Jack Henry & Associates, Inc. stock research
FY2025 Q2
Jack Henry & Associates (JKHY) Gross Margin — Quarter Ended Dec 31, 2024
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue also declined sequentially and rose year-over-year, resulting in a gross margin that improved from the prior year but weakened from the previous quarter.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q2
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue also declined sequentially and rose year-over-year, resulting in a gross margin that improved from the prior year but weakened from the previous quarter.
- The year-over-year gross margin improvement was supported by revenue growth that outpaced the increase in cost of revenue. Sequentially, the margin decline reflected a sharper drop in revenue relative to the reduction in cost of revenue.
- Compared to the immediately preceding quarter, gross margin was lower as revenue declined more than cost of revenue. Compared to the same quarter one year earlier, gross margin was higher as revenue increased at a faster rate than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.0%
Gross profit
$241.0M
Revenue
$573.8M
Cost of revenue
$332.9M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $573.8M | $241.0M | $332.9M | 42.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.9 pts
Year-over-year change
Dec 31, 2023
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year gross margin improvement was supported by revenue growth that outpaced the increase in cost of revenue. Sequentially, the margin decline reflected a sharper drop in revenue relative to the reduction in cost of revenue.
Compared to the immediately preceding quarter, gross margin was lower as revenue declined more than cost of revenue. Compared to the same quarter one year earlier, gross margin was higher as revenue increased at a faster rate than cost of revenue.
Monitor the relative movement of revenue and cost of revenue to assess whether the year-over-year margin improvement can be sustained.