Jack Henry reported $18.7 million in deconversion revenue for the fiscal third quarter ended March 31, 2026, generated when clients terminate contracts due to acquisitions by other financial institutions. This one-time revenue impacts GAAP figures but is excluded from non-GAAP metrics.

The company increased its full-year deconversion revenue guidance to $37 million, reflecting stronger-than-expected acquisition-related terminations. This adjustment signals management’s confidence in continued deconversion triggers throughout fiscal 2026.

Deconversion revenue arises solely from contract terminations when clients are acquired by other institutions and does not reflect Jack Henry’s core service operations. Management excludes these amounts from non-GAAP revenue to provide clearer insight into ongoing business performance.