Jack Henry reported $17.9 million in deconversion revenue for the first quarter of fiscal 2027, ended September 30, and put its estimate for the full fiscal year at $30.0 million. Deconversion revenue is tied to some client departures, often when a client is acquired by another financial institution and its Jack Henry contract ends.
- The $17.9 million is the amount recorded in the first quarter. Jack Henry’s fiscal 2027 estimate for deconversion revenue is $30.0 million.
- The revenue is generated when client contracts end and is influenced by events outside Jack Henry’s control, the company said.
- Jack Henry excludes deconversion revenue from the non-GAAP revenue it reports in quarterly and annual earnings releases because it does not reflect the ongoing business of providing services to clients.
What it means: The reported figure is a separate, event-driven revenue stream rather than a measure of recurring client-service activity. Jack Henry’s $30.0 million fiscal-year estimate is specifically for deconversion revenue.