Rayna Kumar

Greg said macro environment not impacting tech spending. Benchmark survey at 88% vs 76% last year. AI now #1 priority. Pipelines very robust. Mimi said premature for FY27 specifics but thinking positive direction. Q4 not a launching pad for FY27. Budgeting process ongoing with operational leaders.

Greg said pricing environment unchanged by competitor announcement or broader competition. The 22 core wins demonstrate success since Jack Henry is never the lowest cost provider.

Greg said Q2 wins had minimal impact from competitor consolidation announcement since deals were already in motion. Pipeline growing across core, complementary and payments. Larger opportunities emerging. Will report more definitively at quarter end.

Mimi said R&D decline reflects disciplined budget planning with modest conservatism. Drivers of full-year margin expansion include spending control, limited headcount growth, and AI efficiencies. Some Q1 benefits are timing-related and expected to normalize.

Mimi characterized 25-40bp as a floor not a ceiling, noting cost management is bread-and-butter for Jack Henry. Greg added new leaders have been trained to manage headcount rigorously. Headcount up only 1% this year.

Greg confirmed delays are slightly above normal with some pushing into next fiscal year, but all are contractual commitments not cancellations.

Mimi outlined cloud growth, card ramp, new product installations, digital strength, and easing hardware headwinds as H2 drivers.

Greg noted some competitor pricing differences between retention and new wins, but no change in competitive environment. Some mergers of equals coming from that competitor.

Greg acknowledged the competitor win but said competitive pressure is unchanged, citing the $7B win and successful renewals at $15-30B clients.

Mimi acknowledged potential upside from consumer spending but said too early to commit given Q1 just closed.

Acknowledged the relationship is strong but openly competitive in mortgage scores, naming the Lender Choice program as the change.

Lansing walked back prior quarter's operational hurdle framing, saying the program is moving smoothly with high confidence in near-term go-live.

Lansing quantified the 5 signed DLP resellers as representing 70-80% of the total reseller market.

Lansing catalogued downstream score users (GSEs, rating agencies, MBS investors, mortgage insurers, regulators) and explained the per-closed-loan performance fee captures historically unmonetized IP value.

Amrita noted variable profit margins strong even with 223% YoY and 50% QoQ origination growth in Q4. Two key growth drivers for 2026: SFS now fully originating all Borrow loans enabling expansion to new states with improved unit economics, and deep integration with Cash App Green where Borrow access is a key incentive driving first-time actives to record levels.

Amrita noted field sales LTV to CAC at strong rates with 5-6 quarter paybacks. Exceeded partnership expectations for leads and volume. Piloting first U.S. ISO partnership. Expects partner-driven GPV to grow 5 to 10 times in 2025.

Amrita highlighted share gains in food and beverage, retail, and with upmarket sellers >$500K GPV. Growth driven by Square Online enhancements, improved delivery integrations, and better banking/invoices with strong field sales and partnership ROIs.

Jack noted feedback loops between support, sales, and product teams are much stronger. Amrita cited Kiosks, Bar Tabs, Scan-to-Pay, House Accounts, item splitting, and instant payouts as launches in past six months.

Mehra attributed the step-up to lapping prior-year Middle East moderation and higher fuel prices, with underlying regional growth continuing to perform well.

Michael described revamped debit platform in Brazil, competitive installment and recurring payment solutions. Business seeing healthy growth rates. Approach is to provide choice and compete on product quality.

Michael highlighted U.K. market share leadership, UniCredit pan-European partnership across 13 markets, Italy as services opportunity, and 16% European volume growth.

Peter explained lodging as tale of two halves: negative H1, positive H2 as new sales and implementations come online. EBITDA margins increasing substantially quarter over quarter in 2026, slightly down full-year due to acquisitions, but expanding as synergies implemented and volume grows.

Ron noted reduced micro-account exposure from portfolio cleanup. Same-store sales steady at +1%, up 3pp from Q1 2024. No patchy trends across segments.

Management laid out four bolt-on M&A swim lanes: international platforms, EWS, unique data, and identity/fraud.

Management addressed the question directly with specific data points.