Jack Henry & Associates, Inc. stock research
FY2026 Q2
Jack Henry & Associates (JKHY) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit decreased from the prior quarter but increased from the same quarter last year, while cost of revenue was slightly higher sequentially and higher year over year, leading to a gross margin that weakened sequentially but improved year over year. The filing context notes a decrease in cash and an increase in operating cash flow for the first six months compared to the prior year.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q2
Revenue and gross profit decreased from the prior quarter but increased from the same quarter last year, while cost of revenue was slightly higher sequentially and higher year over year, leading to a gross margin that weakened sequentially but improved year over year. The filing context notes a decrease in cash and an increase in operating cash flow for the first six months compared to the prior year.
- The primary observable driver of the gross margin change is the relationship between revenue and cost of revenue. Sequentially, revenue declined while cost of revenue remained nearly flat, compressing margin; year over year, revenue growth outpaced cost growth, expanding margin.
- Compared to the prior quarter, gross margin weakened as revenue fell more than cost of revenue. Compared to the same quarter last year, gross margin improved as revenue grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.3%
Gross profit
$268.3M
Revenue
$619.3M
Cost of revenue
$351.0M
Quarter-over-quarter change
-2.6 pts
Year-over-year change
+1.3 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, 2025 | $585.1M | $244.5M | $340.6M | 41.8% |
| Jun 30, 2025 | $615.4M | $271.5M | $343.9M | 44.1% |
| Sep 30, 2025 | $644.7M | $296.2M | $348.6M | 45.9% |
| Dec 31, 2025 | $619.3M | $268.3M | $351.0M | 43.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.6 pts
Year-over-year change
Dec 31, 2024
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin change is the relationship between revenue and cost of revenue. Sequentially, revenue declined while cost of revenue remained nearly flat, compressing margin; year over year, revenue growth outpaced cost growth, expanding margin.
Compared to the prior quarter, gross margin weakened as revenue fell more than cost of revenue. Compared to the same quarter last year, gross margin improved as revenue grew faster than cost of revenue.
Monitor the trend in revenue relative to cost of revenue, particularly whether cost of revenue can adjust to revenue changes, and also watch the company's cash and operating cash flow as highlighted in the filing.