Jack Henry & Associates (JKHY) 53rd Annual Nasdaq Investor Conference summary

Business overview and market positioning

• Operates three main segments: core processing, payments (mainly debit), and complementary services for banks and credit unions.

• Provides a wide range of solutions except for wealth management and mortgage underwriting.

• Holds a strong win rate in core conversions, winning about half of 100 annual core switches in the market.

• Competitor platform consolidation is expected to create multi-year incremental opportunities for new customer wins.

• Existing relationships with 5,800 institutions through non-core products provide a competitive edge.

Competitive landscape and growth opportunities

• Competitor sunsetting of platforms will force many banks to consider new providers, creating a historic opportunity.

• Migration decisions are expected to unfold over several years due to long contract cycles (7–10 years).

• M&A activity benefits growth, especially when clients acquire non-client institutions.

• Core wins often lead to additional sales of complementary products, driving further revenue.

• Most new customers opt for cloud-based solutions, boosting cloud segment growth.

Payments segment trends and innovation

• Payments segment is 60% card-focused, mainly debit, with durable transaction-based revenue.

• Rapid transfer and faster payment rails (FedNow, RTP, Zelle) are driving double-digit growth.

• Small business initiatives like tap-to-local and rapid transfers aim to capture underserved micro-merchant markets.

• Move partnership enables real-time money movement and deposit recapture for local FIs.

• Small business solutions expected to become a major revenue source in payments over five years.