Jack Henry & Associates, Inc. (Nasdaq: JKHY) announced on October 29, 2026, that deconversion revenue for the fiscal first quarter ended September 30, 2026, totaled $17.9 million. Based on this performance, the company has issued an estimate of $30.0 million for deconversion revenue for the full fiscal year 2027.
Deconversion revenue is defined as the majority of the revenue generated when a client agrees to be acquired by another financial institution, which results in the termination of the client’s contract with Jack Henry. The company notes that the recognition of this revenue is driven by factors outside of its control, such as client acquisition activity. As a result, Jack Henry excludes deconversion revenue from its non-GAAP revenue figures reported in quarterly and annual earnings releases.
The press release referenced the company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 3, 2023, for additional details regarding the development of guidance for deconversion revenue estimates.
