Technology
Green Cubes Announces Battery Pack to Power Computer Cart Systems
Published
1 year agoon
By

Slim, rugged portable pack is UL-certified to power multiple devices at different voltages with built-in DC adapters.
KOKOMO, Ind., March 1, 2024 /PRNewswire-PRWeb/ — Green Cubes Technology (Green Cubes), the leader in producing lithium-ion power systems that facilitate the electrification of mobile workstations, today announced the Green Cubes Power Bank, a slim, rugged portable battery pack to extend the runtime of laptops and small computer systems.
“Powering a laptop or computer system has never been easier using the adjustable DC output from the Power Bank,” said Robin Schneider, Director of Marketing for Green Cubes. “Simply connect any commercial power supply up to 100W with a USB-C connection for dependable, extended power.”
With a universal DC output and built-in charger, the Power Bank simplifies running mobile computing platforms for longer with a fully configurable output voltage and 230 Whr capacity rating.
“The Power Bank features two independent DC outputs and built-in DC regulators, so multiple devices can be powered at different voltages from the same battery,” said Wayne Pavlovic, Founder and CTO for Simplifi Medical. “We simply program the voltage of the battery to the requirement of our devices, and we can power a monitor and a micro-PC from the same battery pack on our portable medical cart.”
The Green Cubes Power Bank is now available for implementation with OEM cart systems.
More information can be found at https://greencubes.com/product/green-cubes-industrial-power-bank/.
About Green Cubes Technology
Green Cubes Technology develops and manufactures safe and reliable electrification solutions that enable its OEM and enterprise customers to transition from Lead Acid and Internal Combustion Engine (ICE) power to Lithium-ion battery power. Green Cubes utilizes proven hardware and software platforms to build the most reliable Lithium power solutions in its industries. With over 300 employees across six countries, Green Cubes has been producing innovative, high-performance and high-quality power solutions since 1986.
Media Contact
Hayley Luz, Green Cubes Technology, 4259182742, hluz@greencubes.com, www.greencubes.com
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SOURCE Green Cubes Technology
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Technology
iRobot Reports First Quarter 2025 Financial Results
Published
10 minutes agoon
May 6, 2025By

Global New Product Rollout Continues with High-Impact Launch Events
Company Continues to Execute “iRobot Elevate” Turnaround Strategy
BEDFORD, Mass., May 6, 2025 /PRNewswire/ — iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced its financial results for the first quarter ended March 29, 2025.
“We continued to make meaningful progress on our iRobot Elevate turnaround strategy in the first quarter and initiated the largest new product launch in iRobot’s history,” said Gary Cohen, iRobot CEO. “We are encouraged by the positive reactions from distributors, retailers and consumers, and expect to see an uptick in sales later in the year as availability of our suite of new, technologically innovative Roomba® vacuums and 2-in-1 vacuums and mops expands. As our Board of Directors continues its review of strategic alternatives for our business, we remain focused on executing our proven strategy and delivering the products our customers have come to know and love.”
The Company has achieved a significant reduction in operating expenses and production costs by transforming its R&D and supply chain model to better leverage the Company’s design capabilities and contract manufacturing partnerships. This reinvention of the way iRobot operates has allowed for a greater focus on innovation and improvements to product features, quality, and software. With respect to the current tariff conditions, the majority of the Company’s U.S. imports come from Vietnam and are currently subject to a 10% tariff rate.
“Our first quarter performance reflects what has been a major transitional period for iRobot as we worked to clear our sales channels of legacy product inventory. As we continue to navigate a dynamic macro environment, we expect our new products and lower overall cost structure to drive improved profitability over the long term. We expect to see solid sales traction later this year to support year-over-year revenue growth in 2025, and we remain on track to deliver gross-margin expansion and improved cash flow from operations this year,” concluded Cohen.
Marketing Highlights
In late March and early April 2025, iRobot announced the availability in North America and select European markets its suite of technologically innovative Roomba® vacuums and 2-in-1 vacuums and mops. Media coverage in North America and Europe was impressive with more than 200 pieces of media coverage in some of the world’s most influential tech/consumer outlets, reaching a potential audience (total UVPM/Circulation/Reach) of more than 2.5 billion.On April 16, 2025, iRobot introduced its new product lineup in Japan, engaging with more than 100 media outlets and influencers, resulting in more than 600 pieces of media coverage in one week.On April 23, 2025, iRobot announced the availability of the Roomba® Max 705 Vac Robot + AutoEmpty™ Dock in North America and select European markets.iRobot has continued to receive positive media coverage and product reviews around the world, including in Tom’s Guide US, Engadget US, Vacuum Wars US, The Independent UK, La Voz de Galicia Spain, Les Numeriques France, Fuji News Network and All the Things.
First Quarter 2025 Financial Results (in millions, except per share amounts and percentages)
Q1 2025
Q1 2024
Revenue
$101.6
$150.0
GAAP Gross Margin
20.0 %
24.1 %
Non-GAAP Gross Margin
22.0 %
24.6 %
GAAP Operating Expenses
$66.1
$24.2
Non-GAAP Operating Expenses
$53.8
$76.9
GAAP Operating (Loss) Income*
($45.8)
$11.9
Non-GAAP Operating Loss
($31.5)
($40.0)
GAAP Net (Loss) Income*
($87.3)
$8.6
Non-GAAP Net Loss
($60.0)
($43.0)
GAAP Net (Loss) Income Per Share*
($2.84)
$0.30
Non-GAAP Net Loss Per Share
($1.95)
($1.53)
*Q1 2024 GAAP operating income, GAAP net income and GAAP net income per share included the one-time net termination fee of $75 million received as a result of the termination of the Amazon Merger Agreement.
Additional Financial Highlights
As of March 29, 2025, the Company’s cash and cash equivalents including restricted cash totaled $112.3 million, compared with $138.0 million at the end of the fourth quarter of 2024. During the third quarter of 2024, the Company elected to draw down $40 million from the restricted cash that is set aside for future repayment of its term loan, subject to limited ability of the Company to utilize such amount at the discretion of the lenders for the purchase of inventory. The Company repaid that amount to restricted cash during the first quarter of 2025.As of March 29, 2025, the Company reduced inventory to $69.0 million, compared with $76.0 million at the end of the fourth quarter of 2024.In the first quarter of 2025, revenue decreased 39.9% in the U.S., 26.9% in EMEA, and 20.8% in Japan, respectively, over the prior-year period. Excluding the unfavorable foreign currency impact, Japan revenue decreased 10% and EMEA revenue decreased 24% over the prior-year period. Q1 2025 revenue was impacted by additional promotional spending to stimulate sell-through of legacy products ahead of the Company’s 2025 new product launch, along with ongoing competitive challenges that the Company is addressing with its new product launches.Revenue from mid-tier robots (with an MSRP between $300 and $499) and premium robots (with an MSRP of $500 or more) represented 76% of total robot sales in the first quarter of 2025, compared with 81% in the same period last year.
Ongoing Strategic Review
As previously announced, the Company’s Board of Directors is conducting a review of strategic alternatives, including, but not limited to, exploring a potential sale or strategic transaction, and refinancing the Company’s debt. This review process is ongoing.
The Board has not set a timetable for the conclusion of this review, and there can be no assurance that the exploration of strategic alternatives will result in any transactions or outcomes. The Company does not intend to disclose developments relating to this process until it determines that further disclosure is appropriate or necessary.
The Company remains actively engaged in ongoing collaborative and constructive discussions with its primary lender while the Board continues its strategic review process. On April 30, 2025, the Company further amended its existing term loan to extend the covenant waiver under the term loan to June 6, 2025.
In light of the ongoing strategic review, the Company will not be hosting a first quarter 2025 results earnings conference call and webcast, and will not be providing a 2025 outlook at this time.
About iRobot Corp.
iRobot is a global consumer robot company that designs and builds thoughtful robots and intelligent home innovations that make life better. iRobot introduced the first Roomba robot vacuum in 2002. Today, iRobot is a global enterprise that has sold more than 50 million robots worldwide. iRobot’s product portfolio features technologies and advanced concepts in cleaning, mapping and navigation. Working from this portfolio, iRobot engineers are building robots and smart home devices to help consumers make their homes easier to maintain and healthier places to live. For more information about iRobot, please visit www.irobot.com.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which relate to, among other things: the Company’s expectations regarding the financial profile and impact of newly launched products in 2025; expectations regarding improved profitability; expectations regarding 2025 product sales and related revenue growth, achievement of gross margin expansion and improved cash flow from operations; the Board’s review of strategic alternatives for the business; and the Company’s business plans and strategies and the anticipated impact thereof. These forward-looking statements are based on the Company’s current expectations, estimates and projections about its business and industry, all of which are subject to change. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “expect,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: (i) the Company’s ability to obtain capital when desired on favorable terms, if at all; (ii) the Company’s ability to realize the benefits of its operational restructuring; (iii) the impact of various global conflicts on the Company’s business and general economic conditions; (iv) the Company’s ability to implement its business strategy; (v) the risk that disruptions from the operational restructuring will harm the Company’s business, including current plans and operations; (vi) the ability of the Company to retain and hire key personnel; (vii) legislative, regulatory and economic developments affecting the Company’s business; (viii) general economic and market developments and conditions; (ix) the evolving legal, regulatory and tax regimes under which the Company operates; (x) potential business uncertainty, including changes to existing business relationships that could affect the Company’s financial performance; (xi) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities; (xii) current supply chain challenges; (xiii) the financial strength of our customers and retailers; (xiv) the impact of any applicable tariffs on goods imported into the United States; (xv) competition; and (xvi) the results and impact of the Board’s strategic review of alternatives for the business, as well as the Company’s response to any of the aforementioned factors. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” in the Company’s most recent annual and quarterly reports filed with the SEC and any subsequent reports on Form 10-K, Form 10-Q or Form 8-K filed from time to time and available at www.sec.gov. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability and similar risks, any of which could have a material adverse effect on the Company’s financial condition, results of operations, or liquidity. The forward-looking statements included herein are made only as of the date hereof. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
iRobot Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
For the three months ended
March 29, 2025
March 30, 2024
Revenue
$ 101,569
$ 150,014
Cost of revenue:
Cost of product revenue
79,598
113,913
Restructuring and other
1,658
–
Total cost of revenue
81,256
113,913
Gross profit
20,313
36,101
Operating expenses:
Research and development
14,686
33,878
Selling and marketing
26,051
29,716
General and administrative
19,016
(53,711)
Restructuring and other
6,174
14,146
Amortization of acquired intangible assets
136
172
Total operating expenses
66,063
24,201
Operating (loss) income
(45,750)
11,900
Other expense, net
(41,066)
(3,185)
(Loss) income before income taxes
(86,816)
8,715
Income tax expense
457
108
Net (loss) income
$ (87,273)
$ 8,607
Net (loss) income per share:
Basic
$ (2.84)
$ 0.31
Diluted
$ (2.84)
$ 0.30
Number of shares used in per share calculations:
Basic
30,725
28,171
Diluted
30,725
28,266
Stock-based compensation included in above figures:
Cost of revenue
346
828
Research and development
910
2,897
Selling and marketing
965
1,338
General and administrative
3,093
2,885
Total
$ 5,314
$ 7,948
iRobot Corporation
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
March 29, 2025
December 28, 2024
Assets
Cash and cash equivalents
$ 69,922
$ 134,303
Restricted cash
40,003
1,259
Accounts receivable, net
30,804
49,865
Inventory
68,968
76,029
Other current assets
24,588
27,046
Total current assets
234,285
288,502
Property and equipment, net
12,106
15,835
Operating lease right-of-use assets
13,675
14,322
Deferred tax assets
9,980
9,817
Goodwill
171,548
167,288
Intangible assets, net
3,225
3,212
Other assets
16,690
17,161
Total assets
$ 461,509
$ 516,137
Liabilities and stockholders’ (deficit) equity
Accounts payable
$ 97,298
$ 106,367
Accrued expenses
96,761
100,597
Deferred revenue and customer advances
9,794
11,280
Term loan
224,084
–
Total current liabilities
427,937
218,244
Term loan
–
200,604
Operating lease liabilities
20,348
21,598
Other long-term liabilities
14,017
14,452
Total long-term liabilities
34,365
236,654
Total liabilities
462,302
454,898
Stockholders’ (deficit) equity
(793)
61,239
Total liabilities and stockholders’ (deficit)
equity
$ 461,509
$ 516,137
iRobot Corporation
Consolidated Statements of Cash Flows
(unaudited, in thousands)
For the three months ended
March 29, 2025
March 30, 2024
Cash flows from operating activities:
Net (loss) income
$ (87,273)
$ 8,607
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization
2,623
5,812
Loss on equity investment
–
375
Stock-based compensation
5,314
7,948
Provision for inventory excess and obsolescence
384
200
Change in fair value of term loan
25,965
(1,008)
Debt issuance costs expensed under fair value option
11,614
239
Deferred income taxes, net
292
(127)
Other
1,638
(3,452)
Changes in operating assets and liabilities — (use) source
Accounts receivable
20,156
38,565
Inventory
7,434
16,066
Other assets
3,135
6,045
Accounts payable
(9,642)
(74,601)
Accrued expenses and other liabilities
(8,100)
(3,232)
Net cash (used in) provided by operating activities
(26,460)
1,437
Cash flows from investing activities:
Additions of property and equipment
–
(118)
Purchase of investments
(8)
–
Net cash used in investing activities
(8)
(118)
Cash flows from financing activities:
Income tax withholding payment associated with restricted stock vesting
(84)
(390)
Proceeds from issuance of common stock, net of issuance costs
–
5,632
Repayment of term loan
–
(34,947)
Payment of debt issuance costs
–
(239)
Net cash used in financing activities
(84)
(29,944)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
922
882
Net decrease in cash, cash equivalents and restricted cash
(25,630)
(27,743)
Cash, cash equivalents and restricted cash, at beginning of period
137,951
187,887
Cash, cash equivalents and restricted cash, at end of period
$ 112,321
$ 160,144
Cash, cash equivalents and restricted cash, at end of period:
Cash and cash equivalents
$ 69,922
$ 118,356
Restricted cash
40,003
40,012
Restricted cash, non-current (included in other assets)
2,396
1,776
Cash, cash equivalents and restricted cash, at end of period
$ 112,321
$ 160,144
iRobot Corporation
Supplemental Information
(unaudited)
For the three months ended
March 29, 2025
March 30, 2024
Revenue by Geographical Region *
United States
$ 41,440
$ 68,896
EMEA
32,947
45,088
Japan
21,949
27,718
Other
5,233
8,312
Total
$ 101,569
$ 150,014
Robot Units Shipped *
Solo and other
98
267
2-in-1
312
189
Total
410
456
Revenue by Product Category **
Solo and other
$ 36
$ 94
2-in-1
66
56
Total
$ 102
$ 150
Average gross selling prices for robot units
$ 296
$ 346
Headcount
530
1,058
* in thousands
** in millions
Certain numbers may not total due to rounding
iRobot Corporation
Explanation of Non-GAAP Measures
In addition to disclosing financial results in accordance with U.S. GAAP, this earnings release contains references to the non-GAAP financial measures described below. We use non-GAAP measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures.
Our non-GAAP financial measures reflect adjustments based on the following items. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated.
Amortization of Acquired Intangible Assets: Amortization of acquired intangible assets consists of amortization of intangible assets including completed technology, customer relationships, and reacquired distribution rights acquired in connection with business combinations as well as any non-cash impairment charges associated with intangible assets in connection with our past acquisitions. Amortization charges for our acquisition-related intangible assets are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions. We exclude these charges from our non-GAAP measures to facilitate an evaluation of our current operating performance and comparisons to our past operating performance.
Net Merger, Acquisition and Divestiture (Income) Expense: Net merger, acquisition and divestiture (income) expense primarily consists of transaction fees, professional fees, and transition and integration costs directly associated with mergers, acquisitions and divestitures, including with respect to the iRobot-Amazon Merger. It also includes business combination adjustments including adjustments after the measurement period has ended. During the first quarter of fiscal 2024, the adjustment included the one-time net termination fee received as a result of the termination of the iRobot-Amazon Merger. The occurrence and amount of these costs will vary depending on the timing and size of these transactions. We exclude these charges from our non-GAAP measures to facilitate an evaluation of our current operating performance and comparisons to our past operating performance.
Stock-Based Compensation: Stock-based compensation is a non-cash charge relating to stock-based awards. We exclude this expense as it is a non-cash expense, and we assess our internal operations excluding this expense and believe it facilitates comparisons to the performance of other companies.
Restructuring and Other: Restructuring charges are related to one-time actions associated with realigning resources, enhancing operational productivity and efficiency, or improving our cost structure in support of our strategy. Such actions are not reflective of ongoing operations and include costs primarily associated with severance and related costs, charges related to paused work unrelated to our core business, costs associated with the Chief Executive Officer transition and other non-recurring costs directly associated with resource realignments tied to strategic initiatives or changes in business conditions. We exclude these items from our non-GAAP measures when evaluating our recent and prospective business performance as such items vary significantly based on the magnitude of the action and do not reflect anticipated future operating costs. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of our business.
Gain/Loss on Strategic Investments: Gain/loss on strategic investments includes fair value adjustments, realized gains and losses on the sales of these investments and losses on the impairment of these investments. We exclude these items from our non-GAAP measures because we do not believe they correlate to the performance of our core business and may vary in size based on market conditions and events. We believe that the exclusion of these gains or losses provides investors with a supplemental view of our operational performance.
Debt Issuance Costs: Debt issuance costs include various incremental fees paid to third parties and warrants issued in connection with the issuance or amendment of debt. We exclude these charges from our non-GAAP measures to facilitate an evaluation of our current operating performance and comparisons to our past operating performance.
Income Tax Adjustments: Income tax adjustments include the tax effect of the non-GAAP adjustments, calculated using the appropriate statutory tax rate for each adjustment. We regularly assess the need to record valuation allowances based on the non-GAAP profitability and other factors. We also exclude certain tax items, including the impact from stock-based compensation windfalls/shortfalls, which are not reflective of income tax expense incurred as a result of current period earnings. We believe disclosure of the income tax provision before the effect of such tax items is important to permit investors’ consistent earnings comparison between periods.
iRobot Corporation
Supplemental Reconciliation of GAAP Actuals to Non-GAAP Actuals
(in thousands, except per share amounts)
(unaudited)
For the three months ended
March 29, 2025
March 30, 2024
GAAP Revenue
$ 101,569
$ 150,014
GAAP Gross Profit
$ 20,313
$ 36,101
Stock-based compensation
346
828
Restructuring and other
1,658
–
Non-GAAP Gross Profit
$ 22,317
$ 36,929
GAAP Gross Margin
20.0 %
24.1 %
Non-GAAP Gross Margin
22.0 %
24.6 %
GAAP Operating Expenses
$ 66,063
$ 24,201
Amortization of acquired intangible assets
(136)
(172)
Stock-based compensation
(4,968)
(7,120)
Net merger, acquisition and divestiture (expense) income
(949)
74,117
Restructuring and other
(6,174)
(14,146)
Non-GAAP Operating Expenses
$ 53,836
$ 76,880
GAAP Operating Expenses as a % of GAAP Revenue
65.0 %
16.1 %
Non-GAAP Operating Expenses as a % of Non-GAAP Revenue
53.0 %
51.2 %
GAAP Operating (Loss) Income
$ (45,750)
$ 11,900
Amortization of acquired intangible assets
136
172
Stock-based compensation
5,314
7,948
Net merger, acquisition and divestiture expense (income)
949
(74,117)
Restructuring and other
7,832
14,146
Non-GAAP Operating Loss
$ (31,519)
$ (39,951)
GAAP Operating Margin
(45.0) %
7.9 %
Non-GAAP Operating Margin
(31.0) %
(26.6) %
iRobot Corporation
Supplemental Reconciliation of GAAP Actuals to Non-GAAP Actuals continued
(in thousands, except per share amounts)
(unaudited)
For the three months ended
March 29, 2025
March 30, 2024
GAAP Income Tax Expense
$ 457
$ 108
Tax effect of non-GAAP adjustments
48
601
Other tax adjustments
(131)
(192)
Non-GAAP Income Tax Expense
$ 374
$ 517
GAAP Net (Loss) Income
$ (87,273)
$ 8,607
Amortization of acquired intangible assets
136
172
Stock-based compensation
5,314
7,948
Net merger, acquisition and divestiture expense (income)
949
(74,117)
Restructuring and other
7,832
14,146
Loss on strategic investments
–
375
Debt issuance costs
13,009
239
Income tax effect
83
(409)
Non-GAAP Net Loss
$ (59,950)
$ (43,039)
GAAP Net (Loss) Income Per Diluted Share
$ (2.84)
$ 0.30
Amortization of acquired intangible assets
0.01
0.01
Stock-based compensation
0.17
0.28
Net merger, acquisition and divestiture expense (income)
0.03
(2.63)
Restructuring and other
0.26
0.50
Loss on strategic investments
–
0.01
Debt issuance costs
0.42
0.01
Income tax effect
–
(0.01)
Non-GAAP Net Loss Per Diluted Share
$ (1.95)
$ (1.53)
Number of shares used in diluted per share calculation
30,725
28,171
Supplemental Information
Days sales outstanding
28
24
GAAP Days in inventory
77
107
Non-GAAP Days in inventory(1)
79
108
(1) Non-GAAP Days in inventory is calculated as inventory divided by (Revenue minus Non-GAAP Gross Profit), multiplied by 91 days.
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SOURCE iRobot Corporation
Technology
Jack Henry & Associates, Inc. Reports Third Quarter Fiscal 2025 Results
Published
10 minutes agoon
May 6, 2025By

Third quarter summary:
GAAP revenue increased 8.6% and GAAP operating income increased 23.8% for the fiscal three months ended March 31, 2025, compared to the prior fiscal year quarter.Non-GAAP adjusted revenue increased 7.0% and non-GAAP adjusted operating income increased 17.6% for the fiscal three months ended March 31, 2025, compared to the prior fiscal year quarter.1GAAP EPS was $1.52 per diluted share for the fiscal three months ended March 31, 2025, compared to $1.19 per diluted share in the prior fiscal year quarter.
Fiscal year-to-date summary:
GAAP revenue increased 6.3% and GAAP operating income increased 13.5% for the fiscal year-to-date period ended March 31, 2025, compared to the prior fiscal year-to-date period.Non-GAAP adjusted revenue increased 6.1% and non-GAAP adjusted operating income increased 8.2% for the fiscal year-to-date period ended March 31, 2025, compared to the prior fiscal year-to-date period.1GAAP EPS was $4.49 per diluted share for the fiscal year-to-date period ended March 31, 2025, compared to $3.85 per diluted share in the prior fiscal year-to-date period.Cash and cash equivalents were $39.9 million at March 31, 2025, and $27.3 million at March 31, 2024.Debt outstanding related to credit facilities was $170 million at March 31, 2025, and $250 million at March 31, 2024.
Full year fiscal 2025 guidance (Dollars In millions):2
Current
GAAP
Low
High
Revenue
$2,353
$2,370
Operating margin3
23.5 %
23.7 %
EPS
$6.00
$6.09
Non-GAAP4
Adjusted revenue
$2,331
$2,342
Adjusted operating margin
23.0 %
23.1 %
MONETT, Mo., May 6, 2025 /PRNewswire/ — Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading financial technology provider, today announced results for fiscal third quarter ended March 31, 2025.
1 See tables below on page 4 reconciling non-GAAP financial measures to GAAP.
2 The full fiscal year guidance assumes no acquisitions or dispositions are made during fiscal year 2025.
3 Operating margin is calculated by dividing operating income by revenue.
4 See tables below on page 9 reconciling fiscal year 2025 GAAP to non-GAAP guidance.
5 See table below on page 14 reconciling net income to non-GAAP EBITDA.
According to Greg Adelson, President and CEO, “Our third quarter results reflect solid overall performance. We continued to see strong growth in key revenue areas such as public and private cloud as well as processing. We are successfully winning deals with larger financial institutions through our unwavering focus on culture, service, innovation, strategy, and execution. We are making significant progress with our technology modernization and our small & medium-sized business (SMB) strategies. We remain confident in the demand environment, our robust sales pipeline, and our long-term financial performance.”
Operating Results
Revenue, operating expenses, operating income, and net income for the three and nine months ended March 31, 2025, compared to the three and nine months ended March 31, 2024, were as follows:
Revenue
(Unaudited, dollars in thousands)
Three Months Ended
March 31,
% Change
Nine Months Ended
March 31,
% Change
2025
2024
2025
2024
Revenue
Services and Support
$ 330,792
$ 305,017
8.5 %
$ 1,010,498
$ 959,214
5.3 %
Percentage of Total Revenue
56.5 %
56.6 %
57.4 %
57.9 %
Processing
254,295
233,545
8.9 %
749,418
696,417
7.6 %
Percentage of Total Revenue
43.5 %
43.4 %
42.6 %
42.1 %
REVENUE
$ 585,087
$ 538,562
8.6 %
$ 1,759,916
$ 1,655,631
6.3 %
Services and support revenue increased for the three months ended March 31, 2025, primarily driven by growth in data processing and hosting revenue within cloud of 12.0% and higher deconversion revenue by $8,801, partially offset by the decrease in license and hardware revenues of 35.0%. Processing revenue increased for the three months ended March 31, 2025, primarily driven by growth in card revenue of 8.1%, transaction and digital revenue of 14.6%, and payment processing revenue of 10.4%.Services and support revenue increased for the nine months ended March 31, 2025, primarily driven by growth in data processing and hosting revenue within cloud of 12.1% and higher deconversion revenue by $3,549, partially offset by a decrease in license and hardware revenues of 30.7%. Processing revenue increased for the nine months ended March 31, 2025, primarily driven by growth in card revenue of 6.6% and transaction and digital revenue of 11.9%. Another driver was an increase in payment processing revenues.For the three months ended March 31, 2025, core segment revenue increased 8.4%, payments segment revenue increased 7.7%, complementary segment revenue increased 12.2%, and corporate and other segment revenue decreased 6.2%. For the three months ended March 31, 2025, core segment non-GAAP adjusted revenue increased 6.4%, payments segment non-GAAP adjusted revenue increased 7.0%, complementary segment non-GAAP adjusted revenue increased 9.6%, and corporate and other non-GAAP adjusted segment revenue decreased 6.6% (see revenue lines of segment break-out tables on pages 5 and 6 below for a reconciliation of segment non-GAAP adjusted revenue to GAAP segment revenue).For the nine months ended March 31, 2025, core segment revenue increased 5.9%, payments segment revenue increased 6.5%, complementary segment revenue increased 8.0%, and corporate and other segment revenue decreased 3.9%. For the nine months ended March 31, 2025, core segment non-GAAP adjusted revenue increased 5.8%, payments segment non-GAAP adjusted revenue increased 6.4%, complementary segment non-GAAP adjusted revenue increased 7.7%, and corporate and other non-GAAP adjusted segment revenue decreased 3.9% (see revenue lines of segment break-out tables on pages 7 and 8 below for a reconciliation of segment non-GAAP adjusted revenue to GAAP segment revenue).
Operating Expenses and Operating Income
(Unaudited, dollars in thousands)
Three Months Ended
March 31,
% Change
Nine Months Ended
March 31,
% Change
2025
2024
2025
2024
Cost of Revenue
$ 340,586
$ 328,224
3.8 %
$ 1,016,868
$ 972,205
4.6 %
Percentage of Total Revenue6
58.2 %
60.9 %
57.8 %
58.7 %
Research and Development
39,411
35,993
9.5 %
120,192
108,363
10.9 %
Percentage of Total Revenue6
6.7 %
6.7 %
6.8 %
6.5 %
Selling, General, and Administrative
66,350
62,246
6.6 %
209,839
211,298
(0.7) %
Percentage of Total Revenue6
11.3 %
11.6 %
11.9 %
12.8 %
OPERATING EXPENSES
446,347
426,463
4.7 %
1,346,899
1,291,866
4.3 %
OPERATING INCOME
$ 138,740
$ 112,099
23.8 %
$ 413,017
$ 363,765
13.5 %
Operating Margin6
23.7 %
20.8 %
23.5 %
22.0 %
Cost of revenue increased for the three months ended March 31, 2025, primarily due to higher direct costs generally consistent with increases in the related lines of revenue and increased internal licenses and fees, partially offset by a rise in labor cost deferral. Cost of revenue increased for the nine months ended March 31, 2025, primarily due to higher direct costs generally consistent with increases in the related lines of revenue, compensation increases in the trailing twelve months, higher internal licenses and fees from increased deployments and prices, a rise in amortization from capital development projects placed into service in the trailing twelve months, and increased cloud consumption fees, partially offset by a decrease in license and hardware costs consistent with the decrease in related lines of revenue and a rise in labor cost deferral.Research and development expense increased for the three and nine months ended March 31, 2025, primarily due to higher personnel costs (net of capitalization) from compensation increases and employee headcount additions in the trailing twelve months. For the nine months ended March 31, 2025, increased internal licenses and fees was also a contributor.Selling, general, and administrative expense increased for the three months ended March 31, 2025, primarily due to higher personnel costs from compensation increases related to a rise in employee headcount in the trailing twelve months. Selling, general, and administrative expense decreased for the nine months ended March 31, 2025, primarily due to the decrease in non-recurring personnel costs when compared to the prior fiscal year period, partially offset by an increase in recurring personnel costs from higher commissions expense and compensation increases related to a rise in employee headcount in the trailing twelve months .
Net Income
(Unaudited, in thousands,
except per share data)
Three Months Ended
March 31,
% Change
Nine Months Ended
March 31,
% Change
2025
2024
2025
2024
Income Before Income Taxes
$ 141,908
$ 114,165
24.3 %
$ 426,087
$ 367,635
15.9 %
Provision for Income Taxes
30,800
27,066
13.8 %
97,943
86,892
12.7 %
NET INCOME
$ 111,108
$ 87,099
27.6 %
$ 328,144
$ 280,743
16.9 %
Diluted earnings per share
$ 1.52
$ 1.19
27.6 %
$ 4.49
$ 3.85
16.8 %
Effective tax rates for the three months ended March 31, 2025, and 2024, were 21.7% and 23.7%, respectively. Effective tax rates for the nine months ended March 31, 2025, and 2024, were 23.0% and 23.6%, respectively.
According to Mimi Carsley, CFO and Treasurer, “Our third quarter results included strong growth in key areas of our revenue, led by public and private cloud at 12% and processing at nearly 9%. Those results were tempered by mostly non-recurring contraction in some of our non-key revenue areas, including licenses and hardware, leading to overall non-GAAP revenue growth of 7%. That strong revenue growth and our disciplined approach to controlling costs led to non-GAAP operating income growth of over 17%.”
6 Operating margin is calculated by dividing operating income by revenue. Operating margin plus operating expense components as a percentage of total revenue may not equal 100% due to rounding.
Impact of Non-GAAP Adjustments
The tables below show our revenue, operating income, and net income for the three and nine months ended March 31, 2025, compared to the three and nine months ended March 31, 2024, excluding the impacts of deconversions and the VEDIP program expense.*
(Unaudited, dollars in thousands)
Three Months Ended March 31,
%
Change
Nine Months Ended March 31,
%
Change
2025
2024
2025
2024
GAAP Revenue**
$ 585,087
$ 538,562
8.6 %
$ 1,759,916
$ 1,655,631
6.3 %
Adjustments:
Deconversion revenue
(9,644)
(843)
(13,410)
(9,861)
NON-GAAP ADJUSTED REVENUE**
$ 575,443
$ 537,719
7.0 %
$ 1,746,506
$ 1,645,770
6.1 %
GAAP Operating Income
$ 138,740
$ 112,099
23.8 %
$ 413,017
$ 363,765
13.5 %
Adjustments:
Operating (income) loss from deconversions
(6,851)
6
(9,724)
(7,552)
VEDIP program expense*
—
—
—
16,443
NON-GAAP ADJUSTED OPERATING INCOME
$ 131,889
$ 112,105
17.6 %
$ 403,293
$ 372,656
8.2 %
Non-GAAP Adjusted Operating Margin***
22.9 %
20.8 %
23.1 %
22.6 %
GAAP Net Income
$ 111,108
$ 87,099
27.6 %
$ 328,144
$ 280,743
16.9 %
Adjustments:
Net (income) loss from deconversions
(6,851)
6
(9,724)
(7,552)
VEDIP program expense*
—
—
—
16,443
Tax impact of adjustments****
1,645
(1)
2,334
(2,133)
NON-GAAP ADJUSTED NET INCOME
$ 105,902
$ 87,104
21.6 %
$ 320,754
$ 287,501
11.6 %
*The VEDIP program expense for the fiscal nine months ended March 31, 2024, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.
**GAAP revenue is comprised of services and support and processing revenues (see page 2). Reducing services and support revenue by deconversion revenue for the three months ended March 31, 2025, and 2024 which was $9,644 for the current fiscal year quarter and $843 for the prior fiscal year quarter, results in non-GAAP adjusted services and support revenue growth of 5.6% quarter over quarter. There were no non-GAAP adjustments to processing revenue for the three months ended March 31, 2025, or 2024.
Reducing services and support revenue by deconversion revenue for the nine months ended March 31, 2025, and 2024, which was $13,410 for the current fiscal year period and $9,861 for the prior fiscal year period, results in non-GAAP adjusted services and support revenue growth of 5.0% period over period. There were no non-GAAP adjustments to processing revenue for the nine months ended March 31, 2025, or 2024.
***Non-GAAP adjusted operating margin is calculated by dividing non-GAAP adjusted operating income by non-GAAP adjusted revenue.
****The tax impact of adjustments is calculated using a tax rate of 24% for the three and nine months ended March 31, 2025, and 2024. The tax rate for non-GAAP adjustment items takes a broad look at our recurring tax adjustments and applies them to non-GAAP revenue that does not have its own specific tax impacts.
The tables below show the segment break-out of revenue and cost of revenue for each period presented, as adjusted for the items above, and include a reconciliation to non-GAAP adjusted operating income presented above.
Three Months Ended March 31, 2025
(Unaudited, dollars in thousands)
Core
Payments
Complementary
Corporate
and Other
Total
GAAP REVENUE
$ 180,725
$ 217,449
$ 167,442
$ 19,471
$ 585,087
Non-GAAP adjustments*
(4,838)
(2,394)
(2,324)
(88)
(9,644)
NON-GAAP ADJUSTED REVENUE
175,887
215,055
165,118
19,383
575,443
GAAP COST OF REVENUE
75,258
116,266
67,836
81,226
340,586
Non-GAAP adjustments*
(1,240)
(109)
(519)
(5)
(1,873)
NON-GAAP ADJUSTED COST OF REVENUE
74,018
116,157
67,317
81,221
338,713
GAAP SEGMENT INCOME
$ 105,467
$ 101,183
$ 99,606
$ (61,755)
Segment Income Margin**
58.4 %
46.5 %
59.5 %
(317.2) %
NON-GAAP ADJUSTED SEGMENT INCOME
$ 101,869
$ 98,898
$ 97,801
$ (61,838)
Non-GAAP Adjusted Segment Income Margin**
57.9 %
46.0 %
59.2 %
(319.0) %
Research and Development
39,411
Selling, General, and Administrative
66,350
Non-GAAP adjustments unassigned to a segment***
(920)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES
443,554
NON-GAAP ADJUSTED OPERATING INCOME
$ 131,889
*Revenue non-GAAP adjustments for all segments were deconversion revenue. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.
**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment.
***Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs.
Three Months Ended March 31, 2024
(Unaudited, dollars in thousands)
Core
Payments
Complementary
Corporate
and Other
Total
GAAP REVENUE
$ 166,655
$ 201,919
$ 149,231
$ 20,757
$ 538,562
Non-GAAP adjustments*
(1,291)
(910)
1,366
(8)
(843)
NON-GAAP ADJUSTED REVENUE
165,364
201,009
150,597
20,749
537,719
GAAP COST OF REVENUE
72,153
109,848
64,219
82,004
328,224
Non-GAAP adjustments*
(225)
(95)
(348)
(3)
(671)
NON-GAAP ADJUSTED COST OF REVENUE
71,928
109,753
63,871
82,001
327,553
GAAP SEGMENT INCOME
$ 94,502
$ 92,071
$ 85,012
$ (61,247)
Segment Income Margin**
56.7 %
45.6 %
57.0 %
(295.1) %
NON-GAAP ADJUSTED SEGMENT INCOME
$ 93,436
$ 91,256
$ 86,726
$ (61,252)
Non-GAAP Adjusted Segment Income Margin
56.5 %
45.4 %
57.6 %
(295.2) %
Research and Development
35,993
Selling, General, and Administrative
62,246
Non-GAAP adjustments unassigned to a segment***
(178)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES
425,614
NON-GAAP ADJUSTED OPERATING INCOME
$ 112,105
*Revenue non-GAAP adjustments for all segments were deconversion revenue. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.
**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment.
***Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs.
Nine Months Ended March 31, 2025
(Unaudited, dollars in thousands)
Core
Payments
Complementary
Corporate
and Other
Total
GAAP REVENUE
$ 549,523
$ 644,207
$ 500,080
$ 66,106
$ 1,759,916
Non-GAAP adjustments*
(6,105)
(4,341)
(2,857)
(107)
(13,410)
NON-GAAP ADJUSTED REVENUE
543,418
639,866
497,223
65,999
1,746,506
GAAP COST OF REVENUE
227,417
344,023
197,188
248,240
1,016,868
Non-GAAP adjustments*
(1,365)
(180)
(678)
(5)
(2,228)
NON-GAAP ADJUSTED COST OF REVENUE
226,052
343,843
196,510
248,235
1,014,640
GAAP SEGMENT INCOME
$ 322,106
$ 300,184
$ 302,892
$ (182,134)
Segment Income Margin**
58.6 %
46.6 %
60.6 %
(275.5) %
NON-GAAP ADJUSTED SEGMENT INCOME
$ 317,366
$ 296,023
$ 300,713
$ (182,236)
Non-GAAP Adjusted Segment Income Margin
58.4 %
46.3 %
60.5 %
(276.1) %
Research and Development
120,192
Selling, General, and Administrative
209,839
Non-GAAP adjustments unassigned to a segment***
(1,458)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES
1,343,213
NON-GAAP ADJUSTED OPERATING INCOME
$ 403,293
*Revenue non-GAAP adjustments for all segments were deconversion revenue. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.
**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment.
***Non-GAAP adjustments unassigned to a segment were selling, general, and administrative deconversion costs.
Nine Months Ended March 31, 2024
(Unaudited, dollars in thousands)
Core
Payments
Complementary
Corporate
and Other
Total
GAAP REVENUE
$ 518,696
$ 605,115
$ 463,064
$ 68,756
$ 1,655,631
Non-GAAP adjustments*
(4,885)
(3,470)
(1,440)
(66)
(9,861)
NON-GAAP ADJUSTED REVENUE
513,811
601,645
461,624
68,690
1,645,770
GAAP COST OF REVENUE
217,449
330,297
188,002
236,457
972,205
Non-GAAP adjustments*
(650)
(193)
(715)
(4)
(1,562)
NON-GAAP ADJUSTED COST OF REVENUE
216,799
330,104
187,287
236,453
970,643
GAAP SEGMENT INCOME
$ 301,247
$ 274,818
$ 275,062
$ (167,701)
Segment Income Margin**
58.1 %
45.4 %
59.4 %
(243.9) %
NON-GAAP ADJUSTED SEGMENT INCOME
$ 297,012
$ 271,541
$ 274,337
$ (167,763)
Non-GAAP Adjusted Segment Income Margin
57.8 %
45.1 %
59.4 %
(244.2) %
Research and Development
108,363
Selling, General, and Administrative
211,298
Non-GAAP adjustments unassigned to a segment***
(17,190)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES
1,273,114
NON-GAAP ADJUSTED OPERATING INCOME
$ 372,656
*Revenue non-GAAP adjustments for all segments were deconversion revenues. Cost of revenue non-GAAP adjustments for all segments were deconversion costs.
**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment.
***Non-GAAP adjustments unassigned to a segment were VEDIP expenses of $16,443 and selling, general, and administrative deconversion costs of $747. The VEDIP program expense for the fiscal nine months ended March 31, 2024, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.
The table below shows our GAAP to non-GAAP guidance for the fiscal year ending June 30, 2025. Fiscal year 2025 non-GAAP guidance excludes the impacts of deconversion revenue and related operating expenses and assumes no acquisitions or dispositions are made during the fiscal year.
GAAP to Non-GAAP GUIDANCE (Dollars in millions, except per share data)
Annual FY25
Low
High
GAAP REVENUE
$ 2,353
$ 2,370
Growth
6.2 %
7.0 %
Deconversions*
$ 22
$ 28
NON-GAAP ADJUSTED REVENUE**
$ 2,331
$ 2,342
Non-GAAP Adjusted Growth
6.0 %
6.5 %
GAAP OPERATING EXPENSES
$ 1,799
$ 1,808
Growth
4.2 %
4.7 %
Deconversion costs*
$ 5
$ 7
NON-GAAP ADJUSTED OPERATING EXPENSES**
$ 1,794
$ 1,801
Non-GAAP Adjusted Growth
5.1 %
5.5 %
GAAP OPERATING INCOME
$ 554
$ 562
Growth
13.2 %
14.8 %
GAAP OPERATING MARGIN
23.5 %
23.7 %
NON-GAAP ADJUSTED OPERATING INCOME**
$ 537
$ 541
Non-GAAP Adjusted Growth
9.0 %
9.8 %
NON-GAAP ADJUSTED OPERATING MARGIN
23.0 %
23.1 %
GAAP EPS***
$ 6.00
$ 6.09
Growth
14.8 %
16.5 %
Non-GAAP EPS***
$ 5.83
$ 5.87
Growth
10.7 %
11.5 %
*Deconversion revenue and related operating expenses are based on actual results for the nine months ended March 31, 2025, and estimates for the remainder of fiscal year 2025, based on the lowest actual recent historical results. See the Company’s Form 8-K filed with the Securities and Exchange Commission on April 30, 2025.
**GAAP to Non-GAAP revenue, operating expenses, and operating income may not foot due to rounding.
***The GAAP to Non-GAAP EPS reconciliation table is below on page 15.
Balance Sheet and Cash Flow Review
Cash and cash equivalents were $40 million at March 31, 2025, and $27 million at March 31, 2024.Trade receivables were $282 million at March 31, 2025, compared to $263 million at March 31, 2024.The Company had $170 million of borrowings at March 31, 2025 compared to $250 million of borrowings at March 31, 2024.Deferred revenue was $222 million at March 31, 2025, and $214 million at March 31, 2024.Stockholders’ equity increased to $2,036 million at March 31, 2025, compared to $1,780 million at March 31, 2024.
*See table below for Net Cash Provided by Operating Activities and on page 14 for Return on Average Shareholders’ Equity. Tables reconciling the non-GAAP measures Free Cash Flow and Return on Invested Capital (ROIC) to GAAP measures are also on page 14. See the Use of Non-GAAP Financial Information section below for the definitions of Free Cash Flow and ROIC.
The following table summarizes net cash from operating activities:
(Unaudited, in thousands)
Nine Months Ended March 31,
2025
2024
Net income
$ 328,144
$ 280,743
Depreciation
33,125
34,943
Amortization
120,136
114,270
Change in deferred income taxes
(12,765)
(15,325)
Other non-cash expenses
22,411
22,677
Change in receivables
50,871
97,835
Change in deferred revenue
(167,104)
(185,784)
Change in other assets and liabilities*
(60,426)
(13,117)
NET CASH FROM OPERATING ACTIVITIES
$ 314,392
$ 336,242
*For the nine months ended March 31, 2025, includes the change in prepaid cost of product and other of $(42,989), accrued expenses of $(23,436), and income taxes of $15,540. For the nine months ended March 31, 2024, includes the change in prepaid cost of product and other of $(60,520), income taxes of $30,938, and the change in accrued expenses of $20,265.
The following table summarizes net cash from investing activities:
(Unaudited, in thousands)
Nine Months Ended March 31,
2025
2024
Capital expenditures
(41,186)
(34,347)
Proceeds from dispositions
—
900
Purchased software
(3,833)
(4,561)
Computer software developed
(130,298)
(125,351)
Purchase of investments
(2,000)
(1,146)
Proceeds from investments
1,000
—
NET CASH FROM INVESTING ACTIVITIES
$ (176,317)
$ (164,505)
The following table summarizes net cash from financing activities:
(Unaudited, in thousands)
Nine Months Ended March 31,
2025
2024
Borrowings on credit facilities
$ 255,000
$ 335,000
Repayments on credit facilities
(235,000)
(360,000)
Purchase of treasury stock
(35,052)
(20,000)
Dividends paid
(122,464)
(115,792)
Net cash from issuance of stock and tax related to stock-based compensation
1,027
4,066
NET CASH FROM FINANCING ACTIVITIES
$ (136,489)
$ (156,726)
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures, including adjusted revenue, adjusted operating income, adjusted segment income, adjusted cost of revenue, adjusted operating expenses, adjusted operating margin, adjusted segment income margin, non-GAAP earnings before interest, taxes, depreciation, and amortization (non-GAAP EBITDA), free cash flow, return on invested capital (ROIC), non-GAAP adjusted net income, and non-GAAP earnings per share (EPS).
We believe non-GAAP financial measures help investors better understand the underlying fundamentals and true operations of our business. Adjusted revenue, adjusted operating income, adjusted operating margin, adjusted segment income, adjusted segment income margin, adjusted cost of revenue, adjusted operating expenses, adjusted net income, and non-GAAP EPS eliminate one-time deconversion revenue and associated costs and the effects of the VEDIP program expense related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023, which management believes are not indicative of the Company’s operating performance. Such adjustments give investors further insight into our performance. Non-GAAP EBITDA is defined as net income attributable to the Company before the effect of interest expense, taxes, depreciation, and amortization, adjusted for net income before the effect of interest expense, taxes, depreciation, and amortization attributable to eliminated one-time deconversions and the VEDIP program expense. Free cash flow is defined as net cash from operating activities, less capitalized expenditures, internal use software, and capitalized software, plus proceeds from the sale of assets. ROIC is defined as net income divided by average invested capital, which is the average of beginning and ending long-term debt and stockholders’ equity for a given period. Management believes that non-GAAP EBITDA is an important measure of the Company’s overall operating performance and excludes certain costs and other transactions that management deems one time or non-operational in nature; free cash flow is useful to measure the funds generated in a given period that are available for debt service requirements and strategic capital decisions; and ROIC is a measure of the Company’s allocation efficiency and effectiveness of its invested capital. For these reasons, management also uses these non-GAAP financial measures in its assessment and management of the Company’s performance.
Non-GAAP financial measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. Non-GAAP financial measures have no standardized meaning prescribed by GAAP and therefore, are unlikely to be comparable with calculations of similar measures for other companies.
Any non-GAAP financial measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Reconciliations of the non-GAAP financial measures to related GAAP measures are included.
Quarterly Conference Call
The Company will hold a conference call on May 7, 2025, at 7:45 a.m. Central Time, and investors are invited to listen at www.jackhenry.com. A webcast replay will be available approximately one hour after the event at ir.jackhenry.com/corporate-events-and-presentations and will remain available for one year.
About Jack Henry & Associates, Inc.®
Jack HenryTM (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity — offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For more than 48 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,500 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.
Statements made in this news release that are not historical facts 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. 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 the Company’s Securities and Exchange Commission filings, including the Company’s most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Any forward-looking statement made in this news release speaks only as of the date of the news release, 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.
Condensed Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended March 31,
%
Change
Nine Months Ended March 31,
%
Change
2025
2024
2025
2024
REVENUE
$ 585,087
$ 538,562
8.6 %
$ 1,759,916
$ 1,655,631
6.3 %
Cost of Revenue
340,586
328,224
3.8 %
1,016,868
972,205
4.6 %
Research and Development
39,411
35,993
9.5 %
120,192
108,363
10.9 %
Selling, General, and Administrative
66,350
62,246
6.6 %
209,839
211,298
(0.7) %
EXPENSES
446,347
426,463
4.7 %
1,346,899
1,291,866
4.3 %
OPERATING INCOME
138,740
112,099
23.8 %
413,017
363,765
13.5 %
Interest income
5,899
6,499
(9.2) %
21,406
16,365
30.8 %
Interest expense
(2,731)
(4,433)
(38.4) %
(8,336)
(12,495)
(33.3) %
Interest Income (Expense), net
3,168
2,066
53.3 %
13,070
3,870
237.7 %
INCOME BEFORE INCOME TAXES
141,908
114,165
24.3 %
426,087
367,635
15.9 %
Provision for Income Taxes
30,800
27,066
13.8 %
97,943
86,892
12.7 %
NET INCOME
$ 111,108
$ 87,099
27.6 %
$ 328,144
$ 280,743
16.9 %
Diluted net income per share
$ 1.52
$ 1.19
$ 4.49
$ 3.85
Diluted weighted average shares outstanding
73,013
73,031
73,058
73,010
Consolidated Balance Sheet Highlights (Unaudited)
(In thousands)
March 31,
%
Change
2025
2024
Cash and cash equivalents
$ 39,870
$ 27,254
46.3 %
Receivables
282,162
263,416
7.1 %
Total assets
2,932,018
2,770,498
5.8 %
Accounts payable and accrued expenses
$ 201,389
$ 227,715
(11.6) %
Current and long-term debt
170,000
250,000
(32.0) %
Deferred revenue
221,828
213,945
3.7 %
Stockholders’ equity
2,036,431
1,779,931
14.4 %
Calculation of Non-GAAP Earnings Before Income Taxes, Depreciation and Amortization (Non-GAAP EBITDA)
Three Months Ended March 31,
%
Change
Nine Months Ended March 31,
%
Change
(Dollars in thousands)
2025
2024
2025
2024
Net income
$ 111,108
$ 87,099
$ 328,144
$ 280,743
Net interest
(3,168)
(2,066)
(13,069)
(3,870)
Taxes
30,800
27,066
97,943
86,893
Depreciation and amortization
51,013
50,083
153,261
149,214
Less: Net income before interest expense, taxes, depreciation and amortization attributable to eliminated one-time adjustments*
(6,851)
6
(9,724)
8,892
NON-GAAP EBITDA
$ 182,902
$ 162,188
12.8 %
$ 556,555
$ 521,872
6.6 %
*The fiscal third quarter 2025 and 2024 adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions. The fiscal year-to-date 2025 and 2024 adjustments were for deconversions in 2025 and deconversions and the VEDIP program expense in 2024 and were $(7,551) and $16,443, respectively. The VEDIP program expense for the fiscal nine months ended March 31, 2024, was related to a Company voluntary separation program offered to certain eligible employees beginning in July 2023.
Calculation of Free Cash Flow (Non-GAAP)
Nine Months Ended March 31,
(In thousands)
2025
2024
Net cash from operating activities
$ 314,392
$ 336,242
Capitalized expenditures
(41,186)
(34,347)
Internal use software
(3,833)
(4,561)
Proceeds from sale of assets
—
900
Capitalized software
(130,298)
(125,351)
FREE CASH FLOW
$ 139,075
$ 172,883
Calculation of the Return on Average Shareholders’ Equity
March 31,
(In thousands)
2025
2024
Net income (trailing four quarters)
$ 429,217
$ 378,516
Average stockholder’s equity (period beginning and ending balances)
1,908,181
1,659,120
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY
22.5 %
22.8 %
Calculation of Return on Invested Capital (ROIC) (Non-GAAP)
March 31,
(In thousands)
2025
2024
Net income (trailing four quarters)
$ 429,217
$ 378,516
Average stockholder’s equity (period beginning and ending balances)
1,908,181
1,659,120
Average current maturities of long-term debt and financing leases (period beginning and ending balances)
45,000
1
Average long-term debt (period beginning and ending balances)
165,000
312,500
Average invested capital
$ 2,118,181
$ 1,971,621
ROIC
20.3 %
19.2 %
GAAP to Non-GAAP EPS Reconciliation Table
FY25 Guidance
GAAP EPS
$6.00-$6.09
Excluded Activity, net of Tax:
Deconversion*
$0.17-$0.22
Non-GAAP EPS
$5.83-$5.87
*We are not aware of any other discreet adjustments at this time. Deconversion revenue and related operating expenses are based on actual results for fiscal year-to-date 2025 and estimates for the remainder of fiscal year 2025, based on the lowest actual recent historical results. See the Company’s Form 8-K filed with the Securities and Exchange Commission on April 30, 2025.
FAQ for Analysts / Investors
1. What caused the slowing of non-GAAP revenue growth in the 3rd quarter?
Hardware revenue was down $4 million from the prior year quarter. Revenue growth would have been 7.8% overall had hardware revenue remained consistent.Growth in our key areas of revenue (Cloud and Processing revenue) grew at 9.8%, compared to 8.8% a year ago.
2. What are the key factors lowering annual non-GAAP revenue guidance?
The outlook for hardware revenue is down as we are seeing customers delay large capital purchases, possibly due to economic uncertainty.Similar to hardware, we are seeing customers delaying the start of signed non-recurring projects and the implementation of post-core products.Given the recent decline in consumer sentiment, there is risk that we could see lower transaction volumes in the coming months.
3. What caused Core segment revenue growth for the 3rd quarter to lag behind Payments and Complementary?
License and credit union hardware revenue was a drag on Core revenue growth in the 3rd quarter.However, growth in our key areas of revenue, like Cloud, outperformed the prior year’s quarter.
4. What is driving the growth in operating margins?
Growth in the key areas of our business has added new high incremental margin revenue, and we have been disciplined in our approach to compensation, headcount and infrastructure costs throughout the fiscal year.
5. What is the M&A outlook for Jack Henry financial institutions?
We have seen an acceleration of merger activity, including acquisitions of financial institutions by Jack Henry customers.
View original content to download multimedia:https://www.prnewswire.com/news-releases/jack-henry–associates-inc-reports-third-quarter-fiscal-2025-results-302447751.html
SOURCE Jack Henry & Associates, Inc.
Technology
Craftable Successfully Completes SOC 2 Type II Audit, Reinforces Commitment to Security with Launch of New Trust Center
Published
10 minutes agoon
May 6, 2025By

Comprehensive Security Controls Validate Craftable’s Dedication to Customer Data Protection.
DALLAS, May 6, 2025 /PRNewswire/ — Craftable, a pioneer in hospitality procurement and operations management, today announced the successful completion of its SOC 2 Type II audit, underscoring the company’s unwavering commitment to security, data protection, and transparency for its customers.
The audit was conducted by Advantage Partners, a leading compliance assessor known for helping organizations mitigate cybersecurity risks through independent validation.
“Information security is critical to our customers across hospitality,” said Samuel Zats, Co-Founder and CEO at Craftable. “By undergoing a rigorous, independent SOC 2 Type II audit, we’re not just meeting industry standards—we’re proving our dedication to safeguarding customer data. As part of this effort, we’re proud to launch our new Trust Center, which provides real-time visibility into our security practices and controls.”
Craftable’s Trust Center will serve as a centralized hub for customers and stakeholders to access compliance documentation, security policies, and audit summaries. It reflects Craftable’s larger initiative to increase transparency and operational excellence across its platform.
Comprehensive Security Infrastructure
Craftable’s commitment to security is evident through a series of strategic safeguards and protocols:
AWS Cloud Infrastructure: Craftable’s platform runs on Amazon Web Services (AWS), offering enterprise-grade security and reliability.
Separate Environment Architecture: Isolated production and test environments reduce risk and ensure system integrity.
Continuous Vulnerability Monitoring: Ongoing threat assessments via AWS and Vanta help detect and mitigate risks before they impact users.
Robust Data Protection: Automated backups with point-in-time recovery for up to 35 days, protected using AES256 encryption.
Encrypted Data Transmission: TLS 1.2+ ensures secure communication for all data in transit.
Single Sign-On (SSO): Integration with multiple SSO providers, including Google, enhances access security and usability.
Craftable’s investment in security, transparency, and compliance is a key pillar of its promise to serve the hospitality industry with integrity and trust.
About Craftable
Craftable is the leading cloud-based hospitality management solution for hotels, restaurants, resorts, bars, and casinos. Designed to streamline processes and drive maximum profitability, Craftable seamlessly connects purchasing, finance, and operations through AI-powered automation and integrated systems, delivering real-time insights for better decision making.
Founded in 2015 and headquartered in Dallas, Craftable has over 60 live POS integrations, 5,000 supplier connections, and serves more than 80,000 operators. The platform processes billions in annual transaction volume while helping customers save over $2 billion annually. Craftable partners with prominent hospitality leaders including Pyramid Global Hospitality, José Andrés Group, Marriott International, The Dinex Group, and Sage Hospitality. Discover how Craftable is transforming hospitality management at craftable.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/craftable-successfully-completes-soc-2-type-ii-audit-reinforces-commitment-to-security-with-launch-of-new-trust-center-302447752.html
SOURCE Craftable


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