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Jack Henry & Associates (JHY) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as ā€œRisk Factorsā€. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or ā€œforeign private issuerā€ reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanksā€™ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. Jack Henry & Associates disclosed 25 risk factors in its most recent earnings report. Jack Henry & Associates reported the most risks in the ā€œFinance & Corporateā€ category.

Risk Overview Q2, 2026

Source: the company's latest filing for the period ended Jun 30, 2026, filed Aug 28, 2026

Risk Distribution
25Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

Jack Henry & Associates disclosed risks per quarterNo. of Risks2223242526Q3Q4Q12023Q2Q3Q4Q12024Q2Q3Q4Q12025Q2Q4Q12026Q2Showing: Q2, 2026
Risks removedRisks addedRisks changedJack Henry & Associates Risk Factors
Risk Changed (2)
  • Debt & Financing - Risk 1
    Any transactions we pursue subject us to operational, financial, and integration risks.

    Strategic transactions are difficult to evaluate, and our due diligence may not identify all potential liabilities or valuation issues. We may also be subject to risks related to cybersecurity incidents or vulnerabilities of the acquired company and the acquired systems. We may not be able to successfully integrate acquired companies, products, or services. We may encounter problems with the integration of these new businesses, including: financial control and computer system compatibility; unanticipated costs and liabilities, including inherited undiscovered liabilities such as past data breaches, cybersecurity vulnerabilities, or intellectual property infringement from the acquired entities; unanticipated quality or client problems with acquired products or services; differing regulatory and industry standards; diversion of management's attention; adverse effects on existing business relationships with suppliers and clients; loss of key associates; and significant depreciation and amortization expenses related to acquired assets. To finance any such transactions, we may have to increase our borrowing or sell equity or debt securities to the public. If we fail to successfully integrate our acquisitions, our business, financial condition, and results of operations could be materially and adversely affected. Failed acquisitions could also produce material and unpredictable impairment charges as we review our acquired assets. Intellectual Property Risks

  • Corporate Activity and Growth - Risk 2
    Our selective pursuit of strategic transactions may be limited by market conditions, which could impact our ability to complement our organic growth.

    While our primary growth strategy focuses on organic initiatives, we may from time to time selectively evaluate and pursue strategic transactions, including acquisitions, to complement our existing business. We have historically augmented the growth of our business with a number of acquisitions and our current strategy prioritizes a disciplined and selective approach to such transactions. A successful selective transaction strategy depends on our ability to identify, negotiate, and finance suitable opportunities on favorable terms. However, intense competition, from both within and outside our industry, for attractive acquisition opportunities may increase purchase prices and reduce the availability of transactions that meet our investment criteria, which could adversely affect our ability to complement our organic growth strategy through acquisitions.

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Risk Highlights Q2, 2026

Main Risk Category
Finance & Corporate
With 6 Risks
Number of Disclosed Risks
25
No changes from last report
S&P 500 Average: 32
Recent Changes
2Risks added
2Risks removed
2Risks changed
Since Jun 2026
Number of Risk Changed
2
+2
From last report
S&P 500 Average: 1

Risk Word Cloud

software defects or problems with installations and updates may harm our business and reputation and expose us to potential liability.expose us to potential liabilityfailure 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.expose us to damage claimsthe impairment of a significant portion of our goodwill and intangible assets would adversely affect our results of operations.significant portion of our goodwillthe 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.increasing adoption of artificial intelligenceif 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.required to change our processesfailures of third-party service providers we rely upon could lead to financial loss.failures of third-party service providersunfavorable resolution of tax contingencies or unfavorable future tax law changes could adversely affect our tax expense.unfavorable resolution of tax contingenciesif 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.fail to adapt our productsunfavorable resolution of tax contingencies or unfavorable future tax law changes could adversely affect our tax expense.adversely affect our tax expenseany transactions we pursue subject us to operational, financial, and integration risks.pursue subject us to operational

Risk Factors Full Breakdown - Total Risks 25

Accounting & Financial Operations2 | 8.0%
  • Accounting & Financial Operations - Risk 1
    A material weakness in our internal controls could have a material adverse effect on us.

    Effective internal controls are necessary for us to provide reasonable assurance with respect to our financial reports and to mitigate risk of fraud. If material weaknesses in our internal controls are discovered or occur in the future, our consolidated financial statements may contain material misstatements and we could be required to restate our financial results, which could materially and adversely affect our business and results of operations or financial condition, restrict our ability to access the capital markets, require us to expend significant resources to correct the weaknesses or deficiencies, subject us to fines, penalties or judgments, harm our reputation, or otherwise cause a decline in investor confidence.

  • Accounting & Financial Operations - Risk 2
    The impairment of a significant portion of our goodwill and intangible assets would adversely affect our results of operations.

    Our balance sheet includes goodwill and intangible assets that represent a significant portion of our total assets as of JuneĀ 30, 2026. On an annual basis, and whenever circumstances require, we review our goodwill and intangible assets for impairment. If the carrying value of a material asset is determined to be impaired, it will be written down to fair value by a charge to operating earnings. An impairment of a significant portion of our goodwill or intangible assets could have a material negative effect on our operating results.

Debt & Financing3 | 12.0%
Corporate Activity and Growth1 | 4.0%

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are ā€œRisk Factorsā€?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for ā€œforeign private issuersā€. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in ā€œplain Englishā€ so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a companyā€™s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights ā€“ risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing ā€“ risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth ā€“ risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities ā€“ risks related to litigation/ lawsuits against the company. Regulation ā€“ risks related to compliance, GDPR, and new legislation. Environmental / Social ā€“ risks related to environmental regulation and to data privacy. Taxation & Government Incentives ā€“ risks related to taxation and changes in government incentives. 3. Production Costs ā€“ risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain ā€“ risks related to the companyā€™s suppliers. Manufacturing ā€“ risks related to the companyā€™s manufacturing process including product quality and product recalls. Human Capital ā€“ risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D ā€“ risks related to innovation and new product development. Technology ā€“ risks related to the companyā€™s reliance on technology. Cyber Security ā€“ risks related to securing the companyā€™s digital assets and from cyber attacks. Trade Secrets & Patents ā€“ risks related to the companyā€™s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand ā€“ risks related to the demand of the companyā€™s goods and services including seasonality, reliance on key customers. Competition ā€“ risks related to the companyā€™s competition including substitutes. Sales & Marketing ā€“ risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation ā€“ risks related to the companyā€™s brand and reputation. 6. Macro & Political Economy & Political Environment ā€“ risks related to changes in economic and political conditions. Natural and Human Disruptions ā€“ risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations ā€“ risks related to the global nature of the company. Capital Markets ā€“ risks related to exchange rates and trade, cryptocurrency.