JK

Jack Henry & Associates, Inc. stock research

Jun 30, 2025

FY2025 Q4

Jack Henry & Associates (JKHY) Gross Margin — Quarter Ended Jun 30, 2025

In the most recent quarter, gross profit rose as revenue increased more than cost of revenue, lifting gross margin. The relationship among these metrics shows that revenue growth outpaced the rise in cost of revenue, leading to an improved margin.

Gross margin takeaway

Quarter ended Jun 30, 2025 · FY2025 Q4

In the most recent quarter, gross profit rose as revenue increased more than cost of revenue, lifting gross margin. The relationship among these metrics shows that revenue growth outpaced the rise in cost of revenue, leading to an improved margin.

  • The strongest observable margin driver is the relative growth of revenue compared to cost of revenue, as revenue increased at a faster pace than cost of revenue.
  • Compared with the preceding quarter and the same quarter one year earlier, gross margin was higher in the most recent quarter, reflecting an improvement in profitability from revenue relative to cost of revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

44.1%

Gross profit

$271.5M

Revenue

$615.4M

Cost of revenue

$343.9M

Quarter-over-quarter change

+2.3 pts

Year-over-year change

+2.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2024$601.0M$257.6M$343.4M42.9%
Dec 31, 2024$573.8M$241.0M$332.9M42.0%
Mar 31, 2025$585.1M$244.5M$340.6M41.8%
Jun 30, 2025$615.4M$271.5M$343.9M44.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2025

+2.3 pts

Year-over-year change

Jun 30, 2024

+2.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the relative growth of revenue compared to cost of revenue, as revenue increased at a faster pace than cost of revenue.

Compared with the preceding quarter and the same quarter one year earlier, gross margin was higher in the most recent quarter, reflecting an improvement in profitability from revenue relative to cost of revenue.

Monitor the company's ongoing investments in product and service enhancements, as noted in the filing, which may influence future cost and revenue dynamics.