JK
JKHY
Mar 31, 2025
Quarter ended Mar 31, 2025 · FY2025 Q3

Jack Henry & Associates, Inc. stock research

Jack Henry & Associates (JKHY) Free Cash Flow — Quarter Ended Mar 31, 2025

Revenue and operating cash flow increased, leading to higher free cash flow in the current quarter. Free cash flow margin improved from the prior quarter and remained stable compared to the same quarter last year.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue and operating cash flow increased, leading to higher free cash flow in the current quarter. Free cash flow margin improved from the prior quarter and remained stable compared to the same quarter last year.

  • Operating cash flow rose while capital expenditure declined relative to the prior quarter, resulting in stronger free cash flow. Compared to the same quarter a year ago, both operating cash flow and capital expenditure were higher, but free cash flow still increased due to the larger operating cash flow.
  • Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow and free cash flow were also higher in both comparisons. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter. Free cash flow margin improved from the prior quarter and was stable year-over-year.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$481.2M

Trailing twelve-month free cash flow.

Quarter free cash flow

$96.1M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$107.8M

Cash generated by operations before capital spending.

CapEx

$11.7M

Capital spending and related asset purchases.

FCF margin

16.4%

The share of revenue converted into free cash flow.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2024-06-30$559.9M$231.8M$23.8M$208.0M37.2%
2024-09-30$601.0M$116.9M$12.8M$104.1M17.3%
2024-12-31$573.8M$89.6M$16.7M$73.0M12.7%
2025-03-31$585.1M$107.8M$11.7M$96.1M16.4%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income86.5%Shows whether accounting earnings convert into cash.
CapEx / revenue2.0%Lower capital intensity usually supports FCF margin.
Net cash-$130.1MCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Supportive

Stronger operating cash flow

Operating cash flow increased relative to the prior quarter and the same quarter last year, supporting a higher free cash flow despite a year-over-year increase in capital expenditure.

This contributed to an improved free cash flow margin sequentially and a stable margin year-over-year.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Operating cash flow rose while capital expenditure declined relative to the prior quarter, resulting in stronger free cash flow. Compared to the same quarter a year ago, both operating cash flow and capital expenditure were higher, but free cash flow still increased due to the larger operating cash flow.

Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow and free cash flow were also higher in both comparisons. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter. Free cash flow margin improved from the prior quarter and was stable year-over-year.

Monitor the trend of operating cash flow, as the company's filing noted a decrease in the nine-month period due to changes in receivables and the timing of maintenance collections.