The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Rayna Kumar - Oppenheimer & Co Inc - Analyst
: Nice results here. We saw some solid margin expansion in the quarter. And as you mentioned, Mimi, R&D was down 1%. Can you talk about how
sustainable this type of margin expansion is going forward? And maybe how margin could look for the remainder of the year by quarter?
Question: Will Nance - Goldman Sachs Group Inc - Analyst
: I was wondering if you could expand a little bit on the pricing and competitive environment out there. And in particular, there's been a lot of focus
around some of the core consolidation happening at the competitors. Are you guys seeing an increased willingness to explore converting cores
in the market? And how are you feeling about your chance of maybe shaking loose a couple of those opportunities?
Question: Daniel Perlin - RBC Capital Markets Inc - Analyst
: I just wanted to maybe revisit the sales momentum here and the conversions into private cloud. So I think you said you signed seven clients to
convert to private cloud. You're at 77% today. So you're getting pretty high on the penetration rate there, which is clearly a positive for the revenue
uplift.
I guess what I'm ultimately getting at is, as you think about the strategy to increasingly sell outside the core, can you just maybe update us on
where that progress is? I know you've got a lot of initiatives underway, but it would be helpful to kind of refresh that strategy here.
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NOVEMBER 05, 2025 / 1:45PM, JKHY.OQ - Q1 2026 Jack Henry & Associates Inc Earnings Call
Question: Tyler DuPont - Wells Fargo Securities LLC - Analyst
: Greg and Mimi, this is Tyler DuPont on for Jason. I just wanted to ask not to pile on core banking, but I just want to ask about the trends you're
seeing. I heard in the prepared remarks you guys signed four takeaways, and you're comfortable with the 50 to 55 target.
But just from an asset size perspective, could you maybe clarify the average size of the wins you're seeing in the quarter? And how that sort of
coincides with your longer-term strategy to move upmarket and to claim those larger wins?
Question: James Faucette - Morgan Stanley & Co Ltd - Analyst
: Greg, you mentioned the Bank Director survey and the median growth in tech spend. I'm curious, just given where we are in the deposit cycle and
the prospect of accelerating loan growth next year with change in interest rates. I was hoping you could help us to stratify the differences in demand
from your customers for deposit attraction versus retention versus lending and how you are allocating resources to one side or the other, whether
it would be to lending or the ledger side?
Question: Dominick Gabriele - Compass Point Research and Trading LLC - Analyst
: I have to say, I think you guys sound pretty fired up on this call in the prepared remarks. And one of the things with Jack Henry is the level of revenue
growth. And it sounds like you're limiting pricing compression and stabilizing that headwind.
I was just curious, given where your current guidance is this year versus previous years, maybe you could -- is there any chance you could quantify
that headwind of pricing over the last 12 months and how it possibly went into your current guidance and what those mitigation efforts like actually
are in the business? Is it like salespeople having different mechanics or something along those lines?
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NOVEMBER 05, 2025 / 1:45PM, JKHY.OQ - Q1 2026 Jack Henry & Associates Inc Earnings Call
Question: David Koning - Robert W. Baird & Co Inc - Analyst
: Good job. And I guess my question, card processing revenue accelerated about 2%, which was nicely better than industry trends, which were pretty
stable to maybe a little acceleration, but 2% is a lot better. And I know you called out a lot of the newer types of payment services growing really
well. And I guess the question is, is that sustainable, like this higher level of growth now? Are those other things contributing enough to kind of
keep this at a higher pace?
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