Jack Henry & Associates, Inc. reported a strong performance for the first quarter of fiscal 2025, ending September 30, 2024, with total revenue reaching $600.98 million, a 5.2% increase from $571.37 million in the same period of fiscal 2024. The growth was driven by increases in various service lines, particularly in Private and Public Cloud services, which rose to $182.26 million from $163.49 million year-over-year. Services and Support revenue also saw an uptick, increasing to $356.68 million from $342.21 million.

Net income for the quarter was $119.19 million, up 17.2% from $101.68 million in the prior year, resulting in basic and diluted earnings per share of $1.63, compared to $1.40 and $1.39, respectively, in the same quarter of fiscal 2024. The increase in net income was attributed to organic revenue growth, despite higher operating expenses and an increased provision for income taxes, which rose to $6.04 million from $5.07 million.

Operating income improved to $151.28 million, up from $132.70 million in the previous year, with segment income across the Core, Payments, and Complementary segments also showing positive trends. The Core segment reported income of $114.20 million, while Payments and Complementary segments reported $98.90 million and $105.74 million, respectively. However, the Corporate and Other segment experienced a loss of $61.29 million.

Operating expenses for the quarter increased by 2.5% to $449.70 million, with research and development expenses rising by 7.6% due to higher personnel costs. Selling, general, and administrative expenses decreased by 15.5%, reflecting a reduction in deconversion costs.

Cash and cash equivalents increased to $43.21 million from $38.28 million at the end of the previous fiscal year. The company utilized $58.74 million in investing activities, primarily for product and service development, and reported cash used in financing activities of $53.23 million, which included $85 million in credit facility payments.

As of September 30, 2024, Jack Henry had $140 million in outstanding debt, down from $245 million a year earlier, and maintained compliance with financial covenants associated with its term loan agreement. The company continues to focus on strategic growth, particularly in cloud services, while managing its operating costs effectively.