Jack Henry & Associates, Inc. (JKHY): Business Model Canvas [Dec-2025 Updated]

You're looking to dissect the core engine of Jack Henry & Associates, Inc., and frankly, it's a masterclass in sticky enterprise software, especially when you see their FY 2025 performance: $2.38 billion in GAAP revenue paired with a nearly untouchable 99% core client retention rate. Honestly, what makes this work isn't just the software itself, but the deep, high-touch relationship model that drives revenue streams like processing, which grew 6.8% in FY 2025, all while they invest heavily in R&D for things like AI and cloud-native platforms. If you want the precise map showing how they convert proprietary resources like the Banno Digital Platform and nearly 50 years of expertise into $588.15 million in free cash flow, check out the full nine-block canvas breakdown below; it clearly shows where the $1.36 billion Cost of Sales is actually going.

Jack Henry & Associates, Inc. (JKHY) - Canvas Business Model: Key Partnerships

You're building out the Key Partnerships block for Jack Henry & Associates, Inc. (JKHY) and need the hard numbers that define their ecosystem strength as of late 2025. This isn't about vague strategy; it's about the concrete relationships that drive revenue and scale.

The partnership strategy centers on embedding Jack Henry's core and payment capabilities deeply within a broader financial technology landscape. This is how they maintain relevance against pure-play digital competitors.

• Over 950 API-integrated fintech partners for ecosystem expansion.
• Strategic alliances with major cloud providers like AWS and Microsoft Azure, evidenced by 77% of core clients moving to the Jack Henry private cloud as of Q1 2026.
• Payment network integrations (Visa, Mastercard) for transaction processing, supported by payment segment revenue growth of 6.8% for the fiscal year ended June 30, 2025.
• Acquisition targets like Victor Technologies, which processes billions of dollars in payments monthly, boosting the Payments-as-a-Service (PaaS) offering.
• Independent software vendors (ISVs) extending complementary solutions, reflected in a 11.0% increase in complementary segment non-GAAP adjusted revenue for the three months ended June 30, 2025.

Here's a quick math breakdown of the financial impact and scale of these relationships:

The Victor Technologies acquisition, for instance, directly targets the PaaS market, which Research and Markets projects to grow from $19.1 billion in 2025 to $43.9 billion by 2029, at a CAGR of 23.1%. Also, MVB Financial Corp. expects a pre-tax gain of $33 million from selling Victor Technologies to Jack Henry & Associates, Inc..

You can see the direct revenue impact in the fiscal year ended June 30, 2025, where card revenue grew by 6.6% and overall payment processing revenues increased by 9.4%. The complementary segment, which often includes ISV-like solutions, saw its non-GAAP adjusted revenue rise by 11.0% for the three months ending June 30, 2025.

Finance: draft 13-week cash view by Friday.

Jack Henry & Associates, Inc. (JKHY) - Canvas Business Model: Key Activities

You're looking at the engine room of Jack Henry & Associates, Inc. (JKHY), the core activities that drive their recurring revenue and growth as of late 2025. It's all about keeping the lights on, moving money, and building the next generation of banking tech.

Developing and maintaining core banking software (SilverLake, Symitar)

The bedrock activity is the continuous stewardship of their core platforms, SilverLake for banks and Symitar for credit unions. This isn't just maintenance; it's about winning new clients and migrating existing ones to modern environments. Jack Henry & Associates signed a total of 51 new core deals during their fiscal year 2025, which ended on June 30, 2025. This aligns with their earlier stated goal of targeting 50 or more core banking wins for that fiscal year. The success in this area is reflected in the financial results, where core segment revenue saw an increase of 10.3% for the fiscal three months ended June 30, 2025, compared to the prior year period.

Cloud hosting and data processing for 77% of core clients

A major focus is migrating clients from on-premise systems to Jack Henry Processing Services for banks or EASE Processing Services for credit unions, which run in their private cloud. As of August 20, 2025, 77% of their core clients were hosted on their private cloud, following 37 contracts signed in fiscal 2025 to move in-house core clients to the cloud. Jack Henry & Associates provides core integrated data processing systems to over 950 banks. This hosting activity directly fuels revenue growth, with data processing and hosting revenue within the cloud segment increasing by 11.8% for the fiscal three months ended June 30, 2025. The company supports both on-premise and private cloud operating environments for their banking solutions.

Processing payments, cards, and digital transactions (FedNow, Zelle)

This is where transaction volume translates directly into revenue. Jack Henry & Associates is actively enabling real-time payments, including through the Federal Reserve's FedNow Service. Executives noted that in one week in April 2024, their FedNow transaction volume was nearly equal to their entire volume for the fourth quarter of 2023, showing rapid adoption acceleration. The growth across the payments suite is substantial:

• Transaction and digital revenue grew by 16.4% for the fiscal three months ended June 30, 2025.
• Card revenue increased by 6.7% in the same quarter.
• Overall payment processing revenues saw a 10.0% increase in that quarter.

Here's a quick look at the year-over-year revenue growth for the full fiscal year 2025 ended June 30, 2025:

Research and development (R&D) for AI and cloud-native solutions

The company is heavily invested in modernizing its technology, centered around The Jack Henry Platform, which is an API-first, public cloud-native architecture. This R&D focus is yielding immediate operational benefits; as of March 2025, 55% of contracts were being signed without human interaction due to AI integration. They are building out public cloud-native solutions, with the retail deposit core expected to launch in early 2026. Their open ecosystem supports integration with over 950 API-integrated fintech partners. The goal is to deliver a steady stream of modern service components in the public cloud.

High-touch client service and consulting

Maintaining strong relationships is a key activity, as Jack Henry & Associates serves as a single point of contact for support and accountability for each core client. This service component is also a growing revenue stream. For the fiscal three months ended June 30, 2025, revenue from consulting, work orders, and releases grew by 11.9%. Client satisfaction with platforms like Banno Business is noted as positive, with references rating the management team as "exceptional" regarding service and support. Finance: draft 13-week cash view by Friday.

Jack Henry & Associates, Inc. (JKHY) - Canvas Business Model: Key Resources

You're analyzing the foundation of Jack Henry & Associates, Inc.'s competitive edge. It's not just about the software; it's about the deep integration and the people who maintain it. Here are the hard numbers and tangible assets that define their Key Resources as of late 2025.

The technology stack is anchored by deeply entrenched, proprietary core banking platforms. These systems are the operational backbone for thousands of financial institutions.

• Proprietary core banking platforms: SilverLake (for banks) and Symitar (for credit unions).
• The Banno Digital Platform provides an open API architecture to extend core capabilities and data.

This platform strategy is designed to be future-ready, offering a unified, cloud-native ecosystem that integrates digital services and third-party fintech capabilities.

The human capital is significant, both in size and specialized training. This expertise supports the complex, long-term nature of core system maintenance and modernization.

The financial strength provides the necessary capital for sustained investment in these resources. You see this stability reflected in their cash generation.

The company's strong financial footing supports ongoing development and acquisition strategies.

Here's the quick math on the financial health supporting these resources:

Also, the sheer volume of client data and the institutional knowledge built over decades represent a massive, hard-to-replicate asset. This expertise guides their strategic focus, such as the ongoing process of sunsetting older platforms-they are currently managing 9 different ACH platforms and 6 different wires platforms, moving customers to newer solutions. Finance: draft 13-week cash view by Friday.

Jack Henry & Associates, Inc. (JKHY) - Canvas Business Model: Value Propositions

Full technology stack for community financial institutions (FIs)

Jack Henry & Associates, Inc. serves approximately 1,670 bank and credit union core clients. The total client base includes over 5,710 non-core clients. Overall, Jack Henry empowers approximately 7,400 clients.

Open ecosystem that enables rapid integration with third-party fintechs

Jack Henry currently has more than 850 fintechs integrated into its ecosystem. For these fintechs, integration to the banking platform and going live can take fewer than 90 days.

Operational stability and trust, reflected in >99% core client retention

Jack Henry maintains a 99% client retention rate over the history of the company. Total recurring revenue, excluding deconversion revenue, was 92% of total revenue in Q3 (implied FY25).

Modernization via cloud-native solutions and digital transformation

For fiscal year 2025, Core segment non-GAAP adjusted revenue increased 6.0%. In Q1 2026, 77% of core clients were on the Private Cloud, and the company signed seven new cloud contracts. Moving from the private cloud to the public cloud is showing about a 20% to 25% lift. Historically, clients moving from on-prem to the private cloud saw an average revenue increase of about 1.75% across the base.

You should look at the client base migration and size metrics:

Enabling smaller FIs to compete with larger banks on digital services

Jack Henry supports over 950 banks in the FDIC's $55 billion and under asset range. The average assets under management for banking core clients grew from $1.26 billion to $1.29 billion between calendar year 2023 and 2024. For credit union core clients, average assets under management grew from $1.17 billion to $1.20 billion over the same period.

Finance: draft 13-week cash view by Friday.

Jack Henry & Associates, Inc. (JKHY) - Canvas Business Model: Customer Relationships

You're looking at how Jack Henry & Associates, Inc. (JKHY) locks in its financial institution clients. It's not just about selling software; it's about becoming the indispensable technology backbone. This relationship focus is why their client retention is so high.

Dedicated, high-touch account management and support model

Jack Henry & Associates, Inc. empowers approximately 7,500 clients with what they call people-inspired innovation and personal service. To be specific about the client base as of their fiscal year-end June 30, 2025, they serve about 1,670 bank and credit union core clients and over 5,710 non-core clients. This scale means the 'high-touch' part is critical to maintain.

The company emphasizes that they help clients innovate faster and strategically differentiate themselves. The support structure is clearly visible in their revenue mix. For the fiscal year ended June 30, 2025, Services and Support revenue hit $1,361,737 thousand, making up 57.3% of their total revenue of $2,375,288 thousand. This recurring service revenue stream is the engine of the relationship.

Long-term, sticky contracts for core processing and hosting

Stickiness is the name of the game here, especially with core processing. Honestly, once a bank or credit union is running on a core system, switching is a massive undertaking. Jack Henry & Associates, Inc. boasts a historical client retention rate of 99%, and that rate hasn't budged recently. That's a powerful number.

The move to their private cloud is a key indicator of long-term commitment. In fiscal 2025, they signed 37 contracts to migrate existing in-house core clients to the private cloud, including 11 in Q4. Following these migrations, 77% of their core client base is now hosted on the Jack Henry private cloud. Here's the quick math on the value of that move: historically, customers migrating from on-premise to the private cloud see about an average of 1.75% revenue increase across the base. What this estimate hides is the operational lock-in that comes with cloud hosting.

Consulting and professional services for system implementation

Implementation is a significant part of the relationship, especially for new core deals or cloud migrations. The revenue from these activities shows up in their Services and Support segment. For the full fiscal year ended June 30, 2025, consulting, work order, and release revenues grew by 9.6%. This growth is a direct reflection of ongoing implementation and advisory work.

To be fair, these projects take time. Selling a new deal typically takes 6 to 12 months, and implementing a core deal can add another 12 to 24 months on top of that. This long cycle time further solidifies the relationship over several years.

Community-focused service culture, a key differentiator

The company explicitly states that serving the evolving needs of people and communities is key to their business model. They empower their approximately 7,400 to 7,500 clients with personal service. This culture is supported internally; for example, 40% of Jack Henry & Associates, Inc. associates are trained in Lean Six Sigma Kata. They also introduced a new Community Volunteer Hours benefit in their 2025 Sustainability Report to support this focus.

Continuous product updates and release management

The focus on continuous improvement is evident in their revenue drivers and client engagement. For the three months ended September 30, 2025, growth in data processing and hosting revenue within the cloud was 8.0%. Also, transaction and digital revenue saw a significant jump of 13.9% in that same quarter. This suggests clients are actively adopting newer, likely cloud-based or digital, features. They also host an annual national education conference to demonstrate new products and services to existing clients. The CEO mentioned having over 130 different use cases for AI across the organization as of late 2025, spanning from customer service to development.

Finance: draft 13-week cash view by Friday.

Jack Henry & Associates, Inc. (JKHY) - Canvas Business Model: Channels

You're looking at how Jack Henry & Associates, Inc. gets its technology solutions into the hands of community banks and credit unions. It's a multi-pronged approach that relies heavily on direct relationships and a growing digital footprint.

Direct sales force targeting community banks and credit unions

The direct sales force is central to securing the core processing relationships. Jack Henry & Associates, Inc. empowers approximately 7,500 clients, which includes a mix of banks and credit unions, with technology solutions. This client base is segmented; as of the last filing, they serve approximately 1,670 bank and credit union core clients and over 5,710 non-core clients. Furthermore, they have roughly 5,800 clients that are not Jack Henry core clients today that still purchase various products from them. The sales effectiveness is quite high; for instance, they are seeing about a 50% win rate per year over the last several years. To be specific on recent wins, they secured 28 new core contracts in fiscal 2025, which included 11 in Q3, representing $30 billion in assets. The commitment to existing relationships is evident in their historical client retention rate, which stands at 99%, minus any merger and acquisitions activity.

Cloud-native platform delivery for SaaS offerings

Delivery increasingly leans on the cloud, which drives significant recurring revenue. Recurring revenue accounted for 92% of revenue in Q3 2025. The migration from on-premise to the Jack Henry private cloud is a major channel for revenue uplift. Historically, 77% of customers have made this move, which brings about an average revenue increase of roughly 1.75% across the base-specifically about 1.5% for a credit union and 2% for a bank. As of the Q3 2025 outlook, management projected that 76% of clients were already transitioned to the private cloud. The next step, moving from the private cloud to the public cloud, is already showing a lift of about 20% to 25% for certain modules. Data processing and hosting revenue within the cloud segment saw growth of 11.8% for the three months ended June 30, 2025. The Banno Digital Platform, a key SaaS offering, grew to over 13.7 million registered users, an 18% year-over-year increase.

• Data processing and hosting revenue (cloud) increased 11.8% for the three months ended June 30, 2025.
• Banno Digital Platform registered users reached over 13.7 million.
• Estimated revenue uplift from private cloud migration is an average of 1.75%.
• Projected lift from public cloud migration is 20% to 25% for some modules.

Fintech partner ecosystem (API-integrated solutions)

The ecosystem channel is formalized through API integration capabilities. Jack Henry & Associates, Inc. currently has more than 850 fintechs already integrated into its ecosystem. This collaboration is seen as a key growth driver; in 2025, 83% of credit unions and 60% of banks cited fintech partnerships as a driver of growth. The infrastructure supporting this shifted on July 1, 2025, with the replacement of the Vendor Integration Program by the new Fintech Integration Network (FIN). This network is designed to enhance future integration possibilities across Jack Henry's diverse product offerings.

Industry conferences and client events

Physical and virtual events remain a critical channel for reinforcing relationships and demonstrating new technology. The company hosted a successful Jack Henry Connect conference in fiscal Q1 2025, which reinforced client relationships. Jack Henry & Associates, Inc. also hosts an annual national education conference, providing networking opportunities and product demonstrations for existing clients. International sales, which are a minor channel, accounted for less than 1% of total revenue in fiscal 2025.

Jack Henry & Associates, Inc. (JKHY) - Canvas Business Model: Customer Segments

You're looking at the core client base Jack Henry & Associates, Inc. serves, which is heavily concentrated in the US financial sector. The company empowers approximately 7,400 clients with its technology solutions and services as of fiscal year 2025.

The customer base is clearly segmented across different types of financial institutions, with a strong emphasis on core processing relationships. Here's the quick math on the core client footprint:

The segment breakdown shows a clear focus on Community Banks (regional and smaller institutions) and Credit Unions (Symitar core system clients), as these form the bulk of the core client base. For instance, Jack Henry & Associates, Inc. is seeing continued success in securing new relationships, tracking for 50 to 55 core wins annually, with 26 to 28 wins year-to-date as of mid-2025, representing over $30 billion in assets from those new wins.

The Regional Financial Institutions are part of the overall approximately 7,400 total clients served, which includes banks ranging from de novo to multi-billion-dollar institutions with assets up to $55 billion. This overall client number is a key metric for understanding the scale of Jack Henry & Associates, Inc.'s market penetration.

For Institutions seeking cloud migration and digital modernization, the data shows significant movement toward Jack Henry & Associates, Inc.'s hosted environments. Currently, 76% of Jack Henry's clients are hosted in a private environment, with expectations to reach a high 90s percentage in migration to the private cloud. Digital modernization is also evidenced by the platform usage metrics you should track:

• The Banno platform has over 13 million active users.
• Over 10 modules in tech modernization are currently in production and testing phases.

Jack Henry & Associates, Inc. (JKHY) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep Jack Henry & Associates, Inc. running in late 2025. Honestly, the biggest chunk of money goes right back into delivering the services.

Cost of sales, which they often call Cost of Revenue, is the largest single component of the cost structure. For the trailing twelve months ending around the close of fiscal year 2025, this cost hit approximately $1.36 billion. This represented about 57% of total revenue for that period. Cost of revenue growth for the full fiscal year ended June 30, 2025, was driven by higher direct costs consistent with revenue increases and elevated personnel costs, including compensation increases.

Personnel costs are a major factor across the board, especially within Selling, General, and Administrative (SGA) expense. For the fiscal year ended June 30, 2025, SGA expense increased primarily due to higher personnel costs, excluding severance, which included compensation increases and additions to employee headcount over the prior twelve months. This is a key driver you need to watch.

Here's a look at some of the key expense line items for the full fiscal year ended June 30, 2025 (in thousands, unless otherwise noted):

Jack Henry & Associates, Inc. continues to make significant investment in R&D and product innovation to support its offerings. Research and development expenses for fiscal 2025 totaled $162,771 thousand. This spending is also heavily influenced by personnel costs, including compensation increases and headcount additions in the trailing twelve months, net of capitalization. This focus helps maintain and enhance their core and complementary systems at least once a year.

While specific dollar amounts for cloud infrastructure and data center hosting costs aren't broken out as a standalone line item in the primary summaries, the focus on cloud is evident in revenue growth. Services and support revenue for the fiscal year ended June 30, 2025, was driven in part by growth in data processing and hosting revenue within cloud of 12.0%. This indicates substantial operational expenditure is tied to maintaining and scaling this critical infrastructure.

General & Administrative expenses, which can overlap with SGA depending on the reporting view, were noted in one analysis as amounting to approximately $283.1 million for the trailing twelve months, representing about 51% of total expenses in that context. You should note that GAAP SGA for the full fiscal year 2025 increased 1.7% compared to fiscal 2024, though this figure adjusts higher when excluding certain non-recurring costs.

Key cost drivers you should track include:

• Personnel Costs: Driving increases in both SGA and R&D.
• Direct Costs: Consistent with revenue growth in Cost of Revenue.
• Professional Services: Cited as a contributor to SGA increases.
• Cloud Hosting: Implied significant cost due to 12.0% cloud revenue growth.

Finance: draft 13-week cash view by Friday.

Jack Henry & Associates, Inc. (JKHY) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for Jack Henry & Associates, Inc.'s revenue generation as of late 2025. This isn't about potential; it's about what they actually booked through the fiscal year ended June 30, 2025, and the latest quarter.

Overall, Jack Henry & Associates, Inc. reported GAAP revenue growth of 7.2% for the full fiscal year 2025, reaching a total of $2.38 billion. The fourth quarter of fiscal 2025 saw GAAP revenue hit $615.4 million, marking a 9.9% increase year-over-year.

The revenue streams are clearly segmented, showing where the growth engine is firing strongest. Here's a breakdown of the key components and their recent performance metrics:

Revenue Stream Performance Metrics (FY2025 vs. Prior Year)

You can see the core processing revenue, which aligns with the Payments segment, grew 6.8% for the full fiscal year 2025. That's solid, but the Services and Support category is showing real momentum, especially in the cloud space.

The growth in Services and Support revenue for the full fiscal year 2025 was significantly bolstered by data processing and hosting revenue within cloud, which saw an 11.8% increase in the fourth quarter alone. This is a key area for Jack Henry & Associates, Inc. as institutions move workloads.

The fastest-growing area based on the segment data was Complementary Solutions, which saw its revenue increase by 9.2% for the full fiscal year 2025. This segment's Q4 growth was even stronger at 12.9%.

The segment that is clearly contracting is the older software licensing model. The decrease in license and hardware revenues by 25.2% in fiscal year 2025 shows the ongoing shift away from perpetual licenses toward service-based consumption models.

Separately, Jack Henry & Associates, Inc. recognized a specific, non-operational revenue stream:

• Deconversion revenue totaled $33.9 million for the full fiscal year 2025.
• This figure includes $20.5 million recognized in the fourth quarter of fiscal 2025.

It's important to note that Jack Henry & Associates, Inc. excludes this deconversion revenue from its non-GAAP revenue reporting because it is driven by client acquisitions, which are outside the company's control. For context on the Services and Support line, the non-GAAP adjusted Services and Support revenue growth for the full year was 5.4%, after adjusting out the $33,905 (in thousands) in deconversion revenue.

Here are the key drivers within the Services and Support revenue for Q4 2025:

• Growth in data processing and hosting revenue within cloud of 11.8%.
• Increased consulting, work order, and release revenues of 11.9%.
• Partially offset by a decrease in license and hardware revenues of 25.2%.

Finance: draft 13-week cash view by Friday.