. Our non-core products and services enhance the performance of financial services organizations of all asset sizes and charters, and diverse corporate entities. These distinct products and services can be implemented individually or as solution suites to address specific business problems or needs and enable effective responses to dynamic industry trends.

We are committed to developing and maintaining modern and integrated solutions supported by high service levels. We continuously update and improve these solutions through an interactive client enhancement process, ensuring compliance with relevant regulations, and incorporating proven advances in technology. Our goal is to uphold our Company's reputation as a premium solution and service provider.

Core Software Systems

Core software systems primarily consist of the integrated applications required to process deposit, loan, and general ledger transactions, and to maintain centralized ~~customer/member~~accountholder information.

Our core banking solutions consist of three software systems marketed to banks, and our core credit union solution consists of one software system marketed to credit unions. These core systems are available for on-premise installation at client sites, or ~~financial~~banks ~~institutions~~and credit unions can choose to leverage our private cloud environment for ongoing information processing.

Core banking platforms are:

•SilverLake System®, a robust system primarily designed for commercial-focused banks that currently serves banks with assets ranging from $1 billion to over $5055 billion. Some progressive smaller banks and de novo (start-up) banks also select SilverLake. This system is in use by ~~approximately~~520 ~~490~~ banks, and now serves nearly 1112% of the domestic banks ~~with~~in ~~assets~~the ~~less than~~ $5055 billion and under asset range.

•CIF 20/20®, a parameter-driven, easy-to-use system that now supports ~~approximately~~260 ~~280~~ banks ranging from de novo institutions to those with assets of $56 billion.

•Core Director®, a cost-efficient system with point-and-click operation that now supports over 170 banks ranging from de novo institutions to those with assets of ~~over~~ $2 billion.

Core credit union platform is:

•Symitar® (formerly known as Episys®), a robust system designed specifically for credit unions. It has been implemented by approximately ~~720~~715 credit unions with assets ranging from $20 million to $3033 billion, and according to National Credit Union Administration ("NCUA") data, is the system implemented by more credit unions with assets exceeding $25 million than any other credit union core system.

Clients electing to install our solutions on-premise license the proprietary software systems. The majority of these clients pay ongoing annual software maintenance fees. We re-market the hardware, hardware maintenance, and peripheral equipment that is required by on-premise use of our software solutions; and we perform software implementation, data conversion, training, ongoing support, and other related services. On-premise clients generally license our core software systems under a standard license agreement that provides a fully paid, nonexclusive, nontransferable right to use the software on a single computer at a single location.

8Clients can eliminate the significant up-front capital expenditures required by on-premise installations and the responsibility for operating information and transaction processing infrastructures by leveraging our private cloud environment for those functions. Our core private cloud services are provided through a highly resilient data center configuration across multiple physical locations. We also provide image item processing services from two host/archive sites and several key entry and balancing locations throughout the country. We print and mail accountholder statements for banks and credit unions from three regional printing and rendering centers. Clients electing to outsource their core processing typically sign contracts for six years that include "per account" fees and minimum guaranteed payments during the contract period.

Clients can eliminate the significant up-front capital expenditures required by on-premise installations and the responsibility for operating information and transaction processing infrastructures by leveraging our private cloud environment for those functions. Our core private cloud services are provided through a highly resilient data center configuration across multiple physical locations. We also provide image item processing services from two host/archive sites and several key entry and balancing locations throughout the country. We print and mail customer/member statements for financial institutions from three regional printing and rendering centers. Clients electing to outsource their core processing typically sign contracts for six years that include "per account" fees and minimum guaranteed payments during the contract period.

We are dedicated to meeting the evolving business needs of our core bank and credit union clients by continuously enhancing each core system, introducing new integrated complementary products regularly, integrating practical new technologies, and adhering to regulatory compliance initiatives. Additionally, we serve as a single point of contact for each core client for support and accountability.

Complementary Products and Services

We have ~~more~~a ~~than~~large ~~140~~number of complementary/payment products and services that are targeted to our core banks and ~~more than 100 targeted to~~ credit unions. Many of these are selectively sold to ~~financial~~banks ~~institutions~~and credit unions that use other core processing systems.

These complementary/payment solutions enable core bank and credit union clients to respond to evolving ~~customer/member~~accountholder demands, expedite speed-to-market with competitive offerings, increase efficiency, address specific operational needs, and generate new revenue streams. The highly specialized solutions enable diverse ~~financial~~banks, ~~institutions~~credit unions, and corporate entities to generate additional revenue and growth opportunities, increase security, mitigate operational risks, and control operating costs.

We regularly introduce new products and services based on demand for integrated complementary/payment solutions from our existing core clients and based on the growing demand among ~~financial~~banks, ~~institutions~~credit unions, and corporate entities for specialized solutions capable of increasing revenue and growth opportunities, mitigating and controlling operational risks, and/or containing costs. Our Industry Research department solicits client guidance on the business solutions they need, evaluates available solutions and competitive offerings, and manages the introduction of new product offerings. Our new complementary/payment products and services are developed internally, acquired, or provided through strategic alliances.

Implementation and Training

Most of our core bank and credit union clients contract with us for implementation and training services in connection with their systems and additional complementary products.

A complete core system implementation typically includes detailed planning, project management, data conversion, and testing. Our experienced implementation teams travel to client facilities or work remotely with clients to help manage the implementation process and ensure that all data is transferred from the legacy system to the Jack Henry system. Our implementation fees are fixed or hourly based on the core system being installed.

We also provide extensive initial and ongoing education to our clients. We have a comprehensive training program that supports new clients with basic training and longtime clients with continuing education. The training enables financial institutions to maximize the use of our core and complementary solutions, learn about ongoing system enhancements, and understand evolving legislative and regulatory requirements. 9

manage the implementation process and ensure that all data is transferred from the legacy system to the Jack Henry system. Our implementation fees are fixed or hourly based on the core system being installed.

We also provide extensive initial and ongoing education to our clients. We have a comprehensive training program that supports new clients with basic training and longtime clients with continuing education. The training enables banks and credit unions to maximize the use of our core and complementary solutions, learn about ongoing system enhancements, and understand evolving legislative and regulatory requirements.

Support and Services

We serve our core clients as a single point of contact and support for the ~~complex~~ solutions we provide. Our comprehensive support infrastructure incorporates:

•High service standards.

•Trained support staff available up to 24 hours a day, 365 days a year.

•Assigned account ~~managers~~team.

•Sophisticated support tools, resources, and technology.

•Broad experience converting diverse banks and credit unions to our core platforms from competitive platforms.

•Highly effective change management and control processes.

•Best practices methodology developed and refined through the company-wide, day-to-day experience.

Most on-premise clients contract for annual software support services, and this represents a significant source of recurring revenue for Jack Henry. These support services are typically priced at approximately 20% of the respective product’s software license fee. The subsequent years' service fees generally increase as client assets increase and as additional complementary products are purchased. Annual software support fees typically are billed during June and are paid in advance for the entire fiscal year, with proration for new product implementations that occur during the fiscal year. Hardware support fees also are usually paid in advance for entire contract periods which typically range from one to five years. Most support contracts automatically renew unless the client or Jack Henry gives notice of termination at least 30 days prior to contract expiration.

increase and as additional complementary products are purchased. Annual software support fees typically are billed during June and are paid in advance for the entire fiscal year, with proration for new product implementations that occur during the fiscal year. Hardware support fees also are usually paid in advance for entire contract periods which typically range from one to five years. Most support contracts automatically renew unless the client or Jack Henry gives notice of termination at least 30 days prior to contract expiration.

High levels of support are provided to our private cloud clients by the same support infrastructure utilized for on-premise clients. However, these support fees are included as part of monthly private cloud fees.

Hardware Systems

Our software systems operate on a variety of hardware platforms. We have established remarketing agreements with IBM Corporation, and many other hardware providers that allow Jack Henry to purchase hardware and related maintenance services at a discount and resell them directly to our clients. We currently sell IBM Power Systems™; Lenovo®, Dell, Hewlett Packard Enterprise, and Cisco servers and workstations; Canon®, Digital Check, Epson®, and Panini® check scanners; and other devices that complement our software solutions.

Digital Products and Services

Jack Henry Digital ~~represents~~provides a ~~category~~unified platform of digital products and services, ~~that~~anchored ~~are~~by ~~being built and integrated together into one unified platform. Our main offering is~~ the Banno Digital Platform™. ItThis isnative ~~an online~~ and ~~mobile~~browser-based banking ~~platform~~solution ~~that~~empowers ~~helps~~ community and regional ~~financial~~banks ~~institutions~~and credit unions to strategically ~~differentiate~~enhance their digital offerings ~~from~~and ~~those~~compete ofeffectively ~~megabanks~~with ~~and~~larger ~~other~~banks ~~financial~~and ~~technology~~tech companies. It's is a ~~complete,~~comprehensive ~~open~~business ~~digital~~and ~~banking~~retail open platform ~~that~~delivering ~~gives banks and credit unions~~ attractive, fast, cloud-native applications for ~~their~~accountholders ~~customers~~ and ~~members and~~ cloud-based, core-connected back-office tools for ~~their~~ employees. Our treasury platform is a separate digital product that services the needs of banks' and credit unions' larger commercial customers.

Payment Solutions

Electronic payment solutions provide our clients with the tools necessary to be at the forefront of payment innovation with secure payment processing designed to simplify complex payment processing, attract profitable retail and commercial accounts, increase operating efficiencies, comply with regulatory mandates, and proactively mitigate and manage payment-related risk.

•JHA Card Processing Solutions™ ("CPS") supports full-service and in-house debit and credit card programs, as well as an ~~Agent~~agent credit option, backed by a comprehensive suite of tools for 24/7 fraud mitigation, digital payments, full-service dispute management, plastics manufacturing and personalization, loyalty programs, data analytics, and ATM terminal driving. In addition, advisory services are offered to support a variety of needs including card portfolio growth, start-up program consultation, as well as customized fraud management; all tailored to individual ~~financial~~bank ~~institution~~and credit union goals and concerns.

•Enterprise Payment Solutions ("EPS") is a comprehensive payments engine, offering an integrated suite of ~~remote deposit capture,~~ Automated Clearing House ("ACH") ~~and card transaction processing solutions~~, ~~supporting~~instant ~~tools for accounts receivable posting~~payments, ~~risk~~credit ~~management~~card, ~~reporting,~~ and ~~application~~remote ~~interfaces~~deposit ~~("APIs")~~capture ~~for~~processing ~~financial~~that institutions, businesses, and fintechs of all sizes. EPS helps clients succeed in today’s competitive market to increase revenue, improve efficiencies, better manage compliance, and enhance customer and member relationships.

•PayrailzTM Payments Platform provides consumers and businesses with money movement options through their financial institutions’ digital platforms. It supports our technology modernization strategy by providing next-generation, cloud-native digital payment capabilities to our payment ecosystem. This money movement payments platform incorporates artificial intelligence ("AI") to make predictive and proactive recommendations, a flexible modern user experience, a layered security model, an automated fraud feature powered by machine learning, and a contemporary, adaptable administrative portal. In addition to bill payment capabilities, we provide a 'pay a loan' feature, an 'open looped' real-time person-to-person ("P2P") solution, and account-to-account ("A2A") transfer features. The array of money movement options maintains consumer and business engagement with the financial institution.

•JHA PayCenterTM, provides financial institutions with a single entry point to both Zelle® and Real Time Payments ("RTP") networks, and the Federal Reserve's FedNow® network. PayCenter manages the certification process and mandatory updates from the networks, simplifies integration with toolkits, and provides fraud monitoring. Financial institutions can send and receive transactions instantly 24 hours a day, 365 days a year, through our core and complementary solutions.

•Payments as a Service ("PaaS") ties together and further enhances the complete array of electronic payments functionality with a front-end Payments Developers Experience Portal, APIs, and back-end data analytics.

includes supporting tools for accounts receivable posting, risk management, reporting, and application interfaces ("APIs") for banks, credit unions, businesses, and fintechs of all sizes. EPS helps clients succeed in today’s competitive market to increase revenue, improve efficiencies, better manage compliance, and enhance accountholder relationships.

•PayrailzTM Payments Platform provides consumers and businesses with money movement options through their bank's or credit union's digital platforms. It supports our technology modernization strategy by providing next-generation, cloud-native digital payment capabilities to our payment ecosystem. This money movement payments platform incorporates artificial intelligence ("AI") to make predictive and proactive recommendations, a flexible modern user experience, a layered security model, an automated fraud feature powered by machine learning, and a contemporary, adaptable administrative portal. In addition to bill payment capabilities, we provide a 'pay a loan' feature, an 'open looped' real-time person-to-person ("P2P") solution, and account-to-account ("A2A") transfer features. The array of money movement options maintains consumer and business engagement with the bank or credit union.

•JHA PayCenterTM provides banks and credit unions with a single entry point to both Zelle® and Real Time Payments ("RTP") networks, and the Federal Reserve's FedNow® network. PayCenter manages the certification process and mandatory updates from the networks, simplifies integration with toolkits, and provides fraud monitoring. Banks and credit unions can send and receive transactions instantly 24 hours a day, 365 days a year, through our core and complementary solutions.

•Payments as a Service ("PaaS") supports embedded payment capabilities and ties together and further enhances the complete array of electronic payments functionality with a front-end Payments Developers Experience Portal, APIs, and back-end data analytics.

Research and Development

We invest significant resources in ongoing research and development to build new software solutions and services and enhance existing solutions with additional functionality and features required to ensure regulatory compliance. We enhance our core and complementary systems a minimum of once each year. Product-specific enhancements are largely client-driven with recommended opportunities formally gathered through focus groups, change control boards, strategic initiatives meetings, annual user group meetings, and ongoing client contact. We also continually evaluate and implement process improvements that expedite the delivery of new products and enhancements to our clients and reduce related costs.

Research and development expenses (in thousands) for fiscal ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023 were $~~148~~162,~~256~~771, $~~142~~148,~~678~~256, and $~~121~~142,~~355~~678, respectively. We recorded capitalized software (in thousands) in fiscal ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023 of $~~167~~172,~~175~~445, $~~166~~167,~~120~~175, and $~~148~~166,~~239~~120, respectively.

Sales and Marketing

We serve established, well-defined markets that provide ongoing sales and cross-sell opportunities.

The marketing and sales initiatives within the core business lines are primarily focused on identifying banks and credit unions evaluating alternative core information and transaction processing solutions. Our non-core specialized core-agnostic niche solutions are sold to complement existing technology platforms to ~~financial~~banks ~~services~~and ~~organizations~~credit unions of all asset sizes and charters.

Sales executives are responsible for the activities required to earn new clients in assigned territories, and regional account executives are responsible for nurturing client relationships and cross selling additional products and services. Our sales professionals receive base salaries and performance-based commission compensation. Sales support staff provide a variety of services, including product and service demonstrations, responses to prospect-issued requests-for-proposals, and proposal and contract generation. Our marketing department supports sales with lead generation and brand-building activities, including participation in state-specific, regional, and national trade shows; print and online advertising; ~~telemarketing;~~ client newsletters; ongoing promotional campaigns; and media relations. We also host an annual national education ~~conferences~~conference, which ~~provide~~provides opportunities to network with existing clients and demonstrate new products and services.

Jack Henry has sold select products and services outside the United States, primarily in Latin America, the Caribbean and Canada. International sales accounted for less than 1% of Jack Henry’s total revenue in each of fiscal ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023.

Competition

The market for companies providing technology solutions to financial services organizations is competitive, and we expect that competition from both existing competitors and companies entering our existing or future markets will remain strong. Some of our current competitors have longer operating histories, larger client bases, and greater financial resources. The principal competitive factors affecting the market for technology solutions include product/service functionality, price, operating flexibility and ease-of-use, client support, and existing client references. For more than a decade, there has been significant consolidation among providers of products and services designed for financial institutions, and this consolidation is expected to continue in the future.

financial resources. The principal competitive factors affecting the market for technology solutions include culture, service, innovation, strategy, and execution, along with product/service functionality, price, operating flexibility, and ease-of-use. For more than a decade, there has been significant consolidation among providers of products and services designed for banks and credit unions, and this consolidation is expected to continue in the future.

Our core solutions compete with large vendors that provide information and transaction processing solutions to banks and credit unions, including Fidelity National Information Services, Inc.; Fiserv, Inc.; Corelation, Inc.; and Finastra. Our non-core specialized solutions compete with an array of disparate vendors that provide niche solutions to financial services organizations and corporate entities.

Intellectual Property, Patents, and Trademarks

Although we believe our success depends upon our technical expertise more than our proprietary rights, our future success and ability to compete depend in part upon our proprietary technology. We have registered or filed applications for our primary trademarks. Most of our technology is not patented. Instead, we rely on a combination of contractual rights, copyrights, trademarks, and trade secrets to establish and protect our proprietary technology. We generally enter into confidentiality agreements with our associates, consultants, resellers, clients, and prospects. Access to and distribution of our Company’s source code is restricted, and the disclosure and use of other proprietary information is further limited. Despite our efforts to protect our proprietary rights, unauthorized parties can attempt to copy or otherwise obtain, or use our products or technology.

Regulatory Compliance

Jack Henry maintains a corporate commitment to address compliance issues and implement requirements imposed by federal regulators prior to the effective date of such requirements when adequate prior notice is given. Our compliance program is coordinated by a team of qualified compliance ~~analysts~~professionals ~~and auditors~~ with extensive regulatory agency and financial institution experience, knowledge and understanding of Federal consumer protection regulations, and a thorough working knowledge of Jack Henry and our solutions. These compliance professionals leverage multiple channels to remain informed about potential and recently enacted regulatory requirements, including ~~regular~~ discussions on emerging topics with the Federal Banking Agencies (“FBA”), ~~examination team~~ and training sessions sponsored by various professional associations.

We have processes in place to inform internal stakeholders of new and revised regulatory requirements. Upcoming regulatory changes also are presented to the Company’s development teams through periodic regulatory compliance meetings and the necessary product changes are included in the ongoing product development cycle. We publish newsletters to keep our clients informed of regulatory changes that could impact their operations. Periodically, client advisory groups are assembled to discuss significant regulatory changes.

Internal audits of our systems, networks, operations, business recovery plans, and applications are conducted and specialized outside firms are periodically engaged to perform testing and validation of our systems, processes, plans, and security. The FBA conducts ~~annual~~ongoing ~~reviews~~examinations ~~throughout~~of the Company and issues aReports ~~Report~~ of Examination. The Board of Directors provides oversight of these activities through the Risk and Compliance Committee and the Audit Committee.

Government Regulation

The financial services industry is subject to extensive and complex federal and state regulation. All financial institutions are subject to substantial regulatory oversight and supervision. Our products and services must comply with the extensive and evolving regulatory requirements applicable to our clients, including but not limited to those mandated by federal truth-in-lending and truth-in-savings rules, the Privacy of Consumer Financial Information regulations, usury laws, the Equal Credit Opportunity Act, the Fair Housing Act, the Electronic Funds Transfer Act, the Fair Credit Reporting Act, the Bank Secrecy Act, the USA Patriot Act, the Gramm-Leach-Bliley Act, the Community Reinvestment Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act. The compliance of Jack Henry’s products and services with these requirements depends on a variety of factors, including the parameters set through the interactive design, the classification of clients, and the manner in which the client utilizes the products and services. Our clients are contractually responsible for assessing and determining what is required of them under these regulations and then we provide solutions that assist them in meeting their regulatory needs through our products and services. We cannot predict the impact these regulations, any future amendments to these regulations or any newly implemented regulations will have on our business in the future.

Jack Henry is not chartered by the Office of the Comptroller of Currency ("OCC"), the Board of Governors of the Federal Reserve System, the FDIC, the NCUA or other federal or state agencies that regulate or supervise depository institutions. However, operating as a service provider to ~~financial~~banks ~~institutions~~and credit unions, Jack Henry’s operations are governed by the same regulatory requirements as those imposed on financial institutions, and subject to periodic reviews by FBA regulators who have broad supervisory authority to remedy any shortcomings identified in such reviews. Jack Henry is also subject to periodic examinations by the Consumer Financial Protection Bureau (“CFPB”), which provides supervision and enforcement related to federal consumer financial laws applicable to some products and services offered by our clients.

We provide private cloud services through JHA OutLink Processing Services™ for banks and EASE Processing Services™ for credit unions. We provide data centers and electronic transaction processing through JHA Card Processing Solutions™, internet banking through NetTeller® and BannoTM online solutions, bill payment through our PayrailzTM Payments Platform, network security monitoring and Hosted Network Solutions ("HNS") through our Gladiator® unit, cloud services through Hosted Partner Services and Enterprise Integration Services, and business recovery services through Centurion Disaster Recovery®.

Our private cloud services are subject to examination by FBA regulators under the Bank Service Company Act. These examinations cover a wide variety of subjects, including system development, functionality, reliability, and security, as well as disaster preparedness and business recovery planning. Our private cloud services are also subject to examination by state banking authorities on occasion.

subject to periodic reviews by FBA regulators who have broad supervisory authority to remedy any shortcomings identified in such reviews. Jack Henry is also subject to periodic examinations by the Consumer Financial Protection Bureau (“CFPB”), which provides supervision and enforcement related to federal consumer financial laws applicable to some products and services offered by our clients.

We provide private cloud services through Jack Henry Processing Services™ for banks and EASE Processing Services™ for credit unions. We provide data centers and electronic transaction processing through JHA Card Processing Solutions™, internet banking through NetTeller® and BannoTM online solutions, bill payment through our PayrailzTM Payments Platform, network security monitoring and Hosted Network Solutions ("HNS") through our Gladiator® unit, cloud services through Hosted Partner Services and Enterprise Integration Services, and business recovery services through Centurion Disaster Recovery®.

Human Capital

Our Associates

As of June 30, ~~2024~~2025, Jack Henry had approximately 7,~~170~~240 full-time and part-time associates. Our associates are not covered by a collective bargaining agreement and there have been no labor-related work stoppages.

Talent Attraction and Engagement

Our people and culture strategy ~~focuses~~is focused on attracting, engaging, and retaining ~~qualified,~~associates ~~diverse,~~that are qualified and innovative ~~talent~~with atfuture-ready ~~all~~technical ~~levels of the Company~~skills. We are aan ~~committed~~ equal opportunity employer and ~~all~~are ~~qualified~~committed ~~candidates receive consideration for employment without regard~~ to ~~race,~~considering ~~color,~~all ~~religion,~~qualified ~~national~~candidates ~~origin,~~for ~~age, disability, sex, sexual orientation, gender, gender identity, pregnancy, genetic information, or other characteristics protected by applicable law~~employment.

~~Beyond nondiscrimination compliance, we are committed to fostering a respectful and inclusive workplace in which all individuals are treated with respect and dignity.~~ We ~~continue to concentrate efforts on assuring that all our associates feel like they belong at Jack Henry. We~~ seek ~~nontraditional~~non-traditional talent streams to help identify candidates from underrepresented groups~~, including through our internship and apprenticeship programs~~. Our internship ~~program~~attracts ~~focuses on attracting~~ college and university students ~~to paid work in Jack Henry departments related to their studies~~, ~~while~~and our apprenticeship program offers paid training and work for candidates ~~(either students or non-students)~~ with little to no traditional experience ~~in the field~~, such as ~~learning~~ computer coding. Both ~~our internship and apprenticeship~~ programs can lead to full-time employment.

We are ~~actively~~committed ~~collaborating with our Business Innovation Groups ("BIGs")~~ to ~~foster~~fostering a ~~culture~~respectful ~~of belonging. Their insights are crucial for sparking innovation~~ and ~~shaping~~inclusive ~~strategies~~workplace towhere ~~attract~~all ~~and~~individuals ~~retain talent, ensuring our associates feel valued and connected. Our BIGs~~ are ~~company-sponsored~~treated ~~groups open to all associates. As of June 30, 2024, we had over 1,740 unique associates participating in six active BIGs,~~ with ~~five~~respect ~~focused on inclusion for specific communities — women, people of color, LGBTQ+, veterans,~~ and ~~people with disabilities — and one focused on environmental and sustainability topics. While BIGs allow associates to connect and support each other~~dignity, ~~they also function to assist us in addressing bona fide business problems through input~~ and ~~suggestions.~~we ~~For~~focus example, these groups work with executive leadership to actively improve our talent attraction processes for prospective associates. They also provide education, training, and conversation opportunities to all associates to increase belongingness and innovation throughout the Company. A significant portion of the Company’s associates work remotely on ~~either~~ensuring ~~a full-time or hybrid remote/office basis. The Company remains focused on equipping~~ all associates ~~with~~feel ~~the~~they ~~tools~~belong ~~necessary~~at toJack ~~effectively communicate, collaborate, and build connections in a remote environment, including ensuring leaders have the skills needed to effectively lead dispersed teams~~Henry.

WeBusiness ~~seek~~Innovation toGroups ~~actively~~("BIGs"), ~~listen~~which are open to ~~our~~all associates, ~~throughout~~help ~~the~~us ~~year~~to ~~using~~foster a ~~defined~~culture of inclusion and ~~continuous~~belonging. ~~listening~~These ~~strategy~~groups ~~designed~~provide toinput ~~gather~~and ~~regular~~suggestions ~~feedback~~to onaddress ~~well-being,~~business ~~engagement,~~problems ~~leadership,~~and ~~ethics,~~offer ~~culture~~education and ~~values,~~training to foster inclusion and ~~other~~belonging. ~~top~~As of ~~mind~~June 30, ~~topics.~~2025, ~~These~~we ~~surveys~~had ~~allow~~over us1,770 tounique ~~respond~~associates toand ~~associate~~nearly ~~concerns~~2,810 ~~benefit~~combined ~~from~~associates ~~associate~~participating ~~perspectives,~~in ~~and~~six ~~better~~active ~~design~~BIGs. ~~and~~A ~~develop~~significant ~~processes~~portion toof ~~support~~the ~~our~~ Company’s ~~culture~~associates work remotely on either a full-time or hybrid remote/office basis. ~~Associates~~The ~~can~~Company ~~learn~~remains ~~about~~focused ~~changes~~on ~~through~~equipping ~~our~~all ~~jhDaily~~associates ~~online~~with ~~news~~the ~~center,~~tools ~~regular~~necessary ~~email~~to ~~communications~~effectively communicate, ~~monthly~~collaborate, ~~Manager~~and ~~Forum~~build ~~events,~~connections ~~quarterly~~in ~~associate~~a ~~update~~remote ~~videos~~environment, orincluding ~~all-associate~~ensuring ~~town~~leaders ~~hall~~have ~~meetings~~the ~~delivered~~skills byneeded ~~senior~~to ~~management~~effectively lead dispersed teams.

~~Training~~We seek to actively listen to our associates throughout the year using a defined and ~~Development~~continuous listening strategy designed to gather regular feedback on well-being, engagement, leadership, ethics, culture and values, satisfaction, and sense of belonging, through channels such as our annual engagement survey, pulse surveys, skip-a-level interviews, and town halls. This comprehensive strategy allow us to respond to associate concerns, benefit from associate perspectives, and better design and develop processes to support our Company culture. Associates can learn about changes through our internal online news center, regular email communications, monthly Manager Forum events, quarterly associate update videos, or all-associate town hall meetings delivered by senior management.

Our success depends not only on attracting and retaining talented associates, but also in developing our current associates and providing new opportunities for their growth. We offer our associates numerous live and on-demand courses, resources, and training programs to help them build knowledge, improve skills, and develop their career at Jack Henry. Learning ~~opportunities include mandatory courses, such as security awareness, as well as recommended content in areas including leadership development; technical skills;~~ and diversity, equity, inclusion, and belonging. Jack Tracks, an annual, company-wide virtual learning event, offers associates a large selection of curated topics such as technical and operational readiness, technology trends, company solutions, and industry trends.Development

~~Recognizing~~Our ~~the~~success ~~importance~~depends ofnot ~~mentoring~~only inon ~~career~~attracting ~~development,~~and weretaining ~~host~~talented anassociates, ~~internal~~but ~~mentorship~~also ~~marketplace,~~in ~~which~~developing ~~allows~~our ~~prospective~~current ~~mentors~~associates and ~~mentees~~providing tonew ~~connect~~opportunities ~~and~~for ~~self-initiate~~their agrowth. ~~mentoring~~We ~~relationship.~~offer ~~Career~~our ~~mobility~~associates numerous live and ~~personal~~on-demand ~~development~~courses, resources, ~~are~~and ~~available~~training programs to ~~all~~help ~~associates~~them ~~through~~build ~~dedicated~~knowledge, ~~intranet~~improve ~~sites~~skills, and develop their career at Jack Henry. WeLearning ~~continue~~opportunities toinclude ~~strengthen~~mandatory ~~our~~courses, as well as recommended content in areas such as leadership ~~capacity~~development, bytechnical ~~providing~~skills, ~~training~~business onacumen, ~~effective~~innovation, ~~coaching~~and ~~practices~~change tomanagement. ~~leaders~~Jack Tracks, an annual, company-wide virtual learning event, offers associates a large selection of ~~the~~curated ~~Company~~topics such as technical and operational readiness, technology trends, company solutions, and industry trends.

WeRecognizing ~~recognize and value~~ the ~~contribution~~importance of ~~our~~mentoring ~~associates~~in ~~who~~career ~~develop~~development, ~~improve,~~we ~~and~~host ~~support~~an ~~our~~internal ~~technology~~mentorship ~~solutions. Access to on-demand technical training libraries~~marketplace, ~~customized~~which ~~learning~~allows ~~plans,~~prospective ~~certification~~mentors ~~programs,~~ and ~~classes~~mentees ~~facilitated~~to byconnect ~~external~~and ~~experts~~self-initiate ~~are~~a ~~available~~mentoring ~~to advance their technical expertise~~relationship. ~~When~~Career ~~there~~mobility ~~is a critical skill~~

~~need~~and orpersonal development resources are available to all associates through dedicated intranet sites including an internal career website where ~~the~~associates ~~technology~~can ~~landscape~~explore isnew ~~rapidly~~opportunities, ~~changing~~register their skills, weand ~~provide~~view ~~unique~~salary ~~learning~~ranges. ~~solutions~~We continue to ~~align~~strengthen ~~associates'~~our ~~development~~leadership ~~with~~capacity ~~our~~by ~~strategic~~providing ~~initiatives~~training on effective coaching practices to leaders of the Company.

We recognize and value the contribution of our associates who develop, improve, and support our technology solutions. Access to on-demand technical training libraries, customized learning plans, certification programs, and classes facilitated by external experts are available to advance their technical expertise. When there is a critical skill need or where the technology landscape is rapidly changing, we provide unique learning solutions to align associates' development with our strategic initiatives.

Wellness and Safety

We emphasize the safety and well-being of our associates as a top priority. We define wellness holistically and include mental, physical, emotional, financial, psychological, and environmental considerations. Our benefit plan offerings include supportive and dedicated campaigns that communicate directly to associates about financial wellness, mental health, healthful nutrition and exercise, and other wellness topics. Associate well-being is further supported through policies such as remote work, paid parental leave, military service leave, educational assistance, and bereavement leave policies, as well as paid time off, adoption assistance, an employee assistance program, wellness incentives, and paid community volunteer hours.

Available Information

Jack Henry’s website is easily accessible to the public at jackhenry.com. The “Investor Relations" portion of the website provides key corporate governance documents, the code of conduct, an archive of press releases, and other relevant Company information. Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and other filings and amendments thereto that are made with the SEC also are available free of charge on our website as soon as reasonably practical after these reports have been filed with or furnished to the SEC. The SEC also maintains a website that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at https://www.sec.gov.

ITEM 1A. RISK FACTORS

The Company's business and the results of its operations are affected by numerous factors and uncertainties, some of which are beyond our control. The following is a description of some of the important risks and uncertainties that may cause our actual results of operations in future periods to differ materially from those expected or desired.

Business and Operating Risks

Data security breaches, failures, or other incidents could damage our reputation and business. Our business relies upon receiving, processing, storing, and transmitting sensitive information relating to our operations, associates, and clients. If we fail to maintain a sufficient digital security infrastructure, address security vulnerabilities and new threats, or deploy adequate technologies to secure our systems against attack, we may be subject to security breaches that compromise confidential information, including valuable intellectual property, proprietary information, trade secrets, know-how, or source code, which could lead to their theft, misuse, unauthorized disclosure, or misappropriation. Such incidents could adversely affect our ability to operate our business, damage our reputation and business, adversely affect our results of operations and financial condition, and expose us to liability. We rely on third parties for various business purposes, and these third parties face similar security risks. A security failure by one of these third parties could expose our data or subject our information systems to interruption of operations and security vulnerabilities. Our information systems rely on hardware, software, and other technological elements, whether developed in-house or provided by third parties, that occasionally need to be patched or updated to address existing or potential security vulnerabilities. If these vulnerabilities are not remediated in a timely manner, our systems and data may be at risk of compromise or interruption.

Our services and infrastructure are increasingly reliant on the internet. Computer networks and the internet are vulnerable to disruptive problems such as denial of service attacks or other cyber-attacks carried out by cyber criminals or state-sponsored actors. We ~~anticipate~~are ~~that~~continually ~~unauthorized~~subject ~~parties~~to ~~will~~attempts ~~continue~~by tounauthorized ~~attempt~~parties to ~~obtain~~ access to confidential information or to destroy data, often through the introduction of computer viruses, ransomware or malware, and cyber-attacks,. The use of artificial intelligence increasingly enabling their sophistication and ~~other~~accelerating ~~means~~their evolution, including through automated phishing and the rapid development of new malware, which ~~are~~continue ~~constantly~~to ~~evolving~~evolve and atcan ~~times~~be difficult to detect. Those same parties may also attempt to fraudulently induce associates, clients, vendors, or other authorized users of our systems through phishing schemes or other social engineering methods to disclose sensitive information to gain access to our data or that of our clients or their customer/members. Any such coordinated attacks, if successful, can lead to data loss and exfiltration, disruption to systems and services, and damage to our reputation as a secure financial technology company.

We are also subject to the risk that our associates may intercept and transmit unauthorized confidential or proprietary information or that corporate-owned computers used by associates are stolen, or client data media is lost in shipment. An interception, misuse, or mishandling of personal, confidential, or proprietary information being sent to or received from a client or third party could result in legal liability, remediation costs, regulatory action, and reputational harm, any of which could adversely affect our results of operations and financial condition.

Like other financial institution service providers, we frequently face third-party attempts to discover and exploit system weaknesses or to circumvent our security measures. We anticipate that attempts to attack our systems, services, and infrastructure, and those of our clients, third-party service providers and other vendors, may grow in

~~frequency~~engineering ~~and~~methods ~~sophistication.~~to Wedisclose ~~cannot~~sensitive beinformation ~~certain~~to ~~that~~gain ~~our~~access ~~security controls and infrastructure will be adequate~~ to ~~continue to protect~~ our ~~systems and~~ data ~~and~~or ~~our~~that ~~efforts may not be sufficient to combat all current and future technological risks and threats. Advances in computer capabilities, new discoveries in the field~~ of ~~cryptography, the use of artificial intelligence, or other events or developments may render~~ our ~~security measures inadequate. Security risks may result in liability to our~~ clients or ~~other~~their ~~third parties, damage to our reputation, and may deter financial institutions from purchasing our products~~accountholders. ~~The~~Any ~~significant~~such ~~amount~~coordinated of capital and other resources we currently expend to protect against the threat of security breaches may prove insufficient to prevent a breach. We cannot ensure that any limitation-of-liability provisions in our client and user agreementsattacks, ~~contracts~~if ~~with third-party vendors~~successful, orcan ~~other~~lead ~~contracts are sufficient~~ to ~~protect us from liabilities or damages with respect to claims relating to a security breach or similar matters. The insurance coverage we maintain to address~~ data ~~security~~loss ~~risks may be insufficient to cover all types of claims or losses that may arise,~~ and ~~there is no assurance that such insurance coverage will continue to be available to us on economically reasonable terms~~exfiltration, ordisruption ~~at all. In the event of a security breach, we may need~~ to ~~spend~~systems ~~substantial additional capital~~ and ~~resources alleviating problems caused by such breach. Under state~~services, ~~federal,~~ and ~~foreign~~damage ~~laws requiring consumer notification of security breaches, the costs~~ to ~~remediate~~our ~~security~~reputation ~~breaches~~as ~~can~~a besecure ~~substantial.~~financial ~~Addressing~~technology ~~security problems may result in interruptions, delays, or cessation of service to users, any of which could harm our business~~company.

~~Failure~~We toare ~~maintain~~also ~~sufficient~~subject ~~technological infrastructure or an operational failure in our outsourcing facilities could expose us~~ to damage claims, increase regulatory scrutiny, and cause us to lose clients. Our products and services require substantial investments in technological infrastructure, and we have experienced significant growth in the ~~number~~risk ~~of users, transactions, and data~~ that our ~~technological~~associates ~~infrastructure supports. If we fail to adequately invest in and support our technological infrastructure and processing capacity~~may, weunintentionally ~~may not be able to support our clients’ processing needs and may be more susceptible to interruptions and delays in services. Damage~~ or ~~destruction that interrupts our outsourcing operations could cause delays and failures in processing which could hurt our relationship~~ with ~~clients,~~malicious ~~damage our reputation~~intent, ~~expose~~intercept ~~us to damage claims,~~ and ~~cause~~transmit usunauthorized toconfidential ~~incur~~or ~~substantial~~proprietary ~~additional~~information ~~expense to relocate operations and repair~~ or ~~replace damaged equipment. Events~~ that ~~could~~corporate-owned ~~cause~~computers ~~operational~~used ~~failures~~by ~~include,~~associates ~~but~~ are ~~not limited to~~stolen, ~~hardware~~or ~~and~~client ~~software~~data ~~defects,~~media ~~breakdowns~~is orlost ~~malfunctions,~~in ~~cybersecurity~~shipment. ~~incidents,~~An ~~human error~~interception, ~~power losses~~misuse, ~~disruptions~~or inmishandling ~~telecommunications~~of ~~services~~personal, ~~computer viruses or other malware~~confidential, or ~~other~~proprietary ~~events.~~information ~~Our~~being ~~facilities~~sent ~~are also subject~~ to ~~physical risks related to natural disasters~~ or ~~severe~~received ~~weather~~from events, such as tornados, flooding, hurricanes, and heat waves. Climate change may increase the likelihood and severity of such events. Our back-up systems and procedures may prove insufficient or otherwise fail to prevent disruption, such as a ~~prolonged~~client ~~interruption of our transaction processing services. If an interruption extends for more than several hours, we may experience data loss~~ or athird ~~reduction~~party ~~in revenues by reason of such interruption. Any significant interruption of service~~ could ~~reduce revenue, have a negative impact on our reputation,~~ result in ~~damage~~legal ~~claims~~liability, ~~lead~~remediation ~~our~~costs, ~~present~~regulatory ~~and potential clients to choose other service providers~~action, and ~~lead~~reputational toharm, ~~increased~~any ~~regulatory scrutiny~~ of ~~the~~which ~~critical~~could ~~services~~adversely weaffect ~~provide to financial institutions, with resulting increases in compliance burdens and costs. Implementing modifications and upgrades to~~ our ~~technological~~results ~~infrastructure~~of ~~subject~~operations ~~us to inherent costs~~ and ~~risks~~financial ~~associated with changing systems, policies, procedures, and monitoring tools~~condition.

~~Failures~~Like ~~associated~~other ~~with~~financial ~~payment~~institution ~~transactions~~service ~~could~~providers, ~~result~~we incontinually ~~financial~~face ~~loss.~~third-party ~~The~~attempts ~~volume~~to discover and ~~dollar~~exploit ~~amount~~system ofweaknesses ~~payment~~or ~~transactions~~to ~~that~~circumvent weour ~~process~~security ismeasures. ~~significant~~We ~~and~~anticipate ~~continues~~that attempts to ~~grow.~~attack Weour ~~direct~~systems, ~~the~~services, ~~settlement~~and ofinfrastructure, ~~funds~~and onthose ~~behalf~~ of ~~financial~~our ~~institutions~~clients, third-party service providers and other ~~businesses~~vendors, will grow in frequency and ~~consumers,~~sophistication. We cannot be certain that our security controls and ~~receive~~infrastructure ~~funds~~will ~~from~~be ~~clients,~~adequate ~~card~~to ~~issuers,~~continue ~~payment~~to ~~networks,~~protect our systems and ~~consumers~~data onand aour ~~daily~~efforts ~~basis~~may ~~for~~not abe ~~variety~~sufficient ofto ~~transaction~~combat ~~types~~all current and future technological risks and threats. ~~Transactions~~These ~~facilitated~~risks are further heightened by usthe ~~include~~fact ~~debit~~that ~~card,~~a ~~credit~~significant ~~card,~~portion ~~electronic~~of ~~bill~~our ~~payment~~associates ~~transactions,~~and ~~Automated~~contractors ~~Clearing~~work ~~House~~remotely ~~(“ACH”)~~outside ~~payments,~~of ~~real~~Company-~~time~~controlled ~~payments~~facilities ~~through~~using ~~faster~~networks ~~payment~~and ~~networks~~devices ~~(such~~that asare ~~Zelle,~~not ~~RTP,~~physically ~~and~~controlled ~~FedNow)~~by the Company, ~~and~~potentially ~~check~~limiting ~~clearing~~the ~~that~~effectiveness ~~support~~of ~~consumers,~~our ~~financial~~security ~~institutions,~~controls. ~~and~~Advances ~~other~~in ~~businesses.~~computer Ifcapabilities, new discoveries in the ~~continuity~~field of ~~operations~~cryptography, ~~integrity~~the use of ~~processing~~artificial intelligence, or ~~ability~~other toevents ~~detect~~ or ~~prevent~~developments ~~fraudulent~~may ~~payments~~render ~~were~~our ~~compromised~~security measures inadequate. Security risks may result in ~~connection~~liability ~~with~~to ~~payments~~our ~~transactions~~clients or other third parties, wedamage ~~could~~to ~~suffer~~our reputation, and may deter financial asinstitutions ~~well~~from aspurchasing ~~reputational~~our ~~loss~~products. InThe ~~addition,~~significant weamount ~~rely~~of oncapital ~~various~~and ~~third~~other ~~parties~~resources towe ~~process~~currently ~~transactions~~expend ~~and~~to ~~provide~~protect ~~services~~against inthe ~~support~~threat of ~~the~~security ~~processing~~breaches ofmay ~~transactions~~prove ~~and~~insufficient ~~funds~~to ~~settlement~~prevent ~~for~~a ~~certain~~breach. We cannot ensure that any limitation-of-liability provisions in our ~~products~~client and ~~services~~user ~~that~~agreements, wecontracts ~~cannot~~with ~~provide~~third-party ~~ourselves.~~vendors, Ifor weother contracts are ~~unable~~sufficient to ~~obtain~~protect ~~such~~us ~~services~~from inliabilities ~~the~~or ~~future~~damages with respect to claims relating to a security breach or ifsimilar ~~the~~matters. ~~price~~The ofinsurance ~~such~~coverage ~~services~~we ~~becomes~~maintain ~~unsustainable,~~to ~~our~~address ~~business,~~data ~~financial~~security ~~position~~risks may be insufficient to cover all types of claims or losses that may arise, and ~~results~~there ofis ~~operations~~no ~~could~~assurance that such insurance coverage will continue to be ~~materially~~available ~~and~~to ~~adversely~~us ~~affected~~on economically reasonable terms, or at all. In ~~addition~~the event of a security breach, we may ~~issue~~need ~~short-term~~to ~~credit~~spend tosubstantial ~~consumers~~additional capital and resources alleviating problems caused by such breach. Under state, ~~financial~~federal, ~~institutions~~and foreign laws, orincluding ~~other~~those ~~businesses~~requiring asconsumer ~~part~~notification of security breaches, the ~~funds~~costs ~~settlement~~to ~~process.~~remediate Asecurity ~~default~~breaches oncan ~~this~~be ~~credit~~substantial. byAddressing asecurity ~~counterparty~~problems ~~could~~may result in ainterruptions, ~~financial~~delays, ~~loss~~or cessation of service to ususers, any of which could harm our business.

~~Failures~~Failure ofto ~~third-party~~maintain ~~service~~sufficient ~~providers~~technological weinfrastructure ~~rely~~or ~~upon~~an operational failure in our outsourcing facilities could ~~lead~~expose us to ~~financial~~damage ~~loss~~claims, increase regulatory scrutiny, and cause us to lose clients. WeOur ~~rely~~products onand ~~third-party~~services ~~service~~require ~~providers~~substantial investments in technological infrastructure, and we have experienced significant growth in the number of users, transactions, and data that our technological infrastructure supports. If we fail to adequately invest in and support ~~key~~our ~~portions~~technological ofinfrastructure and processing capacity, we may not be able to support our clients’ processing needs and may be more susceptible to interruptions and delays in services. Damage or destruction that interrupts our outsourcing operations could cause delays and failures in processing which could hurt our relationship with clients, damage our reputation, expose us to damage claims, and cause us to incur substantial additional expenses to relocate operations and repair or replace damaged equipment. WeEvents ~~also~~that ~~rely~~could oncause ~~third-party~~operational ~~service~~failures ~~providers~~include, but are not limited to, ~~provide~~hardware ~~part~~and software defects, breakdowns or ~~all~~malfunctions, ofcybersecurity incidents, ~~certain~~human error, power losses, disruptions in telecommunications services, wecomputer ~~deliver~~viruses toor ~~clients~~other malware, or other events. AsOur wefacilities ~~continue~~are also subject to ~~move~~physical ~~more~~risks ~~computing~~related to natural disasters or severe weather events, ~~storage~~such as tornados, flooding, hurricanes, and heat waves. Climate change may increase the likelihood and severity of such events. Our back-up systems and procedures may prove insufficient or otherwise fail to prevent disruption, such as a prolonged interruption of our transaction processing services. ~~out~~If an interruption extends for more than several hours, we may experience data loss or a reduction in revenues due to such interruption. Any significant interruption of service could reduce revenue, have a negative impact on our ~~data~~reputation ~~centers~~and the reputation of our clients, result in damage claims, lead our present and ~~facilities~~potential clients to choose other service providers, and ~~into~~lead ~~third-party~~to ~~hosting~~increased ~~environments~~regulatory scrutiny of the critical services we provide to financial institutions, with resulting increases in compliance burdens and costs. Implementing modifications and upgrades to our ~~reliance~~technological oninfrastructure subjects us to inherent costs and risks associated with changing systems, policies, procedures, and monitoring tools.

~~these~~Failures ~~providers~~associated ~~and~~with ~~their~~payment ~~systems~~transactions ~~will~~could ~~increase.~~result ~~This~~in ~~reliance~~financial isloss. ~~further~~The ~~concentrated~~volume asand wedollar ~~use~~amount ~~certain third-party vendors to provide large portions~~ of ~~our~~payment ~~hosting~~transactions ~~needs.~~that ~~While~~ we ~~have~~process ~~selected~~is ~~these~~significant ~~third-party~~and ~~vendors~~continues ~~carefully,~~to wegrow. doWe ~~not~~direct ~~control~~the ~~their~~settlement ~~actions. A failure~~ of ~~these~~funds ~~services~~on bybehalf aof ~~third~~financial ~~party~~institutions, ~~could~~other ~~have~~businesses, aand ~~material~~consumers, ~~impact~~and ~~upon~~receive ~~our~~funds ~~delivery~~from ~~of services to our~~ clients., ~~Such~~card ~~a failure could lead to damage claims~~issuers, ~~loss~~payment ~~of clients~~networks, and ~~reputational~~consumers ~~harm,~~on ~~depending~~a ondaily ~~the~~basis ~~duration~~for ~~and~~a ~~severity~~variety of ~~the~~transaction ~~failure~~types. ~~Third~~Transactions ~~parties~~facilitated ~~perform~~by ~~significant~~us ~~operational~~include ~~services~~debit oncard, ~~our~~credit ~~behalf.~~card, ~~These~~electronic ~~third-party~~bill ~~vendors~~payment ~~are~~transactions, ~~subject~~Automated toClearing ~~similar~~House ~~risks~~(“ACH”) aspayments, usreal-time ~~including,~~payments ~~but~~through ~~not~~faster ~~limited~~payment ~~to,~~networks ~~compliance~~(such ~~with~~as ~~applicable~~Zelle, ~~laws~~RTP, and ~~regulations~~FedNow), ~~hardware~~ and ~~software~~check ~~defects,~~clearing ~~breakdowns~~that orsupport ~~malfunctions~~consumers, ~~cybersecurity~~financial ~~incidents~~institutions, ~~human~~and ~~error,~~other ~~failures~~businesses. inIf ~~internal~~the ~~controls,~~continuity ~~power~~of ~~losses~~operations, ~~disruptions~~integrity inof ~~telecommunications services~~processing, ~~computer viruses~~ or ~~other~~ability ~~malware,~~to ~~natural~~detect ~~disasters~~ or ~~severe~~prevent ~~weather~~fraudulent ~~events,~~payments orwere ~~other~~compromised ~~events.~~in ~~One~~connection orwith ~~more~~payments oftransactions, ~~our~~we ~~vendors~~could ~~may~~suffer ~~experience~~financial aas ~~cybersecurity~~well ~~event~~as orreputational ~~operational~~loss. ~~disruption~~In ~~and~~addition, ifwe ~~any~~rely ~~such~~on ~~event~~various ~~does~~third ~~occur,~~parties itto ~~may~~process ~~not~~transactions beand ~~adequately~~provide ~~addressed,~~services ~~either~~in ~~operationally~~support orof ~~financially, by~~ the ~~third-party~~processing ~~vendor. Certain~~ of ~~our~~transactions ~~vendors~~and ~~may~~funds ~~have~~settlement ~~limited~~for ~~indemnification~~certain ~~obligations~~of orour ~~may~~products ~~not~~and ~~have~~services ~~the~~that ~~financial~~we ~~capacity~~cannot toprovide ~~satisfy their indemnification obligations~~ourselves. If awe ~~critical~~are ~~vendor is~~ unable to ~~meet~~obtain ~~our~~such ~~needs~~services in athe ~~timely~~future ~~manner~~ or if the price of such services orbecomes ~~products~~unsustainable, ~~provided~~our bybusiness, ~~such~~financial aposition, ~~vendor~~and ~~are~~results ~~terminated~~of oroperations ~~otherwise~~could ~~delayed~~be materially and ifadversely affected. In addition, we ~~are~~may ~~not~~issue ~~able~~short-term credit to ~~develop~~consumers, ~~alternative~~financial ~~sources~~institutions, ~~for~~or ~~these~~other ~~services~~businesses ~~and~~as ~~products~~part ~~quickly~~of ~~and~~the ~~cost-effectively,~~funds ~~our~~settlement ~~clients~~process. ~~could~~A bedefault ~~negatively~~on ~~impacted,~~this ~~and~~credit itby ~~could~~a ~~have~~counterparty acould ~~material~~result ~~adverse~~in ~~effect~~a onfinancial ~~our~~loss ~~business~~to us.

Failures of third-party service providers we rely upon could lead to financial loss. We rely on third-party service providers to support key portions of our operations. We also rely on third-party service providers to provide part, or all, of certain services we deliver to clients. As we continue to move more computing, storage, and processing services out of our data centers and facilities and into third-party hosting environments, our reliance on these providers and their systems will increase. This reliance is further concentrated as we use certain third-party vendors to provide large portions of our hosting needs. While we have selected these third-party vendors carefully, we do not control their actions. A failure of these services by a third party could have a material impact upon our delivery of services to our clients. Such a failure could lead to damage claims, loss of clients, and reputational harm, depending on the duration and severity of the failure. Third parties perform significant operational services on our behalf. These third-party vendors are subject to similar risks as us including, but not limited to, compliance with applicable laws and regulations, hardware and software defects, breakdowns or malfunctions, cybersecurity incidents, human error, failures in internal controls, power losses, disruptions in telecommunications services, computer viruses or other malware, natural disasters or severe weather events, or other events. One or more of our vendors may experience a cybersecurity event or operational disruption and, if any such event does occur, it may not be adequately addressed, either operationally or financially, by the third-party vendor. Certain of our vendors may have limited indemnification obligations or may not have the financial capacity to satisfy their indemnification obligations. If a critical vendor is unable to meet our needs in a timely manner or if the services or products provided by such a vendor are terminated or otherwise delayed and if we are not able to develop alternative sources for these services and products timely and cost-effectively, our clients could be negatively impacted, and it could have a material adverse effect on our business.

We operate in a competitive business environment and our business will be adversely affected if we fail to compete effectively. We vigorously compete with a variety of software vendors and service providers in all our major product lines. We compete on the basis of product quality, reliability, performance, ease of use, quality of support and services, integration with other products, and pricing. Some of our competitors may have advantages over us due to their size, product lines, greater marketing resources, or exclusive intellectual property rights. New competitors, including smaller start-ups, regularly appear with new products, services, and technology for financial institutions. If competitors offer more favorable pricing, payment or other contractual terms, warranties, or functionality, or otherwise attract our clients or prevent us from capturing new clients, we may need to lower prices or offer other terms that negatively impact our results of operations in order to successfully compete.

Failure to achieve favorable renewals of service contracts could negatively affect our business. Our contracts with our clients for outsourced data processing and electronic payment transaction processing services generally run for a period of six years. We will continue to experience a significant number of these contracts coming up for renewal each year. Renewal time presents our clients with the opportunity to consider other providers or to renegotiate their contracts with us, including reducing the services we provide or negotiating the prices paid for our services. Certain of our renewals have resulted in price compression between the former and renegotiated contracts. If that trend accelerates or becomes more pronounced, it could negatively impact our results of operations. If we are not successful in achieving high renewal rates upon favorable terms, revenues and profit margins will suffer. We may experience increased costs for services from our third-party vendors due to inflation or other cost expansion, but because our client contracts typically have longer terms than our vendor contracts, our ability to pass on those higher costs to clients may be limited. If inflation or costs outpace our contractual ability to adjust pricing during the contractual terms of our client contracts, our revenues and profit margins could be negatively impacted.

If we fail to adapt our products and services to changes in technology and the markets we serve, we could lose existing clients and be unable to attract new business. The markets for our products and services are characterized by changing client and regulatory requirements and rapid technological changes. These factors and new product introductions by our existing competitors or by new market entrants could reduce the demand for our existing products and services, and we may be required to develop or acquire new products and services. Our future success is dependent on our ability to enhance our existing products and services in a timely manner and to develop or acquire new products and services. If we are unable to develop or acquire new products and services to address the needs of our clients, or if we fail to sell the new or enhanced products and services in which we have invested, we may incur unanticipated expenses or fail to achieve anticipated revenues, as well as lose prospective sales.

The use of emerging technologies like artificial intelligence, machine learning, and generative artificial intelligence could lead to unintended consequences and result in reputational harm and increased litigation. We continue to evaluate emerging technologies like artificial intelligence, machine learning, and generative artificial intelligence for incorporation into our business to augment our products and services. Such technologies present unique business opportunities along with ever-changing legal and regulatory risks. Both state and federal regulations relating to these emerging technologies are quickly and constantly evolving and may require significant resources to modify and maintain business practices to comply with U.S. laws, the nature of which cannot be determined at this time. Our failure to accurately identify and address our responsibilities and liabilities in this new environment could negatively affect any solutions we develop incorporating such technology and could subject us to reputational harm, regulatory action, or litigation, which may harm our financial condition and operating results. These same risks apply to our third-party service providers who are implementing these tools into the

If we fail to adapt our products orand services ~~they~~to ~~provide~~changes in technology and the markets we serve, we could lose existing clients and be unable to usattract new business. ~~Any~~The ~~failures~~markets tofor ~~manage~~our products and ~~mitigate~~services ~~these~~are ~~risks~~characterized by ~~these~~changing ~~third-party~~client ~~service~~and ~~providers~~regulatory ~~may~~requirements ~~negatively~~and ~~affect~~rapid technological changes. These factors and new product introductions by our existing competitors or by new market entrants could reduce the demand for our existing products and services, and we ~~provide~~may be required to develop or acquire new products and services. Our future success is dependent on our ability to enhance our existing products and services in a timely manner and to develop or acquire new products and services. If we are unable to develop or acquire new products and services to address the needs of our clients, or if we fail to sell the new or enhanced products and services in which we have invested, we may incur unanticipated expenses or fail to achieve anticipated revenues, as well as lose prospective sales.

The increasing adoption of artificial intelligence (AI), machine learning (ML), and generative artificial intelligence into our products introduces significant and evolving risks that could lead to unintended consequences, result in reputational harm, and increased litigation. Our business currently utilizes AI and ML and we continue to evaluate and expand their use, including generative AI, to augment our products and services. While these technologies offer distinct business opportunities, they also bring evolving legal, regulatory, and operational risks. Both state and federal regulations relating to these emerging technologies are quickly and constantly evolving and may require significant resources to modify and maintain business practices to comply with U.S. laws, the nature of which cannot be determined at this time. From an operational standpoint, AI algorithms and training methodologies may create accuracy issues, unintended biases, factual errors, misrepresentations, offensive language, inappropriate statements, or other unexpected outcomes that could undermine product and service quality or lead to errors in our decision-making and solution development. Ineffective or inadequate AI development, testing, evaluation, deployment, content labeling, or governance may impair public acceptance or cause harm, resulting in offerings not working as intended, and we also face explainability risk from our potential inability to interpret or justify AI model decisions, which may lead to concerns about trust, regulatory compliance, and accountability. Additionally, the use of AI tools by associates—whether authorized or not—for internal functions or business operations may result in unintended or unreliable outputs, which could negatively impact the quality, accuracy, or consistency of work product and decision-making. Our failure to accurately identify and address our responsibilities and liabilities in this new environment could negatively affect any solutions we develop incorporating such technology and could subject us to reputational harm, regulatory action, or litigation, which may harm our financial condition and operating results. These same risks apply to our third-party service providers who are implementing these tools into the products or services they provide to us. Any failures to manage and mitigate these risks by these third-party service providers may negatively affect the products and services we provide our clients.

Software defects or problems with installations and updates may harm our business and reputation and expose us to potential liability. Our software products are complex and may contain undetected defects, especially in connection with newly released products and software updates. Software defects may cause interruptions or delays to our services as we attempt to correct the problem. We may also experience difficulties in installing or integrating our products on systems used by our clients. Defects in our software, installation problems or delays, or other difficulties could result in negative publicity, loss of revenues, loss of competitive position, or claims against us by clients. In addition, we rely on technologies and software supplied by third parties that may also contain undetected errors or defects that could have a negative effect on our business and results of operations. If patches or updates are not properly tested prior to installation, or are not properly installed, our systems and data may be at risk of compromise or interruption as a result of such failures.

Expansion of services to non-traditional clients could expose us to new risks. We have expanded our services to business lines that are marketed outside our traditional, regulated, and litigation-averse base of financial institution clients. These non-regulated clients may entail greater operational, credit, and litigation risks than we have faced before and could result in increases in bad debts and litigation costs.

Regulatory and Compliance Risks

The software and services we provide to our clients are subject to government regulation that could hinder the development of our business, increase costs, or impose constraints on the way we conduct our operations. The financial services industry is subject to extensive and complex federal and state regulation. As a supplier of software and services to financial institutions, portions of our operations are subject to ongoing supervision and examination by the Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, and the National Credit Union Association, among other regulatory agencies. These agencies regulate services we provide and the way we operate, and we are required to comply with a broad range of applicable federal and state laws and regulations. We are routinely subject to the examination process with such regulators, which includes the identification of areas where we can improve our practices to better comply with the applicable regulations and guidelines. If regulators identify significant issues, or if we fail to meet supervisory remediation expectations, we could be subject to regulatory actions that could harm our client relationships and reputation. Failure by third parties, with whom we contract or partner, to comply with regulations or guidelines could also harm our relationships and reputation. Such failures could require significant expenditures to correct and could negatively affect our ability to retain clients and obtain new clients.

In addition, existing laws, regulations, and policies could be amended or interpreted differently by regulators in a manner that imposes additional costs and has a negative impact on our existing operations or that limits our future growth or expansion. New regulations could require additional programming or other costly changes in our processes or personnel. Our clients are also regulated entities, and actions by regulatory authorities could influence both the decisions they make concerning the purchase of data processing and other services and the timing and implementation of these decisions. We will be required to apply substantial research and development and other corporate resources to adapt our products to this evolving, complex, and often unpredictable regulatory environment. Our failure to provide compliant solutions could result in significant fines or consumer liability on our clients, for which we may bear ultimate liability.

Compliance with new and existing privacy laws, regulations, and rules may adversely impact our expenses, development, and strategy. We are subject to complex laws, rules, and regulations related to data privacy and cybersecurity. If we fail to comply with such requirements, we could be subject to reputational harm, regulatory enforcement, and litigation. The use, confidentiality, and security of private client information is under increased scrutiny. Regulatory agencies, Congress, state legislatures, and foreign regulatory and governmental bodies are considering numerous regulatory and statutory proposals to protect the interests of consumers and to require compliance with standards and policies that have not been defined. The number of state privacy and cybersecurity laws and regulations has grown tremendously over the past several years, creating an increasingly complex patchwork of data privacy and security requirements. This includes industry-specific rules such as those enacted by the New York Department of Financial Services that require covered financial institutions to have a cybersecurity program along with other compliance requirements as well as comprehensive consumer data privacy rules such as the California Consumer Privacy Act, the Iowa Consumer Data Protection Act, and the Virginia Consumer Data Protection Act. Though several privacy concepts are common across the laws, each state requires compliance with standards and policies that are not cohesive with other laws and are often further amended by regulatory action. The unique data protection regulations issued by multiple agencies have created a fragmented series of

~~requirements~~identify ~~that~~significant ~~makes~~issues, itor ~~increasingly~~if ~~complex~~we fail to ~~comply~~meet ~~with~~supervisory ~~all~~remediation ~~the~~expectations, ~~mandates~~we incould anbe ~~efficient~~subject ~~manner~~to ~~and~~regulatory ~~may~~actions ~~increase~~that ~~costs~~could toharm ~~deliver~~our ~~affected~~client ~~products~~relationships and ~~services~~reputation. asFailure ~~those~~by ~~requirements~~third ~~are established. In addition~~parties, ~~compliance~~ with ~~these~~whom ~~laws~~we ~~and~~contract ~~regulations~~or ~~may~~partner, ~~require changes~~ to ~~our~~comply ~~technology~~with ~~and~~regulations ~~our~~or ~~internal~~guidelines ~~processes~~could ~~and~~also ~~procedures,~~harm ~~including~~our ~~the~~relationships ~~way that we handle, process,~~ and ~~store~~reputation. ~~data,~~Such ~~which~~failures could ~~divert~~require ~~company~~significant ~~resources~~expenditures ~~and~~to ~~negatively~~correct ~~impact~~and ~~growth~~could ~~opportunities.~~negatively Weaffect ~~will~~our ~~also~~ability ~~be affected by these regulations as a third-party provider~~ to retain clients ~~who are subject to such regulations~~ and ~~will~~obtain ~~seek~~new ~~our assistance in their compliance efforts~~clients.

Compliance with new and existing data privacy and cybersecurity laws, regulations, and rules may adversely impact our expenses, development, and strategy. We are subject to complex laws, rules, and regulations related to data privacy and cybersecurity. If we fail to comply with such requirements, we could be subject to reputational harm, regulatory enforcement, and litigation. The use, confidentiality, and security of private client information is under increased scrutiny. Regulatory agencies, Congress, state legislatures, and foreign regulatory and governmental bodies are considering numerous regulatory and statutory proposals to protect the interests of consumers and to require compliance with standards and policies that have not been defined. The number of state privacy and cybersecurity laws and regulations has grown tremendously over the past several years, resulting in an increasingly complex and fragmented regulatory landscape. These laws often include industry-specific requirements and board consumer data protection obligations. While many of these frameworks share common principles each jurisdiction imposes unique compliance standards, definitions, and obligations that may not align with one another. This lack of uniformity, combined with frequent legislative updates and regulatory amendments, creates ongoing challenges for organizations seeking to maintain consistent and compliant data governance practices across multiple jurisdictions. Further, the FTC and state attorneys general may interpret federal and state consumer protection laws as imposing standards for the collection, use, dissemination, and security of data. In addition, compliance with these laws and regulations may require changes to our technology and our internal processes and procedures, including the way that we handle, process, and store data, which could divert company resources and negatively impact growth opportunities. We will also be affected by these regulations as a third-party provider to clients who are subject to such regulations and will seek our assistance in their compliance efforts.

Failure to comply or readily address compliance and regulatory rule changes made by payment card networks could adversely affect our business. We are subject to card association and network compliance rules governing the payment networks we serve, including Visa, MasterCard, Zelle, FedNow, and The Clearing House’s RTP network, and all rules governing the Payment Card Data Security Standards. If we fail to comply with these rules and standards, we could be fined or our certifications could be suspended or terminated, which could limit our ability to service our clients and result in reductions in revenues and increased costs of operations. Changes made by the networks, even when complied with, may result in reduction in revenues and increased costs of operations.

Economic Conditions Risks

Natural disasters, public health crises, wars, acts of terrorism, other armed conflict, and workforce shortages could adversely affect our results of operations. The occurrence of, or threat of, natural disasters, widespread public health crises, political unrest, war, acts of terrorism, other armed conflicts involving the United States or foreign countries, or general workforce shortages can result in significant economic disruptions and uncertainties and could adversely affect our business, results of operation, and financial condition. The conditions caused by such events may affect the rate of spending by our clients and their ability to pay for our products and services, delay prospective clients’ purchasing decisions, interfere with our associates’ ability to support our business function, disrupt the ability of third-party providers we rely upon to deliver services, adversely impact our ability to provide on-site services or installations to our clients, or reduce the number of transactions we process, all of which could adversely affect our results of operation and financial position. We are unable to accurately predict the impact of such events on our business due to a number of uncertainties, including the duration, severity, geographic reach and governmental responses to such events, the impact on our clients’ and vendors' operations, and our ability to continue to provide products and services, including the ability of our associates to work remotely. If we are not able to respond to and manage the impact of such events effectively, our business will be harmed.

Our business may be adversely impacted by general U.S. and global market and economic conditions or specific conditions in the financial services industry. We derive most of our revenue from products and services we provide to the financial services industry. If the general economic environment worsens, including if inflation or interest rates continue to increase or remain at higher than recent historical levels, or if conditions or regulatory requirements within the financial services industry change, such as if financial institutions are required to increase reserve amounts or become subject to new regulatory assessments, clients may be less willing or able to pay the cost of our products and services, and we could face a reduction in demand from current and potential clients for our products and services, which could have a material adverse effect on our business, results of operations, and financial condition. In addition, a growing portion of our revenue is derived from transaction processing fees, which depend heavily on levels of consumer and business spending. Deterioration in general economic conditions could negatively impact consumer confidence and spending, resulting in reduced transaction volumes and our related revenues.18

~~Consolidation~~Our business may be adversely impacted by general U.S. and ~~failures~~global ofmarket ~~financial~~and ~~institutions~~economic ~~will~~conditions ~~continue~~or tospecific ~~reduce~~conditions in the ~~number~~financial services industry. We derive most of our ~~clients~~revenue from products and ~~potential~~services ~~clients.~~we ~~Our~~provide ~~primary~~to ~~market~~the ~~consists~~financial ofservices ~~approximately~~industry. 4If the general economic environment worsens,~~540~~ ~~commercial~~including ~~and~~if ~~savings~~inflation ~~banks~~or ~~and~~interest ~~more~~rates continue to increase or remain at higher than 4recent historical levels,~~700~~ ~~credit~~or ~~unions.~~if ~~The~~conditions ~~number~~or ofregulatory ~~commercial~~requirements ~~banks~~within ~~and~~the ~~credit~~financial ~~unions~~services inindustry ~~the~~change—such ~~United~~as ~~States~~if ~~has~~financial ~~experienced~~institutions aare ~~steady~~required ~~decrease~~to ~~over~~increase ~~recent~~reserve ~~decades~~amounts, ~~due~~become subject to ~~mergers~~new ~~and~~regulatory ~~acquisitions~~assessments, ~~and~~or ~~financial~~if ~~failures~~tariffs ~~and~~or weother ~~expect~~trade ~~this~~restrictions ~~trend~~are toimposed ~~continue~~or asincreased—clients ~~more~~may ~~consolidation~~be ~~occurs.~~less ~~Such~~willing ~~events~~or ~~may~~able ~~reduce~~to pay the ~~number~~cost of our products and services, and we could face a reduction in demand from current and potential clients for our products and services, which could ~~negatively~~have ~~impact~~a material adverse effect on our business, results of operations., Aand ~~client~~financial ~~who~~condition. ~~merges~~In ~~with~~addition, ora isgrowing ~~acquired~~portion ~~by,~~of anour ~~entity~~revenue ~~that~~ is ~~not~~derived ~~our~~from ~~client~~transaction processing fees, orwhich adepend ~~client~~heavily ~~that~~on islevels ~~closed~~of byconsumer ~~regulatory~~and ~~action,~~business ~~can~~spending. ~~lead~~Deterioration toin ageneral ~~reduction~~economic orconditions ~~loss~~could ofnegatively ~~services~~impact consumer confidence and ~~negatively~~spending, ~~impact~~resulting ~~our~~in ~~results~~reduced oftransaction ~~operation~~volumes and our related revenues.

Consolidation and failures of financial institutions will continue to reduce the number of our clients and potential clients. Our primary market consists of approximately 4,440 commercial and savings banks and more than 4,550 credit unions. The number of commercial banks and credit unions in the United States has experienced a steady decrease over recent decades due to mergers and acquisitions and financial failures and we expect this trend to continue as more consolidation occurs. Such events may reduce the number of our current and potential clients, which could negatively impact our results of operations. A client who merges with, or is acquired by, an entity that is not our client, or a client that is closed by regulatory action, can lead to a reduction or loss of services and negatively impact our results of operation.

Acquisition Risks

Our growth may be affected if we are unable to find or complete suitable acquisitions. We have augmented the growth of our business with a number of acquisitions and we plan to continue to acquire appropriate businesses, products, and services. This strategy depends on our ability to identify, negotiate, and finance suitable acquisitions. Merger and acquisition activity in our industry has affected the availability and pricing of such acquisitions. If we are unable to acquire suitable acquisition candidates, we may experience slower growth.

Acquisitions subject us to risks and may be costly and difficult to integrate. Acquisitions are difficult to evaluate, and our due diligence may not identify all potential liabilities or valuation issues. We may also be subject to risks related to cybersecurity incidents or vulnerabilities of the acquired company and the acquired systems. We may not be able to successfully integrate acquired companies. We may encounter problems with the integration of new businesses, including: financial control and computer system compatibility; unanticipated costs and liabilities; unanticipated quality or client problems with acquired products or services; differing regulatory and industry standards; diversion of management's attention; adverse effects on existing business relationships with suppliers and clients; loss of key associates; and significant depreciation and amortization expenses related to acquired assets. To finance future acquisitions, we may have to increase our borrowing or sell equity or debt securities to the public. If we fail to integrate our acquisitions, our business, financial condition, and results of operations could be materially and adversely affected. Failed acquisitions could also produce material and unpredictable impairment charges as we review our acquired assets.

Intellectual Property Risks

If others claim that we have infringed their intellectual property rights, we could be liable for significant damages or could be required to change our processes. We have agreed to indemnify many of our clients against claims that our products and services infringe on the proprietary rights of others. We also use certain open- source software in our products, which may subject us to suits by persons claiming ownership of what we believe to be open-source software. Infringement claims have been and will in the future be asserted with regard to our software solutions and services. Such claims, whether with or without merit, are time-consuming, may result in costly litigation and may not be resolved on terms favorable to us. If our defense of such claims is not successful, we could be forced to pay damages or could be subject to injunctions that would cause us to cease making or selling certain applications or force us to redesign applications.

Our failure to protect our intellectual property and proprietary rights may adversely affect our competitive position. Our success and ability to compete depend in part upon protecting our proprietary systems and technology. Unauthorized parties may attempt to copy or access systems or technology that we consider proprietary. We actively take steps to protect our intellectual property and proprietary rights, including entering into agreements with users of our services for that purpose and maintaining security measures. However, these steps may be inadequate to prevent misappropriation. Policing unauthorized use of our proprietary rights is difficult and misappropriation or litigation relating to such matters could have a material negative effect on our results of operation.

General Risk Factors

A material weakness in our internal controls could have a material adverse effect on us. Effective internal controls are necessary for us to provide reasonable assurance with respect to our financial reports and to mitigate risk of fraud. If material weaknesses in our internal controls are discovered or occur in the future, our consolidated financial statements may contain material misstatements and we could be required to restate our financial results, which could materially and adversely affect our business and results of operations or financial condition, restrict our ability to access the capital markets, require us to expend significant resources to correct the weaknesses or deficiencies, subject us to fines, penalties or judgments, harm our reputation, or otherwise cause a decline in investor confidence.

The loss of key associates and difficulties in hiring and retaining associates could adversely affect our business. We depend on the contributions and abilities of our senior management and other key associates. Our Company has grown significantly in recent years and our management remains concentrated in a small number of highly qualified individuals. If we lose one or more of our key associates, we could suffer a loss of managerial experience, and management resources would have to be diverted from other activities to compensate for this loss. We do not have employment agreements with any of our executive officers. ~~Further,~~We we continue to face a competitive market for hiring and retaining skilled associates. Difficulties in hiring and retaining skilled associates may restrict our ability to adequately support our business needs and/or result in increased personnel costs. ~~There~~These challenges are further compounded by the fact that a substantial portion of our workforce operate in hybrid or fully remote arrangements, which introduces additional complexities related to employee engagement, collaboration, training, and the preservation of corporate culture. As we navigate these dynamics, there is no assurance that we will be able to attract and retain the personnel necessary to maintain the Company’s strategic direction.

Unfavorable resolution of tax contingencies or unfavorable future tax law changes could adversely affect our tax expense. Our income tax positions result in a significant net deferred income tax liability on our consolidated balance sheet. Unfavorable future tax law changes, including increasing U.S. corporate tax rates, could increase this net liability and negatively impact our provision for income taxes, net income, and cash flow.

19The impairment of a significant portion of our goodwill and intangible assets would adversely affect our results of operations. Our balance sheet includes goodwill and intangible assets that represent a significant portion of our total assets as of June 30, 2025. On an annual basis, and whenever circumstances require, we review our goodwill and intangible assets for impairment. If the carrying value of a material asset is determined to be impaired, it will be written down to fair value by a charge to operating earnings. An impairment of a significant portion of our goodwill or intangible assets could have a material negative effect on our operating results.

~~The~~Changes ~~impairment~~in ofinterest arates ~~significant~~could ~~portion~~increase of our ~~goodwill~~borrowing ~~and~~costs ~~intangible~~or ~~assets~~result ~~would~~in ~~adversely~~decreased ~~affect~~interest ~~our~~income. ~~results~~Although ofour ~~operations.~~debt ~~Our~~borrowing ~~balance~~levels ~~sheet~~have ~~includes~~historically ~~goodwill~~been ~~and~~low, ~~intangible~~we ~~assets~~may ~~that~~require ~~represent~~additional aor ~~significant~~increased ~~portion~~borrowings ofin ~~our~~the ~~total~~future ~~assets~~under asexisting ofor ~~June 30,~~new ~~2024.~~debt Onfacilities anto ~~annual~~support ~~basis~~operations, ~~and~~finance ~~whenever circumstances require~~acquisitions, weor ~~review~~fund ~~our~~stock ~~goodwill and intangible assets for impairment~~repurchases. IfOur ~~the~~current ~~carrying~~credit ~~value~~facilities ofbear ainterest ~~material~~at ~~asset~~variable isrates. ~~determined~~Increases toin beinterest ~~impaired,~~rates iton ~~will~~variable-rate bedebt ~~written~~would ~~down~~increase toour ~~fair~~interest ~~value~~expense, bywhich acould ~~charge~~negatively toimpact ~~operating~~our ~~earnings.~~results ~~An impairment~~ of aoperations. ~~significant~~Conversely, ~~portion~~if ofinterest ~~our~~rates ~~goodwill~~substantially ordecrease, ~~intangible~~we ~~assets~~would ~~could~~collect ~~have~~less ainterest ~~material~~income ~~negative effect~~ on ~~our~~settlement ~~operating results~~accounts.

An increase in interest rates could increase our borrowing costs. Although our debt borrowing levels have historically been low, we may require additional or increased borrowings in the future under existing or new debt facilities to support operations, finance acquisitions, or fund stock repurchases. Our current credit facilities bear interest at variable rates. Increases in interest rates on variable-rate debt would increase our interest expense, which could negatively impact our results of operations.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 1C. CYBERSECURITY

Cyber Risk Management and Strategy

In ~~our~~today's ~~increasingly~~ interconnected environment, information is inherently exposed to a ~~growing~~wide ~~number~~range of risks, threats, and vulnerabilities. As a provider of products and services to financial institutions, Jack Henry integrates industry-standard frameworks, policies, and procedures to securely process and store sensitive information, prioritizing the protection of our associates, clients, and their private data ~~from~~in ~~the~~an ever-evolving cyber threat ~~environment~~landscape.

Jack Henry’s information and cybersecurity program is a ~~key~~core component of our overall enterprise risk management ~~and~~framework. It is maintained by a team of ~~diverse,~~ highly skilled cybersecurity professionals, asand ~~well~~supported asby ~~a portfolio of~~ investments in modern technology, including artificial intelligence and machine learning. The program ~~safeguards~~is designed to safeguard Jack Henry and client confidentiality and privacy by systematically identifying, assessing, and managing material risks and cybersecurity threats through ~~use of~~ comprehensive cyber defense, threat and vulnerability management, and cyber intelligence. ~~Our~~It ~~cybersecurity program~~ includes continuous enterprise monitoring ~~with~~and well-defined and ~~rehearsed~~regularly tested business ~~resilience and incident response procedures. Further, we use third-party vendors and consultants to assist in identifying and assessing cybersecurity risks.~~

Jack Henry systems and services undergo regular reviews performed by the same regulatory agencies that review financial institutions: Federal Reserve Bank (“FRB”), FDIC, Office of the Comptroller of the Currency (“OCC”), NCUA, and the CFPB, among others. Reviews such as those by the Federal Banking Agencies (comprised of the FDIC, FRB, and the OCC) assess and identify security gaps or flaws in controls. Critical services provided to our clients are subject to annual System and Organization Controls (“SOC”) reviews by independent auditors.

Our associates and contractors play a vital role in the safeguarding of systems and data. Associates and contractors complete mandatory annual security awareness training to ensure they stay abreast of the latest best practices and related cyber threats. Additionally, we conduct routine phishing exercises to help associates and contractors identify and responsibly respond to suspicious emails. Throughout the year, we target supplemental training and education to higher-risk individuals and teams.

Jack Henry relies on third-party service providers to deliver services and products to our clients, and we evaluate and attempt to mitigate the cybersecurity risks associated with the use of these third-party service providers. We conduct evaluations and risk assessments of third-party service providers prior to engagement and on an ongoing periodic basis to ensure our standards for security are maintained. Our strategic risk management committees review and address any identified risks.

In fiscal year 2024, we did not identify any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected our business strategy, results of operations, or financial condition.

As a large financial technology provider, we continually face risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us and our business strategy, results of operations, or financial condition. Despite our efforts to identify and respond to cybersecurity threats, we cannot ensure that we will not experience material cybersecurity incidents in the future or that we have not experienced an undetected incident. For a full discussion of cybersecurity risks, see the section entitled “Risk Factors” in Item 1A.

~~Cyber~~resilience ~~Security~~and ~~Governance~~incident response procedures. We also engage third-party vendors and ~~Oversight~~consultants to assist in identifying, assessing, and mitigating cybersecurity risks.

~~Our~~Jack ~~Board~~Henry ofsystems ~~Directors~~and ~~maintains~~services ~~ultimate~~are ~~oversight~~subject ~~over~~to ~~risk~~regular ~~functions~~reviews ~~but~~by ~~has~~the ~~delegated~~same ~~certain~~regulatory ~~oversight~~agencies ~~responsibilities~~that ~~for~~oversee ~~enterprise~~financial ~~and operational risks~~institutions, including ~~cybersecurity risk, to~~ the ~~Board’s~~Federal ~~Risk~~Reserve ~~and~~Bank ~~Compliance~~(“FRB”), ~~Committee.~~FDIC, ~~The~~Office ~~Risk~~of ~~and~~the ~~Compliance~~Comptroller ~~Committee’s~~of ~~obligations~~the ~~include~~Currency ~~overseeing~~(“OCC”), ~~Jack~~NCUA, ~~Henry’s risk assessment~~ and ~~management~~the ~~programs~~CFPB, ~~and~~among ~~reviewing risk preparedness~~others. ~~Our~~These ~~Audit~~reviews, ~~Committee~~including ~~oversees~~those ~~financial~~conducted ~~risks~~by ~~and~~the ~~would~~Federal ~~also~~Banking beAgencies ~~informed~~(comprised of ~~a material cybersecurity incident that could potentially have a material impact on our financial statements. The Chief Information Security Officer (“CISO”) reports to~~ the ~~Risk~~FDIC, ~~and~~FRB, ~~Compliance Committee~~ and to the ~~full~~OCC) ~~Board~~help ofidentify ~~Directors~~potential onsecurity agaps ~~quarterly~~or ~~basis~~control ~~on information security matters~~deficiencies. ~~Additionally~~In addition, ~~the~~critical ~~CISO~~services ~~meets~~provided ~~with~~to ~~the~~our ~~Risk~~clients ~~and~~undergo ~~Compliance~~annual ~~Committee~~System atand ~~least~~Organization ~~annually~~Controls to(“SOC”) ~~evaluate~~reviews ~~our~~by ~~overall~~independent ~~security environment and organization~~auditors.

~~While~~Our ~~the~~associates ~~Board of Directors, through the Risk~~ and ~~Compliance~~contractors ~~Committee,~~play ~~maintains~~a ~~oversight~~vital ~~for~~role ~~cybersecurity~~in ~~risks,~~the ~~management~~safeguarding isof ~~primarily~~systems ~~responsible for identifying, assessing,~~ and ~~managing material cybersecurity risks within our broader risk management program~~data. ~~Management~~All ~~has~~are ~~established~~required ~~the~~to ~~Enterprise~~complete ~~Risk~~annual ~~Management~~security ~~Committee,~~awareness ~~headed~~training byto ~~Company~~ensure ~~executives,~~they tostay ~~monitor~~current ~~the~~on ~~governance,~~best ~~risk,~~practices and ~~compliance~~emerging ~~environment~~cyber ~~for Jack Henry, which includes review of cybersecurity risk~~threats. ~~Management~~We ~~has~~ also ~~adopted~~conduct ~~specific~~routine ~~policies~~phishing ~~and~~exercises ~~processes~~ to ~~monitor~~help ~~cybersecurity~~associates ~~threats~~ and tocontractors ~~mitigate~~recognize ~~such threats as they arise. These policies~~ and ~~procedures~~appropriately ~~include,~~respond ~~among~~to ~~other~~suspicious ~~things, an incident response program, which includes professionals with diverse backgrounds and skillsets, led by our CISO~~emails. ~~Our~~Supplemental ~~incident~~training ~~response team~~ is ~~designed~~provided tothroughout ~~monitor~~the ~~and~~year ~~assess cyber and information security related incidents. Any cybersecurity incidents that meet or exceed preestablished thresholds are escalated~~ to ~~management~~individuals ~~to establish the scope of the threat, apply mitigation~~ and ~~remediation~~teams ~~efforts,~~with ~~and assess the need for disclosure to clients, third~~elevated-~~party~~risk ~~service providers, and regulators~~profiles.

~~Our CISO, who reports directly to the Chief Risk Officer, has primary responsibility over~~ Jack Henry’s ~~overall~~relies ~~information~~on ~~security~~third-party ~~strategy,~~service ~~policy,~~providers ~~security~~to ~~engineering,~~deliver ~~operations,~~certain services and ~~cybersecurity~~products ~~threat~~to ~~detection~~our ~~and response~~clients. ~~Our~~We ~~CISO~~evaluate ~~has~~and ~~more~~seek ~~than~~to 20mitigate ~~years~~the ~~of technology and~~ cybersecurity ~~experience,~~risks ~~including~~associated ~~previous~~with ~~senior~~these ~~leadership~~providers ~~roles~~through atpre-engagement ~~major~~and ~~financial~~periodic ~~institutions.~~risk ~~The~~assessments ~~information~~to ~~security~~ensure ~~team,~~our ~~under~~standards ~~the~~for ~~direction~~security ofare ~~the~~maintained. ~~CISO,~~Our ~~regularly~~strategic ~~monitors~~risk ~~general~~management ~~cybersecurity~~committees ~~trends~~review and ~~institutes~~address ~~preventative~~any ~~efforts~~identified ~~and defensive measures to protect against cybersecurity threats~~risks.

In fiscal year 2025, we did not identify any cybersecurity threats, including those arising from prior incidents, that materially affected our business strategy, results of operations, or financial condition.

As a large financial technology provider, we continually face risks from cybersecurity threats that, if realized, are reasonably likely to materially affect our business strategy, results of operations, or financial condition. Despite our efforts to identify and respond to cybersecurity threats, we cannot guarantee that we will not experience a material cybersecurity incident in the future or that an undetected incident has not already occurred. For further discussion of cybersecurity risks, see the section entitled “Risk Factors” in Item 1A.

CyberSecurity Governance and Oversight

Our Board of Directors has ultimate oversight of risk management and has delegated responsibility for enterprise and operational risks, including cybersecurity, to the Board’s Risk and Compliance Committee. This Committee oversees Jack Henry’s risk assessment and management programs and reviews risk preparedness. The Audit Committee oversees financial risks and would be informed of any material cybersecurity incident that could potentially have a material impact on our financial statements. The Chief Information Security Officer (“CISO”) reports quarterly to the Risk and Compliance Committee and to the full Board of Directors on information security matters. The CISO also meets with the Risk and Compliance Committee at least annually to evaluate our overall security environment and organization.

While the Board of Directors, through the Risk and Compliance Committee, maintains oversight of cybersecurity risks, management is primarily responsible for identifying, assessing, and managing these risks within our broader risk management program. The Enterprise Risk Management Committee, composed of senior executives, monitors governance, risk, and compliance enterprise-wide, including cybersecurity. Management has adopted specific policies and procedures to monitor and mitigate cybersecurity threats including an incident response program, led by the CISO and staffed by professionals with diverse expertise. Incidents meeting pre-established thresholds are escalated to management for threat assessment, mitigation, remediation, and, if necessary, disclosure to clients, third-parties, and regulators.

Our CISO, who reports to the Chief Operations Officer, has primary responsibility for Jack Henry’s information security strategy, policy, security engineering, operations, and cybersecurity threat detection and response. Our CISO brings more than 20 years experience in technology and cybersecurity, including senior leadership roles at major financial institutions. Under the CISO's direction, the information security team continuously monitors cybersecurity trends and implements proactive and defensive measures to protect against cybersecurity threats.

ITEM 2. PROPERTIES

We own 154 acres located in Monett, Missouri on which we maintain eight office buildings, plus shipping and receiving, security, and maintenance buildings. We also own buildings in Allen, Texas; Birmingham, Alabama; Lenexa, Kansas; Angola, Indiana; Shawnee Mission, Kansas; and Springfield, Missouri. Our owned facilities represent approximately 795,000 square feet of office space in five states. We have 1917 leased office facilities in 1513 states, which total approximately ~~474~~445,000 square feet. Of this total, approximately 54,700 square feet relates to our ~~Elizabethtown, Kentucky leased office facility of which approximately 50,900 square feet is subleased. The remaining owned and leased office facilities are for normal business purposes.~~

Elizabethtown, Kentucky leased office facility of which approximately 50,900 square feet is subleased. The remaining owned and leased office facilities are for normal business purposes.

We own five aircraft. Many of our clients are located in communities that do not have an easily accessible commercial airline service. We primarily use our aircraft in connection with implementation, sales of systems and internal requirements for day-to-day operations. Transportation costs for implementation and other client services are billed to our clients. We lease property, including real estate and related facilities, at the Monett, Missouri regional airport.

ITEM 3. LEGAL PROCEEDINGS

We are subject to various routine legal proceedings and claims arising in the ordinary course of our business. In the opinion of management, any liabilities resulting from current lawsuits are not expected, either individually or in the aggregate, to have a material adverse effect on our consolidated financial statements. In accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), we record a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These liabilities are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case or proceeding.

ITEM 4. MINE SAFETY DISCLOSURES

None.

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Table of Contents

PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

The Company's common stock is quoted on the Nasdaq Global Select Market (“Nasdaq”) under the symbol “JKHY."

The Company established a practice of paying quarterly dividends in fiscal 1991 and has paid dividends with respect to every quarter since that time. The declaration and payment of any future dividends will continue to be at the discretion of our Board of Directors and will depend upon, among other factors, our earnings, capital requirements, contractual restrictions, and operating and financial condition. The Company does not currently foresee any changes in its dividend practices.

On August 158, ~~2024~~2025, there were approximately ~~344~~347,~~699~~295 holders of the Company’s common stock, including individual participants in security position listings.

Issuer Purchases of Equity Securities

The following shares of the Company were repurchased during the quarter ended June 30, ~~2024~~2025:

	Total Number of Shares Purchased (1)	Average Price of Share	Total Number of Shares Purchased as Part of Publicly Announced Plans	Maximum Number of Shares that May Yet Be Purchased Under the Plans (1)
April 1 — April 30, 2024	—	$	—	3,667,497
April 1 — April 30, 2025	—	$	—	3,411,018
May 1 — May 31, 2024	—	$	—	3,667,497
May 1 — May 31, 2025	—	$	—	3,411,018
June 1 — June 30, 2024	49,840	$161.62	49,840	3,617,657
June 1 — June 30, 2025	—	$	—	3,411,018
Total	~~49,840~~—	$~~161.62~~	~~49,840~~—	3,~~617~~411,~~657~~018

(1) Total stock repurchase authorizations approved by the Company's Board of Directors as of May 14, 2021 were for 35.0 million shares. Under these authorizations, the Company has repurchased and not re-issued 31,~~372~~579,~~959~~598 shares and has repurchased and re-issued 9,384 shares. The authorizations have no specific dollar or share price targets and no expiration dates.

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Table of Contents

Performance Graph

The following chart presents a comparison for the five-year period ended June 30, ~~2024~~2025, of the market performance of the Company’s common stock with the Standard & Poor's 500 ("S&P 500") Index and the Standard & Poor's Composite 1500 Software & Services ("S&P 1500 Software & Services") Index. Historic stock price performance is not necessarily indicative of future stock price performance.

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN

Among Jack Henry & Associates, Inc., the S&P 500 Index, and the S&P 1500 Software & Services Index

The following information depicts a line graph with the following values:

	2019	2020	2021	2022	2023	2024
	2020	2021	2022	2023	2024	2025
JKHY	100.00	~~138~~89.8886	~~124~~100.8003	~~138~~94.9207	~~130~~94.6557	~~131~~103.3495
S&P 500	100.00	~~107~~140.5179	~~151~~125.3685	~~135~~150.2951	~~161~~187.8047	~~201~~215.5489
S&P Composite 1500 Software & Services	100.00	~~127~~133.9246	~~170~~111.7353	~~142~~144.6774	~~185~~184.1518	~~235~~215.6090

This comparison assumes $100 was invested on June 30, ~~2019~~2020, and assumes reinvestments of dividends.

The stock performance graph shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

ITEM 6. [RESERVED]

2324

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following section provides management's view of the Company's financial condition and results of operations and should be read in conjunction with the audited consolidated financial statements, and related notes included elsewhere in this report. All dollar and share amounts, except per share amounts, are in thousands and discussions compare fiscal ~~2024~~2025 to fiscal ~~2023~~2024. Discussions of fiscal ~~2022~~2023 items and comparisons between fiscal ~~2022~~2023 and fiscal ~~2023~~2024 that are not included in this Form 10-K can be found in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended June 30, ~~2023~~2024.

OVERVIEW

Jack Henry & Associates, Inc. is a well-rounded financial technology company headquartered in Monett, Missouri, that employs approximately 7,~~170~~240 full-time and part-time associates nationwide, and is a leading provider of technology solutions and payment processing services primarily to community and regional ~~financial~~banks ~~institutions~~and credit unions. Our solutions serve approximately 7,~~500~~400 clients and consist of integrated data processing systems solutions to banks ranging from de novo to multi-billion-dollar institutions with assets up to $5055 billion, core data processing solutions for credit unions of all sizes, and non-core highly specialized core-agnostic products and services that enable ~~financial~~banks ~~institutions~~and credit unions of every asset size and charter, and diverse corporate entities outside the financial services industry, to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. Our integrated solutions are available for on-premise installation and delivery in our private and public cloud.

Each of our solutions shares the fundamental commitment to provide high-quality business systems, service levels that consistently exceed client expectations, and integration of solutions and practical new technologies. The quality of our solutions, our high service standards, and the fundamental way we do business typically foster long-term client relationships, attract prospective clients, and have enabled us to capture substantial market share.

Through internal product development, disciplined acquisitions, and alliances with companies offering niche solutions that complement our proprietary solutions, we regularly introduce new products and services and generate new cross-sales opportunities. We provide compatible computer hardware for our on-premise installations and secure processing environments for our outsourced solutions in our private and public cloud. We perform data conversions, software implementations, initial and ongoing client training, and ongoing client support services.

We believe our primary competitive advantage is client service. Our support infrastructure and strict standards provide service levels that generate high levels of client satisfaction and retention. We consistently measure client satisfaction using a variety of surveys, such as an annual survey on the client's anniversary date and randomly-generated surveys initiated each day by routine support requests. Dedicated surveys are also used to grade specific aspects of our client experience, including product implementation, education, and consulting services.

Our two primary revenue streams are "services and support" and "processing." Services and support includes: "private and public cloud" ~~fees~~revenues that predominantly have contract terms of six years at inception; "product delivery and services" ~~revenue~~revenues, which ~~includes~~include ~~revenue~~revenues from the sales of licenses, implementation services, ~~deconversion fees~~deconversions, consulting, and hardware; and "on-premise support" ~~revenue~~revenues, composed of maintenance fees ~~which~~that primarily contain annual contract terms. Processing ~~revenue~~ includes: "remittance" ~~revenue~~revenues from payment processing, remote capture, and ACH transactions; "card" ~~fees~~revenues, including card transaction processing and monthly fees; and "transaction and digital" ~~revenue~~revenues, which ~~includes~~include transaction and mobile processing ~~fees~~revenues. We continually seek opportunities to increase revenue while at the same time containing costs to expand margins.

We have four reportable segments: Core, Payments, Complementary, and Corporate and Other. The respective segments include all related revenues along with the related cost of ~~sales~~revenue.

A detailed discussion of the major components of the results of operations follows.

~~RESULTS OF OPERATIONS~~25

FISCAL 2024 COMPARED TO FISCAL 2023

On August 31, 2022, the Company acquired all of the equity interest in Payrailz. Excluded Payrailz related revenue and operating expenses that are mentioned in the discussion below are for the first two months only of fiscal year ended June 30, 2024, since the first two months of fiscal year ended June 30, 2023, do not include Payrailz.

In fiscal 2024, total revenue increased 6.6% or $137,841, compared to fiscal 2023. Reducing total revenue for deconversion revenue of $16,554 in the current fiscal year and $31,775 in the prior fiscal year, and for Payrailz related revenue of $1,945 in the current fiscal year, results in a 7.4% increase, or $151,117. This increase was

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~~primarily~~RESULTS ~~driven~~OF by growth in data processing and hosting within cloud revenue as new clients were added and volumes expanded, card processing revenue from expanded fraud detection and prevention services and the addition of new/add-on services, digital (including Banno) revenue as active monthly users and volumes increased, payment processing revenue from expanding volumes and new client revenue, and growth in remote capture and ACH revenue.OPERATIONS

~~Operating~~FISCAL ~~expenses~~2025 ~~increased~~COMPARED ~~8.1%,~~TO orFISCAL ~~$129,138, in fiscal~~ 2024 compared to fiscal 2023. Reducing total operating expenses for deconversion costs of $3,408 in the current fiscal year and $4,261 in the prior fiscal year, and for VEDIP related costs of $16,443 and Payrailz related expenses of $4,182, in the current fiscal year, and excluding the impact of the gain on sale of assets, net, of $4,567 in the prior fiscal year, results in a 6.6% increase, or $104,798. The VEDIP program was a Company voluntary separation program offered to certain eligible associates beginning in July 2023. This increase was primarily due to higher personnel costs, increased direct costs consistent with increases in the related revenue, and internal licenses and fees from price increases and higher deployments in the current fiscal year.

WeIn ~~move into~~ fiscal 2025, ~~following~~total ~~strong~~revenue ~~performance~~increased in7.2% ~~fiscal~~or ~~2024.~~$159,745, ~~Significant~~compared ~~portions~~to offiscal ~~our~~2024. ~~business~~Reducing ~~continue~~total torevenue ~~provide~~for ~~recurring~~deconversion revenue ~~and~~of ~~our~~$33,905 ~~sales~~in ~~pipeline~~the iscurrent ~~also~~fiscal ~~encouraging.~~year ~~Our~~and ~~clients~~$16,554 ~~continue~~in tothe ~~face~~prior ~~regulatory~~fiscal ~~and~~year, ~~operational~~results ~~challenges~~in ~~which~~a ~~our~~6.5% ~~products~~increase, ~~and~~or ~~services address~~$142,394. ~~and~~This inincrease ~~these~~was ~~times,~~mainly ~~they~~driven ~~have~~by angrowth ~~even~~in ~~greater~~data ~~need~~processing ~~for~~and ~~our~~hosting ~~solutions~~within ~~that~~cloud ~~directly~~revenue ~~address~~as ~~institutional~~new ~~profitability,~~clients ~~efficiency,~~were added and ~~security.~~volumes Weexpanded, ~~believe~~card ~~our~~processing ~~strong~~revenue ~~balance~~primarily ~~sheet,~~from ~~access~~expanded tofraud ~~extensive~~detection ~~lines~~and ofprevention ~~credit,~~risk ~~the~~management ~~strength~~services ofand ~~our~~monthly ~~existing~~service ~~product~~fees, ~~line~~digital ~~and~~revenue anas ~~unwavering~~active ~~commitment~~monthly tousers ~~superior~~and ~~client~~volumes ~~service~~increased, ~~position~~and uspayment ~~well~~processing torevenue ~~address~~from ~~current~~expanding volumes and ~~future~~new ~~opportunities~~client revenue.

AOperating ~~detailed~~expenses ~~discussion~~increased 4.7%, or $80,421, in fiscal 2025 compared to fiscal 2024. Reducing total operating expenses for deconversion costs of $6,242 in the ~~major~~current ~~components~~fiscal ofyear and $3,408 in the ~~results~~prior offiscal ~~operations~~year and for VEDIP related costs of $16,443 in the prior fiscal year, ~~ended~~results ~~June 30~~in a 5.5% increase, or $94,031 (The VEDIP program was a Company voluntary separation program offered to certain eligible associates who chose to participate in the program from July through December 2023, including immaterial payments that continued into calendar 2024). ~~compared~~The increase in operating expenses was primarily due to higher direct costs generally commensurate with increases in the ~~fiscal~~related ~~year~~lines ~~ended~~of ~~June 30~~revenue, ~~2023~~higher ~~follows~~personnel costs including increases in compensation costs during the trailing twelve months, and higher internal licenses and fees from price increases and more deployments in the current fiscal year.

Services and Support Revenue	Year Ended June 30,				% Change
	2024		2023
Services and support	$	1,275,954	$	1,214,701	5.0%
Percentage of total revenue	58%		58%

As we move into fiscal 2026 – our 50th year in business – we are excited and confident about our future, and we remain well-positioned to deliver durable, consistent growth and attractive results for our shareholders. Technology spending by financial institutions remains strong, and there is clear demand for our differentiated and innovative technology solutions. We have a very healthy sales pipeline and a proven ability to attract and win deals, especially with larger financial institutions. Our unwavering focus on culture, service, innovation, strategy, and execution continues to set us apart in the market and will enable us to drive continued industry-leading revenue growth with strong margin expansion, benefiting our associates, clients, and shareholders.

A detailed discussion of the major components of the results of operations for the fiscal year ended June 30, 2025 compared to the fiscal year ended June 30, 2024 follows.

REVENUE


Services and Support Revenue	Year Ended June 30,				% Change
	2025		2024
Services and support	$	1,361,737	$	1,275,954	6.7%
Percentage of total revenue	57%		58%

Services and support includes: "private and public cloud" fees, which predominantly have contract terms of six years at inception; "product delivery and services" revenue, which includes revenue from the sales of licenses, implementation services, deconversion fees, consulting, and hardware; and "on-premise support" revenue, which is composed primarily of maintenance fees with annual contract terms.

In the fiscal year ended June 30, ~~2024~~2025, services and support revenue increased 56.07% compared to the prior fiscal year. Reducing total services and support revenue by deconversion revenue for each year, which totaled $1633,~~554~~905 in fiscal ~~2024~~2025 and $3116,~~775~~554 in fiscal ~~2023~~2024, ~~and for Payrailz related revenue of $2 from the current fiscal year,~~ services and support revenue grew 6.5.4%. This increase was primarily driven by higher data processing and hosting within cloud revenue as new clients were added and volumes expanded and increased consulting, ~~primarily~~work ~~from~~order, ~~organic~~and ~~growth~~release ~~including~~revenues, partially offset by the ~~addition~~decrease ofin ~~new~~license and ~~migrating~~hardware ~~clients~~revenues, ~~and~~year ~~expanding~~over ~~volumes~~year.

Processing Revenue	Year Ended June 30,				%Change
	2024		2023
	2025		2024
Processing	$	~~939~~1,~~589~~013,551	$	~~863~~939,~~001~~589	87.9%
Percentage of total revenue	4243%		42%

Processing revenue includes: "remittance" revenue from payment processing, remote capture, and ACH transactions; "card" fees, including card transaction processing and monthly fees; and "transaction and digital" revenue, which includes transaction and mobile processing fees.

Processing revenue increased 8.9% for the fiscal year ended June 30, 2024, compared to the fiscal year ended June 30, 2023. Reducing total processing revenue by Payrailz related revenue of $1,943 from the current fiscal year, processing revenue grew 8.6%. This increase was driven by growth in card processing primarily from expanded fraud detection and prevention services and growth in the addition of new/add-on services, digital revenue (including Banno) through growth in active monthly users and increased volumes as well as the introduction and ramping up of new add-on products, payment processing revenues as new clients increased and the active user base and transaction volumes expanded, and higher remote capture and ACH revenues.26

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Processing revenue increased 7.9% for the fiscal year ended June 30, 2025, compared to the fiscal year ended June 30, 2024. This increase was driven by growth in card from expanded fraud detection and prevention risk management services and monthly service fees, digital revenue as active monthly users and volumes increased, and payment processing revenue from expanding volumes and new client revenue.

OPERATING EXPENSES

Cost of Revenue	Year Ended June 30,				%Change
	2024		2023
	2025		2024
Cost of revenue	$	1,~~299~~360,~~477~~747	$	1,~~219~~299,~~062~~477	64.67%
Percentage of total revenue	5957%		59%

Cost of revenue for fiscal ~~2024~~2025 increased 64.67% compared to fiscal ~~2023~~2024. Reducing total cost of revenue for deconversion costs of $23,~~231~~517 in the current fiscal year and $2,~~046~~231 in the prior fiscal year, ~~and for Payrailz related costs of $3,334 in the current fiscal year,~~ results in a 64.36% increase. This increase was driven by higher direct costs consistent with increases in the related revenue, ~~higher internal licenses~~ and ~~fees~~higher ~~from~~personnel ~~price~~costs including increases ~~and~~in ~~higher~~compensation ~~deployments~~costs induring the ~~current~~trailing ~~fiscal~~twelve ~~year, and increased personnel costs~~months. Cost of revenue ~~remained~~decreased ~~consistent~~2% as a percentage of total revenue for fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024.

Research and Development	Year Ended June 30,				%Change
	2024		2023
	2025		2024
Research and development	$	~~148~~162,~~256~~771	$	~~142~~148,~~678~~256	3.9.8%
Percentage of total revenue	7%		7%

We devote significant effort and expense to develop new software and service products and continually upgrade and enhance our existing offerings. We believe our research and development efforts are highly efficient because of the extensive experience of our research and development staff and because our product development is highly client driven.

Research and development expenses for fiscal ~~2024~~2025 increased 3.9.8% compared to fiscal ~~2023~~2024. ~~Reducing total research and development expenses for Payrailz related costs of $656 in the current fiscal year, results in a 3.4% increase.~~ This increase iswas primarily due to higher ~~cloud consumption, net of capitalization, increased~~ personnel costs, including ~~Payrailz~~increased ~~acquisition~~compensation costs and ~~Jack~~employee ~~Henry~~headcount ~~Platform~~additions ~~costs,~~in ~~net~~the oftrailing ~~capitalization.~~twelve ~~Research~~months and ~~development~~internal ~~expense~~license ~~remained~~and ~~consistent~~fees asexpenses afrom ~~percentage~~price ofincreases ~~total~~and ~~revenue~~more ~~for~~deployments ~~fiscal~~in ~~2024~~the ~~compared~~current to fiscal ~~2023~~year. The increase in this expense category for the current fiscal year reflects our continuing commitment to the development of strategic products. Research and development expense remained consistent as a percentage of total revenue for fiscal 2025 compared to fiscal 2024.

Selling, General, and Administrative	Year Ended June 30,				%Change
	2024		2023
	2025		2024
Selling, general, and administrative	$	~~278~~283,~~419~~055	$	~~235~~278,~~274~~419	181.37%
Percentage of total revenue	1312%		1113%

Selling, general, and administrative costs included all expenses related to sales efforts, commissions, finance, legal, and human resources, plus all administrative costs.

Selling, general, and administrative expenses for fiscal ~~2024~~2025 increased 181.37% compared to fiscal ~~2023~~2024. Reducing total selling, general, and administrative expense for deconversion costs from each year, which totaled $12,~~177~~725 in fiscal ~~2024~~2025 and $21,~~216~~177 in fiscal ~~2023,~~2024 and VEDIP program expenses of $16,443 ~~and~~in ~~Payrailz related costs of $192 for~~ the ~~current fiscal year, and excluding the impact of the gain on sale of assets, net, of $4,567 for the~~ prior fiscal year, results in a 9.7.5% increase. This increase was primarily due to higher personnel costs, excluding severance, including aincreased compensation and employee headcount ~~increase~~additions in the trailing twelve months, increased travel expenses, and higher ~~commission~~contract ~~expense~~labor, partially offset by the gain on the sale of assets in the current fiscal year compared to the loss on the sale of assets last fiscal year. Selling, general, and administrative expenses ~~increased~~decreased ~~2.0~~1% as a percentage of total revenue for fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024.

INTEREST INCOME AND EXPENSE	Year Ended June 30,				%Change
	2024		2023
Interest income	$	25,012	$	8,959	179.2%
Interest expense	$	(16,384)	$	(15,073)	8.7%

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Interest income increased over the prior fiscal year due to increased interest earned on balances fiscal year over fiscal year. Interest expense increased in fiscal 2024 mainly due to the timing and amounts of borrowed balances and increases in interest rates.


INTEREST INCOME AND EXPENSE	Year Ended June 30,				% Change
	2025		2024
Interest income	$	27,759	$	25,012	11.0%
Interest expense	$	(10,438)	$	(16,384)	(36.3)%

PROVISION FOR INCOME TAXES	Year Ended June 30,				%Change
	2024		2023
Provision for income taxes	$	116,203	$	107,928	7.7%
Effective rate	23.3%		22.7%

Interest income increased over the prior fiscal year due to increased interest earned on balances fiscal year over fiscal year. Interest expense decreased in fiscal 2025 mainly due to the timing and amounts of borrowed and repaid balances ending the current fiscal year with no remaining debt outstanding.

The increase in the Company's effective tax rate in fiscal 2024 compared to fiscal 2023 was the result of changes in uncertain tax positions for periods open under the statute of limitations in the current fiscal year. This increase is partially offset by greater benefits received from research and development tax credits during the current fiscal year.


PROVISION FOR INCOME TAXES	Year Ended June 30,				% Change
	2025		2024
Provision for income taxes	$	130,288	$	116,203	12.1%
Effective rate	22.2%		23.3%

NET INCOME	Year Ended June 30,				%Change
	2024		2023
Net income	$	381,816	$	366,646	4.1%
Diluted earnings per share	$	5.23	$	5.02	4.2%

The decrease in the Company's effective tax rate in fiscal 2025 compared to fiscal 2024 was the result of differences in the change in uncertain tax positions between the two periods as well as a favorable state law change in the current fiscal year.

Net income grew 4.1% to $381,816, or $5.23 per diluted share, in fiscal 2024 from $366,646, or $5.02 per diluted share, in fiscal 2023. The diluted earnings per share increase fiscal year over fiscal year was 4.2%. This increase was primarily due to growth in our lines of revenue and a reduction in the number of weighted average shares outstanding partially offset by higher operating expenses in fiscal 2024 compared to fiscal 2023 .


NET INCOME	Year Ended June 30,				% Change
	2025		2024
Net income	$	455,748	$	381,816	19.4%
Diluted earnings per share	$	6.24	$	5.23	19.3%

Net income grew 19.4% to $455,748, or $6.24 per diluted share, in fiscal 2025 from $381,816, or $5.23 per diluted share, in fiscal 2024. The diluted earnings per share increase fiscal year over fiscal year was 19.3%. This increase was primarily due to organic growth in our lines of revenue and the decrease in one-time severance expenses related to VEDIP fiscal year over fiscal year, partially offset by higher operating expenses in fiscal 2025 compared to fiscal 2024 .

REPORTABLE SEGMENT DISCUSSION

The Company is a well-rounded financial technology company and is a leading provider of technology solutions and payment processing services primarily to community and regional ~~financial~~banks ~~institutions~~and credit unions. The Company’s operations are classified into four reportable segments: 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~~accountholder information. The Payments segment provides secure payment processing tools and services, including ATM, debit, and credit card processing services, online and mobile bill pay solutions, ACH 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 ("AML") and lending/deposit solutions that can be integrated with the Company's Core solutions, and many can be used independently. The Corporate and Other segment includes revenue and costs from hardware and other products not attributed to any of the other three segments, as well as operating expenses not directly attributable to the other three segments.

The Company evaluates the performance of its segments and allocates resources to them based on various factors, including performance against trend, budget, and forecast. Only revenue and costs of revenue are considered in the evaluation for each segment.

Immaterial adjustments between segments were made in fiscal 2024 to reclassify revenue and cost of revenue that was recognized in fiscal 2023. These reclasses were made to be consistent with the current allocation of revenue and cost of revenue by segment. Revenue reclassed for the fiscal year ended June 30, 2023, from Core to Corporate and Other was $7,119, from Payments to Corporate and Other was $30, and from Complementary to Corporate and Other was $307. Cost of revenue reclassed for the fiscal year ended June 30, 2023, from Core to Corporate and Other was $6,713, from Payments to Corporate and Other was $2,594, and from Complementary to Corporate and Other was $1,286.

Core
	2024		% Change	2023
Revenue	$	690,738	6.4%	$	649,045
Cost of Revenue	$	287,349	3.8%	$	276,818

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In fiscal 2024, revenue in the Core segment increased 6.4% compared to fiscal 2023. Reducing total Core revenue by deconversion revenue from both fiscal years, which totaled $7,292 in fiscal 2024 and $10,924 in fiscal 2023, Core segment revenue increased 7.1%. This increase was primarily driven by organic increases in our data processing and hosting within cloud revenue. Cost of revenue in the Core segment increased 3.8% for fiscal 2024 compared to fiscal 2023. This increase was primarily due to increased direct costs associated with the organic growth in cloud revenue. Deconversion and/or acquisition costs did not significantly affect Core cost of revenue fiscal year over fiscal year. Core segment cost of revenue decreased 1% as a percentage of revenue for fiscal 2024 compared to fiscal 2023.

Payments
	2024		% Change	2023
Revenue	$	817,708	6.6%	$	767,309
Cost of Revenue	$	442,084	5.0%	$	420,880

In fiscal 2024, revenue in the Payments segment increased 6.6% compared to fiscal 2023. Reducing total Payments revenue by deconversion revenue from both fiscal years, which totaled $5,836 in fiscal 2024 and $7,924 in fiscal 2023, and Payrailz related revenue from the current fiscal year of $1,945, Payments segment revenue increased 6.7%. This increase was primarily driven by growth within card revenue and payment processing within remittance revenue. Cost of revenue in the Payments segment increased 5.0% for fiscal 2024 compared to fiscal 2023. Reducing total Payments cost of revenue by deconversion costs from both fiscal years, which totaled $259 in fiscal 2024 and $303 in fiscal 2023 and Payrailz related costs from the current fiscal year of $3,314, Payments cost of revenue increased 4.3%. This increase was primarily due to increased direct costs related to growth in the card and remittance revenue lines, and increased personnel costs, including benefits expenses. Payments segment cost of revenue decreased 1% as a percentage of revenue for fiscal 2024 compared to fiscal 2023.

Complementary
	2024		% Change	2023
Revenue	$	618,211	5.9%	$	583,586
Cost of Revenue	$	256,007	7.7%	$	237,758

Revenue in the Complementary segment increased 5.9% for fiscal 2024 compared to fiscal 2023. Reducing total Complementary revenue by deconversion revenue from both fiscal years, which totaled $3,217 in fiscal 2024 and $12,649 in fiscal 2023, Complementary segment revenue increased 7.7%. This increase was primarily driven by organic increases in digital revenue (including Banno) and hosting within cloud revenue. Cost of revenue in the Complementary segment increased 7.7% for fiscal 2024 compared to fiscal 2023. This increase was primarily due to higher direct costs related to the organic growth in the digital and hosting within cloud revenue lines, increased amortization of capitalized software, and higher internal licenses and fees. Deconversion and/or acquisition costs did not significantly affect Complementary cost of revenue fiscal year over fiscal year. Complementary segment cost of revenue increased 1% as a percentage of revenue for fiscal 2024 compared to fiscal 2023.

Corporate and Other
	2024		% Change	2023
Revenue	$	88,886	14.3%	$	77,762
Cost of Revenue	$	314,037	10.7%	$	283,606

Revenue in the Corporate and Other segment increased 14.3% for fiscal 2024 compared to fiscal 2023. Reducing total Corporate and Other revenue by deconversion revenue from both fiscal years, which totaled $209 in fiscal 2024 and $278 in fiscal 2023, Corporate and Other segment revenue increased 14.4%. The increase was mainly due to increased hardware revenue and subscriptions and software usage within support revenues.

Cost of revenue for the Corporate and Other segment includes operating expenses not directly attributable to any of the other three segments and increased 10.7% for fiscal 2024 compared to fiscal 2023. This increase was primarily related to higher internal licenses and fees and personnel costs, including benefits expenses. Deconversion and/or acquisition costs did not significantly affect Corporate and Other cost of revenue fiscal year over fiscal year.

LIQUIDITY AND CAPITAL RESOURCES

The Company's cash and cash equivalents increased to $38,284 at June 30, 2024, from $12,243 at June 30, 2023. The following table summarizes net cash from operating activities in the statement of cash flows:

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	Year Ended
	June 30,
	2024		2023
Net income	$	381,816	$	366,646
Non-cash expenses	231,709		166,621
Change in receivables	28,219		(12,067)
Change in deferred revenue	(10,797)		(10,547)
Change in other assets and liabilities	(62,906)		(129,094)
Net cash provided by operating activities	$	568,041	$	381,559

Immaterial adjustments between segments were made in fiscal 2025 to reclassify cost of revenue that was recognized in fiscal years 2024 and 2023. These reclasses were made to be consistent with the current allocation of cost of revenue by segment. Cost of revenue reclassed for the fiscal year ended June 30, 2024, from Complementary to Corporate and Other, was $4,922. Cost of revenue reclassed for the fiscal year ended June 30, 2023, from Core and Complementary to Corporate and Other, was $64 and $5,206, respectively.

Cash provided by operating activities for fiscal 2024 increased 48.9% compared to fiscal 2023, primarily due to higher than historical collections in fiscal 2024 of annual maintenance billings related to fiscal year 2025 and to an overpayment of income taxes in fiscal 2023, which led to lower cash taxes paid in fiscal 2024. The Company paid income taxes, net of refunds, of $106,966, $145,862, and $60,553 in fiscal 2024, 2023, and 2022, respectively. Cash from operations is primarily used to repay debt, pay dividends, repurchase stock, and for capital expenditures.


Core
	2025		% Change	2024
Revenue	$	739,277	7.0%	$	690,738
Cost of Revenue	$	297,372	3.5%	$	287,349

~~Cash~~In ~~used~~fiscal 2025, revenue in ~~investing~~the ~~activities~~Core ~~for~~segment increased 7.0% compared to fiscal 2024. Reducing total Core revenue by deconversion revenue from both fiscal years, which totaled $~~240~~14,~~165~~765 ~~and~~in ~~included:~~fiscal 2025 and $~~167~~7,~~175~~292 ~~for~~in ~~the~~fiscal ~~ongoing~~2024, ~~enhancements~~Core ~~and~~segment ~~development~~revenue ofincreased ~~existing~~6.0%. ~~and~~This ~~new~~increase ~~product~~was ~~and~~primarily ~~service~~driven ~~offerings;~~by ~~capital~~organic ~~expenditures~~increases onin ~~facilities~~our data processing and ~~equipment~~hosting revenue within cloud. Cost of ~~$58,118,~~revenue ~~mainly~~in the Core segment increased 3.5% for ~~the~~fiscal ~~purchase~~2025 compared to fiscal 2024. Reducing total Core cost of ~~computer~~revenue ~~equipment;~~by $8deconversion costs from both fiscal years,~~646~~ ~~for~~which ~~purchase~~totaled of$2,096 ~~investments;~~in fiscal 2025 and $71,~~130~~065 ~~for~~in ~~the~~fiscal ~~purchase~~2024, ~~and~~Core ~~development~~segment cost of ~~internal~~revenue ~~use~~increased ~~software~~3.1%. ~~These~~This ~~expenditures~~increase ~~were~~was ~~partially~~primarily ~~offset~~due byto ~~$904~~increased ofdirect ~~proceeds~~costs ~~from~~associated ~~asset~~with ~~sales~~the organic growth in cloud revenue. Core segment cost of revenue decreased 1% as a percentage of revenue for fiscal 2025 compared to fiscal 2024.

Cash used in investing activities for fiscal 2023 totaled $409,673 and included: payment for the acquisition of Payrailz of $229,628, $166,120 for the ongoing enhancements and development of existing and new product and service offerings; capital expenditures on facilities and equipment of $39,179, mainly for the purchase of computer equipment; $1,685 for the purchase and development of internal use software; and $1,000 for the purchase of investments. These expenditures were partially offset by $27,939 of proceeds from the sale of assets.


Payments
	2025		% Change	2024
Revenue	$	873,498	6.8%	$	817,708
Cost of Revenue	$	460,151	4.1%	$	442,084

~~Financing~~In ~~activities~~fiscal ~~used~~2025, ~~cash~~revenue ofin the Payments segment increased 6.8% compared to fiscal 2024. Reducing total Payments revenue by deconversion revenue from both fiscal years, which totaled $~~301~~11,~~835~~159 ~~for~~in fiscal ~~2024~~2025 and ~~included:~~ $~~155~~5,~~877~~836 in fiscal 2024, Payments segment revenue increased 6.2%. This increase was primarily driven by growth within card revenue and payment processing within remittance revenue. Cost of revenue in the Payments segment increased 4.1% for ~~dividends~~fiscal ~~paid~~2025 compared to ~~stockholders;~~fiscal ~~borrowing~~2024. ~~and~~This ~~repayments~~increase onwas ~~our~~primarily ~~credit~~due ~~facilities~~to ~~which~~increased ~~netted~~direct costs related to ~~repayments~~growth ofin ~~$125,000;~~the card and ~~$28~~remittance revenue lines,~~055~~ ~~for~~increased personnel costs including higher compensation costs in the ~~purchase~~trailing twelve months, and increased internal licenses and fees expense from more deployments and pricing in the current fiscal year. Deconversion and/or severance costs did not significantly affect the Payments segment cost of ~~treasury~~revenue ~~shares~~fiscal year over fiscal year. ~~These~~Payments ~~expenditures~~segment ~~were~~cost ~~partially~~of ~~offset~~revenue bydecreased ~~$7,097~~1% as a percentage of ~~net~~revenue ~~cash~~for ~~inflow~~fiscal ~~related~~2025 compared to ~~stock-based~~fiscal ~~compensation~~2024.

Financing activities used cash in fiscal 2023 of $8,430 and included $147,237 for dividends paid to stockholders and $25,000 for the purchase of treasury shares. These expenditures were partially offset by borrowings and repayments on our revolving credit facility and financing leases which netted to borrowings of $159,940 at June 30, 2023, and $3,867 of net cash inflow related to stock-based compensation.


Complementary
	2025		% Change	2024
Revenue	$	675,209	9.2%	$	618,211
Cost of Revenue	$	264,823	5.5%	$	251,085

~~Capital~~Revenue ~~Requirements~~in the Complementary segment increased 9.2% for fiscal 2025 compared to fiscal 2024. Reducing total Complementary revenue by deconversion revenue from both fiscal years, which totaled $7,709 in fiscal 2025 and ~~Resources~~$3,217 in fiscal 2024, Complementary segment revenue increased 8.5%. This increase was primarily driven by organic increases in hosting and digital revenues within cloud and higher maintenance fee revenue. Cost of revenue in the Complementary segment increased 5.5% for fiscal 2025 compared to fiscal 2024. Reducing total Complementary cost of revenue by deconversion costs from both fiscal years, which totaled $1,119 in fiscal 2025 and $903 in fiscal 2024, Complementary segment cost of revenue increased 5.4%. This increase was primarily due to higher direct costs related to the organic growth in the digital and hosting within cloud revenue lines, increased personnel costs including higher compensation costs in the trailing twelve months, and higher amortization of capitalized software. Complementary segment cost of revenue decreased 1% as a percentage of revenue for fiscal 2025 compared to fiscal 2024.

The Company generally uses existing resources and funds generated from operations to meet its capital requirements. Capital expenditures totaling $58,118 and $39,179 for fiscal years ended June 30, 2024, and June 30, 2023, respectively, were made primarily for additional equipment and the improvement of existing facilities. These additions were funded from cash generated by operations. At June 30, 2024, the Company had $24,694 of significant outstanding purchase commitments related to property and equipment. We assessed our liquidity needs throughout fiscal 2024, and determined we had adequate capital resources and sufficient access to external financing sources to satisfy our current and reasonably anticipated funding needs. We will continue to monitor and assess these needs going forward.

In July 2023, the Company conducted a voluntary separation program for certain eligible associates that included a VEDIP payment for the eligible associates who chose to participate in the program. The Company made payments associated with the VEDIP program in the approximate amount of $16,443 from July 2023 through December 2023, including immaterial payments continuing into calendar 2024.

At June 30, 2024, the Company had contractual obligations of $1,488,248, including operating lease obligations, and $1,421,125 related to off-balance sheet contractual purchase obligations. Contractual obligations exclude $22,429 of liabilities for uncertain tax positions as we are unable to reasonably estimate the ultimate amount or timing of settlement.

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timetables and may be suspended at any time. At June 30, 2024, there were 31,373 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,618 additional shares. The total cost of treasury shares at June 30, 2024 was $1,860,173. During fiscal 2024, the Company repurchased 179 treasury shares for $28,055. At June 30, 2023, there were 31,194 shares in treasury stock and the Company had authority to repurchase up to 3,796 additional shares.


Corporate and Other
	2025		% Change	2024
Revenue	$	87,304	(1.8)%	$	88,886
Cost of Revenue	$	338,401	6.1%	$	318,959

~~Payrailz~~Revenue in the Corporate and Other segment decreased 1.8% for fiscal 2025 compared to fiscal 2024. Reducing total Corporate and Other revenue by deconversion revenue from both fiscal years, which totaled $272 in fiscal 2025 and $209 in fiscal 2024, Corporate and Other segment revenue decreased 1.9%. This decrease was mainly due to decreased hardware revenue, partially offset by increased processing fee revenue and software usage and subscription revenues within support.

OnCost ~~August 31,~~of ~~2022,~~revenue ~~the~~for ~~Company acquired all of~~ the ~~equity~~Corporate ~~interest~~and inOther ~~Payrailz.~~segment ~~The~~includes ~~final~~operating ~~purchase~~expenses ~~price,~~not ~~following~~directly ~~customary~~attributable ~~post-closing~~to ~~adjustments~~any toof the ~~extent~~other ~~actual~~three ~~closing~~segments ~~date working capital, cash, debt,~~ and ~~unpaid~~increased ~~seller~~6.1% ~~transaction~~for ~~expenses~~fiscal ~~exceeded~~2025 orcompared ~~were~~to ~~less~~fiscal ~~than~~2024. ~~the~~This ~~amounts~~increase ~~estimated at closing,~~ was ~~$230,205.~~primarily ~~Pursuant~~related to ~~the~~higher ~~merger~~direct ~~agreement for the transaction~~costs, ~~$48,500~~increased ofpersonnel ~~the~~costs ~~purchase~~including ~~price~~increased ~~was~~compensation ~~placed~~costs inand anemployee ~~escrow~~headcount ~~account~~additions atin the ~~closing,~~trailing ~~consisting~~twelve ~~of $2~~months,~~500~~ ~~for~~and ~~any~~higher ~~final~~cloud ~~purchase~~consumption ~~price~~costs. ~~adjustments~~Deconversion ~~owed~~and/or byseverance ~~the~~costs ~~sellers,~~did ~~which~~not ~~amount~~significantly ~~was~~affect ~~released~~Corporate ~~to the sellers on December 15, 2022, in connection with post-closing purchase price adjustments,~~ and ~~$46,000~~Other ~~for~~cost ~~indemnification~~of ~~matters~~revenue ~~under~~fiscal ~~the~~year ~~merger~~over ~~agreement,~~fiscal ~~which amount was released to the sellers on September 20, 2023~~year.

~~The~~LIQUIDITY ~~primary~~AND ~~reason~~CAPITAL for the acquisition was to expand the Company's digital financial management solutions and the purchase was originally funded by our revolving line of credit and cash generated from operations. Payrailz provides cloud-native, API-first, AI-enabled consumer and commercial digital payment solutions and experiences that enable money to be moved in the moment of need.RESOURCES

The Company's cash and cash equivalents increased to $101,953 at June 30, 2025, from $38,284 at June 30, 2024. The following table summarizes net cash from operating activities in the statement of cash flows:


	Year Ended
	June 30,
	2025		2024
Net income	$	455,748	$	381,816
Non-cash expenses	231,613		231,709
Change in receivables	15,056		28,219
Change in deferred revenue	(25,559)		(10,797)
Change in other assets and liabilities	(35,354)		(62,906)
Net cash provided by operating activities	$	641,504	$	568,041

Cash provided by operating activities for fiscal 2025 increased 12.9% compared to fiscal 2024, primarily due to the increase in Net income and the net changes in prepaid expenses, deferred costs and other and accrued expenses within Change in other assets and liabilities fiscal year over fiscal year. Cash from operations is primarily used to repay debt, pay dividends, repurchase stock, and for capital expenditures.

Cash used in investing activities for fiscal 2025 totaled $232,163 and included: $172,445 for the ongoing enhancements and development of existing and new product and service offerings; capital expenditures on facilities and equipment of $53,358, mainly for the purchase of computer equipment; $5,363 for the purchase and development of internal use software; and $2,000 for the purchase of investments. These expenditures were partially offset by proceeds from investments of $1,000 and $3 of proceeds from the sale of assets.

Cash used in investing activities for fiscal 2024 totaled $240,165 and included: $167,175 for the ongoing enhancements and development of existing and new product and service offerings; capital expenditures on facilities and equipment of $58,118, mainly for the purchase of computer equipment; $8,646 for the purchase of investments; and $7,130 for the purchase and development of internal use software. These expenditures were partially offset by $904 of proceeds from the sale of assets.

Financing activities used cash of $345,672 for fiscal 2025 and included: $164,644 for dividends paid to stockholders; borrowings and repayments on our credit facilities which netted to repayments of $150,000; and $35,051 for the purchase of treasury shares. These expenditures were partially offset by $4,023 of net cash inflow related to stock-based compensation.

Financing activities used cash in fiscal 2024 of $301,835 and included $155,877 for dividends paid to stockholders; borrowings and repayments on our revolving credit facility which netted to repayments of $125,000; and $28,055 for the purchase of treasury shares. These expenditures were partially offset by $7,097 of net cash inflow related to stock-based compensation.

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Capital Requirements and Resources

The Company generally uses existing resources and funds generated from operations to meet its capital requirements. Capital expenditures totaling $53,358 and $58,118 for fiscal years ended June 30, 2025, and June 30, 2024, respectively, were made primarily for additional equipment and the improvement of existing facilities. These additions were funded from cash generated by operations. At June 30, 2025, the Company had $58,182 of significant outstanding purchase commitments related to property and equipment. We assessed our liquidity needs throughout fiscal 2025, and determined we had adequate capital resources and sufficient access to external financing sources to satisfy our current and reasonably anticipated funding needs. We will continue to monitor and assess these needs going forward.

At June 30, 2025, the Company had contractual obligations of $1,700,611, including operating lease obligations, and $1,643,789 related to off-balance sheet contractual purchase obligations. Included in off-balance sheet contractual purchase obligations was the strategic services agreement that offers full-service debit and credit card processing on a single platform to our customers. This agreement was signed in fiscal 2017 and amended in May 2025 to add two additional service years and $213,053 to contractual obligations, bringing the total remaining purchase commitment at June 30, 2025 to $1,022,283 over the remaining term of the contract, which now extends to January 2038, subject to certain renewal terms. Contractual obligations exclude $22,649 of liabilities for uncertain tax positions as we are unable to reasonably estimate the ultimate amount or timing of settlement.

On July 4, 2025, the President of the United States signed into law legislation referred to as “One Big Beautiful Bill Act” (H.R. 1), which enacts substantial changes to the federal income tax law. The legislation includes several business-focused provisions, such as the restoration of immediate expensing for domestic research and development expenditures and the reinstatement of 100% bonus depreciation for qualified property placed in service after January 19, 2025. The Act also permanently extends key provisions from the Tax Cuts and Jobs Act (TCJA). As the legislation was enacted after the June 30, 2025, balance sheet date, the financial implications are not included in the current fiscal year's financial statements. The Company is in the process of assessing the impacts of the new law and plans to incorporate updates in the financial results next fiscal year beginning in the quarter ending September 30, 2025.

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or short-term borrowings on its existing credit facilities. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At June 30, 2025, there were 31,580 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,411 additional shares. The total cost of treasury shares at June 30, 2025 was $1,895,224. During fiscal 2025, the Company repurchased 207 treasury shares for $35,051. At June 30, 2024, there were 31,373 shares in treasury stock and the Company had authority to repurchase up to 3,618 additional shares.

Credit facilities

On August 31, 2022, the Company entered into a five-year senior, unsecured amended and restated credit agreement ~~that replaced a prior credit facility that was entered into on February 10, 2020~~. The credit agreement allows for borrowings of up to $600,000, which may be increased to $1,000,000 by the Company at any time until maturity. The credit agreement bears interest at a variable rate equal to (a) a rate based on an adjusted Secured Overnight Financing Rate ("SOFR") term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit agreement. As of June 30, ~~2024~~2025, the Company was in compliance with all such covenants. The ~~amended and restated~~ credit facility terminates August 31, 2027. There was $~~60,000~~0 and $9560,000 outstanding under the amended and restated credit facility at June 30, ~~2024~~2025, and June 30, ~~2023~~2024, respectively.

Term loan facility

On May 16, 2023, the Company entered into a term loan credit agreement with a syndicate of financial institutions, with an original principal balance of $180,000. Borrowings under the term loan facility ~~bear~~bore interest at a variable rate equal to (a) a rate based on an adjusted SOFR term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 0.75%), plus an applicable percentage in each case determined by the Company's leverage ratio. The term loan credit agreement iswas guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the term loan credit agreement. As of June 30, 2024, the Company was in compliance with all such covenants. The term loan credit agreement has a maturity date of May 16, 2025. There was $90,000 and $180,000 outstanding under the term loan at June 30, 2024, and June 30, 2023, respectively. We currently anticipate that we will be able to repay the remaining outstanding balance under the term loan prior to its maturity using cash generated by our operations or borrowings under our revolving credit facility.

~~Other lines of credit~~31

The Company has an unsecured bank credit line which provides for funding of up to $5,000 and bears interest at the prime rate less 1.0%. The credit line was renewed in May 2019 and modified in May 2023 to extend the expiration to April 30, 2025. There was no balance outstanding at June 30, 2024, or 2023.

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and was subject to various financial covenants that required the Company to maintain certain financial ratios as defined in the term loan credit agreement. The term loan credit agreement matured on May 16, 2025, and at the maturity date the Company was in compliance with all such covenants. There was $0 and $90,000 outstanding under the term loan at June 30, 2025, and June 30, 2024, respectively.

Other lines of credit

The Company had an unsecured bank credit line which provided for funding of up to $5,000 and bore interest at the prime rate less 1.0%. The credit line expired on April 30, 2025. There was no balance outstanding at June 30, 2025, or 2024.

On October 31, 2024, the Company entered into a discretionary line of credit demand note, which provides for funding of up to $50,000 and bears interest at the prime rate less 2.0%. The note does not constitute a committed line of credit. The line of credit expires on October 31, 2025. There was no balance outstanding at June 30, 2025.

On July 18, 2025, the Company entered into a new unsecured committed revolving line of credit facility with a commercial bank in the amount of $50,000, which bears interest at the prime rate less 1.0%. The line of credit expires on July 17, 2026.

RECENT ACCOUNTING PRONOUNCEMENTS

Recently Adopted Accounting Guidance

In ~~October~~November ~~2021~~2023, the FASB issued ASU No. ~~2021~~2023-0807, ~~Business~~Segment ~~Combinations~~Reporting (Topic ~~805~~280): ~~Accounting~~Improvements ~~for~~to ~~Contract~~Reportable ~~Assets~~Segment ~~and Contract Liabilities from Contracts with Customers~~Disclosures, which improves the ~~accounting~~disclosures ~~for~~about ~~acquired~~a ~~revenue~~public ~~contracts~~entity's ~~with~~reportable ~~customers~~segments inthrough aenhanced ~~business~~disclosures ~~combination~~about bysignificant ~~addressing~~segment ~~diversity~~expenses inthat ~~practice~~are ~~and~~regularly ~~inconsistency~~provided ~~related~~ to ~~recognition~~the ofchief anoperating ~~acquired~~decision ~~contract~~maker. ~~liability~~The ~~and~~ASU ~~payment~~is ~~terms~~effective ~~and~~for ~~their~~fiscal ~~effect~~years onbeginning ~~subsequent~~after ~~revenue~~December ~~recognized~~15, by2023, ~~the~~and ~~acquirer.~~interim ~~The~~periods ~~ASU~~within ~~is effective for~~ fiscal years beginning after December 15, ~~2022~~2024, and ~~interim~~should be applied retrospectively to all prior periods ~~within~~presented ~~those~~in ~~fiscal~~the ~~years~~financial statements. The Company adopted ~~the~~this ASU effective ~~July~~for 1the fiscal year ended June 30, ~~2023~~2025, with retrospective application of the additional segment information for the fiscal years ended June 30, 2024, and ~~will~~2023. ~~apply~~Additional itinformation ~~prospectively~~regarding tothe ~~business~~Company's ~~combinations~~reportable ~~occurring~~segments ~~after~~is ~~that~~included ~~date~~in Note 14—Reportable Segment Information.

Not Adopted at Fiscal Year End

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improves the disclosures about a public entity's reportable segments through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The ASU requires additional disclosure related to rate reconciliation, income taxes paid, and other disclosures to improve the effectiveness of income tax disclosures. The ASU is effective for annual periods beginning after December 15, 2024, and applied on a prospective basis. Early adoption and retrospective application is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires more detailed disclosures of certain categories of expenses such as employee compensation, depreciation, and intangible asset amortization that are components of existing expense captions presented on the face of the consolidated statements of income. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

CRITICAL ACCOUNTING ESTIMATES

We prepare our consolidated financial statements in accordance with U.S. GAAP. The significant accounting policies are discussed in Note 1 to the consolidated financial statements. The preparation of consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, as well as disclosure of contingent assets and liabilities. We base our estimates and judgments upon historical experience and other factors believed to be reasonable under the circumstances. Changes in estimates or assumptions could result in a material adjustment to the consolidated financial statements.

We have identified several critical accounting estimates. An accounting estimate is considered critical if both: (a) the nature of the estimates or assumptions is material due to the levels of subjectivity and judgment involved, and (b) ~~the impact of changes in the estimates and assumptions would have a material effect on the consolidated financial statements.~~

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the impact of changes in the estimates and assumptions would have a material effect on the consolidated financial statements.

Revenue Recognition

We generate revenue from data processing, transaction processing, software licensing and related services, professional services, and hardware sales.

Identification of performance obligations

We enter into contracts with clients that may include multiple types of goods and services. At contract inception, we assess the solutions and services promised in our contracts with clients and identify a performance obligation for each promise to transfer to the client a solution or service (or bundle of solutions or services) that is distinct — that is, if the solution or service is separately identifiable from other items in the arrangement and if the client can benefit from the solution or service on its own or together with other resources that are readily available. Judgment is used in the identification and accounting for all performance obligations. We recognize revenue when or as we satisfy each performance obligation by transferring control of a solution or service to the client.

Determination of transaction price

The amount of revenue recognized is based on the consideration we expect to receive in exchange for transferring goods and services to the client. Our contracts with our clients frequently contain some component of variable consideration. We estimate variable consideration in our contracts primarily using the expected value method, based on both historical and current information. Where appropriate, we may constrain the estimated variable consideration included in the transaction price in the event of a high degree of uncertainty as to the final consideration amount. Significant judgment is used in the estimate of variable consideration of client contracts that are long-term and include varying transactional volumes.

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based on both historical and current information. Where appropriate, we may constrain the estimated variable consideration included in the transaction price in the event of a high degree of uncertainty as to the final consideration amount. Significant judgment is used in the estimate of variable consideration of client contracts that are long-term and include varying transactional volumes.

Allocation of transaction price

The transaction price, once determined, is allocated between the various performance obligations in the contract based upon their relative standalone selling prices. The standalone selling prices are determined based on the prices at which we separately sell each good or service. For items that are not sold separately, we estimate the standalone selling prices using all information that is reasonably available, including reference to historical pricing data.

Contract costs

We incur incremental costs to obtain a contract as well as costs to fulfill contracts with clients that are expected to be recovered. These costs consist primarily of sales commissions, which are incurred only if a contract is obtained, and client conversion or implementation-related costs.

Capitalized costs are amortized based on the transfer of goods or services to which the asset relates, in line with the percentage of revenue recognized for each performance obligation to which the costs are allocated.

Capitalization of software development costs

We capitalize certain costs incurred for use in our cloud-based services and to develop commercial software products. For internal use software, capitalization begins at the beginning of application development. Costs incurred prior to this are expensed as incurred. Significant estimates and assumptions include determining the appropriate amortization period based on the estimated useful life and assessing the unamortized cost balances for impairment. Amortization begins on the date the software is placed in service and the amortization period is based on estimated useful life

For software that is to be sold, significant areas of judgment include: establishing when technological feasibility has been met and costs should be capitalized, determining the appropriate period over which to amortize the capitalized costs based on the estimated useful lives, estimating the marketability of the commercial software products and related future revenues, and assessing the unamortized cost balances for impairment. Costs incurred prior to establishing technological feasibility are expensed as incurred. Amortization begins on the date of general release and the appropriate amortization period is based on estimates of future revenues from sales of the products. We consider various factors to project marketability and future revenues, including an assessment of alternative solutions or products, current and historical demand for the product, and anticipated changes in technology that may make the product obsolete.

A significant change in an estimate related to one or more software products could result in a material change to our results of operations.

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Purchase accounting

We account for our acquisitions using the purchase method of accounting. This method requires estimates to determine the fair values of assets and liabilities acquired, including judgments to determine any acquired intangible assets such as computer software and client-related intangibles. Third-party valuation firms may be used to assist in the appraisal of certain assets and liabilities, but even those determinations would be based on significant estimates provided by us, such as forecast revenues or profits on contract-related intangibles. Numerous factors are typically considered in the purchase accounting assessments, which are conducted by Company professionals from legal, finance, human resources, information systems, program management and other disciplines. Changes in assumptions and estimates of the acquired assets and liabilities would result in changes to the fair values, resulting in an offsetting change to the goodwill balance associated with the business acquired.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors such as liquidity, will result in losses for a certain financial instrument or group of financial instruments. We are currently exposed to credit risk on credit extended to clients ~~and interest rate risk on outstanding debt~~. We do not currently use any derivative financial instruments. We actively monitor these risks through a variety of controlled procedures involving senior management.

Based on the controls in place and the credit worthiness of the client base, we believe the credit risk associated with the extension of credit to our clients will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

We have ~~$150,000~~no outstanding debt with variable interest rates as of June 30, ~~2024,~~2025 and aare 1%therefore ~~increase~~not incurrently ~~our~~exposed ~~borrowing~~to ~~rate would increase our annual~~ interest ~~expense~~rate ~~by $1,500~~risk.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to Financial Statements

			Report of Independent Registered Public Accounting Firm			3435
			Management's Annual Report on Internal Control over Financial Reporting			3637
			Financial Statements
			Consolidated Statements of Income,
			Years Ended June 30, 2024, 2023, and 2022			37
			Years Ended June 30, 2025, 2024, and 2023			38
			Consolidated Balance Sheets,
			June 30, 2024, and 2023			38
			June 30, 2025, and 2024			39
			Consolidated Statements of Changes in Stockholders' Equity,
			Years Ended June 30, 2024, 2023, and 2022			39
			Years Ended June 30, 2025, 2024, and 2023			40
			Consolidated Statements of Cash Flows,
			Years Ended June 30, 2024, 2023, and 2022			40
			Years Ended June 30, 2025, 2024, and 2023			41
			Notes to Consolidated Financial Statements			4142

Financial Statement Schedules

There are no schedules included because they are not applicable, or the required information is shown in the consolidated financial statements or notes thereto.

3334

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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of Jack Henry & Associates, Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Jack Henry & Associates, Inc. and its subsidiaries (the "Company") as of June 30, ~~2024~~2025 and ~~2023~~2024, and the related consolidated statements of income, of changes in stockholders’ equity and of cash flows for each of the three years in the period ended June 30, ~~2024~~2025, including the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of June 30, ~~2024~~2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, ~~2024~~2025 and ~~2023~~2024, and the results of its operations and its cash flows for each of the three years in the period ended June 30, ~~2024~~2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, ~~2024~~2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control ~~Over~~over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue Recognition - estimating variable consideration

As ~~discussed~~described in Notes 1 and 2 to the consolidated financial statements, the Company recorded revenue of $2.~~216~~375 billion for the year ended June 30, ~~2024~~2025. The Company enters into contracts with its clients that may include multiple types of goods and services. The amount of revenue recognized is based on the consideration the Company expects to receive in exchange for transferring goods and services to the client. The Company’s contracts with its clients frequently contain some component of variable consideration. Management estimates variable consideration in its contracts primarily using the expected value method, based on both historical and current information. Where appropriate, the Company may constrain the estimated variable consideration included in the transaction price in the event of a high degree of uncertainty as to the final consideration amount. At contract inception, management assesses the solutions and services promised in its contracts with clients and identifies a performance obligation for each promise to transfer to the client a solution or service (or bundle of solutions or services) that is distinct - that is, if the solution or service is separately identifiable from other items in the arrangement and if the client can benefit from the solution or service on its own or together with other resources that are readily available. The Company recognizes revenue when or as it satisfies each performance obligation by transferring control of a solution or service to the client. Significant judgment is used in the estimate of variable consideration of client contracts that are long-term and include varying transactional volumes.

The principal considerations for our determination that performing procedures relating to the estimation of variable consideration is a critical audit matter are significant judgment by management to estimate the variable consideration, principally, the varying volume of transactional activity. This in turn resulted in a high degree of auditor judgment, subjectivity, and effort in performing our audit procedures and in evaluating the audit evidence obtained.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including the estimation of variable consideration. ~~The~~These procedures also included, among others, evaluating and testing management’s process for determining the variable consideration and testing the reasonableness of management’s estimation of variable consideration. Testing the estimation of variable consideration included evaluating the terms and conditions of the long-term contracts and the related significant assumptions used in the estimate of the variable consideration, principally, the use of historical transaction volumes to estimate the varying volume of transactional activity. The procedures for testing variable consideration included evaluation of the terms and conditions for a sample of contracts.

/s/ PricewaterhouseCoopers LLP

Kansas City, Missouri

August 2625, ~~2024~~2025

We have served as the Company’s auditor since 2015.

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MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of Jack Henry & Associates, Inc. is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(e). The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s consolidated financial statements for external reporting purposes in accordance with U.S. GAAP.

The Company’s internal control over financial reporting includes policies and procedures pertaining to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets of the Company; provide reasonable assurance transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with U.S. GAAP, and receipts and expenditures of the Company are being made only in accordance with authorizations of management and the directors of the Company; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the Company’s consolidated financial statements. All internal controls, no matter how well designed, have inherent limitations. Therefore, even where internal control over financial reporting is determined to be effective, it can provide only reasonable assurance. Projections of any evaluation of effectiveness to future periods are subject to the risk controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

As of June 30, ~~2024~~2025, management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting based on the framework established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on this assessment, management has concluded the Company’s internal control over financial reporting as of June 30, ~~2024~~2025, was effective.

The Company’s internal control over financial reporting as of June 30, ~~2024~~2025, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report appearing in this Item 8.

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JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)
	Year Ended
	June 30,
	2024		2023		2022
REVENUE	$	2,215,543	$	2,077,702	$	1,942,884
EXPENSES
Cost of Revenue	1,299,477		1,219,062		1,128,614
Research and Development	148,256		142,678		121,355
Selling, General, and Administrative	278,419		235,274		218,296
Total Expenses	1,726,152		1,597,014		1,468,265
OPERATING INCOME	489,391		480,688		474,619
INTEREST INCOME (EXPENSE)
Interest Income	25,012		8,959		32
Interest Expense	(16,384)		(15,073)		(2,384)
Total Interest Income (Expense)	8,628		(6,114)		(2,352)
INCOME BEFORE INCOME TAXES	498,019		474,574		472,267
PROVISION FOR INCOME TAXES	116,203		107,928		109,351
NET INCOME	$	381,816	$	366,646	$	362,916
Basic earnings per share	$	5.24	$	5.03	$	4.95
Basic weighted average shares outstanding	72,867		72,918		73,324
Diluted earnings per share	$	5.23	$	5.02	$	4.94
Diluted weighted average shares outstanding	73,025		73,096		73,486

See notes to consolidated financial statements.

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JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Share and Per Share Data)
(In Thousands, Except Per Share Data)
	June 30,2024		June 30,2023
	Year Ended
ASSETS
	June 30,
CURRENT ASSETS:
	2025		2024		2023
Cash and cash equivalents	$	38,284	$	12,243
REVENUE	$	2,375,288	$	2,215,543	$	2,077,702
Receivables, net	333,033		361,252
EXPENSES
Income tax receivable	6,149		7,523
Cost of Revenue	1,360,747		1,299,477		1,219,062
Prepaid expenses and other	168,768		169,178
Research and Development	162,771		148,256		142,678
Deferred costs	85,784		77,766
Selling, General, and Administrative	283,055		278,419		235,274
Total current assets	632,018		627,962
Total Expenses	1,806,573		1,726,152		1,597,014
PROPERTY AND EQUIPMENT, net	215,069		205,664
OPERATING INCOME	568,715		489,391		480,688
OTHER ASSETS:
INTEREST INCOME (EXPENSE)
Non-current deferred costs	183,307		161,465
Interest Income	27,759		25,012		8,959
Computer software, net of amortization	592,761		565,714
Interest Expense	(10,438)		(16,384)		(15,073)
Other non-current assets	417,621		322,698
Total Interest Income (Expense)	17,321		8,628		(6,114)
Customer relationships, net of amortization	56,757		65,528
INCOME BEFORE INCOME TAXES	586,036		498,019		474,574
Other intangible assets, net of amortization	22,151		19,998
PROVISION FOR INCOME TAXES	130,288		116,203		107,928
Goodwill	804,797		804,797
NET INCOME	$	455,748	$	381,816	$	366,646
Total other assets	2,077,394		1,940,200
Basic earnings per share	$	6.25	$	5.24	$	5.03
Total assets	$	2,924,481	$	2,773,826
Basic weighted average shares outstanding	72,874		72,867		72,918
LIABILITIES AND STOCKHOLDERS' EQUITY
Diluted earnings per share	$	6.24	$	5.23	$	5.02
CURRENT LIABILITIES:
Diluted weighted average shares outstanding	73,045		73,025		73,096
Accounts payable	$	25,314	$	19,156
Accrued expenses	200,770		172,629
Current maturities of long-term debt	90,000		—
Deferred revenues	317,730		331,974
Total current liabilities	633,814		523,759
LONG-TERM LIABILITIES:
Non-current deferred revenues	71,202		67,755
Deferred income tax liability	243,522		244,431
Debt, net of current maturities	60,000		275,000
Other long-term liabilities	73,579		54,371
Total long-term liabilities	448,303		641,557
Total liabilities	1,082,117		1,165,316
STOCKHOLDERS' EQUITY
Preferred stock - $1 par value; 500,000 shares authorized, none issued	—		—
Common stock - $0.01 par value; 250,000,000 shares authorized; 104,245,089 shares issued at June 30, 2024; 104,088,784 shares issued at June 30, 2023	1,042		1,041
Additional paid-in capital	619,805		583,836
Retained earnings	3,081,690		2,855,751
Less treasury stock at cost 31,372,959 shares at June 30, 2024; 31,194,351 shares at June 30, 2023	(1,860,173)		(1,832,118)
Total stockholders' equity	1,842,364		1,608,510
Total liabilities and equity	$	2,924,481	$	2,773,826

See notes to consolidated financial statements.

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JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Data)
	Year Ended June 30,
	June 30,2025		June 30,2024
	2024		2023		2022
ASSETS
PREFERRED SHARES:	—		—		—
CURRENT ASSETS:
COMMON SHARES:
Cash and cash equivalents	$	101,953	$	38,284
Shares, beginning of year	104,088,784		103,921,724		103,795,169
Receivables, net	317,977		333,033
Shares issued for equity-based payment arrangements	65,766		82,776		46,669
Income tax receivable	—		6,149
Shares issued for Employee Stock Purchase Plan	90,539		84,284		79,886
Prepaid expenses and other	180,151		168,768
Shares, end of year	104,245,089		104,088,784		103,921,724
Deferred costs	75,777		85,784
COMMON STOCK - PAR VALUE $0.01 PER SHARE:
Assets held for sale	5,606		—
Balance, beginning of year	$	1,041	$	1,039	$	1,038
Total current assets	681,464		632,018
Shares issued for equity-based payment arrangements	—		1		—
PROPERTY AND EQUIPMENT, net	220,964		215,069
Shares issued for Employee Stock Purchase Plan	1		1		1
OTHER ASSETS:
Balance, end of year	$	1,042	$	1,041	$	1,039
Non-current deferred costs	207,861		183,307
ADDITIONAL PAID-IN CAPITAL:
Computer software, net of amortization	617,029		592,761
Balance, beginning of year	$	583,836	$	551,360	$	518,960
Other non-current assets	443,624		417,621
Shares issued for equity-based payment arrangements	—		(1)		—
Customer relationships, net of amortization	48,440		56,757
Tax withholding related to share based compensation	(5,378)		(8,505)		(4,152)
Other intangible assets, net of amortization	19,791		22,151
Shares issued for Employee Stock Purchase Plan	12,474		12,371		11,772
Goodwill	804,797		804,797
Stock-based compensation expense	28,873		28,611		24,780
Total other assets	2,141,542		2,077,394
Balance, end of year	$	619,805	$	583,836	$	551,360
Total assets	$	3,043,970	$	2,924,481
RETAINED EARNINGS:
LIABILITIES AND STOCKHOLDERS' EQUITY
Balance, beginning of year	$	2,855,751	$	2,636,342	$	2,412,496
CURRENT LIABILITIES:
Net income	381,816		366,646		362,916
Accounts payable	$	28,186	$	25,314
Dividends	(155,877)		(147,237)		(139,070)
Accrued expenses	207,434		200,770
Balance, end of year	$	3,081,690	$	2,855,751	$	2,636,342
Accrued income taxes	9,679		—
TREASURY STOCK:
Current maturities of long-term debt	—		90,000
Balance, beginning of year	$	(1,832,118)	$	(1,807,118)	$	(1,613,202)
Deferred revenues	290,485		317,730
Purchase of treasury shares	(28,055)		(25,000)		(193,916)
Total current liabilities	535,784		633,814
Balance, end of year	$	(1,860,173)	$	(1,832,118)	$	(1,807,118)
LONG-TERM LIABILITIES:
TOTAL STOCKHOLDERS' EQUITY	$	1,842,364	$	1,608,510	$	1,381,623
Non-current deferred revenues	72,889		71,202
Dividends declared per share	$	2.14	$	2.02	$	1.90
Deferred income tax liability	240,026		243,522
Debt, net of current maturities	—		60,000
Other long-term liabilities	64,439		73,579
Total long-term liabilities	377,354		448,303
Total liabilities	913,138		1,082,117
STOCKHOLDERS' EQUITY
Preferred stock - $1 par value; 500,000 shares authorized, none issued	—		—
Common stock - $0.01 par value; 250,000,000 shares authorized; 104,415,989 shares issued at June 30, 2025; 104,245,089 shares issued at June 30, 2024	1,044		1,042
Additional paid-in capital	652,218		619,805
Retained earnings	3,372,794		3,081,690
Less treasury stock at cost 31,579,598 shares at June 30, 2025; 31,372,959 shares at June 30, 2024	(1,895,224)		(1,860,173)
Total stockholders' equity	2,130,832		1,842,364
Total liabilities and equity	$	3,043,970	$	2,924,481

See notes to consolidated financial statements.

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JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(In Thousands)
(In Thousands, Except Share and Per Share Data)
	Year Ended
	Year Ended June 30,
	June 30,
	2025		2024		2023
	2024		2023		2022
PREFERRED SHARES:	—		—		—
CASH FLOWS FROM OPERATING ACTIVITIES:
COMMON SHARES:
Net Income	$	381,816	$	366,646	$	362,916
Shares, beginning of year	104,245,089		104,088,784		103,921,724
Adjustments to reconcile net income from operations to net cash from operating activities:
Shares issued for equity-based payment arrangements	91,252		65,766		82,776
Depreciation	46,342		48,720		50,789
Shares issued for Employee Stock Purchase Plan	79,648		90,539		84,284
Amortization	153,562		142,006		126,835
Shares, end of year	104,415,989		104,245,089		104,088,784
Change in deferred income taxes	(909)		(48,199)		31,872
COMMON STOCK - PAR VALUE $0.01 PER SHARE:
Expense for stock-based compensation	28,873		28,611		24,780
Balance, beginning of year	$	1,042	$	1,041	$	1,039
(Gain)/loss on disposal of assets and businesses	3,841		(4,517)		400
Shares issued for equity-based payment arrangements	1		—		1
Changes in operating assets and liabilities:
Shares issued for Employee Stock Purchase Plan	1		1		1
Change in receivables	28,219		(12,067)		(41,508)
Balance, end of year	$	1,044	$	1,042	$	1,041
Change in prepaid expenses, deferred costs and other	(115,558)		(112,316)		(82,565)
ADDITIONAL PAID-IN CAPITAL:
Change in accounts payable	5,435		(6,277)		6,646
Balance, beginning of year	$	619,805	$	583,836	$	551,360
Change in accrued expenses	37,292		(20,453)		1,190
Shares issued for equity-based payment arrangements	—		—		(1)
Change in income taxes	9,925		9,952		16,704
Tax withholding related to share based compensation	(7,726)		(5,378)		(8,505)
Change in deferred revenues	(10,797)		(10,547)		6,572
Shares issued for Employee Stock Purchase Plan	11,747		12,474		12,371
Net cash from operating activities	568,041		381,559		504,631
Stock-based compensation expense	28,392		28,873		28,611
CASH FLOWS FROM INVESTING ACTIVITIES:
Balance, end of year	$	652,218	$	619,805	$	583,836
Payment for acquisitions, net of cash acquired	—		(229,628)		—
RETAINED EARNINGS:
Capital expenditures	(58,118)		(39,179)		(34,659)
Balance, beginning of year	$	3,081,690	$	2,855,751	$	2,636,342
Proceeds from the sale of assets	904		27,939		45
Net income	455,748		381,816		366,646
Purchased software	(7,130)		(1,685)		(8,491)
Dividends	(164,644)		(155,877)		(147,237)
Computer software developed	(167,175)		(166,120)		(148,239)
Balance, end of year	$	3,372,794	$	3,081,690	$	2,855,751
Purchase of investments	(8,646)		(1,000)		(5,000)
TREASURY STOCK:
Net cash from investing activities	(240,165)		(409,673)		(196,344)
Balance, beginning of year	$	(1,860,173)	$	(1,832,118)	$	(1,807,118)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury shares	(35,051)		(28,055)		(25,000)
Borrowings on credit facilities	475,000		810,000		332,000
Balance, end of year	$	(1,895,224)	$	(1,860,173)	$	(1,832,118)
Repayments on credit facilities and financing leases	(600,000)		(650,060)		(317,127)
TOTAL STOCKHOLDERS' EQUITY	$	2,130,832	$	1,842,364	$	1,608,510
Purchase of treasury stock	(28,055)		(25,000)		(193,916)
Dividends declared per share	$	2.26	$	2.14	$	2.02
Dividends paid	(155,877)		(147,237)		(139,070)
Proceeds from issuance of common stock upon exercise of stock options	—		1		—
Tax withholding payments related to share based compensation	(5,378)		(8,505)		(4,152)
Proceeds from sale of common stock	12,475		12,371		11,773
Net cash from financing activities	(301,835)		(8,430)		(310,492)
NET CHANGE IN CASH AND CASH EQUIVALENTS	$	26,041	$	(36,544)	$	(2,205)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	$	12,243	$	48,787	$	50,992
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	38,284	$	12,243	$	48,787

See notes to consolidated financial statements.

Table of Contents


JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)

	Year Ended
	June 30,
	2025		2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	455,748	$	381,816	$	366,646
Adjustments to reconcile net income from operations to net cash from operating activities:
Depreciation	43,700		46,342		48,720
Amortization	161,051		153,562		142,006
Change in deferred income taxes	(3,496)		(909)		(48,199)
Expense for stock-based compensation	28,392		28,873		28,611
(Gain)/loss on disposal of assets and businesses	1,966		3,841		(4,517)
Changes in operating assets and liabilities:
Change in receivables	15,056		28,219		(12,067)
Change in prepaid expenses, deferred costs and other	(50,933)		(115,558)		(112,316)
Change in accounts payable	2,646		5,435		(6,277)
Change in accrued expenses	(3,115)		37,292		(20,453)
Change in income taxes	16,048		9,925		9,952
Change in deferred revenues	(25,559)		(10,797)		(10,547)
Net cash from operating activities	641,504		568,041		381,559

CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for acquisitions, net of cash acquired	—		—		(229,628)
Capital expenditures	(53,358)		(58,118)		(39,179)

Proceeds from the sale of assets	3		904		27,939

Purchased software	(5,363)		(7,130)		(1,685)
Computer software developed	(172,445)		(167,175)		(166,120)
Proceeds from investments	1,000		—		—
Purchase of investments	(2,000)		(8,646)		(1,000)
Net cash from investing activities	(232,163)		(240,165)		(409,673)

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on credit facilities	350,000		475,000		810,000
Repayments on credit facilities and financing leases	(500,000)		(600,000)		(650,060)

Purchase of treasury stock	(35,051)		(28,055)		(25,000)
Dividends paid	(164,644)		(155,877)		(147,237)
Proceeds from issuance of common stock upon exercise of stock options	2		—		1
Tax withholding payments related to share based compensation	(7,726)		(5,378)		(8,505)
Proceeds from sale of common stock	11,747		12,475		12,371
Net cash from financing activities	(345,672)		(301,835)		(8,430)
NET CHANGE IN CASH AND CASH EQUIVALENTS	$	63,669	$	26,041	$	(36,544)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	$	38,284	$	12,243	$	48,787
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	101,953	$	38,284	$	12,243

See notes to consolidated financial statements.

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JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, Except Per Share Amounts)

NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF THE COMPANY

Jack Henry & Associates, Inc. and subsidiaries ("Jack Henry" or the "Company") is a well-rounded financial technology company. Jack Henry was founded in 1976 as a provider of core processing solutions for banks. Today, the Company’s extensive array of products and services includes processing transactions, automating business processes, and managing information for approximately 7,~~500~~400 ~~financial~~banks, ~~institutions~~credit unions, and diverse corporate entities.

CONSOLIDATION

The consolidated financial statements include the accounts of Jack Henry and all its subsidiaries, which are wholly owned, and all intercompany accounts and transactions have been eliminated.

USE OF ESTIMATES

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

REVENUE RECOGNITION

The Company generates "Services and Support" revenue through software licensing and related services, private cloud core and complementary software solutions, professional services, and hardware sales. The Company generates "Processing" revenue through processing of remittance transactions, card transactions and monthly fees, and digital transactions.

Identification of performance obligations

The Company enters into contracts with clients that may include multiple types of goods and services. At contract inception, the Company assesses the solutions and services promised in its contracts with clients and identifies a performance obligation for each promise to transfer to the client a solution or service (or bundle of solutions or services) that is distinct - that is, if the solution or service is separately identifiable from other items in the arrangement and if the client can benefit from the solution or service on its own or together with other resources that are readily available. Judgment is used in the identification and accounting for all performance obligations.

Determination of transaction price

The amount of revenue recognized is based on the consideration the Company expects to receive in exchange for transferring goods and services to the client. The Company’s contracts with its clients frequently contain some component of variable consideration. The Company estimates variable consideration in its contracts primarily using the expected value method, based on both historical and current information. Where appropriate, the Company may constrain the estimated variable consideration included in the transaction price in the event of a high degree of uncertainty as to the final consideration amount. Significant judgment is used in the estimate of variable consideration of client contracts that are long-term and include varying transactional volumes.

Allocation of transaction price

The transaction price, once determined, is allocated between the various performance obligations in the contract based upon their relative standalone selling prices. The standalone selling prices are determined based on the prices at which the Company separately sells each good or service. For items that are not sold separately, the Company estimates the standalone selling prices using all information that is reasonably available, including reference to historical pricing data.

COMPUTER SOFTWARE DEVELOPMENT

The Company capitalizes new product development costs incurred for software to be sold from the point at which technological feasibility has been established through the point at which the product is ready for general availability. Software development costs that are capitalized are evaluated on a product-by-product basis annually for impairment and are assigned an estimated economic life based on the type of product, market characteristics, and maturity of the market for that particular product. These costs are amortized based on current and estimated future revenue from the product or on a straight-line basis, whichever yields greater amortization expense. ~~All of this amortization expense is included within components of operating income, primarily cost of revenue.~~

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The Company capitalizes development costs for internal use software beginning at the start of application development. Amortization begins on the date the software is placed in service and the amortization period is based on estimated useful life. All of the above amortization expense is included within components of operating income, primarily cost of revenue. Capitalized development costs for software to be sold and internal use software are included within computer software, net of amortization in the Company's consolidated balance sheets.

CASH EQUIVALENTS

The Company considers all highly liquid investments with maturities of three months or less at the time of acquisition to be cash equivalents.

ACCOUNTS RECEIVABLE

Receivables are recorded at the time of billing. The Company monitors trade and other receivable balances and contract assets and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events.

The following table summarizes allowance for credit losses activity for the fiscal years ended June 30, ~~2024~~2025, and ~~2023~~2024:

	Year Ended June 30,
	2024		2023
	2025		2024
Allowance for credit losses - beginning balance	$	7,~~955~~477	$	7,~~616~~955
Current provision for expected credit losses	12,~~920~~320		1,~~800~~920
Write-offs charged against allowance	(2,~~209~~977)		(12,~~458~~209)
Recoveries of amounts previously written off	—		(1)
Other	(161)		(189)
Other	(189)		(2)
Allowance for credit losses - ending balance	$	6,659	$	7,477
Allowance for credit losses - ending balance	$	7,477	$	7,955

PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS

Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets.

Intangible assets consist of goodwill, customer relationships, computer software, and trade names acquired in business acquisitions in addition to internally developed computer software. The amounts are amortized, with the exception of those with an indefinite life (goodwill), over an estimated economic benefit period, generally three to twenty years.

The Company reviews its long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances have indicated that it is more likely than not that the carrying amount of its assets might not be recoverable. The Company evaluates goodwill for impairment of value on an annual basis as of January 1 and between annual tests if events or changes in circumstances indicate that it is more likely than not that the asset might be impaired.

PURCHASE OF INVESTMENTS

At June 30, ~~2024~~2025, and ~~2023~~2024, the Company had $25,750 ~~and $18,250, respectively,~~ in non-current investments. These investments were recorded at cost and are included within other non-current assets on the Company's consolidated balance ~~sheet~~sheets. The fair values of these investments have not been estimated, as estimation is not practicable due to limited investors which reduces available comparative information. There have been no events or changes in circumstances that would indicate an impairment and no price changes resulting from observing similar or identical investments. An impairment and/or an observable price change would be an adjustment to recorded cost. Fair values will not be estimated unless there are identified events or changes in circumstances that may have a significant ~~adverse~~ effect on the fair values of the investments. Equity transactions are monitored quarterly to assess whether there are indicators that fair value may be below carrying value.

COMPREHENSIVE INCOME

Comprehensive income for each of the fiscal years ending June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, equals the Company’s net income.

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REPORTABLE SEGMENT INFORMATION

In accordance with U.S. GAAP, the Company's operations are classified as four reportable segments: Core, Payments, Complementary, and Corporate and Other (see Note 14). Substantially all the Company’s revenues are derived from operations and assets located within the United States of America.

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COMMON STOCK

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or short-term borrowings on its existing credit facilities. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At June 30, ~~2024~~2025, there were 31,~~373~~580 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,~~618~~411 additional shares of its common stock. The total cost of treasury shares at June 30, ~~2024~~2025, was $1,~~860~~895,~~173~~224. During fiscal ~~2024~~2025, the Company repurchased ~~179~~207 shares of its common stock for $2835,~~055~~051 to be held in treasury. At June 30, ~~2023~~2024, there were 31,~~194~~373 shares in treasury stock and the Company had authority to repurchase up to 3,~~796~~618 additional shares of its common stock.

EARNINGS PER SHARE

Per share information is based on the weighted average number of common shares outstanding during the year. Stock options, ~~and~~ restricted stock units, and performance units have been included in the calculation of income per diluted share to the extent they are dilutive. The difference between basic and diluted weighted average shares outstanding is the dilutive effect of outstanding stock options, ~~and~~ restricted stock units, and performance units (see Note 11).

INCOME TAXES

Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement and tax bases of assets and liabilities. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based upon the technical merits of the position. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Also, interest and penalties expense are recognized on the full amount of unrecognized benefits for uncertain tax positions. The Company's policy is to include interest and penalties related to unrecognized tax benefits in income tax expense.

RECENT ACCOUNTING PRONOUNCEMENTS

Recently Adopted Accounting Guidance

Not Adopted at Fiscal Year End

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NOTE 2. REVENUE AND DEFERRED COSTS

Revenue Recognition

The Company generates revenue from data processing, transaction processing, software licensing and related services, professional services, and hardware sales.

The Company recognizes revenue when or as it satisfies each performance obligation by transferring control of a solution or service to the client.

The following describes the nature of the Company’s primary types of revenue:

Processing

Processing revenue is generated from transaction-based fees for electronic deposit and payment services, electronic funds transfers and debit and credit card processing. The Company’s arrangements for these services typically require the Company to “stand-ready” to provide specific services on a when and if needed basis by processing an unspecified number of transactions over the contractual term. The fees for these services may be fixed or variable (based upon performing an unspecified quantity of services), and pricing may include tiered pricing structures. Amounts of revenue allocated to these services are recognized as those services are performed. Clients are typically billed monthly for transactions processed during the month. The Company evaluates tiered pricing to determine if a material right exists. If, after that evaluation, it determines a material right does exist, it assigns value to the material right based upon standalone selling price after estimation of breakage associated with the material right.

Private and public cloud

Private and public cloud revenue is generated from data and item processing services and hosting fees. The Company’s arrangements for these services typically require the Company to “stand-ready” to provide specific services on a when and if needed basis. The fees for these services may be fixed or variable (based upon performing an unspecified quantity of services), and pricing may include tiered pricing structures. Amounts of revenue allocated to these services are recognized as those services are performed. Data and item processing services are typically billed monthly. The Company evaluates tiered pricing to determine if a material right exists. If, after that evaluation, it determines a material right does exist, it assigns value to the material right based upon standalone selling price.

Product delivery and services

Product delivery and services revenue is generated primarily from software licensing and related professional services and hardware delivery. Software licenses, along with any professional services from which they are not considered distinct, are recognized as they are delivered to the client. Hardware revenue is recognized upon delivery. Professional services that are distinct are recognized as the services are performed. Deconversion fees are also included within product delivery and services and are considered a contract modification. Therefore, the Company recognizes these fees over the remaining modified contract term.

On-premise support

On-premise support revenue is generated from software maintenance for ongoing client support and software usage, which includes a license and ongoing client support. The Company’s arrangements for these services typically require the Company to “stand-ready” to provide specific services on a when and if needed basis. The fees for these services may be fixed or variable (based upon performing an unspecified quantity of services). Software maintenance fees are typically billed to the client annually in advance and recognized ratably over the maintenance term. Software usage is typically billed annually in advance, with the license delivered and recognized at the outset, and the maintenance fee recognized ratably over the maintenance term. Accordingly, the Company utilizes the practical expedient which allows entities to disregard the effects of a financing component when the contract period is one year or less.

Taxes collected from clients and remitted to governmental authorities are not included in revenue. The Company includes reimbursements from clients for expenses incurred in providing services (such as for postage, travel and telecommunications costs) in revenue, while the related costs are included in cost of revenue.45

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Disaggregation of Revenue

The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 14 – Reportable Segment Information for disaggregated revenue by type and reportable segment. The majority of the Company’s revenue is earned domestically, with revenue from clients outside the United States comprising less than 1% of total revenue.

Year Ended June 30,

2024

2023

2022

2025

2024

2023

Private and Public Cloud

~~682~~756,~~146~~879

~~618~~682,~~850~~146

~~561~~618,~~500~~850

Product Delivery and Services

~~238~~251,~~723~~730

~~245~~238,~~687~~723

~~250~~245,~~843~~687

On-Premise Support

~~355~~353,~~085~~128

~~350~~355,~~164~~085

~~344~~350,~~022~~164

Services and Support

1,~~275~~361,~~954~~737

1,~~214~~275,~~701~~954

1,~~156~~214,~~365~~701

Processing

~~939~~1,~~589~~013,551

~~863~~939,~~001~~589

~~786~~863,~~519~~001

Total Revenue

2,~~215~~375,~~543~~288

2,~~077~~215,~~702~~543

12,~~942~~077,~~884~~702

Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with clients.

	June 30,2024		June 30,2023
	June 30,2025		June 30,2024
Receivables, net	$	~~333~~317,~~033~~977	$	~~361~~333,~~252~~033
Contract Assets - Current	3336,~~610~~221		2633,~~711~~610
Contract Assets - Non-current	~~103~~121,~~295~~675		81103,~~561~~295
Contract Liabilities (Deferred Revenue) - Current	~~317~~290,~~730~~485		~~331~~317,~~974~~730
Contract Liabilities (Deferred Revenue) - Non-current	7172,~~202~~889		6771,~~755~~202

Contract assets primarily result from ~~revenue~~client ~~being~~discounts ~~recognized~~(contract ~~when~~incentives) orwhere asrevenue ~~control~~is ofrecognized aand ~~solution~~payment orof ~~service~~consideration isunder ~~transferred to~~ the ~~client,~~contract ~~but where invoicing~~ is contingent upon the ~~completion~~transfer of ~~other~~services ~~performance~~to ~~obligations~~a orclient ~~payment~~over ~~terms differ from~~ the ~~provisioning~~contractual ~~of services~~period. The current portion of contract assets is reported within prepaid expenses and other in the consolidated balance ~~sheet~~sheets, and the non-current portion is included in other non-current assets. Contract liabilities (deferred revenue) primarily relate to consideration received from clients in advance of delivery of the related goods and services to the client. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period.

The Company analyzes contract language to identify if a significant financing component does exist and would adjust the transaction price for any material effects of the time value of money if the timing of payments provides either party to the contract with a significant benefit of financing the transaction.

For the fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, the Company recognized revenue of $~~270~~252,~~241~~710, $~~267~~270,~~978~~241, and $~~270~~267,~~972~~978, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods.

Amounts recognized that relate to performance obligations satisfied (or partially satisfied) in prior periods were immaterial for each period presented. These adjustments are primarily the result of transaction price re-allocations due to changes in estimates of variable consideration.

Transaction Price Allocated to Remaining Performance Obligations

As of June 30, ~~2024~~2025, estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period totaled $67,~~810~~710,~~946~~750. The Company expects to recognize approximately 2524% over the next 12 months, 19% in 13 - 24 months, and the balance thereafter.

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Contract Costs

The Company incurs incremental costs to obtain a contract as well as costs to fulfill contracts with clients that are expected to be recovered. These costs consist primarily of sales commissions, which are incurred only if a contract is obtained, and client conversion or implementation-related costs. Capitalized contract costs classified as current, are included within prepaid expenses and other and deferred costs in the Company's consolidated balance sheets, dependent on the nature of the capitalized costs. Capitalized contract costs classified as non-current are included within non-current deferred costs and other non-current assets in the Company's consolidated balances sheets, dependent on the nature of the capitalized costs. Capitalized costs are amortized based on the transfer of goods or services to which the asset relates, in line with the percentage of revenue recognized for each performance obligation to which the costs are allocated. Capitalized contract costs as of June 30, 2025, and 2024, were as follows:

Capitalized costs totaled $503,152 and $442,012, at June 30, 2024, and 2023, respectively.


	June 30, 2025		June 30, 2024
Capitalized costs to obtain contracts with clients1	$	267,726	$	244,980
Capitalized costs to fulfill contracts with clients	273,988		258,172

~~During~~1 ~~the~~Includes ~~fiscal~~current ~~years~~and ~~ended~~non-current ~~June 30,~~capitalized ~~2024,~~costs ~~2023~~of $82,441 and ~~2022~~$185,285 ~~amortization~~at ofJune 30, ~~deferred~~2025, ~~contract~~respectively, ~~costs~~and ~~totaled~~ $~~175~~68,~~029,~~605 and $~~154~~176,~~008,~~375 ~~and~~at ~~$133~~June 30,~~174~~ 2024, respectively. ~~There were no impairment losses in relation to capitalized costs for the periods presented.~~

During the fiscal years ended June 30, 2025, 2024, and 2023, amortization of capitalized contract costs totaled $192,439, $175,029, and $154,008, respectively. There were no impairment losses in relation to capitalized costs for the periods presented.

NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS

For cash equivalents, certificates of deposit, amounts receivable or payable, and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities.

The Company's estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows:

Level 1: inputs to the valuation are quoted prices in an active market for identical assets.

Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly.

Level 3: valuation is based on significant inputs that are unobservable in the market and the Company's own estimates of assumptions that we believe market participants would use in pricing the asset.

Financial assets and financial liabilities measured at fair value on a recurring basis are as follows:

	Estimated Fair Value Measurements						Total Fair
	Level 1		Level 2		Level 3		Value
June 30, 2025
Financial Assets:
Certificates of Deposit	$	—	$	4,620	$	—	$	4,620
June 30, 2024
Financial Assets:
Certificates of Deposit	$	—	$	3,505	$	—	$	3,505
Financial Liabilities:
Credit facilities	$	—	$	150,000	$	—	$	150,000
June 30, 2023
Financial Assets:
Certificates of Deposit	$	—	$	2,234	$	—	$	2,234
Financial Liabilities:
Credit facilities	$	—	$	275,000	$	—	$	275,000

NOTE 4. LEASES

The Company determines if an arrangement is a lease, or contains a lease, at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The lease term is ~~used to determine lease classification as an operating or finance lease and is used to calculate straight-line expense for operating leases.~~

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estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date for both real estate and equipment leases. The determination of the incremental borrowing rate requires judgment. The Company determines the incremental borrowing rate using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term.

The Company leases certain office space, data centers and equipment. The Company’s leases have remaining terms of 3 months to 9 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance, and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the lease liability to the extent they are variable in nature. These variable lease costs are recognized as a variable lease expense when incurred. Certain leases include options to purchase the leased asset at the end of the lease term, which is assessed as a part of the Company’s lease classification determination. The depreciable life of the ROU asset and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option.

At June 30, 2024, and 2023, the Company had operating lease assets of $53,981 and $43,662, respectively. At June 30, 2024, total operating lease liabilities of $59,604 were comprised of current operating lease liabilities of $8,454 and noncurrent operating lease liabilities of $51,150. At June 30, 2023, total operating lease liabilities of $50,269 were comprised of current operating lease liabilities of $9,776 and noncurrent operating lease liabilities of $40,493.

Operating lease assets are included within other non-current assets and operating lease liabilities are included with accrued expenses (current portion) and other long-term liabilities (noncurrent portion) in the Company’s consolidated balance sheet. Operating lease assets were recorded net of accumulated amortization of $34,306 and $34,973 as of June 30, 2024, and 2023, respectively.

Operating lease costs for the fiscal years ended June 30, 2024, 2023, and 2022, were $10,598, $11,870, and $13,058, respectively. Total operating lease costs for the fiscal years ended June 30, 2024, 2023, and 2022, included variable lease costs of approximately $4,087, $3,608, and $2,325, respectively. Operating lease expense is included within cost of services, research and development, and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s consolidated statement of income.

For the fiscal years ended June 30, 2024, 2023, and 2022, operating cash flows for payments on operating leases were $9,306, $12,127, and $13,082, respectively, and ROU assets obtained in exchange for operating lease liabilities were $19,222, $2,368, and $2,407, respectively.

As of June 30, 2024, 2023, and 2022, the weighted-average remaining lease terms for the Company's operating leases were 78 months, 78 months, and 76 months, respectively, and the weighted-average discount rates were 2.70%, 2.14%, and 2.58%, respectively.

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used to determine lease classification as an operating or finance lease and is used to calculate straight-line expense for operating leases.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and equipment leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. ROU assets also include prepaid lease payments and exclude lease incentives received. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date for both real estate and equipment leases. The determination of the incremental borrowing rate requires judgment. The Company determines the incremental borrowing rate using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term.

The Company leases certain office space, data centers and equipment. The Company’s leases have remaining terms of 3 months to 8 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance, and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the lease liability to the extent they are variable in nature. These variable lease costs are recognized as a variable lease expense when incurred. Certain leases include options to purchase the leased asset at the end of the lease term, which is assessed as a part of the Company’s lease classification determination. The depreciable life of the ROU asset and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option.

At June 30, 2025, and 2024, the Company had operating lease assets of $44,761 and $53,981, respectively. At June 30, 2025, total operating lease liabilities of $51,187 were comprised of current operating lease liabilities of $9,397 and noncurrent operating lease liabilities of $41,790. At June 30, 2024, total operating lease liabilities of $59,604 were comprised of current operating lease liabilities of $8,454 and noncurrent operating lease liabilities of $51,150.

Operating lease assets are included within other non-current assets and operating lease liabilities are included with accrued expenses (current portion) and other long-term liabilities (noncurrent portion) in the Company’s consolidated balance sheets. Operating lease assets were recorded net of accumulated amortization of $41,229 and $34,306 as of June 30, 2025, and 2024, respectively.

Operating lease costs for the fiscal years ended June 30, 2025, 2024, and 2023, were $11,420, $10,598, and $11,870, respectively. Total operating lease costs for the fiscal years ended June 30, 2025, 2024, and 2023, included variable lease costs of approximately $2,744, $4,087, and $3,608, respectively. Operating lease expense is included within cost of services, research and development, and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s consolidated statements of income.

For the fiscal years ended June 30, 2025, 2024, and 2023, operating cash flows for payments on operating leases were $10,612, $9,306, and $12,127, respectively, and ROU assets obtained in exchange for operating lease liabilities were $7, $19,222, and $2,368, respectively.

As of June 30, 2025, 2024, and 2023, the weighted-average remaining lease terms for the Company's operating leases were 69 months, 78 months, and 78 months, respectively, and the weighted-average discount rates were 2.71%, 2.70%, and 2.14%, respectively.

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Maturity of Lease Liabilities under ASC 842

Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at June 30, ~~2024~~2025:

Due dates	Future Minimum Rental Payments
2025	$	10,377
2026	$	11,047
2026	10,970
2027	10,455
2028	10,106
2029	7,548
Thereafter	17,667
2030	6,525
Total lease payments	$	67,123
Thereafter	11,141
Less: interest	(7,519)
Total lease payments	$	56,822
Present value of lease liabilities - lessee	$	59,604
Less: interest	(5,635)
Present value of lease liabilities - lessee	$	51,187

Future lease payments include $5,464 related to options to extend lease terms that are reasonably certain of being exercised. At June 30, ~~2024~~2025, there were no$2,070 material legally binding lease payments for leases signed but not yet commenced.

OnThe ~~September 30, 2023, the~~ Company ~~entered~~may ~~into~~sublease anits ~~agreement~~facilities ~~with~~from atime ~~third~~to ~~party~~time to ~~sublease~~third ~~a portion of its Elizabethtown, Kentucky facility~~parties. ~~The~~Sublease ~~commencement~~income ~~date~~is ofrecognized ~~the~~on ~~sublease was October 1, 2023, and has~~ a ~~term~~straight-line ofbasis 57over ~~months. Sublease income for~~ the ~~fiscal~~lease ~~year ended June 30~~term, ~~2024, was $550,~~ and is included within revenue on the Company's condensed consolidated statements of income. ~~There have been no indications of impairment related to the underlying right-of-use asset.~~

On September 30, 2023, the Company entered into an agreement with a third party to sublease a portion of its Elizabethtown, Kentucky facility. The commencement date of the sublease was October 1, 2023, and it had an initial term of 57 months. Sublease income for the fiscal years ended June 30, 2025, and 2024, was $887 and $550, respectively.

On March 21, 2025, the sublessee provided notice to terminate a portion of the sublease agreement and reduce the square footage of their subleased space effective September 30, 2025, resulting in a termination fee of $332. The remaining space not terminated will continue to be subleased under the original terms of the agreement. There have been no indications of impairment related to the underlying ROU asset for the remaining portion of the sublease.

Minimum Sublease Payments

At June 30, ~~2024~~2025, the future total minimum sublease payments to be received, including termination fees, were as follows:

Due Dates (fiscal year)	Future Minimum Sublease Receipts
2025	$	873
2026	$	864
2026	831
2027	448
2027	856
2028	462
2028	882
Total sublease receipts - lessor	$	1,774
Total sublease receipts - lessor	$	3,442

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NOTE 5. PROPERTY AND EQUIPMENT

The classification of property and equipment, together with their estimated useful lives is as follows:

	June 30,
	2024		2023		Estimated Useful Life
	2025		2024		Estimated Useful Life
Land	$	16,357	$	16,~~581~~357
Land improvements	24,~~322~~679		24,~~251~~322		5 - 20 years
Buildings	~~133~~138,~~835~~898		~~129~~133,~~991~~835		20 - 30 years
Leasehold improvements	5150,~~432~~376		51,~~125~~432		5 - 30 years	(1)
Equipment and furniture	~~418~~461,~~853~~826		~~394~~418,~~507~~853		3 - 10 years
Aircraft and equipment	4424,~~140~~959		4144,~~400~~140		4 - 10 years
Construction in progress	123,~~298~~797		1412,~~208~~298
Finance lease right-of-use asset (2)	—		312
	720,892		701,237
	701,237		672,375
Less accumulated depreciation	499,928		486,168
Less accumulated depreciation	486,168		466,711
Property and equipment, net	$	220,964	$	215,069
Property and equipment, net	$	215,069	$	205,664

(1) Lesser of lease term or estimated useful life

~~(2)~~The ~~Fully~~change ~~depreciated~~in atproperty and equipment in accrued liabilities was an increase of $227 and $723 for the fiscal years ended June 30, ~~2023~~2025, and 2024, respectively. These amounts were excluded from capital expenditures on the statements of cash flows.

~~The~~No ~~change~~material inimpairments of property and equipment inwere ~~accrued~~recorded ~~liabilities~~in ~~was an increase of $723 and $3,969 for~~ the fiscal years ended June 30, 2025, 2024, ~~and~~or 2023~~, respectively~~. ~~These amounts were excluded from capital expenditures on the statements of cash flows.~~

NoAt ~~material~~June 30, ~~impairments~~2025, held for sale assets include aircraft with a carrying value of ~~property~~approximately ~~and~~$5,606 ~~equipment~~that ~~were~~management ~~recorded~~has incommitted ~~the~~to ~~fiscal~~sell. ~~years~~Total ~~ended~~assets held for sale by the Company at June 30, 2025, and 2024, ~~2023~~were $5,606 orand ~~2022~~$0, respectively, and were included in assets held for sale on the Company's consolidated balance sheets and were not included in property and equipment, net.

NOTE 6. OTHER ASSETS

Goodwill

The carrying amount of goodwill for the fiscal years ended June 30, 2025, and 2024, by reportable segments, is as follows:

	June 30,
Core	~~2024~~2025		~~2023~~2024
Beginning balance	$	195,578	$	195,578
Goodwill, acquired during the year	—		—
Goodwill, adjustments related to dispositions	—		—
Ending balance	$	195,578	$	195,578
Payments
Beginning balance	$	442,665	$	~~325~~442,~~326~~665
Goodwill, acquired during the year	—		~~117,339~~—
Goodwill, adjustments related to dispositions	—		—
Ending balance	$	442,665	$	442,665
Complementary
Beginning balance	$	166,554	$	166,554
Goodwill, acquired during the year	—		—
Goodwill, adjustments related to dispositions	—		—
Ending balance	$	166,554	$	166,554

Goodwill acquired during fiscal 2024 and 2023 was $0 and $117,339, respectively. Goodwill consists largely of the growth potential, synergies and economies of scale expected from combining the operations of the Company with those of the entities or assets acquired, together with their assembled workforces. No goodwill has been assigned to the Company's Corporate and Other reportable segment.50

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No goodwill was acquired during fiscal 2025 and 2024. Goodwill consists largely of the growth potential, synergies and economies of scale expected from combining the operations of the Company with those of the entities or assets acquired, together with their assembled workforces. No goodwill has been assigned to the Company's Corporate and Other reportable segment.

Other intangible assets

Information regarding other identifiable intangible assets is as follows:

	June 30, 2025
	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	306,036	$	(257,596)	$	48,440
Computer software	$	1,705,697	$	(1,088,668)	$	617,029
Other intangible assets	$	110,352	$	(90,561)	$	19,791
	June 30, 2024
	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	306,036	$	(249,279)	$	56,757
Computer software	$	1,533,622	$	(940,861)	$	592,761
Other intangible assets:	$	111,510	$	(89,359)	$	22,151
Other intangible assets	$	111,510	$	(89,359)	$	22,151
	June 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	306,036	$	(240,508)	$	65,528
Computer software	$	1,386,291	$	(820,577)	$	565,714
Other intangible assets:	$	108,826	$	(88,828)	$	19,998

Customer relationships have useful lives ranging from 5 to 20 years.

Computer software includes cost of software to be sold, leased, or marketed, net of amortization, of $~~178~~182,~~588~~757 and costs of internal-use software, net of amortization, of $~~414~~434,~~173~~272 at June 30, ~~2024~~2025. At June 30, ~~2023~~2024, costs of software to be sold, leased, or marketed, net of amortization, totaled $~~171~~178,~~310~~588, and costs of internal-use software, net of amortization, totaled $~~394~~414,~~404~~173.

Computer software includes the unamortized cost of ~~commercial~~ software products developed or acquired by the Company, which are capitalized and amortized over useful lives generally ranging from 5 to 15 years. Amortization expense for computer software totaled $~~137~~148,~~958~~734, $~~123~~137,~~210~~958, and $~~105~~123,~~036~~210 for the fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, respectively. There were no material impairments in fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023.

The Company's other intangible assets have useful lives ranging from 3 to 20 years.

Amortization expense for all intangible assets was $~~153~~161,~~562~~051, $~~142~~153,~~006~~562, and $~~126~~142,~~835~~006 for the fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, respectively. The estimated aggregate future amortization expense for each of the next five years for all intangible assets remaining as of June 30, ~~2024~~2025, is as follows:

Years Ending June 30,	Computer Software		CustomerRelationships		Other Intangible Assets		Total
2025	$	131,962	$	8,317	$	6,378	$	146,657
2026	$	135,699	$	7,952	$	6,074	$	149,725
2026	110,330		7,952		5,535		123,817
2027	112,316		7,858		4,772		124,946
2027	86,947		7,858		4,016		98,821
2028	86,783		7,821		2,820		97,424
2028	61,414		7,821		1,314		70,549
2029	63,052		7,776		2,051		72,879
2029	37,707		7,776		1,002		46,485
2030	36,861		7,257		1,066		45,184

NOTE 7. DEBT

The Company had ~~$90,000~~no outstanding ~~current maturities of long-term~~ debt ~~and $60,000 outstanding long-term debt~~ at June 30, ~~2024, related to credit facilities~~2025. The Company had no$90,000 outstanding current maturities of long-term debt and $~~275~~60,000 outstanding long-term debt at June 30, ~~2023~~2024, related to credit facilities.

Credit facilities

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a one month Interest Period on such day for Dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit agreement. As of June 30, ~~2024~~2025, the Company was in compliance with all such covenants. The ~~amended and restated~~ credit facility terminates August 31, 2027. There was $~~60,000~~0 and $9560,000 outstanding under the ~~amended and restated~~ credit facility at June 30, ~~2024~~2025, and June 30, ~~2023~~2024, respectively.

Term loan facility

On May 16, 2023, the Company entered into a term loan credit agreement with a syndicate of financial institutions, with an original principal balance of $180,000. Borrowings under the term loan facility ~~bear~~bore interest at a variable rate equal to (a) a rate based on an adjusted SOFR term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 0.75%), plus an applicable percentage in each case determined by the Company's leverage ratio. The term loan credit agreement iswas guaranteed by certain subsidiaries of the Company and iswas subject to various financial covenants that ~~require~~required the Company to maintain certain financial ratios as defined in the term loan credit agreement. AsThe ofterm ~~June~~loan credit agreement matured on May 3016, ~~2024~~2025, and at the maturity date the Company was in compliance with all such covenants. ~~The term loan credit agreement has a maturity date of May 16, 2025.~~ There was $~~90,000~~0 and $~~180~~90,000 outstanding under the term loan at June 30, ~~2024~~2025, and June 30, ~~2023~~2024, respectively.

Other lines of credit

The Company ~~has~~had an unsecured bank credit line which ~~provides~~provided for funding of up to $5,000 and ~~bears~~bore interest at the prime rate less 1.0%. The credit line ~~was~~expired ~~renewed~~on ~~in May 2019 and modified in May 2023 to extend the expiration to~~ April 30, 2025. There was no balance outstanding at June 30, ~~2024~~2025, or ~~2023~~2024.

Interest

The Company paid interest of $1510,~~757~~044, $1415,~~776~~757, and $114,~~788~~776 during the fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, respectively.

NOTE 8. INCOME TAXES

The provision for income taxes consists of the following:

Year Ended June 30,

2024

2023

2022

2025

2024

2023

Current:

Federal

93109,~~890~~633

~~125~~93,~~622~~890

59125,~~390~~622

State

2324,~~222~~151

3023,~~505~~222

1830,~~089~~505

Deferred:

Federal

(15,~~615~~159)

(401,~~218~~615)

24(40,~~391~~218)

State

~~706~~1,663

~~(7,981)~~706

(7,~~481~~981)

~~116~~130,~~203~~288

~~107~~116,~~928~~203

~~109~~107,~~351~~928

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The tax effects of temporary differences related to deferred taxes shown on the balance sheets were:

	June 30,
	2024		2023
Deferred tax assets:
Contract and service revenues	$	21,985	$	18,186
Expense reserves and accruals (bad debts and compensation)	16,123		14,023
Leasing liabilities	14,755		12,462
Net operating loss and tax credit carryforwards	2,155		1,965
Other, net	3,369		2,916
Total gross deferred tax assets	58,387		49,552
Valuation allowance	(108)		(125)
Net deferred tax assets	58,279		49,427
Deferred tax liabilities:
Property and equipment depreciation	(26,689)		(27,788)
Intangibles, software development, and research and development tax amortization	(113,623)		(136,045)
Contract and service costs	(148,126)		(119,201)
Leasing right-of-use assets	(13,363)		(10,824)
Total gross deferred liabilities	(301,801)		(293,858)
Net deferred tax liability	$	(243,522)	$	(244,431)

	Year Ended June 30,
	2024		2023		2022
Computed "expected" tax expense	21.0	%	21.0	%	21.0	%
Increase (reduction) in taxes resulting from:
State income taxes, net of federal income tax benefits	3.8	%	3.7	%	4.3	%
Research and development credit	(2.6)	%	(2.3)	%	(2.0)	%
Changes to prior year uncertain tax positions	0.6	%	—	%	—	%
Other (net)	0.5	%	0.3	%	(0.1)	%
	23.3	%	22.7	%	23.2	%

As of June 30, 2024, the Company has state NOL and tax credit carryforwards with a tax-effected value of $110 and $2,045, respectively. The state loss and credit carryover have varying expiration dates, ranging from fiscal 2025 to 2044. Based on state tax rules which restrict utilization of these losses and tax credits, the Company believes it is more likely than not that $108 of these losses and tax credits will expire unutilized. Accordingly, valuation allowances of $108 and $125 have been recorded against the state net operating losses and tax credit carryforwards as of June 30, 2024, and 2023, respectively.

The Company paid income taxes, net of refunds, of $106,966, $145,862, and $60,553 in fiscal 2024, 2023, and 2022, respectively.

At June 30, 2024, the Company had $19,077 of gross unrecognized tax benefits, $17,222 of which, if recognized, would affect its effective tax rate. At June 30, 2023, the Company had $12,005 of gross unrecognized tax benefits, $10,453 of which, if recognized, would affect its effective tax rate. The Company had accrued interest and penalties of $3,351 and $1,872 related to uncertain tax positions at June 30, 2024, and 2023, respectively. The income tax provision included interest expense and penalties (or benefits) on unrecognized tax benefits of $1,132, $529, and $73 in the fiscal years ended June 30, 2024, 2023, and 2022, respectively.

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AThe ~~reconciliation~~tax effects of ~~the~~temporary ~~unrecognized~~differences ~~tax~~related ~~benefits~~to ~~for~~deferred ~~the~~taxes ~~fiscal~~shown ~~years~~on ~~ended~~the ~~June 30,~~consolidated ~~2024,~~balance ~~2023,~~sheets ~~and 2022, follows~~were:

	Unrecognized Tax Benefits
	June 30,
Balance at July 1, 2021	$	8,762
	2025		2024
Additions for current year tax positions	1,863
Deferred tax assets:
Additions for prior year tax positions	1,642
Contract and service revenues	$	25,489	$	21,985
Reductions for prior year tax positions	(36)
Expense reserves and accruals (bad debts and compensation)	17,022		16,123
Reductions related to expirations of statute of limitations	(3,241)
Leasing liabilities	12,590		14,755
Balance at June 30, 2022	8,990
Software development and research and development tax amortization	14,244		—
Additions for current year tax positions	2,570
Net operating loss and tax credit carryforwards	212		2,155
Additions for prior year tax positions	2,433
Other, net	2,503		3,369
Reductions for prior year tax positions	(350)
Total gross deferred tax assets	72,060		58,387
Reductions related to expirations of statute of limitations	(1,638)
Valuation allowance	(182)		(108)
Balance at June 30, 2023	12,005
Net deferred tax assets	71,878		58,279
Additions for current year tax positions	3,924
Deferred tax liabilities:
Additions for prior year tax positions	4,672
Property and equipment depreciation	(24,232)		(26,689)
Reductions related to expirations of statute of limitations	(1,524)
Intangibles, software development, and research and development tax amortization	(107,083)		(113,623)
Balance at June 30, 2024	$	19,077
Contract and service costs	(169,579)		(148,126)
Leasing right-of-use assets	(11,010)		(13,363)
Total gross deferred liabilities	(311,904)		(301,801)
Net deferred tax liability	$	(240,026)	$	(243,522)

The following analysis reconciles the statutory federal income tax rate to the effective income tax rates reflected above:

The U.S. federal income tax returns for fiscal 2021 and all subsequent years remain subject to examination as of June 30, 2024, under statute of limitations rules. The U.S. state income tax returns that remain subject to examination as of June 30, 2024, under the statute of limitation rules varies by state jurisdiction from fiscal 2016 through 2019 and all subsequent years. The Company anticipates that potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $3,000 — $7,000 within twelve months of June 30, 2024.


	Year Ended June 30,
	2025		2024		2023
Computed "expected" tax expense	21.0	%	21.0	%	21.0	%
Increase (reduction) in taxes resulting from:
State income taxes, net of federal income tax benefits	3.5	%	3.8	%	3.7	%
Research and development credit	(2.2)	%	(2.6)	%	(2.3)	%

Changes to prior year uncertain tax positions	(0.3)	%	0.6	%	—	%

Other (net)	0.2	%	0.5	%	0.3	%
	22.2	%	23.3	%	22.7	%

As of June 30, 2025, the Company has state NOL and tax credit carryforwards with a tax-effected value of $78 and $134, respectively. The state net operating loss and tax credit carryover have varying expiration dates, ranging from fiscal 2026 to 2045. Based on state tax rules which restrict utilization of these losses and tax credits, the Company believes it is more likely than not that $182 of these losses and tax credits will expire unutilized. Accordingly, valuation allowances of $182 and $108 have been recorded against the state net operating losses and tax credit carryforwards as of June 30, 2025, and 2024, respectively.

The Company paid income taxes, net of refunds, of $117,581, $106,966, and $145,862 in fiscal 2025, 2024, and 2023, respectively.

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At June 30, 2025, the Company had $21,723 of gross unrecognized tax benefits, $19,526 of which, if recognized, would affect its effective tax rate. At June 30, 2024, the Company had $19,077 of gross unrecognized tax benefits, $17,222 of which, if recognized, would affect its effective tax rate. The Company had accrued interest and penalties of $4,375 and $3,351 related to uncertain tax positions at June 30, 2025, and 2024, respectively. The gross unrecognized tax benefits and accrued interest and penalties are recorded as other long-term liabilities in the Company’s consolidated balance sheets, except for $3,449 recorded as deferred income tax liability at June 30, 2025. The income tax provision included interest expense and penalties (or benefits) on unrecognized tax benefits of $796, $1,132, and $529 in the fiscal years ended June 30, 2025, 2024, and 2023, respectively.

A reconciliation of the unrecognized tax benefits for the fiscal years ended June 30, 2025, 2024, and 2023, follows:


	Unrecognized Tax Benefits
Balance at July 1, 2022	$	8,990
Additions for current year tax positions	2,570

Additions for prior year tax positions	2,433
Reductions for prior year tax positions	(350)


Reductions related to expirations of statute of limitations	(1,638)
Balance at June 30, 2023	12,005
Additions for current year tax positions	3,924

Additions for prior year tax positions	4,672



Reductions related to expirations of statute of limitations	(1,524)
Balance at June 30, 2024	19,077
Additions for current year tax positions	4,480

Additions for prior year tax positions	834
Reductions for prior year tax positions	(27)


Reductions related to expirations of statute of limitations	(2,641)
Balance at June 30, 2025	$	21,723

The U.S. federal and state income tax returns for fiscal 2022 and all subsequent years remain subject to examination as of June 30, 2025, under statute of limitations rules. In addition, certain U.S. state income tax returns remain subject to examination as of June 30, 2025, under the statute of limitation rules for fiscal 2016 through 2022. The Company anticipates that potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $3,000 — $9,000 within twelve months of June 30, 2025.

NOTE 9. INDUSTRY AND SUPPLIER CONCENTRATION

The Company sells its products to banks, credit unions, and financial institutions throughout the United States and generally does not require collateral. Billings to clients are typically due 30 days from date of billing. Reserves are maintained for potential credit losses. Client-related risks are moderated through the inclusion of credit mitigation clauses in the Company's contracts and through the monitoring of timely payments.

In addition, some of the Company’s key solutions are dependent on technology manufactured by third parties. Termination of the Company’s relationship with one or more of these third parties could have a negative impact on the operations of the Company.

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NOTE 10. STOCK-BASED COMPENSATION

The Company's pre-tax operating income for the fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, includes $28,~~873~~392, $28,~~611~~873, and $2428,~~780~~611, respectively, of equity-based compensation costs, of which $2625,~~361~~757, $26,~~427~~361, and $2226,~~703~~427, respectively, relates to the restricted stock plans. Costs are recorded net of estimated forfeitures. The total income tax benefits from equity-based compensation for the fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, were $4,~~495~~479, $54,~~115~~495, and $45,~~252~~115, respectively. These income tax benefits ~~included income tax net shortfalls~~ from stock option exercises and restricted stock vestings included income tax net excess benefits of $~~184~~283 and $1,109 for the fiscal ~~year~~years ended June 30, ~~2024,~~2025 and ~~income~~June 30, ~~tax~~2023, ~~net~~respectively, ~~excess benefits from stock option exercises~~ and ~~restricted~~income ~~stock~~tax ~~vestings~~net shortfalls of $~~1,109~~184 ~~and $652~~ for the fiscal ~~years~~year ended June 30, ~~2023, and 2022, respectively~~2024.

On November 10, 2015, the Company adopted the 2015 Equity Incentive Plan ("2015 EIP") for its associates and non-employee directors. The plan allows for grants of stock options, stock appreciation rights, restricted stock shares or units, and performance shares or units. The maximum number of shares authorized for issuance under the plan is 3,000.

Stock option awards

Under the 2015 EIP, terms and vesting periods of the stock options are determined by the Human Capital & Compensation Committee of the Board of Directors when granted. The options granted under this plan are exercisable beginning three years after grant at an exercise price equal to 100% of the fair market value of the stock at the grant date. The options terminate upon surrender of the option, ninety days after termination of employment, upon the expiration of one year following notification of a deceased optionee, or 10 years after grant.

53During fiscal 2025, there were no options granted or forfeited, and 12 options were exercised at a weighted average exercise price of $87.27 per share with a total exercise intrinsic value of $991. At June 30, 2025, there were no options outstanding. During fiscal 2024, there were no options granted, forfeited, or exercised, and at June 30, 2024, 12 options were outstanding at a weighted average exercise price of $87.27. During fiscal 2023, there were no options granted, forfeited, or exercised, and at June 30, 2023, 12 options were outstanding at a weighted average exercise price of $87.27. All remaining options were granted on July 1, 2016. At June 30, 2025, there was no compensation cost yet to be recognized related to options.

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exercisable beginning three years after grant at an exercise price equal to 100% of the fair market value of the stock at the grant date. The options terminate upon surrender of the option, ninety days after termination of employment, upon the expiration of one year following notification of a deceased optionee, or 10 years after grant.

During fiscal 2024, there were no options granted, forfeited, or exercised, and at June 30, 2024, 12 options were outstanding at a weighted average exercise price of $87.27 with an aggregate intrinsic value of $920. During fiscal 2023, there were no options granted, forfeited, or exercised, and at June 30, 2023, 12 options were outstanding at a weighted average exercise price of $87.27. During fiscal 2022, there were no options granted or forfeited, and 10 options were exercised at a weighted average exercise price of $87.27 with a total exercise intrinsic value of $1,005. At June 30, 2022, 12 options were outstanding at a weighted average exercise price of $87.27. All remaining options were granted on July 1, 2016. At June 30, 2024, there was no compensation cost yet to be recognized related to outstanding options. All of the options are currently exercisable, with a weighted average remaining contractual term (remaining period of exercisability) of 2 years as of June 30, 2024.

Restricted stock unit and performance unit awards

With respect to awards of restricted stock units and performance units, it is the intention of the Company to settle the unit awards in shares of the Company’s stock. Restricted stock unit awards (which are unit awards that have service requirements only and are not tied to performance measures) generally vest over a period of 1 to 3 years. Performance unit awards are awards that have performance measures in addition to service requirements.

The following table summarizes non-vested restricted stock unit awards and performance unit awards as of June 30, ~~2024~~2025, as well as activity for the fiscal year then ended:

Unit awards	Shares	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Outstanding July 1, 2021	294	$	160.22
Outstanding July 1, 2022	303	$	166.50
Granted1	135	178.60
Vested	(71)	145.50
Forfeited2	(55)	189.33
Outstanding July 1, 2022	303	166.50
Granted1	136	214.78
Vested	(120)	159.10
Forfeited2	(16)	186.35
Outstanding July 1, 2023	303	190.08
Granted1	160	177.95
Vested	(99)	170.25
Forfeited2	(39)	194.11
Outstanding June 30, 2024	325	$	189.68	$	53,953
Outstanding July 1, 2024	325	189.68
Granted1	162	171.90
Vested	(122)	183.64
Forfeited2	(17)	182.81
Outstanding June 30, 2025	348	$	183.88	$	62,610

1 Granted includes restricted stock unit awards and performance unit awards with market conditions at 100% achievement.

~~2Forfeited~~2 Forfeited includes restricted stock unit awards and performance unit awards forfeited for service requirements not met and performance unit awards not settled due to underachievement of performance measures.

Of the 160 unit awards granted in fiscal 2024, 97 were restricted stock unit awards and 63 were performance unit awards. The restricted stock unit awards were valued at the weighted average fair value of the non-vested units based on the fair market value of the Company’s equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period, consistent with the methodology for calculating compensation expense on such awards. 55

24 of the performance unit awards granted in fiscal 2024 were valued at grant by estimating 100% payout at release and using the fair market value of the Company equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period. The payout at release of approximately half of these performance unit awards will be determined based on the Company's compound annual growth rate ("CAGR") for revenue (excluding adjustments) for the three-year vesting period compared against goal thresholds as defined in the award agreement. The performance payout at release of the other half of these performance unit awards will be determined based on the expansion of the Company's non-GAAP operating margin over the three-year vesting period compared against goal thresholds as defined in the award agreement. 35 of the performance unit awards have market conditions and were valued at grant using a Monte Carlo pricing model as of the measurement date

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~~customized~~Of to the ~~specific~~162 ~~provisions~~unit ofawards ~~the~~granted ~~Company’s~~in ~~plan~~fiscal ~~design.~~2025, ~~The~~115 ~~remaining~~were 4restricted ~~performance~~stock unit awards ~~had other performance targets. Per the Company's award vesting~~ and ~~settlement~~47 ~~provisions,~~were ~~the~~ performance unit awards. ~~that~~The ~~utilized~~restricted astock ~~Monte~~unit ~~Carlo~~awards ~~pricing model~~ were valued at ~~grant on~~ the ~~basis~~weighted ofaverage ~~Total~~fair ~~Shareholder~~value ~~Return~~of ~~("TSR") in comparison to~~ the ~~compensation~~non-vested ~~peer~~units ~~group~~based ~~made~~on ~~up of participants approved by~~ the ~~Human~~fair ~~Capital~~market &value ~~Compensation Committee~~ of the Company'’s ~~Board~~equity ofshares ~~Directors~~on ~~for~~the ~~fiscal~~grant ~~year 2024. For fiscal years 2023 and 2022~~date, ~~TSR~~less ~~was in comparison to~~ the ~~compensation~~present ~~peer~~value ~~group comprised~~ of ~~the~~expected ~~Standard~~future & Poor's 1500 Software & Services Index ("S&P 1500 S&S Index") participant companies and other participants approved by the Human Capital & Compensation Committee of the Company's Board of Directors. TSR is defined as the change in the stock price through the performance period plus dividends ~~per~~to ~~share~~be ~~paid~~declared during the ~~performance~~vesting period, ~~all~~consistent ~~divided~~with by the ~~stock~~methodology ~~price~~for atcalculating ~~the~~compensation ~~beginning~~expense ofon ~~the~~such ~~performance period~~awards.

18 of the performance unit awards granted in fiscal 2025 were valued at grant by estimating 100% payout at release and using the fair market value of the Company equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period. The payout at release of approximately half of these performance unit awards will be determined based on the Company's compound annual growth rate ("CAGR") for revenue (excluding adjustments) for the three-year vesting period compared against goal thresholds as defined in the award agreement. The performance payout at release of the other half of these performance unit awards will be determined based on the expansion of the Company's non-GAAP operating margin over the three-year vesting period compared against goal thresholds as defined in the award agreement. 26 of the performance unit awards have market conditions and were valued at grant using a Monte Carlo pricing model as of the measurement date customized to the specific provisions of the Company’s plan design. The remaining 3 performance unit awards had other performance targets. Per the Company's award vesting and settlement provisions, the performance unit awards that utilized a Monte Carlo pricing model were valued at grant on the basis of Total Shareholder Return ("TSR") in comparison to the compensation peer group made up of participants approved by the Human Capital & Compensation Committee of the Company's Board of Directors for fiscal years 2025 and 2024. For fiscal year 2023, TSR was in comparison to the compensation peer group comprised of the Standard & Poor's 1500 Software & Services Index ("S&P 1500 S&S Index") participant companies and other participants approved by the Human Capital & Compensation Committee of the Company's Board of Directors. TSR is defined as the change in the stock price through the performance period plus dividends per share paid during the performance period, all divided by the stock price at the beginning of the performance period.

The Monte Carlo inputs used in the model to estimate fair value at the measurement date and resulting values for these performance unit awards are as follows:

	Year Ended June 30,
Monte Carlo award inputs:	~~2024~~2025			~~2023~~2024			~~2022~~2023
Compensation Peer Group:1
Volatility	2524.65		%	2925.46		%	2829.64		%
Risk free interest rate	43.4872		%	24.9648		%	02.3296		%
Annual dividend based on most recent quarterly dividend	$	2.0820		$	12.9608		$	1.8496
Dividend yield	1.23		%	01.92		%	10.19		%
Beginning average percentile rank for TSR	7441		%	7174		%	6571		%

~~1For~~1 For fiscal 2023 ~~and 2022~~, S&P 1500 S&S Index participants were included in the compensation peer group.

At June 30, ~~2024~~2025, there was $2118,~~655~~018 of compensation expense that has yet to be recognized related to non-vested restricted stock unit and performance ~~stock~~ unit awards, which will be recognized over a weighted-average remaining contractual term of 10.0299 years.

The fair values of restricted stock units and performance units at release totaled $1622,~~544~~591, $2416,~~931~~544, and $1224,~~139~~931 for the fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, respectively.

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NOTE 11. EARNINGS PER SHARE

The following table reflects the reconciliation between basic and diluted earnings per share.

	Year Ended June 30,
	2024		2023		2022
	2025		2024		2023
Net Income	$	~~381~~455,~~816~~748	$	~~366~~381,~~646~~816	$	~~362~~366,~~916~~646
Common share information:
Weighted average shares outstanding for basic earnings per share	72,~~867~~874		72,~~918~~867		7372,~~324~~918
Dilutive effect of stock options, restricted stock units, and performance units	~~158~~171		~~178~~158		~~162~~178
Weighted average shares outstanding for diluted earnings per share	73,~~025~~045		73,~~096~~025		73,~~486~~096
Basic earnings per share	$	56.2425	$	5.0324	$	45.9503
Diluted earnings per share	$	56.2324	$	5.0223	$	45.9402

Per share information is based on the weighted average number of common shares outstanding for each of the fiscal years. Stock options, restricted stock units, and performance units have been included in the calculation of earnings per share to the extent they are dilutive. The two-class method for computing EPS has not been applied because no outstanding awards contain non-forfeitable rights to participate in dividends. There were 3318 anti-dilutive weighted average shares excluded from the weighted average shares outstanding for diluted earnings per share for fiscal ~~2024~~2025, 1033 shares were excluded for fiscal ~~2023~~2024, and 710 shares were excluded for fiscal ~~2022~~2023.

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NOTE 12. EMPLOYEE BENEFIT PLANS

The Company established an employee stock purchase plan (the "Plan") in 2006. On January 1, 2024, the Plan was amended and restated, and allows substantially all associates the opportunity to directly purchase shares of the Company at 85% of the lesser of the fair market value, as defined by the Plan, of the Company's stock on the first trading day or on the last trading day of a three-month offering period, which represents an option. Prior to January 1, 2024, the Plan allowed substantially all associates the opportunity to directly purchase shares of the Company at 85% of the closing price of the Company's stock on or around the fifteenth day of each month. During the fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, associates purchased 9080, 8490, and 8084 shares under ~~this~~the ~~plan~~Plan at average prices of $~~137~~147.7849, $~~146~~137.7978, and $~~147~~146.3679, respectively. As of June 30, ~~2024~~2025, approximately ~~896~~816 shares remained available for future issuance under the Plan. The Plan is considered compensatory, and beginning January 1, 2024, compensation expense is determined based on the option's grant date fair value as estimated by applying the Black-Scholes option-pricing model and is recognized over the offering period. Prior to January 1, 2024, the Company recorded the total dollar value of the stock discount given to associates under the ~~plan~~Plan as expense.

The Company has a defined contribution plan for its associates: the 401(k) Retirement Savings Plan (the “Plan”). The Plan is subject to the Employee Retirement Income Security Act of 1975 (“ERISA”) as amended. Under the Plan, the Company matches 100% of full-time associate contributions up to 5% of eligible compensation. InBeginning July 1, 2024, in order to receive matching contributions, associates must be at least 18 years of age and be employed for at least thirty days. Prior to July 1, 2024, associates must have been 18 years of age and been employed for at least six months. The Company has the option of making a discretionary contribution; however, none has been made for any of the three most recent fiscal years. The total matching contributions for the Plan were $3134,~~995~~751, $2931,~~308~~995, and $2829,~~259~~308 for the fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, respectively.

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NOTE 13. BUSINESS ACQUISITION

Payrailz

On August 31, 2022, the Company acquired all of the equity interest in Payrailz. The final purchase price, following customary post-closing adjustments to the extent actual closing date working capital, cash, debt, and unpaid seller transaction expenses exceeded or were less than the amounts estimated at closing, was $230,205. Pursuant to the merger agreement for the transaction, $48,500 of the purchase price was placed in an escrow account at the closing, consisting of $2,500 for any final purchase price adjustments owed by the sellers, which amount was released to the sellers on December 15, 2022, in connection with post-closing purchase price adjustments, and $46,000 for indemnification matters under the merger agreement, which amount was released to the sellers on September 20, 2023.

The primary reason for the acquisition was to expand the Company's digital financial management solutions and the purchase was originally funded by our revolving line of credit (Note 7) and cash generated from operations. Payrailz provides cloud-native, API-first, AI-enabled consumer and commercial digital payment solutions and experiences that enable money to be moved in the moment of need.

Management has completed a purchase price allocation and assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired, and liabilities assumed, based on their fair values as of August 31, 2022, and taking into account the post-closing purchase price adjustment described above, are set forth below:


Current assets	$	1,851

Identifiable intangible assets	119,868
Deferred revenue	(8,104)
Total other liabilities assumed	(749)
Total identifiable net assets	112,866
Goodwill	117,339
Net assets acquired	$	230,205

The goodwill of $117,339 arising from this acquisition consists largely of the growth potential, synergies, and economies of scale expected from combining the operations of the Company with those of Payrailz, together with the value of Payrailz's assembled workforce. The goodwill from this acquisition has been allocated to our Payments segment and $117,339 is ~~expected to be~~ deductible for income tax purposes.

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Identifiable intangible assets from this acquisition consist of customer relationships of $6,109, computer software of $112,505, and other intangible assets of $1,254. The amortization period for acquired customer relationships, computer software, and other intangible assets is over a term of 15 years, 10 years, and 15 years, respectively.

Current assets were inclusive of cash acquired of $577. The fair value of current assets acquired included accounts receivable of $978, none of which were expected to be uncollectible.

NOTE 14. REPORTABLE SEGMENT INFORMATION

The Company’s operations are classified into four reportable segments: 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~~accountholder information. The Payments segment provides secure payment processing tools and services, including ATM, debit, and credit card processing services, online and mobile bill pay solutions, Automated Clearing House ("ACH") 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 ("AML,") and lending/deposit solutions that can be integrated with the Company's Core solutions, and many can be used independently. The Corporate and Other segment includes revenue and costs from hardware and other products not attributed to any of the other three segments, as well as operating expenses not directly attributable to the other three segments.

The Company's ~~evaluates~~Chief ~~the~~Executive ~~performance~~Officer, ofwho ~~its~~is ~~segments~~also ~~and~~the ~~allocates~~Company's ~~resources~~chief tooperating ~~them~~decision ~~based~~maker ~~on various factors~~("CODM"), regularly ~~including~~evaluated segment performance ~~against trend, budget,~~ and ~~forecast.~~made ~~Only~~strategic ~~revenue~~decisions ~~and~~on ~~costs of revenue are considered in~~ the ~~evaluation~~allocation ~~for~~of ~~each~~resources ~~segment.~~to them

	Year Ended
	June 30, 2024
	Core		Payments		Complementary		Corporate and Other		Total
REVENUE
Services and Support	$	649,169	$	84,655	$	461,828	$	80,302	$	1,275,954
Processing	41,569		733,053		156,383		8,584		939,589
Total Revenue	690,738		817,708		618,211		88,886		2,215,543
Cost of Revenue	287,349		442,084		256,007		314,037		1,299,477
Research and Development									148,256
Selling, General, and Administrative									278,419
Total Expenses									1,726,152
SEGMENT INCOME	$	403,389	$	375,624	$	362,204	$	(225,151)
OPERATING INCOME									489,391
INTEREST INCOME (EXPENSE)									8,628
INCOME BEFORE INCOME TAXES									$	498,019

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	Year Ended
	June 30, 2023
	Core		Payments		Complementary		Corporate and Other		Total
REVENUE
Services and Support	$	608,517	$	79,788	$	453,541	$	72,855	$	1,214,701
Processing	40,528		687,521		130,045		4,907		863,001
Total Revenue	649,045		767,309		583,586		77,762		2,077,702
Cost of Revenue	276,818		420,880		237,758		283,606		1,219,062
Research and Development									142,678
Selling, General, and Administrative									235,274
Total Expenses									1,597,014
SEGMENT INCOME	$	372,227	$	346,429	$	345,828	$	(205,844)
OPERATING INCOME									480,688
INTEREST INCOME (EXPENSE)									(6,114)
INCOME BEFORE INCOME TAXES									$	474,574

	Year Ended
	June 30, 2022
	Core		Payments		Complementary		Corporate and Other		Total
REVENUE
Services and Support	$	583,752	$	83,810	$	434,159	$	54,644	$	1,156,365
Processing	38,690		635,258		110,085		2,486		786,519
Total Revenue	622,442		719,068		544,244		57,130		1,942,884
Cost of Revenue	261,585		386,409		226,229		254,391		1,128,614
Research and Development									121,355
Selling, General, and Administrative									218,296
Total Expenses									1,468,265
SEGMENT INCOME	$	360,857	$	332,659	$	318,015	$	(197,261)
OPERATING INCOME									474,619
INTEREST INCOME (EXPENSE)									(2,352)
INCOME BEFORE INCOME TAXES									$	472,267

The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the Chief Executive Officer, who is also the Chief Operating Decision Maker.

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based on various factors, including performance against trend, budget, and forecast for the fiscal years ended June 30, 2025, 2024, and 2023. The CODM used reportable segment revenue, costs of revenue, and segment income to evaluate segment performance and allocate resources. The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the CODM.


	Year Ended
	June 30, 2025
	Core		Payments		Complementary		Corporate and Other		Total
REVENUE
Services and Support	$	697,084	$	93,480	$	495,326	$	75,847	$	1,361,737
Processing	42,193		780,018		179,883		11,457		1,013,551
Total Revenue	739,277		873,498		675,209		87,304		2,375,288

Cost of Revenue	297,372		460,151		264,823		338,401		1,360,747
Research and Development									162,771
Selling, General, and Administrative									283,055

Total Expenses									1,806,573

SEGMENT INCOME	$	441,905	$	413,347	$	410,386	$	(251,097)

OPERATING INCOME									568,715

INTEREST INCOME (EXPENSE)									17,321

INCOME BEFORE INCOME TAXES									$	586,036

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	Year Ended
	June 30, 2024
	Core		Payments		Complementary		Corporate and Other		Total
REVENUE
Services and Support	$	649,169	$	84,655	$	461,828	$	80,302	$	1,275,954
Processing	41,569		733,053		156,383		8,584		939,589
Total Revenue	690,738		817,708		618,211		88,886		2,215,543

Cost of Revenue	287,349		442,084		251,085		318,959		1,299,477
Research and Development									148,256
Selling, General, and Administrative									278,419

Total Expenses									1,726,152

SEGMENT INCOME	$	403,389	$	375,624	$	367,126	$	(230,073)

OPERATING INCOME									489,391

INTEREST INCOME (EXPENSE)									8,628

INCOME BEFORE INCOME TAXES									$	498,019


	Year Ended
	June 30, 2023
	Core		Payments		Complementary		Corporate and Other		Total
REVENUE
Services and Support	$	608,517	$	79,788	$	453,541	$	72,855	$	1,214,701
Processing	40,528		687,521		130,045		4,907		863,001
Total Revenue	649,045		767,309		583,586		77,762		2,077,702

Cost of Revenue	276,754		420,880		232,552		288,876		1,219,062
Research and Development									142,678
Selling, General, and Administrative									235,274

Total Expenses									1,597,014

SEGMENT INCOME	$	372,291	$	346,429	$	351,034	$	(211,114)

OPERATING INCOME									480,688

INTEREST INCOME (EXPENSE)									(6,114)

INCOME BEFORE INCOME TAXES									$	474,574

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NOTE 15. SUBSEQUENT EVENTS

Dividend

On August 2322, ~~2024~~2025, the Company's Board of Directors declared a cash dividend of $0.5558 per share on its common stock, payable on September 2726, ~~2024~~2025, to stockholders of record on September 65, ~~2024~~2025.

Line of Credit

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

None.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the end of the period covered by this Annual Report on Form 10-K, an evaluation was carried out under the supervision and with the participation of our management, including our Company’s Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon that evaluation (required in Exchange Act Rules 13a-15(b) and 15d-15(b)), the CEO and CFO concluded that our disclosure controls and procedures are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. For this purpose, disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed under the Exchange Act is accumulated and communicated to the Company’s management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Management’s Annual Report on Internal Control over Financial Reporting

The Management’s Report on Internal Control over Financial Reporting required by this Item 9A is in Item 8, “Financial Statements and Supplementary Data.” The Company's independent registered public accounting firm has audited our internal control over financial reporting as of June 30, ~~2024~~2025; their report is included in Item 8 of this Form 10-K.

Changes in Internal Control over Financial Reporting

During the quarter ended June 30, ~~2024~~2025, there were no changes in the Company’s internal control over financial reporting which were identified in connection with management’s evaluation required by Rules 13a-15(d) and 15d-15(d) under the Exchange Act that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

Rule 10b-5(1) Trading Plans

During the three months ended June 30, ~~2024~~2025, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.

Not applicable.

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PART III

Information required by Items 10, 11, 12, 13 and 14 of Part III is omitted from this report and will be filed within 120 days after the Company's June 30, ~~2024~~2025, fiscal year end in the definitive proxy statement for our ~~2024~~2025 Annual Meeting of Stockholders (the “Proxy Statement”).

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

See the information under the captions “Election of Directors”,” “Corporate Governance," “Delinquent Section 16(a) Reports" (if applicable), ~~and~~ “Executive Officers,” and “Compensation Discussion and Analysis – Trading in Company Securities Policy," in the Proxy Statement, which is incorporated herein by reference.

ITEM 11. EXECUTIVE COMPENSATION

See the information under captions “Corporate Governance," “Human Capital & Compensation Committee Report," “Compensation Discussion and Analysis," "Compensation and Risk," ~~and~~ “Executive Compensation,” "Pay Versus Performance," and “Pay Ratio Disclosure,” in the Proxy Statement, which is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

See the information under the captions “Stock Ownership of Certain Stockholders” and “Equity Compensation Plan Information” in the Proxy Statement, which is incorporated herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

See the information under the captions “Election of Directors - Director Independence” and “Certain Relationships and Related Transactions” in the Proxy Statement, which is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

See the information under the captions ”Audit Committee Report” and “Ratification of Selection of the Company's Independent Registered Public Accounting Firm," PricewaterhouseCoopers LLP (PCAOB ID No. 238), in the Proxy Statement, which is incorporated herein by reference.

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PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) The following documents are filed as part of this Report:

(1) The following consolidated financial statements of the Company and its subsidiaries and the Report of Independent Registered Public Accounting Firm thereon appear under Item 8 of this Report:

- Reports of Independent Registered Public Accounting Firm

- Consolidated Statements of Income for the fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023

- Consolidated Balance Sheets as of June 30, ~~2024~~2025, and ~~2023~~2024

- Consolidated Statements of Changes in Stockholders’ Equity for the fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023

- Consolidated Statements of Cash Flows for the fiscal years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023

- Notes to the Consolidated Financial Statements

(2) The following financial statement schedules filed as part of this Report appear under Item 8 of this Report:

There are no schedules included because they are not applicable, or the required information is shown in the consolidated financial statements or notes thereto.

(3) See “Index to Exhibits” set forth below.

All exhibits not attached hereto are incorporated by reference to a prior filing as indicated.

Exhibit No. Description

3.1.89 Restated Certificate of Incorporation attached as Exhibit 3.1.89 to the Company’s Quarterly Report on Form 10-Q filed February 97, ~~2021~~2025.

3.2.910 Restated and Amended Bylaws attached as Exhibit 3.2.910 to the Company’s Current Report on Form 8-K filed ~~July~~May 515, ~~2024~~2025.

4.1** Description of Securities

10.49* Jack Henry & Associates, Inc. Deferred Compensation Plan attached as Exhibit 10.49 to the Company’s Quarterly Report on Form 10-Q filed November 5, 2014.

10.50* Jack Henry & Associates, Inc. Non-Employee Directors Deferred Compensation Plan attached as Exhibit 10.50 to the Company’s Quarterly Report on Form 10-Q filed November 5, 2014.

10.56* Jack Henry & Associates, Inc. 2015 Equity Incentive Plan attached as Exhibit 10.56 to the Company's Current Report on Form 8-K filed November 16, 2015.

10.58* Form of Nonqualified Stock Option Agreement (executives) attached as Exhibit 10.58 to the Company’s Current Report on Form 8-K filed July 1, 2016.

10.63* Jack Henry & Associates, Inc. 2017 Annual Incentive Plan, effective September 1, 2017 and approved by the stockholders on November 9, 2017, attached as Exhibit 10.63 to the Company's Current Report on Form 8-K filed November 13, 2017.

10.64* Retention Agreement, dated January 1, 2020, between the Company and David Foss attached as Exhibit 10.64 to the Company’s Current Report on Form 8-K filed January 3, 2020.

10.69* Form of Performance Shares Agreement attached as Exhibit 10.69 to the Company's Annual Report on Form 10-K filed August 25, 2021.

10.70* Form of Restricted Stock Unit Agreement (Employees) attached as Exhibit 10.70 to the Company's Annual Report on Form 10-K filed August 25, 2021.

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10.71* Form of Indemnification Agreement attached as Exhibit 10.71 to the Company's Current Report on Form 8-K filed February 17, 2022.

10.72* Jack Henry & Associates, Inc. Executive Severance Plan attached as Exhibit 10.72 to the Company's Current Report on Form 8-K filed July 29, 2022.

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10.73 Amended and Restated Credit Agreement, dated as of August 31, 2022, among Jack Henry & Associates, Inc., as Borrower, the lenders parties thereto, U.S. Bank National Association, as Administrative Agent, LC Issuer and Swing Line Lender, and certain other financial institutions as co-syndication agents and joint lead arrangers and joint book runners attached as Exhibit 10.73 to the Company’s Current Report on Form 8-K filed September 1, 2022.

10.74 Amendment No. 1 to Amended and Restated Credit Agreement, dated as of May 16, 2023 among Jack Henry & Associates, Inc., as Borrower, the affiliates of Borrower party thereto as Guarantors, the lenders parties thereto, and U.S. Bank National Association, as Administrative Agent attached as Exhibit 10.74 to the Company’s Current Report on Form 8-K filed May 22, 2023.

10.75 Term Loan Agreement, dated as of May 16, 2023, among Jack Henry & Associates, Inc., as Borrower, the lenders parties thereto, Truist Bank, as Administrative Agent, and certain other financial institutions as joint lead arrangers and joint book runners attached as Exhibit 10.75 to the Company’s Current Report on Form 8-K filed May 22, 2023.

10.76* Form of Performance Shares Agreement attached as Exhibit 10.76 to the Company's Annual Report on Form 10-K filed August 24, 2023.

10.77 Form of Aircraft Time Sharing Agreement between the Company and each of Messrs. Foss, Adelson, McLachlan, and Morgan, and Mses. Carsley and Swearingen attached as Exhibit 10.77 to the Company's Annual Report on Form 10-K filed August 24, 2023.

10.7879* ~~Jack~~ Form ~~Henry~~of &Restricted ~~Associates, Inc. 2006 Employee~~ Stock ~~Purchase~~Unit ~~Plan,~~Agreement as(non-employee ~~amended~~directors) ~~and restated on August 18, 2023, effective January 1, 2024~~ attached as Exhibit 10.7879 to the Company's Annual Report on Form 10-K filed August 2426, ~~2023~~2024.

10.7980* Jack ** FormHenry of& ~~Restricted~~Associates, Inc. 2006 Employee Stock ~~Unit~~Purchase ~~Agreement~~Plan, ~~(non~~as amended and restated on November 13, 2024 attached as Exhibit 10.80 to the Company's Annual Report on Form 10-~~employee~~Q ~~directors)~~filed February 7, 2025.

19.1** Jack Henry & Associates, Inc. Trading in Company Securities Policy attached as Exhibit 19.1 to the Company's Annual Report on Form 10-K filed August 26, 2024.

21.1** List of the Company’s subsidiaries.

23.1** Consent of Independent Registered Public Accounting Firm- PricewaterhouseCoopers LLP.

31.1** Certification of the Chief Executive Officer.

31.2** Certification of the Chief Financial Officer.

32.1*** Written Statement of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350.

32.2*** Written Statement of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350.

97.1** Jack Henry & Associates, Inc. Executive Compensation Clawback Policy attached as Exhibit 97.1 to the Company's Annual Report on Form 10-K filed August 26, 2024.

101.INS**** XBRL Instance Document

101.SCH**** XBRL Taxonomy Extension Schema Document

101.CAL**** XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF**** XBRL Taxonomy Extension Definition Linkbase Document

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101.LAB**** XBRL Taxonomy Extension Label Linkbase Document

101.PRE**** XBRL Taxonomy Extension Presentation Linkbase Document

104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit (101)), except registrant name, JACK HENRY & ASSOCIATES INC, tagged in non-printing section.

* Indicates management contract or compensatory plan or arrangement.

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** Filed with this report on Form 10-K

*** Furnished with this report on Form 10-K.

**** Filed with this report on Form 10-K are the following documents formatted in XBRL ("Extensible Business Reporting Language"): (i) the Consolidated Balance Sheets at June 30, ~~2024~~2025, and June 30, ~~2023~~2024, (ii) the Consolidated Statements of Income for the years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, (iii) the Consolidated Statements of Shareholders’ Equity for the years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, (iv) the Consolidated Statements of Cash Flows for the years ended June 30, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, and (v) Notes to Consolidated Financial Statements.

ITEM 16. FORM 10-K SUMMARY

None.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized this ~~26th~~25th day of August, ~~2024~~2025.

JACK HENRY & ASSOCIATES, INC., Registrant

By /s/ Gregory R. Adelson

Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

Signature	Capacity	Date
/s/ Gregory R. AdelsonGregory R. Adelson	Chief Executive Officer and President(Principal Executive Officer)	August 2625, ~~2024~~2025
/s/ Mimi L. CarsleyMimi L. Carsley	Chief Financial Officer and Treasurer(Principal Financial Officer)	August 2625, ~~2024~~2025
/s/ Renee A. SwearingenRenee A. Swearingen	Senior Vice President and Chief Accounting Officer(Principal Accounting Officer)	August 2625, ~~2024~~2025
/s/ David B. FossDavid B. Foss	~~Executive~~ Board Chair	August 2625, ~~2024~~2025
/s/ Matthew C. FlaniganMatthew C. Flanigan	Vice Chair and Lead Director	August 2625, ~~2024~~2025
/s/ Thomas H. Wilson, JrThomas H. Wilson, Jr	Director	August 2625, ~~2024~~2025
/s/ Jacqueline R. FiegelJacqueline R. Fiegel	Director	August 26, 2024
/s/ Thomas A. WimsettThomas A. Wimsett	Director	August 25, 2025
/s/ Thomas A. WimsettThomas A. Wimsett	Director	August 26, 2024
/s/ Shruti S. MiyashiroShruti S. Miyashiro	Director	August 25, 2025
/s/ Shruti S. MiyashiroShruti S. Miyashiro	Director	August 26, 2024
/s/ Wesley A. Brown Wesley A. Brown	Director	August 25, 2025
/s/ Wesley A. Brown Wesley A. Brown	Director	August 26, 2024
/s/ Curtis A. CampbellCurtis A. Campbell	Director	August 25, 2025
/s/ Curtis A. CampbellCurtis A. Campbell	Director	August 26, 2024
/s/ Tammy S. LoCascioTammy S. LoCascio	Director	August 25, 2025
/s/ Tammy S. LoCascioTammy S. LoCascio	Director	August 26, 2024
/s/ Lisa M. NelsonLisa M. Nelson	Director	August 25, 2025
/s/ Lisa M. NelsonLisa M. Nelson	Director	August 26, 2024

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