What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-08-25 compared with 2024-08-26 · 115 added, 86 removed, 748 unchanged (21% of the section changed)

47 unchanged sentences

Revenue Recognition - estimating variable consideration

As discussed in Notes 1 and 2 to the consolidated financial statements, the Company recorded revenue of $2.216 billion for the year ended June 30, 2024.

As described in Notes 1 and 2 to the consolidated financial statements, the Company recorded revenue of $2.375 billion for the year ended June 30, 2025.

The Company enters into contracts with its clients that may include multiple types of goods and services.

10 unchanged sentences

These procedures included testing the effectiveness of controls relating to the revenue recognition process, including the estimation of variable consideration.

The procedures also included, among others, evaluating and testing management’s process for determining the variable consideration and testing the reasonableness of management’s estimation of variable consideration.

These procedures also included, among others, evaluating and testing management’s process for determining the variable consideration and testing the reasonableness of management’s estimation of variable consideration.

Testing the estimation of variable consideration included evaluating the terms and conditions of the long-term contracts and the related significant assumptions used in the estimate of the variable consideration, principally, the use of historical transaction volumes to estimate the varying volume of transactional activity.

52 unchanged sentences

Deferred costs 75,777 85,784

Assets held for sale 5,606 —

Total current assets 681,464 632,018

13 unchanged sentences

Accrued expenses 207,434 200,770

Accrued income taxes

Current maturities of long-term debt

88 unchanged sentences

Computer software developed ( 172,445 ) ( 167,175 ) ( 166,120 )

Proceeds from investments 1,000 — —

Purchase of investments ( 2,000 ) ( 8,646 ) ( 1,000 )

22 unchanged sentences

Jack Henry was founded in 1976 as a provider of core processing solutions for banks.

Today, the Company’s extensive array of products and services includes processing transactions, automating business processes, and managing information for approximately 7,500 financial institutions and diverse corporate entities.

Today, the Company’s extensive array of products and services includes processing transactions, automating business processes, and managing information for approximately 7,400 banks, credit unions, and diverse corporate entities.

CONSOLIDATION

25 unchanged sentences

These costs are amortized based on current and estimated future revenue from the product or on a straight-line basis, whichever yields greater amortization expense.

All of this amortization expense is included within components of operating income, primarily cost of revenue.

The Company capitalizes development costs for internal use software beginning at the start of application development.

Amortization begins on the date the software is placed in service and the amortization period is based on estimated useful life.

All of the above amortization expense is included within components of operating income, primarily cost of revenue.

Capitalized development costs for software to be sold and internal use software are included within computer software, net of amortization in the Company's consolidated balance sheets.

CASH EQUIVALENTS

4 unchanged sentences

Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events.

The following table summarizes allowance for credit losses activity for the years ended June 30, 2024, and 2023:

The following table summarizes allowance for credit losses activity for the fiscal years ended June 30, 2025, and 2024:

Year Ended June 30,

2 unchanged sentences

Write-offs charged against allowance ( 2,977 ) ( 2,209 )

Recoveries of amounts previously written off — ( 1 )

Other ( 161 ) ( 189 )

7 unchanged sentences

PURCHASE OF INVESTMENTS

At June 30, 2024, and 2023, the Company had $ 25,750 and $ 18,250 , respectively, in non-current investments.

These investments were recorded at cost and are included within other non-current assets on the Company's balance sheet.

At June 30, 2025, and 2024, the Company had $ 25,750 in non-current investments.

These investments were recorded at cost and are included within other non-current assets on the Company's consolidated balance sheets.

The fair values of these investments have not been estimated, as estimation is not practicable due to limited investors which reduces available comparative information.

1 unchanged sentence

An impairment and/or an observable price change would be an adjustment to recorded cost.

Fair values will not be estimated unless there are identified events or changes in circumstances that may have a significant adverse effect on the fair values of the investments.

Fair values will not be estimated unless there are identified events or changes in circumstances that may have a significant effect on the fair values of the investments.

Equity transactions are monitored quarterly to assess whether there are indicators that fair value may be below carrying value.

15 unchanged sentences

Per share information is based on the weighted average number of common shares outstanding during the year.

Stock options and restricted stock have been included in the calculation of income per diluted share to the extent they are dilutive.

The difference between basic and diluted weighted average shares outstanding is the dilutive effect of outstanding stock options and restricted stock (see Note 11).

Stock options, restricted stock units, and performance units have been included in the calculation of income per diluted share to the extent they are dilutive.

The difference between basic and diluted weighted average shares outstanding is the dilutive effect of outstanding stock options, restricted stock units, and performance units (see Note 11).

Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement and tax bases of assets and liabilities.

6 unchanged sentences

Recently Adopted Accounting Guidance

In October 2021, the FASB issued ASU No.

2021-08, Business Combinations (Topic 805):

Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer.

The ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years.

The Company adopted the ASU effective July 1, 2023, and will apply it prospectively to business combinations occurring after that date.

Not Adopted at Fiscal Year End

In November 2023, the FASB issued ASU No.

2 unchanged sentences

The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and should be applied retrospectively to all prior periods presented in the financial statements.

Early adoption is permitted.

The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

The Company adopted this ASU effective for the fiscal year ended June 30, 2025, with retrospective application of the additional segment information for the fiscal years ended June 30, 2024, and 2023.

Additional information regarding the Company's reportable segments is included in Note 14 to the consolidated financial statements.

Not Adopted at Fiscal Year End

In December 2023, the FASB issued ASU No.

5 unchanged sentences

The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU No.

2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses, which requires more detailed disclosures of certain categories of expenses such as employee compensation, depreciation, and intangible asset amortization that are components of existing expense captions presented on the face of the consolidated statements of income.

The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

REVENUE AND DEFERRED COSTS

58 unchanged sentences

72,889 71,202

Contract assets primarily result from revenue being recognized when or as control of a solution or service is transferred to the client, but where invoicing is contingent upon the completion of other performance obligations or payment terms differ from the provisioning of services.

The current portion of contract assets is reported within prepaid expenses and other in the consolidated balance sheet, and the non-current portion is included in other non-current assets.

Contract assets primarily result from client discounts (contract incentives) where revenue is recognized and payment of consideration under the contract is contingent upon the transfer of services to a client over the contractual period.

The current portion of contract assets is reported within prepaid expenses and other in the consolidated balance sheets, and the non-current portion is included in other non-current assets.

Contract liabilities (deferred revenue) primarily relate to consideration received from clients in advance of delivery of the related goods and services to the client.

10 unchanged sentences

These costs consist primarily of sales commissions, which are incurred only if a contract is obtained, and client conversion or implementation-related costs.

Capitalized contract costs classified as current, are included within prepaid expenses and other and deferred costs in the Company's consolidated balance sheets, dependent on the nature of the capitalized costs.

Capitalized contract costs classified as non-current are included within non-current deferred costs and other non-current assets in the Company's consolidated balances sheets, dependent on the nature of the capitalized costs.

Capitalized costs are amortized based on the transfer of goods or services to which the asset relates, in line with the percentage of revenue recognized for each performance obligation to which the costs are allocated.

Capitalized costs totaled $ 503,152 and $ 442,012 , at June 30, 2024, and 2023, respectively.

During the fiscal years ended June 30, 2024, 2023, and 2022, amortization of deferred contract costs totaled $ 175,029 , $ 154,008 , and $ 133,174 , respectively.

Capitalized contract costs as of June 30, 2025, and 2024, were as follows:

2025 June 30,

Capitalized costs to obtain contracts with clients 1

$ 267,726 $ 244,980

Capitalized costs to fulfill contracts with clients

273,988 258,172

1 Includes current and non-current capitalized costs of $ 82,441 and $ 185,285 at June 30, 2025, respectively, and $ 68,605 and $ 176,375 at June 30, 2024, respectively.

During the fiscal years ended June 30, 2025, 2024, and 2023, amortization of capitalized contract costs totaled $ 192,439 , $ 175,029 , and $ 154,008 , respectively.

There were no impairment losses in relation to capitalized costs for the periods presented.

13 unchanged sentences

Certificates of Deposit $ — $ 4,620 $ — $ 4,620

Financial Liabilities:

Credit facilities $ — $ 150,000 $ — $ 150,000

June 30, 2024

6 unchanged sentences

The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised.

The lease term is used to determine lease classification as an operating or finance lease and is used to calculate straight-line expense for operating leases.

The lease term is

used to determine lease classification as an operating or finance lease and is used to calculate straight-line expense for operating leases.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease.

2 unchanged sentences

ROU assets also include prepaid lease payments and exclude lease incentives received.

estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement.

The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement.

Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date for both real estate and equipment leases.

16 unchanged sentences

At June 30, 2024, total operating lease liabilities of $ 59,604 were comprised of current operating lease liabilities of $ 8,454 and noncurrent operating lease liabilities of $ 51,150 .

Operating lease assets are included within other non-current assets and operating lease liabilities are included with accrued expenses (current portion) and other long-term liabilities (noncurrent portion) in the Company’s consolidated balance sheet.

Operating lease assets were recorded net of accumulated amortization of $ 41,229 and $ 34,306 as of June 30, 2025, and 2024, respectively.

1 unchanged sentence

Total operating lease costs for the fiscal years ended June 30, 2025, 2024, and 2023, included variable lease costs of approximately $ 2,744 , $ 4,087 , and $ 3,608 , respectively.

Operating lease expense is included within cost of services, research and development, and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s consolidated statement of income.

For the fiscal years ended June 30, 2025, 2024, and 2023, operating cash flows for payments on operating leases were $ 10,612 , $ 9,306 , and $ 12,127 , respectively, and ROU assets obtained in exchange for operating lease liabilities were $ 7 , $ 19,222 , and $ 2,368 , respectively.

8 unchanged sentences

Future lease payments include $ 5,464 related to options to extend lease terms that are reasonably certain of being exercised.

At June 30, 2024, there were no material legally binding lease payments for leases signed but not yet commenced.

At June 30, 2025, there were $ 2,070 material legally binding lease payments for leases signed but not yet commenced.

The Company may sublease its facilities from time to time to third parties.

Sublease income is recognized on a straight-line basis over the lease term, and is included within revenue on the Company's condensed consolidated statements of income.

On September 30, 2023, the Company entered into an agreement with a third party to sublease a portion of its Elizabethtown, Kentucky facility.

The commencement date of the sublease was October 1, 2023, and has a term of 57 months.

Sublease income for the fiscal year ended June 30, 2024, was $ 550 , and is included within revenue on the Company's condensed consolidated statements of income.

There have been no indications of impairment related to the underlying right-of-use asset.

The commencement date of the sublease was October 1, 2023, and it had an initial term of 57 months.

Sublease income for the fiscal years ended June 30, 2025, and 2024, was $ 887 and $ 550 , respectively.

On March 21, 2025, the sublessee provided notice to terminate a portion of the sublease agreement and reduce the square footage of their subleased space effective September 30, 2025, resulting in a termination fee of $ 332 .

The remaining space not terminated will continue to be subleased under the original terms of the agreement.

There have been no indications of impairment related to the underlying ROU asset for the remaining portion of the sublease.

Minimum Sublease Payments

At June 30, 2024, the future total minimum sublease payments to be received were as follows:

At June 30, 2025, the future total minimum sublease payments to be received, including termination fees, were as follows:

Due Dates (fiscal year) Future Minimum Sublease Receipts

10 unchanged sentences

Construction in progress 3,797 12,298

Finance lease right-of-use asset (2)

720,892 701,237

2 unchanged sentences

1 Lesser of lease term or estimated useful life

(2) Fully depreciated at June 30, 2023.

The change in property and equipment in accrued liabilities was an increase of $ 227 and $ 723 for the fiscal years ended June 30, 2025, and 2024, respectively.

1 unchanged sentence

No material impairments of property and equipment were recorded in the fiscal years ended June 30, 2025, 2024, or 2023.

At June 30, 2025, held for sale assets include aircraft with a carrying value of approximately $ 5,606 that management has committed to sell.

Total assets held for sale by the Company at June 30, 2025, and 2024, were $ 5,606 and $ 0 , respectively, and were included in assets held for sale on the Company's consolidated balance sheets and were not included in property and equipment, net.

The carrying amount of goodwill for the fiscal years ended June 30, 2025, and 2024, by reportable segments, is as follows:

13 unchanged sentences

Ending balance $ 166,554 $ 166,554

Goodwill acquired during fiscal 2024 and 2023 was $ 0 and $ 117,339 , respectively.

No goodwill was acquired during fiscal 2025 and 2024.

Goodwill consists largely of the growth potential, synergies and economies of scale expected from combining the operations of the Company with those of the entities or assets acquired, together with their assembled workforces.

15 unchanged sentences

Customer relationships have useful lives ranging from 5 to 20 years.

Computer software includes cost of software to be sold, leased, or marketed of $ 178,588 and costs of internal-use software of $ 414,173 at June 30, 2024.

At June 30, 2023, costs of software to be sold, leased, or marketed totaled $ 171,310 , and costs of internal-use software totaled $ 394,404 .

Computer software includes the unamortized cost of commercial software products developed or acquired by the Company, which are capitalized and amortized over useful lives generally ranging from 5 to 15 years.

Computer software includes cost of software to be sold, leased, or marketed, net of amortization, of $ 182,757 and costs of internal-use software, net of amortization, of $ 434,272 at June 30, 2025.

At June 30, 2024, costs of software to be sold, leased, or marketed, net of amortization, totaled $ 178,588 , and costs of internal-use software, net of amortization, totaled $ 414,173 .

Computer software includes the unamortized cost of software products developed or acquired by the Company, which are capitalized and amortized over useful lives generally ranging from 5 to 15 years.

Amortization expense for computer software totaled $ 148,734 , $ 137,958 , and $ 123,210 for the fiscal years ended June 30, 2025, 2024, and 2023, respectively.

10 unchanged sentences

2030 36,861 7,257 1,066 45,184

The Company had no outstanding debt at June 30, 2025.

The Company had $ 90,000 outstanding current maturities of long-term debt and $ 60,000 outstanding long-term debt at June 30, 2024, related to credit facilities.

The Company had no outstanding current maturities of long-term debt and $ 275,000 outstanding long-term debt at June 30, 2023.

Credit facilities

On August 31, 2022, the Company entered into a five-year senior, unsecured amended and restated credit agreement that replaced a prior credit facility that was entered into on February 10, 2020.

On August 31, 2022, the Company entered into a five-year senior, unsecured amended and restated credit agreement.

The credit agreement allows for borrowings of up to $ 600,000 , which may be increased to $ 1,000,000 by the Company at any time until maturity.

The credit agreement bears interest at a variable rate equal to (a) a rate based on an adjusted Secured Overnight Financing Rate ("SOFR") term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50 % per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 1.0 %), plus an applicable percentage in each case determined by the Company's leverage ratio.

The credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various

financial covenants that require the Company to maintain certain financial ratios as defined in the credit agreement.

a one month Interest Period on such day for Dollars plus 1.0 %), plus an applicable percentage in each case determined by the Company's leverage ratio.

The credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit agreement.

As of June 30, 2025, the Company was in compliance with all such covenants.

The amended and restated credit facility terminates August 31, 2027 .

There was $ 60,000 and $ 95,000 outstanding under the amended and restated credit facility at June 30, 2024, and June 30, 2023, respectively.

The credit facility terminates August 31, 2027 .

There was $ 0 and $ 60,000 outstanding under the credit facility at June 30, 2025, and June 30, 2024, respectively.

Term loan facility

On May 16, 2023, the Company entered into a term loan credit agreement with a syndicate of financial institutions, with an original principal balance of $ 180,000 .

Borrowings under the term loan facility bear interest at a variable rate equal to (a) a rate based on an adjusted SOFR term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50 % per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 0.75 %), plus an applicable percentage in each case determined by the Company's leverage ratio.

The term loan credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the term loan credit agreement.

As of June 30, 2024, the Company was in compliance with all such covenants.

The term loan credit agreement has a maturity date of May 16, 2025 .

Borrowings under the term loan facility bore interest at a variable rate equal to (a) a rate based on an adjusted SOFR term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50 % per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 0.75 %), plus an applicable percentage in each case determined by the Company's leverage ratio.

The term loan credit agreement was guaranteed by certain subsidiaries of the Company and was subject to various financial covenants that required the Company to maintain certain financial ratios as defined in the term loan credit agreement.

The term loan credit agreement matured on May 16, 2025 , and at the maturity date the Company was in compliance with all such covenants.

There was $ 0 and $ 90,000 outstanding under the term loan at June 30, 2025, and June 30, 2024, respectively.

Other lines of credit

The Company has an unsecured bank credit line which provides for funding of up to $ 5,000 and bears interest at the prime rate less 1.0 %.

The credit line was renewed in May 2019 and modified in May 2023 to extend the expiration to April 30, 2025 .

The Company had an unsecured bank credit line which provided for funding of up to $ 5,000 and bore interest at the prime rate less 1.0 %.

The credit line expired on April 30, 2025 .

There was no balance outstanding at June 30, 2025, or 2024.

On October 31, 2024, the Company entered into a discretionary line of credit demand note, which provides for funding of up to $ 50,000 and bears interest at the prime rate less 2.0 %.

The note does not constitute a committed line of credit.

The line of credit expires on October 31, 2025 .

There was no balance outstanding at June 30, 2025.

The Company paid interest of $ 10,044 , $ 15,757 , and $ 14,776 during the fiscal years ended June 30, 2025 , 2024, and 2023, respectively.

7 unchanged sentences

$ 130,288 $ 116,203 $ 107,928

The tax effects of temporary differences related to deferred taxes shown on the balance sheets were:

The tax effects of temporary differences related to deferred taxes shown on the consolidated balance sheets were:

Deferred tax assets:

3 unchanged sentences

Leasing liabilities 12,590 14,755

Software development and research and development tax amortization

Net operating loss and tax credit carryforwards 212 2,155

22 unchanged sentences

As of June 30, 2025, the Company has state NOL and tax credit carryforwards with a tax-effected value of $ 78 and $ 134 , respectively.

The state loss and credit carryover have varying expiration dates, ranging from fiscal 2025 to 2044.

The state net operating loss and tax credit carryover have varying expiration dates, ranging from fiscal 2026 to 2045.

Based on state tax rules which restrict utilization of these losses and tax credits, the Company believes it is more likely than not that $ 182 of these losses and tax credits will expire unutilized.

1 unchanged sentence

The Company paid income taxes, net of refunds, of $ 117,581 , $ 106,966 , and $ 145,862 in fiscal 2025, 2024, and 2023, respectively.

On July 4, 2025, the President of the United States signed into law legislation referred to as “One Big Beautiful Bill Act” (H.R.

1), which enacts substantial changes to the federal income tax law.

The legislation includes several business-focused provisions, such as the restoration of immediate expensing for domestic research and development expenditures and the reinstatement of 100% bonus depreciation for qualified property placed in service after January 19, 2025.

The Act also permanently extends key provisions from the Tax Cuts and Jobs Act (TCJA).

As the legislation was enacted after the June 30, 2025, balance sheet date, the financial implications are not included in the current fiscal year's financial statements.

The Company is in the process of assessing the impacts of the new law and plans to incorporate updates in the financial results next fiscal year beginning in the quarter ending September 30, 2025.

At June 30, 2025, the Company had $ 21,723 of gross unrecognized tax benefits, $ 19,526 of which, if recognized, would affect its effective tax rate.

1 unchanged sentence

The Company had accrued interest and penalties of $ 4,375 and $ 3,351 related to uncertain tax positions at June 30, 2025, and 2024, respectively.

The gross unrecognized tax benefits and accrued interest and penalties are recorded as other long-term liabilities in the Company’s consolidated balance sheets, except for $ 3,449 recorded as deferred income tax liability at June 30, 2025.

The income tax provision included interest expense and penalties (or benefits) on unrecognized tax benefits of $ 796 , $ 1,132 , and $ 529 in the fiscal years ended June 30, 2025, 2024, and 2023, respectively.

9 unchanged sentences

Additions for prior year tax positions 4,672

Reductions for prior year tax positions ( 350 )

Reductions related to expirations of statute of limitations ( 1,524 )

2 unchanged sentences

Additions for prior year tax positions 834

Reductions for prior year tax positions ( 27 )

Reductions related to expirations of statute of limitations ( 2,641 )

Balance at June 30, 2025 $ 21,723

federal income tax returns for fiscal 2021 and all subsequent years remain subject to examination as of June 30, 2024, under statute of limitations rules.

state income tax returns that remain subject to examination as of June 30, 2024, under the statute of limitation rules varies by state jurisdiction from fiscal 2016 through 2019 and all subsequent years.

federal and state income tax returns for fiscal 2022 and all subsequent years remain subject to examination as of June 30, 2025, under statute of limitations rules.

In addition, certain U.S.

state income tax returns remain subject to examination as of June 30, 2025, under the statute of limitation rules for fiscal 2016 through 2022.

The Company anticipates that potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $ 3,000 — $ 9,000 within twelve months of June 30, 2025.

10 unchanged sentences

The total income tax benefits from equity-based compensation for the fiscal years ended June 30, 2025, 2024, and 2023, were $ 4,479 , $ 4,495 , and $ 5,115 , respectively.

These income tax benefits included income tax net shortfalls from stock option exercises and restricted stock vestings of $ 184 for the fiscal year ended June 30, 2024, and income tax net excess benefits from stock option exercises and restricted stock vestings of $ 1,109 and $ 652 for the fiscal years ended June 30, 2023, and 2022, respectively.

These income tax benefits from stock option exercises and restricted stock vestings included income tax net excess benefits of $ 283 and $ 1,109 for the fiscal years ended June 30, 2025 and June 30, 2023, respectively, and income tax net shortfalls of $ 184 for the fiscal year ended June 30, 2024.

On November 10, 2015, the Company adopted the 2015 Equity Incentive Plan ("2015 EIP") for its associates and non-employee directors.

3 unchanged sentences

Under the 2015 EIP, terms and vesting periods of the stock options are determined by the Human Capital & Compensation Committee of the Board of Directors when granted.

The options granted under this plan are

exercisable beginning three years after grant at an exercise price equal to 100% of the fair market value of the stock at the grant date.

The options granted under this plan are exercisable beginning three years after grant at an exercise price equal to 100% of the fair market value of the stock at the grant date.

The options terminate upon surrender of the option, ninety days after termination of employment, upon the expiration of one year following notification of a deceased optionee, or 10 years after grant.

During fiscal 2024, there were no options granted, forfeited, or exercised, and at June 30, 2024, 12 options were outstanding at a weighted average exercise price of $ 87.27 with an aggregate intrinsic value of $ 920 .

During fiscal 2025, there were no options granted or forfeited, and 12 options were exercised at a weighted average exercise price of $ 87.27 per share with a total exercise intrinsic value of $ 991 .

At June 30, 2025, there were no options outstanding.

During fiscal 2024, there were no options granted, forfeited, or exercised, and at June 30, 2024, 12 options were outstanding at a weighted average exercise price of $ 87.27 .

During fiscal 2022, there were no options granted or forfeited, and 10 options were exercised at a weighted average exercise price of $ 87.27 with a total exercise intrinsic value of $ 1,005 .

At June 30, 2022, 12 options were outstanding at a weighted average exercise price of $ 87.27 .

During fiscal 2023, there were no options granted, forfeited, or exercised, and at June 30, 2023, 12 options were outstanding at a weighted average exercise price of $ 87.27 .

All remaining options were granted on July 1, 2016.

At June 30, 2024, there was no compensation cost yet to be recognized related to outstanding options.

All of the options are currently exercisable, with a weighted average remaining contractual term (remaining period of exercisability) of 2 years as of June 30, 2024.

At June 30, 2025, there was no compensation cost yet to be recognized related to options.

Restricted stock unit and performance unit awards

22 unchanged sentences

The performance payout at release of the other half of these performance unit awards will be determined based on the expansion of the Company's non-GAAP operating margin over the three-year vesting period compared against goal thresholds as defined in the award agreement.

35 of the performance unit awards have market conditions and were valued at grant using a Monte Carlo pricing model as of the measurement date

customized to the specific provisions of the Company’s plan design.

26 of the performance unit awards have market conditions and were valued at grant using a Monte Carlo pricing model as of the measurement date customized to the specific provisions of the Company’s plan design.

The remaining 3 performance unit awards had other performance targets.

Per the Company's award vesting and settlement provisions, the performance unit awards that utilized a Monte Carlo pricing model were valued at grant on the basis of Total Shareholder Return ("TSR") in comparison to the compensation peer group made up of participants approved by the Human Capital & Compensation Committee of the Company's Board of Directors for fiscal year 2024.

For fiscal years 2023 and 2022, TSR was in comparison to the compensation peer group comprised of the Standard & Poor's 1500 Software & Services Index ("S&P 1500 S&S Index") participant companies and other participants approved by the Human Capital & Compensation Committee of the Company's Board of Directors.

For fiscal year 2023, TSR was in comparison to the compensation peer group comprised of the Standard & Poor's 1500 Software & Services Index ("S&P 1500 S&S Index") participant companies and other participants approved by the Human Capital & Compensation Committee of the Company's Board of Directors.

TSR is defined as the change in the stock price through the performance period plus dividends per share paid during the performance period, all divided by the stock price at the beginning of the performance period.

9 unchanged sentences

Beginning average percentile rank for TSR 41 % 74 % 71 %

1 For fiscal 2023 and 2022, S&P 1500 S&S Index participants were included in the compensation peer group.

At June 30, 2024, there was $ 21,655 of compensation expense that has yet to be recognized related to non-vested restricted stock unit and performance stock unit awards, which will be recognized over a weighted-average remaining contractual term of 1.02 years.

1 For fiscal 2023, S&P 1500 S&S Index participants were included in the compensation peer group.

At June 30, 2025, there was $ 18,018 of compensation expense that has yet to be recognized related to non-vested restricted stock unit and performance unit awards, which will be recognized over a weighted-average remaining contractual term of 0.99 years.

The fair values of restricted stock units and performance units at release totaled $ 22,591 , $ 16,544 , and $ 24,931 for the fiscal years ended June 30, 2025, 2024, and 2023, respectively.

18 unchanged sentences

Prior to January 1, 2024, the Plan allowed substantially all associates the opportunity to directly purchase shares of the Company at 85 % of the closing price of the Company's stock on or around the fifteenth day of each month.

During the fiscal years ended June 30, 2024 , 2023, and 2022, associates purchased 90 , 84 , and 80 shares under this plan at average prices of $ 137.78 , $ 146.79 , and $ 147.36 , respectively.

During the fiscal years ended June 30, 2025 , 2024, and 2023, associates purchased 80 , 90 , and 84 shares under the Plan at average prices of $ 147.49 , $ 137.78 , and $ 146.79 , respectively.

As of June 30, 2025, approximately 816 shares remained available for future issuance under the Plan.

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Under the Plan, the Company matches 100 % of full-time associate contributions up to 5 % of eligible compensation.

In order to receive matching contributions, associates must be 18 years of age and be employed for at least six months .

Beginning July 1, 2024, in order to receive matching contributions, associates must be at least 18 years of age and be employed for at least thirty days .

Prior to July 1, 2024, associates must have been 18 years of age and been employed for at least six months .

The Company has the option of making a discretionary contribution;

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The goodwill of $ 117,339 arising from this acquisition consists largely of the growth potential, synergies, and economies of scale expected from combining the operations of the Company with those of Payrailz, together with the value of Payrailz's assembled workforce.

The goodwill from this acquisition has been allocated to our Payments segment and $ 117,339 is expected to be deductible for income tax purposes.

The goodwill from this acquisition has been allocated to our Payments segment and $ 117,339 is deductible for income tax purposes.

Identifiable intangible assets from this acquisition consist of customer relationships of $ 6,109 , computer software of $ 112,505 , and other intangible assets of $ 1,254 .

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REPORTABLE SEGMENT INFORMATION

The Company is a well-rounded financial technology company and is a leading provider of technology solutions and payment processing services primarily to community and regional financial institutions.

The Company’s operations are classified into four reportable segments:

Core, Payments, Complementary, and Corporate and Other.

The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer/member information.

The Payments segment provides secure payment processing tools and services, including ATM, debit, and credit card processing services, online and mobile bill pay solutions, ACH origination and remote deposit capture processing, and risk management products and services.

The Complementary segment provides additional software, hosted processing platforms, and services, including digital/mobile banking, treasury services, online account opening, AML, and lending/deposit solutions that can be integrated with the Company's Core solutions, and many can be used independently.

The Payments segment provides secure payment processing tools and services, including ATM, debit and credit card processing services, online and mobile bill pay solutions, Automated Clearing House ("ACH") origination and remote deposit capture processing, and risk management products and services.

The Complementary segment provides additional software, hosted processing platforms and services, including digital/mobile banking, treasury services, online account opening, fraud/anti-money laundering ("AML") and lending/deposit solutions that can be integrated with the Company's Core solutions, and many can be used independently.

The Corporate and Other segment includes revenue and costs from hardware and other products not attributed to any of the other three segments, as well as operating expenses not directly attributable to the other three segments.

The Company evaluates the performance of its segments and allocates resources to them based on various factors, including performance against trend, budget, and forecast.

Only revenue and costs of revenue are considered in the evaluation for each segment.

Immaterial adjustments between segments were made in fiscal 2024 to reclassify revenue and cost of revenue that was recognized in fiscal 2023.

These reclasses were made to be consistent with the current allocation of revenue and cost of revenue by segment.

Revenue reclassed for the fiscal year ended June 30, 2023, from Core to Corporate and Other was $ 7,119 , from Payments to Corporate and Other was $ 30 , and from Complementary to Corporate and Other was $ 307 .

Cost of revenue reclassed for the fiscal year ended June 30, 2023, from Core to Corporate and Other was $ 6,713 , from Payments to Corporate and Other was $ 2,594 , and from Complementary to Corporate and Other was $ 1,286 .

The Company's Chief Executive Officer, who is also the Company's chief operating decision maker ("CODM"), regularly evaluated segment performance and made strategic decisions on the allocation of resources to them

based on various factors, including performance against trend, budget, and forecast for the fiscal years ended June 30, 2025 , 2024, and 2023.

The CODM used reportable segment revenue, costs of revenue, and segment income to evaluate segment performance and allocate resources.

The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the CODM.

Immaterial adjustments between segments were made in fiscal 2025 to reclassify cost of revenue that was recognized in fiscal years 2024 and 2023.

These reclasses were made to be consistent with the current allocation of cost of revenue by segment.

Cost of revenue reclassed for the fiscal year ended June 30, 2024, from Complementary to Corporate and Other, was $ 4,922 .

Cost of revenue reclassed for the fiscal year ended June 30, 2023, from Core and Complementary to Corporate and Other, was $ 64 and $ 5,206 , respectively.

June 30, 2025

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INCOME BEFORE INCOME TAXES $ 474,574

The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the Chief Executive Officer, who is also the Chief Operating Decision Maker.

SUBSEQUENT EVENTS

On August 22, 2025 , the Company's Board of Directors declared a cash dividend of $ 0.58 per share on its common stock, payable on September 26, 2025 , to stockholders of record on September 5, 2025 .

Line of Credit

On July 18, 2025 , the Company entered into a new unsecured committed revolving line of credit facility with a commercial bank in the amount of $ 50,000 , which bears interest at the prime rate less 1.0 %.

The line of credit expires on July 17, 2026 .

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data