Jack Henry & Associates, Inc. stock research
FY2025 Q1
Jack Henry & Associates (JKHY) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but weakened relative to the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2025 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but weakened relative to the year-ago period.
- The relationship between revenue and cost of revenue drove the gross margin changes. Sequentially, revenue grew faster than cost of revenue, leading to margin improvement. Year-over-year, cost of revenue grew faster than revenue, causing margin contraction.
- Revenue and gross profit were higher than both the prior quarter and the year-ago quarter. Gross margin was higher than the prior quarter but lower than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.9%
Gross profit
$257.6M
Revenue
$601.0M
Cost of revenue
$343.4M
Quarter-over-quarter change
+1.3 pts
Year-over-year change
-0.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $545.7M | $224.7M | $321.0M | 41.2% |
| Mar 31, 2024 | $538.6M | $210.3M | $328.2M | 39.1% |
| Jun 30, 2024 | $559.9M | $232.6M | $327.3M | 41.5% |
| Sep 30, 2024 | $601.0M | $257.6M | $343.4M | 42.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+1.3 pts
Year-over-year change
Sep 30, 2023
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the gross margin changes. Sequentially, revenue grew faster than cost of revenue, leading to margin improvement. Year-over-year, cost of revenue grew faster than revenue, causing margin contraction.
Revenue and gross profit were higher than both the prior quarter and the year-ago quarter. Gross margin was higher than the prior quarter but lower than the year-ago quarter.
Monitor the trend in cost of revenue relative to revenue, as the year-over-year decline in gross margin suggests cost growth outpaced revenue growth.