10-K – 2025-08-25 – jkhy-20250630.htm

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 7,400 banks, 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.
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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, 2025, and 2024:

Year Ended June 30,
2025 2024
Allowance for credit losses - beginning balance $ 7,477   $ 7,955  

Current provision for expected credit losses 2,320   1,920  
Write-offs charged against allowance ( 2,977 ) ( 2,209 )

Other ( 161 ) ( 189 )
Allowance for credit losses - ending balance $ 6,659   $ 7,477  

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, 2025, and 2024, the Company had $ 25,750 in non-current investments. These investments were recorded at cost and are included within other non-current assets on the Company's consolidated balance 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 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, 2025, 2024, and 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.
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, 2025, there were 31,580 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,411 additional shares of its common stock. The total cost of treasury shares at June 30, 2025, was $ 1,895,224 . During fiscal 2025, the Company repurchased 207 shares of its common stock for $ 35,051 to be held in treasury. 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 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, 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, 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
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. The Company adopted this ASU effective for the fiscal year ended June 30, 2025, with retrospective application of the additional segment information for the fiscal years ended June 30, 2024, and 2023. Additional information regarding the Company's reportable segments is included in Note 14 to the consolidated financial statements.
Not Adopted at Fiscal Year End
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.
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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.

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.
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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.
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,
2025 2024 2023
Private and Public Cloud $ 756,879   $ 682,146   $ 618,850  
Product Delivery and Services 251,730   238,723   245,687  
On-Premise Support 353,128   355,085   350,164  
Services and Support 1,361,737   1,275,954   1,214,701  

Processing 1,013,551   939,589   863,001  

Total Revenue $ 2,375,288   $ 2,215,543   $ 2,077,702  

Contract Balances
The following table provides information about contract assets and contract liabilities from contracts with clients.
June 30,
2025 June 30,
2024
Receivables, net $ 317,977   $ 333,033  
Contract Assets - Current
36,221   33,610  
Contract Assets - Non-current
121,675   103,295  
Contract Liabilities (Deferred Revenue) - Current
290,485   317,730  
Contract Liabilities (Deferred Revenue) - Non-current
72,889   71,202  

Contract assets primarily result from client discounts (contract incentives) where revenue is recognized and payment of consideration under the contract is contingent upon the transfer of services to a client over the contractual period. The current portion of contract assets is reported within prepaid expenses and other in the consolidated balance 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, 2025, 2024, and 2023, the Company recognized revenue of $ 252,710 , $ 270,241 , and $ 267,978 , 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, 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 $ 7,710,750 . The Company expects to recognize approximately 24 % 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:

June 30,
2025 June 30,
2024
Capitalized costs to obtain contracts with clients 1
$ 267,726   $ 244,980  
Capitalized costs to fulfill contracts with clients
273,988   258,172  

1 Includes current and non-current capitalized costs of $ 82,441 and $ 185,285 at June 30, 2025, respectively, and $ 68,605 and $ 176,375 at June 30, 2024, respectively.
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  

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
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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, 2025:

Due dates Future Minimum Rental Payments

2026
$ 11,047  
2027 10,455  
2028 10,106  
2029 7,548  
2030 6,525  
Thereafter 11,141  
Total lease payments $ 56,822  
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, 2025, there were $ 2,070 material legally binding lease payments for leases signed but not yet commenced.
The Company may sublease its facilities from time to time to third parties. Sublease income is recognized on a straight-line basis over the lease term, and is included within revenue on the Company's condensed consolidated statements of income.
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, 2025, the future total minimum sublease payments to be received, including termination fees, were as follows:

Due Dates (fiscal year) Future Minimum Sublease Receipts

2026
$ 864  
2027 448  
2028 462  

Total sublease receipts - lessor
$ 1,774  

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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,  
  2025 2024 Estimated Useful Life
Land $ 16,357   $ 16,357    
Land improvements 24,679   24,322   5 - 20 years

Buildings 138,898   133,835   20 - 30 years

Leasehold improvements 50,376   51,432   5 - 30 years
1
Equipment and furniture 461,826   418,853   3 - 10 years

Aircraft and equipment 24,959   44,140   4 - 10 years

Construction in progress 3,797   12,298    

  720,892   701,237    
Less accumulated depreciation 499,928   486,168    
Property and equipment, net $ 220,964   $ 215,069    

1 Lesser of lease term or estimated useful life
The change in property and equipment in accrued liabilities was an increase of $ 227 and $ 723 for the fiscal years ended June 30, 2025, and 2024, respectively. These amounts were excluded from capital expenditures on the statements of cash flows.
No material impairments of property and equipment were recorded in the fiscal years ended June 30, 2025, 2024, or 2023.
At June 30, 2025, held for sale assets include aircraft with a carrying value of approximately $ 5,606 that management has committed to sell. Total assets held for sale by the Company at June 30, 2025, and 2024, were $ 5,606 and $ 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 2025 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   $ 442,665  
Goodwill, acquired during the year —   —  
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  

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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  

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 $ 182,757 and costs of internal-use software, net of amortization, of $ 434,272 at June 30, 2025. At June 30, 2024, costs of software to be sold, leased, or marketed, net of amortization, totaled $ 178,588 , and costs of internal-use software, net of amortization, totaled $ 414,173 .
Computer software includes the unamortized cost of 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 $ 148,734 , $ 137,958 , and $ 123,210 for the fiscal years ended June 30, 2025, 2024, and 2023, respectively. There were no material impairments in fiscal years ended June 30, 2025, 2024, and 2023.
The Company's other intangible assets have useful lives ranging from 3 to 20 years.
Amortization expense for all intangible assets was $ 161,051 , $ 153,562 , and $ 142,006 for the fiscal years ended June 30, 2025, 2024, and 2023, respectively. The estimated aggregate future amortization expense for each of the next five years for all intangible assets remaining as of June 30, 2025, is as follows:

Years Ending June 30, Computer Software Customer
Relationships Other Intangible Assets Total
2026 $ 135,699   $ 7,952   $ 6,074   $ 149,725  
2027 112,316   7,858   4,772   124,946  
2028 86,783   7,821   2,820   97,424  
2029 63,052   7,776   2,051   72,879  
2030 36,861   7,257   1,066   45,184  

NOTE 7.     DEBT
The Company had no outstanding debt at June 30, 2025. The Company had $ 90,000 outstanding current maturities of long-term debt and $ 60,000 outstanding long-term debt at June 30, 2024, related to credit facilities.
Credit facilities
On August 31, 2022, the Company entered into a five-year senior, unsecured amended and restated credit agreement. 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
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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, 2025, the Company was in compliance with all such covenants. The credit facility terminates August 31, 2027 . There was $ 0 and $ 60,000 outstanding under the credit facility at June 30, 2025, and June 30, 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 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 was guaranteed by certain subsidiaries of the Company 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.
Interest
The Company paid interest of $ 10,044 , $ 15,757 , and $ 14,776 during the fiscal years ended June 30, 2025 , 2024, and 2023, respectively.

NOTE 8.     INCOME TAXES
The provision for income taxes consists of the following:

  Year Ended June 30,
  2025 2024 2023
Current:      
Federal $ 109,633   $ 93,890   $ 125,622  
State 24,151   23,222   30,505  
Deferred:  
Federal ( 5,159 ) ( 1,615 ) ( 40,218 )
State 1,663   706   ( 7,981 )
  $ 130,288   $ 116,203   $ 107,928  

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

  June 30,
  2025 2024
Deferred tax assets:    
Contract and service revenues $ 25,489   $ 21,985  
Expense reserves and accruals (bad debts and compensation)
17,022   16,123  
Leasing liabilities 12,590   14,755  
Software development and research and development tax amortization
14,244   —  
Net operating loss and tax credit carryforwards 212   2,155  
Other, net 2,503   3,369  
Total gross deferred tax assets 72,060   58,387  
Valuation allowance ( 182 ) ( 108 )
Net deferred tax assets 71,878   58,279  

Deferred tax liabilities:    
Property and equipment depreciation ( 24,232 ) ( 26,689 )
Intangibles, software development, and research and development tax amortization ( 107,083 ) ( 113,623 )
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:
  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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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.
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, 2025, 2024, and 2023, includes $ 28,392 , $ 28,873 , and $ 28,611 , respectively, of equity-based compensation costs, of which $ 25,757 , $ 26,361 , and $ 26,427 , 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, 2025, 2024, and 2023, were $ 4,479 , $ 4,495 , and $ 5,115 , respectively. These income tax benefits from stock option exercises and restricted stock vestings included income tax net excess benefits of $ 283 and $ 1,109 for the fiscal years ended June 30, 2025 and June 30, 2023, respectively, and income tax net shortfalls of $ 184 for the fiscal year ended June 30, 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.
During 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.
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, 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, 2022 303   $ 166.50  
Granted 1
136   214.78  
Vested ( 120 ) 159.10  
Forfeited 2
( 16 ) 186.35  
Outstanding July 1, 2023 303   190.08  
Granted 1
160   177.95  
Vested ( 99 ) 170.25  
Forfeited 2
( 39 ) 194.11  
Outstanding July 1, 2024 325   189.68  
Granted 1
162   171.90  
Vested ( 122 ) 183.64  
Forfeited 2
( 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.
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.
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Of the 162 unit awards granted in fiscal 2025, 115 were restricted stock unit awards and 47 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.
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: 2025 2024 2023
Compensation Peer Group: 1

Volatility 24.5   % 25.6   % 29.4   %
Risk free interest rate 3.72   % 4.48   % 2.96   %
Annual dividend based on most recent quarterly dividend $ 2.20   $ 2.08   $ 1.96  
Dividend yield 1.3   % 1.2   % 0.9   %
Beginning average percentile rank for TSR 41   % 74   % 71   %

1 For fiscal 2023, S&P 1500 S&S Index participants were included in the compensation peer group.
At June 30, 2025, there was $ 18,018 of compensation expense that has yet to be recognized related to non-vested restricted stock unit and performance unit awards, which will be recognized over a weighted-average remaining contractual term of 0.99 years.
The fair values of restricted stock units and performance units at release totaled $ 22,591 , $ 16,544 , and $ 24,931 for the fiscal years ended June 30, 2025, 2024, and 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,
  2025 2024 2023
Net Income $ 455,748   $ 381,816   $ 366,646  
Common share information:
Weighted average shares outstanding for basic earnings per share 72,874   72,867   72,918  
Dilutive effect of stock options, restricted stock units, and performance units 171   158   178  
Weighted average shares outstanding for diluted earnings per share 73,045   73,025   73,096  
Basic earnings per share $ 6.25   $ 5.24   $ 5.03  
Diluted earnings per share $ 6.24   $ 5.23   $ 5.02  

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 18 anti-dilutive weighted average shares excluded from the weighted average shares outstanding for diluted earnings per share for fiscal 2025, 33  shares were excluded for fiscal 2024, and 10 shares were excluded for fiscal 2023.

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, 2025 , 2024, and 2023, associates purchased 80 , 90 , and 84 shares under the Plan at average prices of $ 147.49 , $ 137.78 , and $ 146.79 , respectively. As of June 30, 2025, approximately 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 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. Beginning 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 $ 34,751 , $ 31,995 , and $ 29,308 for the fiscal years ended June 30, 2025 , 2024, and 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 deductible for income tax purposes.
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 is a well-rounded financial technology company and is a leading provider of technology solutions and payment processing services primarily to community and regional banks 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 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 Chief Executive Officer, who is also the Company's chief operating decision maker ("CODM"), regularly evaluated segment performance and made strategic decisions on the allocation of resources to them
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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.
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.

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 22, 2025 , the Company's Board of Directors declared a cash dividend of $ 0.58 per share on its common stock, payable on September 26, 2025 , to stockholders of record on September 5, 2025 .
Line of Credit
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 .

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, 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, 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, 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, 2025, fiscal year end in the definitive proxy statement for our 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), “ 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," “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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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, 2025, 2024, and 2023
- Consolidated Balance Sheets as of June 30, 2025, and 2024
- Consolidated Statements of Changes in Stockholders’ Equity for the fiscal years ended June 30, 2025, 2024, and 2023
- Consolidated Statements of Cash Flows for the fiscal years ended June 30, 2025, 2024, and 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

3.1.9     Restated Certificate of Incorporation attached as Exhibit 3.1. 9 to the Company’s Quarterly Report on Form 10-Q filed February 7 , 202 5 .

3.2.10     Restated and Amended Bylaws attached as Exhibit 3.2. 10 to the Company’s Current Report on Form 8-K filed May 15, 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.

10.70*     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.

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.

10.76* 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.

10.79*      Form of Restricted Stock Unit Agreement (non-employee directors) attached as Exhibit 10.79 to the Company's Annual Report on Form 10-K filed August 26, 2024.

10.80* Jack Henry & Associates, Inc. 2006 Employee Stock Purchase Plan, as amended and restated on November 1 3, 2024 attached as Exhibit 10. 80 to the Company's Annual Report on Form 10- Q filed February 7, 2025 .

19.1     Jack Henry & Associates, Inc. Trading in Company Securities Policy attached as Exhi bit 19.1 to the Company's Annual Report on F orm 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 C ompany's Annual Report on Form 10-K filed August 26, 202 4 .

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

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, 2025, and June 30, 2024, (ii) the Consolidated Statements of Income for the years ended June 30, 2025, 2024, and 2023, (iii) the Consolidated Statements of Shareholders’ Equity for the years ended June 30, 2025, 2024, and 2023, (iv) the Consolidated Statements of Cash Flows for the years ended June 30, 2025, 2024, and 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 25th day of August, 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. Adelson
Gregory R. Adelson
Chief Executive Officer and President
(Principal Executive Officer)
August 25, 2025
     
/s/ Mimi L. Carsley
Mimi L. Carsley
Chief Financial Officer and Treasurer
(Principal Financial Officer) August 25, 2025
     
/s/ Renee A. Swearingen
Renee A. Swearingen
Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer) August 25, 2025

/s/ David B. Foss
David B. Foss
Board Chair
August 25, 2025

/s/ Matthew C. Flanigan
Matthew C. Flanigan
Vice Chair and Lead Director August 25, 2025
     
/s/ Thomas H. Wilson, Jr
Thomas H. Wilson, Jr
Director August 25, 2025
   
/s/ Thomas A. Wimsett
Thomas A. Wimsett
Director August 25, 2025

/s/ Shruti S. Miyashiro
Shruti S. Miyashiro
Director August 25, 2025

/s/ Wesley A. Brown
Wesley A. Brown
Director August 25, 2025

/s/ Curtis A. Campbell
Curtis A. Campbell
Director August 25, 2025

/s/ Tammy S. LoCascio
Tammy S. LoCascio
Director August 25, 2025

/s/ Lisa M. Nelson
Lisa M. Nelson
Director August 25, 2025

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