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August 25, 2025 • 3 min read
Jack Henry & Associates (JKHY), a key technology partner for thousands of community banks and credit unions across the United States, recently released its annual 10-K report. This document gives us a detailed look under the hood of the company's financial health and performance for the fiscal year ending June 30, 2025. Let's dive into the income statement to see what we can learn about their recent performance.
For those interested in the complete details, the full filing is available on the SEC's website, which you can access right here.
For the 2025 fiscal year, Jack Henry reported total revenue of $2.38 billion, a solid 7.2% increase from the $2.22 billion reported in 2024. While top-line growth is always a positive sign, the real story is in the company's profitability.
Net income—the company's profit after all expenses and taxes are paid—surged an impressive 19.4% to $456 million, up from $382 million in the prior year. This translated to diluted earnings per share (EPS) of $6.24, a significant jump from $5.23 in fiscal 2024. This indicates that the company isn't just growing; it's becoming more efficient and profitable.
To better visualize how the company's revenue is converted into profit, the following flow diagram breaks down the major sources of income and expenses.
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In the diagram, you'll notice a segment labeled "Corporate and Other." This category primarily captures shared corporate expenses, such as certain administrative and operational costs, that are not allocated to the main business segments. This explains why its cost of revenue is substantial while its direct revenue is minimal.
Jack Henry operates through three primary segments, all of which contributed to its growth:
This balanced performance across all major segments highlights a healthy and diversified business model, with each division playing a crucial role in the company's overall expansion.
Jack Henry’s impressive jump in net income was driven by more than just revenue growth; it was also a result of effective cost management.
The cost of revenue as a percentage of total revenue decreased from 59% in 2024 to 57% in 2025. This improvement in gross margin means the company is retaining more profit from every dollar of sales.
Similarly, selling, general, and administrative (SG&A) expenses also became more efficient, dropping from 13% to 12% of total revenue. At the same time, the company continued to invest in its future, with research and development (R&D) expenses slightly increasing to $163 million, reflecting its ongoing commitment to technology modernization.
Jack Henry's latest 10-K paints a picture of a company in a strong financial position. It successfully grew its top line while significantly expanding its profitability through improved operational efficiency. The balanced growth across its Core, Payments, and Complementary segments suggests a robust strategy that resonates with its client base of community and regional financial institutions. As these smaller banks and credit unions continue to navigate a competitive landscape and invest in modern technology, Jack Henry appears well-positioned to remain a critical partner in their success.
Last updated: August 25, 2025