Jack Henry & Associates Inc at Nasdaq London Investor Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : So for those that aren't familiar with your business, Mimi, could you provide a quick overview of the three core businesses at Jack Henry as well as some cohort of bank and credit union customers that you serve?

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : Got it. So interestingly, it's a market that I think is always -- I find fascinating because particularly on the Core portion of the software, about 100 banks a year switch Cores. You guys win about half of those pretty consistently over the last 10 years plus. But one of your core competitors recently announced that they're going to start to consolidate a lot of their different platforms. I think they have more than a dozen and a half that they're going to try to bring down. And that seems like that could create a lot of incremental at-bat opportunities for Jack Henry or incremental opportunities to win. Sorry about the baseball analogy, we don't play a lot of baseball here. So as those platforms are sunset and your competitors attempt to migrate them to new platforms, so can you talk to us about how you think about that opportunity, the size, what it would mean incrementally, etc? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 11:30AM, JKHY.OQ - Jack Henry & Associates Inc at Nasdaq London Investor Conference

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : So let's ask -- dig in a little bit on a couple of those elements. Do you have any historical examples, either external to Jack Henry or maybe even with your own experience, where as platforms are sunset, etc, what those churn rates might look like? So the example you just gave in any given year there's, call it, 200 RFPs, maybe half of those decide to stay with their existing provider, the other half choose to move to somebody else with you taking about half of those. How does that compare normally to like what those percentages might look like when there's an actual sunsetting of a platform?

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : Got it. And then, I'm going to put your feet to the fire a little bit here. Let's imagine that this competitor starts to talk to their customers about potential migration beginning of '26, right? So basically, in the next month or so. How quickly could we start to see incremental benefit to the P&L for Jack Henry would you think?

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : And then talking about like multiyear impact, how should we think about the incremental complementary attached to cores? Because we're talking about like the core debits and credit systems of these institutions, but there's a lot of other functionality that can be appended and should in most cases will be appended to those. Do those complementary attach products tend to come at the time of a core switch or do they come subsequent and provide further tailwind for more years?

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : Got it. So we've talked about maybe the opportunity that may be created that's idiosyncratic to change and strategy and approach from a competitor. But let's talk about the overall demand environment, like kind of the generalized macro. You've routinely referenced the Bank Director survey and noted that the median growth in tech spend is still really quite healthy. I'm curious just given where we are in the deposit cycle and the prospect that seems to -- the market seems to be anticipating for accelerating loan growth next year. I'm hoping you could help us stratify the difference in demand for your customers in kind of this deposit attraction retention tools versus lending and kind of how you think about like where you want to allocate resources from a product development and selling standpoint.

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : Got it. Got it. I want to talk about -- so we've talked a little bit about Core. And as we said is that, that tends to be a pretty steady business, at least in terms of like new wins per year, etc. But maybe there's some potential for acceleration in the coming few years. But at least relative to our estimates, where we've tended to see the most volatility over the last couple of years or at least variance to our estimates has been in the Payments segment. So I'm wondering if you can kind of help set the stage for us, give us a quick overview of what Jack Henry does in the Payment segment? How you're feeling about that business? And where kind of the variance versus your own expectations have come from, at least over the past couple of years? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 11:30AM, JKHY.OQ - Jack Henry & Associates Inc at Nasdaq London Investor Conference

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : So let's talk about some of those -- you mentioned rapid transfer, a couple of other services that you've integrated have been Mastercard Move and Visa Direct, those are now integrated. How are you thinking putting all these together about the fiscal year '26 transaction and that volume ramp that you just mentioned? And how should we be expecting that, that take rates could be impacted, so we're prepared for that KPI?

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : So I want to just spend a couple of minutes there because I do think that the Moov partnership is quite interesting, right? And you talked about that, some of the benefits. But if you think about like what Moov is trying to do, it seems like they're trying to provide an alternative to that micro merchant segment. While at the same time, by way of the partnership with Jack Henry allow the banks and your FI partners to better serve that group, which is a lot of times, if you look, one of the companies we cover is Block, or Square, and they kind of start to take over a lot of that financial -- the financial services that go along with that. So can you talk a little bit about like what your aspirations are ultimately with the Moov partnership? And can we start to see material impact to the Payment segment from that partnership in '26 or '27? Or how are you thinking about timing that way?

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : Got it. We can spend a lot more time talking about products, etc, but I do want to touch on profitability and margins and kind of the universal topic across is, obviously, AI and impact on profitability. It seems like it could be a reasonable assumption that around 60% of your expense base is personnel and software engineering. How do you think about the potential margin tailwinds to the business if and as you're able to deploy AI throughout the organization? And are there any early examples of returns or at least eyebrow-raising benefits that you're getting?

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : Got it. Last question here in the last minute or so, capital allocation. Historically, Jack Henry has really favored dividends, reinvestment and selective M&A over, call it, large-scale buybacks. How should we think about the magnitude of buybacks becoming a more meaningful lever to your capital allocation, especially given some of the recent tax-related free cash flow tailwinds you're now experiencing, etc? Just help us think through like if and as that -- those priorities may be shifting.

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : That's great. Well, we're out of time, Mimi. Thank you very much for joining us today.

Question: James Faucette - Morgan Stanley & Co Ltd - Analyst : Thanks. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 11:30AM, JKHY.OQ - Jack Henry & Associates Inc at Nasdaq London Investor Conference