JK

Jack Henry & Associates, Inc. stock research

Sep 30, 2025

FY2026 Q1

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

Revenue, gross profit, and cost of revenue all increased, with gross profit rising more than cost of revenue, resulting in an improved gross margin. Compared to both the prior quarter and the same quarter one year earlier, gross margin was higher.

Gross margin takeaway

Quarter ended Sep 30, 2025 · FY2026 Q1

Revenue, gross profit, and cost of revenue all increased, with gross profit rising more than cost of revenue, resulting in an improved gross margin. Compared to both the prior quarter and the same quarter one year earlier, gross margin was higher.

  • The improvement in gross margin was driven by revenue increasing more than cost of revenue, leading to a higher gross profit and a higher margin percentage.
  • Compared to the previous quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter last year, all metrics were higher and gross margin also improved.

Gross margin snapshot

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

Gross margin

45.9%

Gross profit

$296.2M

Revenue

$644.7M

Cost of revenue

$348.6M

Quarter-over-quarter change

+1.8 pts

Year-over-year change

+3.1 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Sep 30, 2025$644.7M$296.2M$348.6M45.9%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2025

+1.8 pts

Year-over-year change

Sep 30, 2024

+3.1 pts

What the margin says

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

The improvement in gross margin was driven by revenue increasing more than cost of revenue, leading to a higher gross profit and a higher margin percentage.

Compared to the previous quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter last year, all metrics were higher and gross margin also improved.

Monitor the company's cash and cash equivalents and operating cash flow trends as highlighted in the filing's liquidity discussion.