Jack Henry & Associates (JKHY) risk factors, FY2025 10-K

Jack Henry & Associates's FY2025 10-K, filed Aug 25, 2025, lists 25 risk factors in 6 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
256 groups
Section length
5k wordsItem 1A

Jack Henry & Associates's biggest risks in the FY2025 10-K

  • Cybersecurity, technology infrastructure, payment processing, and third-party hosting risks dominate the company’s risk disclosures.
  • Regulation and privacy obligations span financial services, cybersecurity, data use, and payment networks including Visa, Mastercard, Zelle, FedNow, and RTP.
  • Growth introduces AI, non-traditional clients, acquisitions, and continued exposure to financial-institution consolidation.

The risks most specific to Jack Henry & Associates

  • Business and Operating Risks

    Data security breaches, failures, or other incidents could damage our reputation and business

    Breaches involving sensitive client, associate, or operational information could disrupt services, trigger liability, and damage Jack Henry’s reputation.

  • Business and Operating Risks

    Failure to maintain sufficient technological infrastructure or an operational failure in our outsourcing facilities could expose us to damage claims, increase regulatory scrutiny, and cause us to lose clients

    Technology or outsourcing-facility failures could interrupt financial software and services, increase regulatory scrutiny, lead to claims, and drive client losses.

  • Business and Operating Risks

    Failures associated with payment transactions could result in financial loss

    Errors processing or settling large payment volumes could cause financial losses involving financial institutions, businesses, consumers, card issuers, and networks.

  • Business and Operating Risks

    Failures of third-party service providers we rely upon could lead to financial loss

    Failures at third-party hosting and service providers could disrupt key operations as Jack Henry moves more computing, storage, and processing externally.

  • Business and Operating Risks

    The increasing adoption of artificial intelligence (AI), machine learning (ML), and generative artificial intelligence into our products introduces significant and evolving risks that could lead to unintended consequences, result in reputational harm, and increased litigation

    Using AI, machine learning, and generative AI in products could create unintended outcomes, legal and regulatory exposure, litigation, and reputational harm.

  • Business and Operating Risks

    Expansion of services to non-traditional clients could expose us to new risks

    Serving non-traditional, less regulated clients could increase operational, credit, bad-debt, and litigation risks compared with financial-institution customers.

  • Regulatory and Compliance Risks

    The software and services we provide to our clients are subject to government regulation that could hinder the development of our business, increase costs, or impose constraints on the way we conduct our operations

    Financial-services regulation and oversight, including by federal banking agencies, could constrain products, increase costs, or hinder business development.

  • Regulatory and Compliance Risks

    Compliance with new and existing data privacy and cybersecurity laws, regulations, and rules may adversely impact our expenses, development, and strategy

    Expanding data privacy and cybersecurity requirements could increase compliance costs, restrict product development and strategy, and expose the company to enforcement or litigation.

  • Regulatory and Compliance Risks

    Failure to comply or readily address compliance and regulatory rule changes made by payment card networks could adversely affect our business

    Changes or noncompliance involving Visa, Mastercard, Zelle, FedNow, RTP, and payment-card security rules could adversely affect payment services.

  • Economic Conditions Risks

    Consolidation and failures of financial institutions will continue to reduce the number of our clients and potential clients

    Bank and credit-union mergers, acquisitions, and failures could continue shrinking Jack Henry’s customer and prospective-customer base.

All 25 risk factors

Headings as the filing states them, in filing order.

Business and Operating Risks

  1. 01Data security breaches, failures, or other incidents could damage our reputation and business
  2. 02Failure to maintain sufficient technological infrastructure or an operational failure in our outsourcing facilities could expose us to damage claims, increase regulatory scrutiny, and cause us to lose clients
  3. 03Failures associated with payment transactions could result in financial loss
  4. 04Failures of third-party service providers we rely upon could lead to financial loss
  5. 05We operate in a competitive business environment and our business will be adversely affected if we fail to compete effectively
  6. 06Failure to achieve favorable renewals of service contracts could negatively affect our business
  7. 07If we fail to adapt our products and services to changes in technology and the markets we serve, we could lose existing clients and be unable to attract new business
  8. 08The increasing adoption of artificial intelligence (AI), machine learning (ML), and generative artificial intelligence into our products introduces significant and evolving risks that could lead to unintended consequences, result in reputational harm, and increased litigation
  9. 09Software defects or problems with installations and updates may harm our business and reputation and expose us to potential liability
  10. 10Expansion of services to non-traditional clients could expose us to new risks

Regulatory and Compliance Risks

  1. 11The software and services we provide to our clients are subject to government regulation that could hinder the development of our business, increase costs, or impose constraints on the way we conduct our operations
  2. 12Compliance with new and existing data privacy and cybersecurity laws, regulations, and rules may adversely impact our expenses, development, and strategy
  3. 13Failure to comply or readily address compliance and regulatory rule changes made by payment card networks could adversely affect our business

Economic Conditions Risks

  1. 14Natural disasters, public health crises, wars, acts of terrorism, other armed conflict, and workforce shortages could adversely affect our results of operations
  2. 15Our business may be adversely impacted by general U.S. and global market and economic conditions or specific conditions in the financial services industry
  3. 16Consolidation and failures of financial institutions will continue to reduce the number of our clients and potential clients

Acquisition Risks

  1. 17Our growth may be affected if we are unable to find or complete suitable acquisitions
  2. 18Acquisitions subject us to risks and may be costly and difficult to integrate

Intellectual Property Risks

  1. 19If others claim that we have infringed their intellectual property rights, we could be liable for significant damages or could be required to change our processes
  2. 20Our failure to protect our intellectual property and proprietary rights may adversely affect our competitive position

General Risk Factors

  1. 21A material weakness in our internal controls could have a material adverse effect on us
  2. 22The loss of key associates and difficulties in hiring and retaining associates could adversely affect our business
  3. 23Unfavorable resolution of tax contingencies or unfavorable future tax law changes could adversely affect our tax expense
  4. 24The impairment of a significant portion of our goodwill and intangible assets would adversely affect our results of operations
  5. 25Changes in interest rates could increase our borrowing costs or result in decreased interest income

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.