Jack Henry & Associates, Inc. (JKHY) Earnings Call Transcript & Summary

So first of all, I'd like to wish everybody a great afternoon, and welcome to Jack Henry's 2026 Investor Day. It's the first 1 we've had in a couple of years. My name is Vance Sherard. I'm Vice President of Investor Relations. And to those on the webcast and those here in Dallas, we're very glad that you could join us. Greg just asked me a second ago, I think this is a record attendance, so we're glad for that as well. In addition to the investment community, Today, we are joined by several representatives of Jack Henry's Board. I believe they and the management team, many of them are going to stay with us after the presentations are done. The reception where we're going to do some demos and conversations can continue. So now I just need to do a little bit of business. So I've got the safe harbor statement up here. So for today's presentation and any future use of these slides, including the appendix, which we will not be presenting today, but is available to you on we're going to be talking about non-GAAP measures and utilizing the safe harbor statement on the screen. So we've got a full day. I'm not going to speak very long. We've got 4 presenters who are going to provide a lot of insight into Jack Henry's operations, a financial outlook. And in the middle, we're going to take a short break, where there'll be some refreshments. We're not going to take questions at the end of every presentation. We prefer to take them at the very end of the day. And then if you'll join us at the aforementioned reception, we were going to do demonstrations of 6 current products that I think you'll find interesting. And with all that, I'm going to get out of everybody's way, and it's my pleasure to introduce Jack Henry's President and CEO, Greg Adelson.

Well, thanks, everybody. As Vance said, just a pleasure to see all of you and to see this large of a crowd. We were really excited about trying to do this. We talk a lot about culture at Jack Henry. And for you, you get a chance to be at 1 of our offices and to experience what 1 of our offices looks like and the people and the culture that we have here. So really excited about today. So I'm going to kick some things off, really starting off with what we are about. So basically, this company for 50 years, as you know, we are celebrating our 50th anniversary. And for 50 years, we built a foundation that started with Jack and Jerry and continues today. We've added some nuances to that foundation that we'll talk about. And we've added a lot of things that we believe are the key differentiators for how this company is run, not just in the Jack Henry way, but also as compared to what the industry runs today. But the 1 thing that's been consistent for us over the last 50 years is building on the foundation that Jack and Jerry started. So that foundation really starts, first and foremost, with our people. And you'll hear a lot about our people and a lot about our culture throughout today because it is the foundation of how this company was built and how we continue to maintain the things that drive us to new levels. The second part is that we have never lost our way through the years on who we support. We support community and regional financial institutions in the United States. That's what we do, and that's all we do. And I think from that standpoint, you'll see a lot of the focus and the priorities that you'll see later on coming to make sure that our institutions are successful. And then lastly, we've created a different kind of mindset around how we do industry-leading customer service and how we support our clients. But it goes back to 2 founding principles that Jack and Jerry started with our company doing the right thing and doing whatever it takes. And in fact, I actually added -- actually my favorite quote from Jack Henry back in the day, that our clients are not in business to make Jack Henry successful, we are in business to make our [indiscernible] successful and that's something that we remember every single day as we try to move this company forward. The part that we've added to it. So in 2019, we actually wanted to add a little bit to the foundation we were working in a more remote environment because if you can remember right around the corner, COVID was coming. We were already 30% remote, but we wanted to make sure that we manage this company and led this company with 4 key tenets. And those tenets, you can read are transparency, consistency, collaboration and communication. And it isn't just about how we led our company with inside. It's how we led conversations with our clients as well in that exact same manner. And again, today, those are big foundations for us to continue to move the company forward. Last year, we added kind of a nuance to that called the Jack Henry Way. And so if you think about the Ritz-Carltons and the Nordstroms and others that have great service reputations, we wanted to build something that was around that same type of mindset. So again, you can see here that everything of the company starts with our people, but making sure that our people are successful, have a chance to grow. It creates an atmosphere to where we continue on that service level that we support across the industry, which, again, is far superior than what is happening with the rest of the industry today. And we continue to elevate in that manner. And then ultimately, it's about results. So nobody at this company, nobody in this room cares about anything on a page other than to see the financial results and the sales results. So ultimately, bringing the people, the service reputation allows us to have the results that we've been driving over the last couple of years. So 1 of the things Jack and Jerry were pretty adamant about was building the foundations for our success and it really starts with these 3 pillars. We've talked about people. As I said, we're going to talk about our people a lot, but we believe that if we take care of our associates, our associates are going to be motivated to ensure that they provide that industry-leading customer service. And as you can see, over the history of our company, we have maintained a 99-plus percent client retention rate minus M&A, but we have maintained 99% plus client retention because we make sure our associates are motivated and they do provide that level of customer service. And then ultimately, for our shareholders, we've continued to bring back positive turns, 22 years, consecutive years of dividend increase and increasing our shareholder return. So kind of on that subject, I'm going to take just 2 quick slides on fiscal year '26 because nobody is here to talk about fiscal year '26. But I do want to give you an opportunity to kind of go back and understand that the foundation of what I just talked about helped us build the success that we had last year, which, by the way, in our 50th year was a historic year, both from a financial results and sales results. So as you can see, we finished the year at 7.3% organic growth. That was on a basis of a guidance that we gave back in August of that year, 5.8% to 7%. You can see the basis point margin growth that we had of 92 basis points, again, on the basis that we've provided over the last -- now our fourth year is fiscal year '27 of 20 to 40. But that is the third consecutive year or that was the third consecutive year that we beat 60 basis points of margin expansion, again, coming out of the gate at 20 to 40. And then return on invested capital. Again, at 23.2%. I think all of you know in this room, anything over 20% in this industry is really, really good. So again, we really outperformed what our expectations were there. And then same thing with free cash flow and then our GAAP EPS growth of being double digit for 3 consecutive years in a row as well. And then on the sales performance. We talked a lot about our sales performance. And I do want to put a couple of things in your head to make sure that everybody fully understands because when we report competitive core wins, it's much different than what you see in the rest of the industry. So 58 competitive core wins included 52 logo changes and 6 de novo. So 6 of those were brand-new institutions that were coming in, and so we won't count those as competitive wins, but we did have to win against our competition, but there are not logo changes. But 52 of them were. What isn't counted in that number, which is counted again in a lot of our competition, is the fact that we had 36 in-to-outs, meaning that 36 of our customers move from an in-house environment or on-prem environment to our outsourced environment in either Symitar ease or our banking outlink environment. So 36 of those. We also had 14 institutions that moved out to out meaning they moved from an existing Jack Henry platform. So let's take our 2020 core or our core director core, and they moved to our Silver Lake core. So 14 of those. We also had over 40 institutions that moved from Jack Henry to Jack Henry and a merger. All of those numbers are not calculated into this particular. So if you throw all those numbers together, you're up to about 125 to 130 opportunities that this company produced last year with their sales team. 14 of those were actually multibillion-dollar institutions. And I've got a slide later that I'll will show you why that level of significance. But 14 were multibillion. And as it states here, we've had 45 of those over the last 3 years. And again, that's a big deal. Not only did we get 14 of them. We happen to win the largest deal in the history of Jack Henry from a banking perspective as a new deal, a $9.2 billion bank down in Houston, Texas, who decided to come to Jack Henry after working with 1 of our competitors. And you're going to learn the reasons why, as Ben goes through his presentation on the things that we were able to show them that weren't just a PowerPoint or an item that we were going to do in the future. It's something that we were already doing and that really got their interest. And you'll see a quote from that CEO later on as well. And the other big metric is something that we started last year to really drive the fact that we needed to focus on bringing more digital and card deals along with our core wins. And so we challenged our sales leaders to be much more focused. We challenged our operations teams to build out the feature parity, and with a lot of work over the last couple of years, we got to that point. So 59% of our wins last year were what we call trifecta wins compared to 39% the year before. You hear me on our calls talk a lot about our key differentiators. So what we talk about is culture, service, innovation, strategy and execution. So really, the next set of slides is to show you why we talk about it as a differentiator and some examples of where we see and what our customers have seen or prospects before they became customers see as truly key differentiators. So if you think -- I talked about these 5 already, but we focus on these 5 because we believe these 5 are truly opportunities for us to look different in the market compared to anybody that we compete with. So I'll go through each 1 of them with a couple of examples. So I mentioned earlier about our culture and being in this office where we have a large contingent of associates in the Dallas-Fort Worth area. And so we bring a lot of folks in, we do a lot of surveying. One of the things we do is we survey our associates literally every single day because every single day, I send out an anniversary e-mail to everybody that had an anniversary. So most days, it averages about 30 people. But at the bottom of that e-mail that I send out and I personally send that out. Each 1 of them has a survey that they fill out a very short one. So we truly get instantaneous feedback from our associates on a daily basis. And then once a year, we do an annual survey as well. So we gather much more detailed survey that goes out and covers a lot of different grounds. But these are just some of the results that happened in fiscal year '26 from the survey results. So again, 95% of our associates believe in the Jack Henry values, 86% believe and trust the leadership team and the executive team, 85% believe that they belong or feel that they're included as an inclusion component. Our average tenure has actually gone up. So when I took over a couple of years ago, it was a little under 10%. But right now at 10.6 years, our overall attrition rate is down to less than 7% across the organization, and that includes a call center of roughly 400 people. And if you kind of look at that as the final marking here metric, 88% of our associates intend to stay at the company. Now don't get me wrong. If we have associates that are not performing, then they're not here. We make sure that we hold people accountable and we move things forward. But these are the people that we're treating the right way and when we treat them the right way, they want to stay at the company. As a byproduct of that, we win a lot of national awards for Best Places to Work. I won't spend any time reading these to you. But the reality is in the cities that we work and nationally, we win a lot of these. And again, they're very intentional as part of our culture. Now I'll move on to service. So in this particular slide, there's really kind of 4 different monikers here. There's 2 quotes, and you can read them later. I'll kind of hit the highlights of a couple of them. But 1 of them is from the CEO of Wood Forest Bank. And basically, what he said is that innovation that keeps our clients competitive, that's what I talked about earlier. And he said, Jack Henry stood out as a clear choice because of its modern integrated platform, open architecture and public cloud native services. It's a forward-looking company and we're confident it will help us operate more efficiently, strengthen our digital capabilities and deliver the experiences our customers expect. The 1 on the bottom left there is from a Credit Union CEO. And it really talks about something that we have talked about at the company for a long time. We are the most open platform, and we have been for many, many years. And why is that important? Because when you have 300 or so products and services, you're not going to be the best in 300 or so products and services. So we're going to allow the latitude for our clients to pick and choose who makes sense for them. We will integrate to that particular solution set and will allow them to have that level of flexibility. Two things happened there. One, we get a client who is extremely happy and wants to stay with us from a core perspective and buys other products that do make sense for them. And two, it challenges our operational teams to get better, to make sure that they're building the right products to make sure that they have an opportunity to be successful. So this particular CEO just talks a lot about what we were doing in our open platform and allowing them to integrate to third-party solutions and enabling their members to have the financial services. They rely on while easily adding new capabilities as needs change. In the top right-hand corner there, that's really a quote from the Fintech breakthrough group. You'll find out that our tap to local solution that we created, we'll talk a little bit about in my presentation, we're going to do a talk a lot more in Ben's, actually was voted as a small, medium-sized business payment solution of the year. And so that was something that they talked about the solution itself, and why they thought it was kind of redefining how small business payments are operating in the country. And then the last 1 is we have several associations that we work with. One of them is the Independent Community Bankers Association, ICBA, they sponsor a lot of our products in with community banks and credit unions. And this is them talking about our financial crimes product, Financial Crimes Defender and the things that they see as differentiators in the space as well. And then ultimately, it comes down to how do our customers feel about us. So 1 of the things that we do a lot is we survey our customers both from an annual basis on their core anniversary date. So every single year on their core anniversary date, we get feedback from the executive level on how we are doing across the organization at a whole bunch of different proof points. But the other thing that we do is that when we do have a case open up, the person that's submitting the case actually has the chance to respond to a survey if they [indiscernible] and to respond on how that survey or how that experience was with our team and overall from a customer service standpoint. What I'll point out here is that a 4.61 customer satisfaction with the customer service experience is based on a 5-point scale where 3 is meets expectations and 5 is extremely satisfied. So we averaged a 4.61 and a 4.75 for the customer service rep themselves. And so again, 1 of the things I like to point out is that I don't know about you, but when I do surveys, I typically don't answer the ones when I'm happy. I usually do the ones when I'm not. Our customers take the time to respond to our surveys because of the level of satisfaction that they receive. So again, this is ingrained into all of our customer service reps, but also all of us, myself and everybody on my leadership team takes calls when we need to proactively or reactively. Innovation. So culture and service has been a part of our company for 50 years. Like I said, it goes all the way back to Jack and Jerry's days of starting this company. And really innovation was a big part of how this company started. It was 1 of the first cores ever built, and actually, still today, we are, of the big providers, the only 1 that's built a core. And so I think that's extremely important to understand. But we're not finished. We have a lot of things that we're working on that you'll see between Keith and Ben. But we also just have a lot of things that we're building outside of what you'll see today. So we're continuing over the last several years, we've been investing 14% to 15% of top line back into our products. And so that's really kind of the general expenses that happened in the technology side. That's our cap software development, that's internal use software. It's an amalgamation of those 3 components that make up this 14% to 15%. Again, you can see on the other side of the slide of where the key focus areas are. And again, you're going to see some of the examples of this and what we've been building through the years today, either in the session or as demos later on after we're completed. So the 1 thing that we want to emphasize today, and there are several, but 1 of them that Ben will emphasis that the Jack Henry platform is not just a digital core. It's actually the instrument that drives all the innovation for our company. It is different than any of the other digital cores that you've seen out there in the space today for a couple of reasons. And again, I don't want to take Ben's thunder, which I think we all know that nobody can take Ben's thunder. So -- but the reality is what you're going to see today are the things that we did that were very hard to build out the differences in our digital core. And 1 of them, in particular, is the integration to our existing cores. So our digital platform not only houses the core components that you will see today, but it houses all of the innovation, the SMB strategy, our stablecoin tokenization deposit strategy everything sits on top of that platform, and it's all fully integrated and runs through our existing cores, which creates a really simple way for our customers to adopt that technology and move forward. The other thing is, is that it's fairly sophisticated on both its user experience and its user interface. And so it's the only new core, only new platform that you can actually operate from a mobile phone. You can use any device, as we like to say that you can purchase at any of the electronic stores. But basically, you get the same optimal experience on whether you're using it on your laptop, an iPad, a mobile device, you're able to do that. And again, that's very unique. All powered by 100% native web components and then the other part is, is that this is extremely important these days. It's fully ADA compliant out of the box, which is important for a lot of our customers. You're going to see this slide really brought to life with the demos and the things that Ben is going to do. But this really serves as kind of the impetus to what I was talking about earlier, where the digital core itself sits on top of the foundational core fully integrated and allows all of that innovation to be built on the platform. So whether that's card utilization, mobile utilization, payment utilization through different rails, all of that's built on top of the platform. And so 1 of the things that we'll be talking a lot more about lesser today, but more in the future is about our focus on tokenized deposits and stablecoins. I mentioned on a couple of earnings calls ago that we had several clients that were ready to go live with USD -- moving USDC, and we have -- we're actually waiting on the regulators. They're supposed to be. I don't know whether it changed on the vote on the Clarity Act today. I don't know whether that happened or not, but -- so we need some clarity from the Clarity Act to kind of continue to move some things forward. But also there's a ton of use cases that this particular technology can be utilized in. So whether that's cross-border payments, treasury payments and, of course, liquidity oversight, but you'll see how we're taking this technology and building it into not just the platform but also to other products that have been out there today. So you'll see what we're doing with our Victor FI acquisition, our treasury platform, things along that line, where we're building more and more feature sets into the overall platform itself. Talked a little bit about TAP to local. So again, something that we have been extremely focused on. We've been in partnership with Move on this. We actually got live in roughly 7, 8 months in total from a total from a certification standpoint to building out the technology. If you remember 2 years ago at this particular event, we talked about the rollout and we talked about what we were going to build as part of that particular session, and we went and did it all. And so now we are out. So roughly 1,000 of the Banno clients have the access to it. We have roughly about 900 that are truly live on the tap to local product. Ben is going to do a demo, show you some more of that stuff in live and then, of course, upstairs after we'll do a lot more demonstration and you can ask a lot more detailed questions. I mentioned earlier that it was the FinTech breakthroughs Product of the Year, and we're proud of that. But again, the speed that we were able to build this and the sophistication of the product, which includes 2 patent pendings as well on some of the technology that we built. So now we'll move into strategy. So when I took over the chair 2 years ago, this is actually a chart with a couple of updates that I put together as part of my starting out as far as what I wanted to articulate to the team. And again, it's kind of starting at 1:00. Everything starts with our people. So making sure that we did not lose the culture that was built long before me and maintained by the CEOs before me. That was extremely important but also just making sure that we double down on the innovation that we're doing and hence, what we're talking about or what we did talk about on innovation. I am a big believer that it doesn't matter what you do or say if you don't have execution. So I don't care whether you got a great strategy or you've got a great level of innovation. If you can't execute on what you say you're going to do, it really doesn't matter. So we spend a lot of time. Shanon, our COO and myself, talk a lot about execution, and the team is doing a great job of making that happen. Our SMB strategy, what you see today with tap to local and rapid transfers is just the beginning. We have a whole host of things that we'll be talking about and some things that we've already built that we'll be releasing here in the near future and maybe even just a little surprise on something today. And then ultimately, Keith is going to talk a lot about what we've been doing with AI. So AI is not only building efficiency for the company, but it's also helping us deliver better products, more products that we think will be more highly penetrated. Things along that line as a big driver. And then delivering our platform and our components along with other solutions upmarket. So I talked already about the mill wins that we had in the above $1 billion this year. I'll kind of bring that back to light here in a second. Security and compliance. There isn't anything that you can do in this industry when you're supporting the number of clients that we have where security and compliance can't be top of mind. I'll give you a little hint of that in kind of the frontier model component here in a second. We talked a lot about evaluating kind of low-margin, low-growth businesses that we needed to either look at sun setting or what we call end of lifing or potentially even selling off and we have several of those that we've been working on. I'll give you an update real quick at a high level, but that is still a focus of ours, process takes a little more time, but it is definitely a focus of ours and has been for the last couple of years. And then ultimately, it's about doing what we say we're going to do. I think 1 of the primary reasons why we continue to win is because we have proof points that we're doing what we say we're going to do. And I'll show you a couple of examples of that as well. So I mentioned this several times. So we're winning larger deals. So this gives you a depiction of where we were the 3 fiscal years prior. So starting in fiscal year '21, '22 and '23, we won a total of 23 new multibillion-dollar institutions. The other thing that's important to note of those 23, most of them really were around $1 billion, $1.5 billion, $1.8 billion, maybe $2 billion. They really didn't start to creep up to the $5 billion, the $7.5 billion, the $9.2 billion that we won. And that started to happen in fiscal year '24 through '26 of which we've won 45 of those. We've won several $5 billion institutions during this time frame, a couple of $7.5 billion and $8 billion. And then, of course, the 1 I referenced already, the $9.2 billion Woodforest deal. So as a byproduct to that, in a market that is continuing to decline with banks of all sizes through M&A, Jack Henry's market share has actually grown in both the banking and credit union in the above billion-dollar space. So as you can see, we now have a combined market share of 32%, both banking and credit union in the above billion space. And we grew almost 5% on the banking side of our business and almost 4% on the credit union side of our business, again, in a shrinking market during M&A through the wins that we've had over the last several years. So we bought a company back in September of last year, so roughly a year ago called Victor FI, which we've now called renamed Jack Henry Payments Orchestrator. This particular product and solution set is extremely important to us and some things that we're doing, again, with the platform, what we're hooking in, some of the functionality into our treasury products. But it was, at the time, the owner [indiscernible] solution set that was out there. There has been another company that's now put -- bought a company or created a relationship with a company that does do direct to core, but it's mostly on the card side. It isn't on the full payment side that we have in place today. But again, this is something that we're going to continue to double down. We've created a really strong pipeline, both in the banks that are interested and the fintechs that are interested because we're bringing -- we're kind of a matchmaker in this world. We're bringing fintechs and banks together to work together in the banking as a service type of mindset. So here's just a quick things that is important for the financial institution itself. Obviously, all of our institutions are looking for deposit growth and noninterest fee income. So those are 2 of the biggest things. And then there's an opportunity here for lower cost of funds. And again, we have a whole team, and we have a sales team that's fully dedicated to just this portion of our business and opportunities. And then ultimately, it comes down to execution. So as I mentioned earlier, I'm a big believer that if -- like I always say, and it's not something that's rocket science, again, strategy and innovation without execution is meaningless. And so nobody cares about what you're talking about. They only care about what you did. And so that's really where we've been focused. So this is a depiction of something that we started in actually 2020 by the time we got it done, the first road map that we showed was in 2021. And in 2021 across our organization, we had no consistency on how we build road maps. We had no consistency on how we measure our success, and that's something that we focused on. And so when we put this very first chart together, and I was happened to be COO at the time when we did this, we were only hitting at 69% of what we said we were going to do for our clients. And there's nothing more frustrating for our clients to have happen is to believe that a company is going to build something for them and it not get done in the time frame that they said it was going to get done because they're banking on the things to be at that level so they can go make their own decisions. So we put this into place, and we put it into place for over 60 different products across our organization, all in a consistent format, and we actually show this to our customers every 6 months. It sits out on what we call the 4 client portal, which is only available to our clients. But they have the ability to go out and look at these road maps and see what features are planning to be accomplished over that next 6 months. One of the reasons that we did 6 months is that the world is changing very fast. And if we're going to hold ourselves accountable, then we need to make sure that we're working in increments that we can actually execute in. Now we have other road maps that are longer term, and we share those and we do joint road map planning with our customers and things along that line. But this is what we would say we were going to do across those particular product groups, and it's all of our big product groups. And so as you can see over the last several years, this last iteration, which was in July of '26 because we show it in August time frame in February. But in July of '26, we hit almost 90% of what we said we were going to do. The 6 months before that, we actually hit 94%. So you can see the evolution of our time of that. I think anything over 90% is incredible. And again, if you talk to the consultants in the industry, they'll tell you anything over 80% is better than what most of the companies in our industry do. So we track this very thoroughly. We hold our teams accountable and you can kind of see the amount of throughput that we have with 650 or so different features that are added each and every year. And then I mentioned earlier about product rationalization. So the rationalization component of this, again, is important for us. If we're going to talk about focus and priorities and execution, we can't be spending time on things that truly aren't going to move the needle for our customers. And again, if they're not moving the needle for our customers, then they're not going to move the needle for us. And so over time, a whole host of things have been built. Some of them maybe shouldn't have been built that is what it is. Other things are where they are as far as their maturation process or maybe they're kind of the laggard from a standpoint where we've built something better, and we need to just kind of get rid of that and move them to the new platform. So 1 of the things that Shanon has been highly focused on over the last couple of years is making sure that we do the right diligence on these particular initiatives. So a whole host of things that we go through to evaluate those products and kind of the -- should fall to the in our product market. Again, we got 300 products probably too many, to be honest with you, right? There's just only so many things that you can be really, really good at, and that's what we're focused on. So, so far in the last 2 years, we put 18 products into product retirement. Our process, again, like what we do with everything with our clients is a very fair process where we give them anywhere from 24 to 36 months to move off of that particular initiative. We either help them move to another Jack Henry solution, or give them enough time to find something else. And each of these have kind of gone through their level of innovation and evolution. But again, we're going to continue to double down on this. I expect this number to continue to increase. And then there could be some that are candidates for some level of divestiture. All of these solutions are very small. You would never even know any of the names, that's how small they are. But the reality is they take away focus, they take away dollars. And again, for us to get where we want to get, this needs to be part of the priorities. AI is a big part of what we've been building over the last several years as well. So again, Keith is going to do really a good deep dive into this. But we've been focused on AI for 4 years. We built our governance framework and something that I think is very unique is that we had a really good collaboration between the CTO, our Chief Information Security Officer, our Chief Risk Officer and our COO, 4 key leaders in the organization that spent hours upon hours building out a framework and getting to a point where everybody felt comfortable which isn't easy. And we did it. And so as a byproduct to that, we've been actually very active utilizing AI tools over the last several years. Again, Keith is going to talk a lot about that. But the utilization of almost 100 tools that we have in play today that is allowing us to be very successful. So as of today, and I mentioned this on the last earnings call, 22 of our products are with AI are in production today. Some of them are built into existing product sets like Financial Crimes Defender, some of them were in Banno. Some of them will be -- have the capability to be monetized. Others are not going to be monetized. They're just going to help the penetration of the product itself, which allows us to continue to grow in that particular group. We have another 20 or so that we're planning to release in the next 6 or so months. Again, Keith is going to give you a taste of some of these. He's actually going to show you some of the things that we have built. But we've had things that we do within the organization that's extremely important as well. So you can see that as of today, we have 30% of our associates that have been trained on AI. So we have 9 AI coaches. They spend a lot of time with our team, helping to build the skill level in the -- and honestly, just the confidence to go out and be able to work with vibe coding or whatever the key things are. 85% of those folks that have gone through the training said that immediately they felt more comfortable with the skills that they learned that will allow them to go out and be successful building out whether, again, it's small vibe coding initiatives or other things. But 85% immediately that week provided that feedback. But some of the things that we've seen already where what -- an example there around 2:00, where it says 90 seconds where it used to take 40 days to actually review some things in a previous process. Now they're able to do in 90 seconds. We have 3x the daily capacity in some of our areas related to code development. So we've had some groups that have really taken off in some of our areas and others that are kind of getting up to speed, but we've seen as much as 3x. So projects that maybe would have taken us 3 years to do, we're able to do and say, a year, 18 months. Our mantra with AI has been very direct, which is, if you look at our company, we've always been a company that tries to again, back to people, doing more with the same. That's really the mantra. And the message to our associates is you're not going to lose your job in particular because you're -- because of AI. You're going to lose your job in particular if you're not using AI to make yourself better and somebody across the -- your room is doing that. So our message to our team is get embraced, get comfortable, use it, make your job better, make us more successful, allow us to do things more quickly. And that's really embraced the mindset of our associates to be much more willing to get involved with AI and use it. So again, a couple of other things there with -- creating some process that used to take some week -- or used to take a week that we're now doing in hours where we create an architecture diagram for a lot of our clients. And then lastly is really around -- I talked -- I touched on frontier models. So 1 of the things that we've mentioned before is that we have been part of Glasswing, 1 of roughly 100 companies that have access to that. We've been heavily involved again at the CTO level, the CISO level, the COO level and really across our organization. But the reality here is that people aren't able to plug the holes of vulnerabilities at the speed that is needed with these types of frontier models, you need AI to do that. And we've been able to utilize AI in our environment to where things that used to take 72 hours to do, we can now do in less than 10 minutes where we can plug vulnerabilities. And so again, you're going to continue to see us spending a lot of time. We're protecting a lot of assets and a lot of customers. And so this will always be, as I said before, security and compliance will always be at the top of our [indiscernible] to making sure that we keep our customers safe. So that is a kind of a quick run-through. I was the appetizer for the main events that are coming up. But I think you guys will get a chance to really understand what we have built over the last couple of years, really over the last couple of years. Ben is going to show you where we were at this time 2 years ago to where we are today. And when I talk about the speed of innovation and I talk about what we're able to do on the platform, it will come to life when you get a chance to see all that. So without further ado, Again, we talk a lot about our 5 differentiators. Hopefully, you got a chance to see those in action. But ultimately, it's about trust and building relationships and making sure that the things that we're doing truly matter and our customers believe in that. So ultimately, our #1 strategy is to enable clients to win in the markets they serve, and that's all that our focus is about. So hopefully, you got a chance to see some of that in a short order, and you'll see a lot more of it here in the next coming slides. So I'm not able to advance this. Okay. Got it. Okay. So I'm pleased to introduce Keith Fulton, who is our Chief Data and AI Officer at the company. Keith came to us about almost 2 years ago, December will be 2 years. He's got a strong background in core development. He actually was at 1 of our competitors for a long time, ran all their core development. He also has a strong background in AI and things along that line. So we got him to come over to the good team side, and got an opportunity to move forward. So Keith, glad to have you.

Thank you. All right. So thanks for that great intro, Greg, and nice job on your section. All right. So let's dive in and talk about AI. I've got 4 main topics today. We're doing so much in this area. And I know like I'm obsessed with it. Not everybody is as big of a nerd is me, okay, but I never stopped thinking about this. I never stopped reading about it. And maybe you're the [indiscernible] of it, but I'm going to try to make it interesting for you. So you can see what Jack Henry is doing all over the place. So we're going to talk about these 4 big sections. And so the first 1 I want to talk about is just how are we doing this to accelerate our own development. Greg touched on it a little bit. We're accelerating all over the place. And just in general, how is Jack Henry reaping the benefits of AI. So I've put some tool counts up there for you to see. You'll see in the dev side of those ones on the right, get Hub CoPilot, 1,200 people, cursors 840. I did that slide like 3 weeks ago or 4 weeks ago. We're now up over 1,000 licenses on cursor. We've got developers everywhere learning this. It's going viral, and we're seeing acceleration across the board. The growth is crazy in the way we're using these licenses. And we're doing that in a smart way. Like with the reason we're using some of these tools is because they're cheaper than other tools. And so we'll get into that and touch on it in a minute. But we're seeing across the board, where we've got broad adoption of this over and over sort of somewhere in the 80% to 90% range. So this team, [ Jae origination ], they've been able to really prove and they've been very good with their metrics and their stats to show 90% acceleration in terms of features per release that they're able to do. So if they can do 10 features for release before now they do 19. And it doesn't take too many quarterly releases before that starts to be felt in the market. And so we're really seeing this as a competitive advantage for us. Another one, just on a more individual level. Foresight is our product that does check image archiving for Check 21 images. And it's a legacy product. It's not a fancy cloud thing. And even those guys were seeing 3x the contribution rate in their GitHubs than what they were before. I pay again [indiscernible] services not super sexy, 2x documented progress with what they're doing. And then I put this 1 up here, we're doing a monetization effort as we kind of bring together iPay, which is our core sort of bill pay platform and payrolls, which is our recent acquisition, well, it's not that reason 4 or 5 years ago. We're bringing those together to make them into 1 solution for the market. And that team has been using AI to port all the APIs from 1 language and architecture to another one. And at the beginning of this year, you see that's February of '26, they were doing 5 APIs a month. And then last month, they did 48 of them in a month, and they're on pace to do 54 this month, I think. But we'll see if they get there. But already, that's nearly a 10x upgrade. 10x acceleration in our ability to deliver a new code. So the idea of translating and upgrading legacy code to new modern stacks. I think that there's some sort of hype out there in the market about this. I think we're starting to figure out how to really make that real, and it's exciting to see. Toconomics. I'll just put 1 slide in here on this, which is to say, we are tracking this very closely. Maybe watches me, like a hawk on this. We are very confident about this and we are not going to waste money on token maxing games and trying to squander billions of dollars on this stuff. We're trying to do in economical ways. We have multiple providers involved. I showed you Google and GitHub and CoPilot, which is Microsoft and then cursor, which is space X AI, we play these competitors against each other, and we work with whoever is the cheapest, and we do not sign long-term agreements on these things, and we're going to ride the prices down as the price war continues on this stuff. Okay. So that's a quick touch on how our development environment and kind of development capabilities are progressing. So now let's talk about AI inside our products. We have 7,500 FIs that use at least 1 Jack Henry product. We have 1,700 roughly that use our cores. The average customer of our core use between 40 and 50 of our products. And so 1 of the ways to get community banks all over the country to use AI is for us to put AI into our products. And then when they get the next version of the product, all of a sudden, they're using AI too, okay? And so that's what we're doing here. So I think of this as injecting the Turkey, okay? This is a funny metaphor, but it's like we're going to take the Turkey, which is our product, and we're going to make the turkey more delicious, okay? And so -- we have -- we are taking -- we've built an architecture that allows every product team that we have to use AI and benefit from that in a very standardized way with very little learning curve, we don't have to have each 1 of them go through their own independent safety inspections, about prompt injection and privacy and PII data. We can build that 1 time in a central way. And then each product team can take advantage of that. So this is the reusable injector idea with this. So for example, financial crime is a vendor. So our product that does BSA compliance, it does a lot of things. But 1 of those is something called a SAAR narrative. So SAAR is a suspicious activity report. And whenever a sort of a bank teller or a banker see something that they think is suspicious for any reason, it's the law that they have to flag that transaction and somebody in the bank has to investigate it. That -- so that each bank in the country has an investigative arm that looks into is there money laundering? Is something shady going on? Is there human trafficking, drug dealing, [indiscernible], okay? So they have to fill out an official form on that. And then they actually have to write an essay about what they found and that SA is called the SAAR narrative. They send those off to Finsen in Washington, D.C. And then Finset aggregates those across FIs and looks at them in aggregate. That SA is a core and what we've done is we're not trying to automate the investigation human investigators are needed. I think the idea that you can take an autonomous agent and completely outsource the investigation to AI. It's crazy. This is something bankers go to Gel 4 if they get it wrong. We have got to have humans doing the investigation. However, can we save them time right in the narrative? I think we can. Here's a quick summary of this. And you'll see he's using Financial Private Defender. He's entering in some specifics. And I went through and abbreviated the section quite a bit. But it's $13,000 in ACH potential fraud. And now we're going to use AI assistance to help us generate the narrative. And the AI says, "Hey, I don't have enough data here, who was it that did this? It was an accountant or this is our passport number, and now boom, I'm going to generate a narrative. Then this is just a dummy quicky narrative. But then I'm going to take this, and I can now edit it or send it off for approval and click a button that submit. But there's a human being using it the whole time, okay? So we have this in 5 banks and closed beta right now, and we're seeing some amazing results from this. You see that it used to take them 60 to 90 minutes to do the SAAR narrative by hand. And now it's taking them 10 to 15 minutes. So that's 85% faster that's enabled them to go from 5 stores a day to 25 a day on average. And now the error rate -- look at that, their error rate went from 10% to 2% for those. So not only is it faster, but they're not sacrificing quality to get that, they're raising quality. They're getting better compliance. And then, of course, if the time goes down, the cost goes down, obviously, okay? There -- I looked it up and there's 4.1 million SAARs being filed every year in America, not by Jack Henry, but just in aggregate, FinCEN is dealing with 4.1 million of these. So think of that as 4.1 million man hours of time that this 1 feature that I just showed you a 30-second clip I could save if it was universally adopted. So that's an example of where clients already use Financial Crimes Defender today. They already do SAARs today. They already write these narratives today. We're just giving them an easy button and giving them something to a way to do it faster and better. The next 1 I have is just a product call. We call it JHAnalytics. And it's a set of Cognos reports that become reports and dashboards for our clients to use. And so what we did in this case was we built a you see a back panel on the right over there. We build a plug-in for Cognos. And I'll just let this 1 run too, if I can advance it. Okay, here. So now we have JHAnalytics. And here, you can drop in your chat assistant, and now you have a chat bot and you add it to your dashboard, and now you can talk to your chatbot about the dashboard. And the interesting thing about this 1 is that the chatbot and see the screen you're looking at, they can see the statistics and the graphs, and you can say, what's the most important thing on here, where did this number come from? Or why is this or this? Or I don't understand the definition. And it has a rag database behind it. But since it can also see your dashboard, it has a lot more context about what you're trying to do, and it can give you much more direct advice. So this is another case where we're not -- it's not getting sent to fence at. It's just a way to make executives more productive and lower their cognitive loan when they're looking at their dashboards. The last 1 I'm going to show you is loan Vantage. The credit narrative that goes when you approve or you decline a loan. You've entered in all this data. You've got all this collateral. We've all been through the process on a car loan or a mortgage, okay? And so we've put in all the stuff. Now we need a document for the underwriter to say why are we approving this loan? And so I put this 1 in here because it generates a word document. And it doesn't just work inside the system, but it actually gives you a deliverable that you can forward around in your organization and keep on file in the way that you normally do. So we've got AI helping with tasks inside an application. We have AI in a Cognos product that's not even a Jack Henry product that's looking at your data. And we have this that's creating office documents on the side to help you do your job and to help you work with your coworkers on this stuff. Okay. So I showed you 3. We have a bunch of these that are coming. I put the chart up here to just show that between July and January, we have 9 of them or 10 of them coming. So every month, boom, boom, boom, things are coming out. And this is where closed beta comes in, okay? We're we'll go GA generally available at a later point. But with our products now, we've all adopted a standard process that when we have major new products or major new features, we put them in what we call a closed beta, and there's a certain number of clients who are the inner circle who get that first. And they help us tune it and they help us preview it. We make sure that they're referenceable, and they say nice things about it. So then when we GA it, we know we have something that's really going to have product market fit out there. okay? So those are 3 examples. I have examples of all of them, but I thought I might get too tiresome in this room for everybody. Although I'd love to show them. So if you want to see them, just raise your hand. All right. So we have the injector, right? The Turkey injector, but that injector turns out to be really valuable. So what if we took the injector itself, the AI architecture and we productize that. So that's the next thing we did was we want to give that injector out to clients, so the clients who are banks and credit unions who have technical teams and building custom solutions or integrations, they want dev acceleration. They want AI features and their stuff, and they have a learning curve. They don't want to all learn Python and Langchain and all these fancy things. They just want to call an API and get a result. And they don't want to think about prompt injection filtering and PII leakage and so on. They just want all that handle. And so we're going to give them an architecture that does that. And so we built something called the AI fabric. And the first part of the fabric, it's what we call the AI gateway. And so what we've built is a set of restful APIs that allow you to call an AI behind the scenes at Jack Henry. And you ask a question, get an answer. And in a matter of an hour or 2, you can get a credential and 1 of your developers at your banks can wire up and start to build their own chatbot, okay, really easy. And if you want to build a Cognos plug-in or a SAAR narrative generator or were document generator, you can do all that with these APIs. Prompt injection and PII filtering, any kind of sensitive information is already handled for you. So if you're a CIO of bank, and you don't necessarily -- you want your IT group to start to experiment with AI, but you're worried about safety and risk and liability, just use the Jack Henry APIs. And all that safety stuff is handled for you, you don't have to guess that your IT team is working it out. And then the last thing is it gets more fancy than just ask a question kind of answer, retrieve augmented generation, FCP servers, A to A capabilities for agents to call it other agents. There's a lot of fancy things under the covers. We abstract all that away just into fixed APIs, okay? So our clients love this. We have 3 clients and closed beta with this right now, and they're out there using this banging on this every day. And so this will be GA very soon. But it's amazing to see how the mission of Jack Henry to help our clients win and all these little banks across the country that even in something as technical and this esoteric is AI, we can bring something to market to help them even the playing field. The second 1 is the crazy [indiscernible] problem, okay? Vibe coding. Vibe coding is a process of using an AI tool to just describe an application that you want and then the AI tool will code it for you. And in a matter of sometimes even minutes, you can get an AI to write you a solution. We had a case at Jack Henry where we had a lady in our procurement department, and she wanted a tool to help the procurement lead and the purchasing manager and the legal lead, keep in sync on who had the meat ball on each particular deal across a list of all the different procurement things. And in a weekend, she vibe coded a map that does that. And she's not a techno person. She's just a procurement person. And she vibe coded this thing and she showed it to me, and I was like, holy cow, like, that's neat and you're solving a problem. You're solving a business problem for Jack Henry with this. But where is this thing? And she did a Replant. And so it was out on Repla.com somewhere in some e-mail server. And I got this vision of Microsoft Access in my head. We're going to have all the shadow IT and shadow vibe coding things. We've got to somehow bring some sunlight to that. So those could proliferate kind of like cats and so we have to be -- we have to help those people do that. We need to share innovation. We need our Jack Henry associates to be able to solve their own problems and scratch their own niches and the idea of using vibe coding too help people build solutions that they don't have is an amazing idea. But if we don't have control over them, it could be an unmitigated nightmare. And so -- this mic is rolling. So what we've done -- well, by the way, our clients have the same problem. What we've done is we built this thing, which is the AI garage. Jack Henry itself, we've always talk about Jack and Jerry, and they started in this exact car mechanic garage when they started the company. And so -- and kind of to honor that, we decided to call this thing the AI garage. And so now if you vibe code something in [ Repeat ] or in Gemini or in love ball or whatever you use, you can export it out of that tool and import it into our garage. We will scan it for security. We scan it for secrets. We scan it for vulnerabilities. We try to make sure all that kind of stuff gets done. We then containerize that in a dock container and we deploy it to GCP and we put the code in GitHub under a name that you choose, all the Jack Henry domain. So now we have security, we have control of the code. We know exactly what we have where. We're hosting it in our tenant. It's not being hosted at a random silling replet. We have all of our normal controls around our GCP security. We're all there. [Audio Gap] We can see from the way previous people who've left to behave how the new people behave. And so what if we gave a weekly sheet to the derisk team of who they need to go call to try to save every week. And what if they gave them, it could be that they just need to apologize. Like what's going on is some happening did something go wrong? Or it might be, hey, if you'll bring your direct deposit back to us, do that for 90 days, and then we'll give you a $200 extra for switching back to us. Or it might be, we'll give you a break on your car loan if you'll stay with us kind of thing. So these are offers that a bank can make to be proactive. And what if we could get 8% to 12% turn down to 7% to 11%. Let's cut 1% off of it. But all of a sudden, we're going to save $1 million to $1.5 million in revenue loss avoidance and we're going to save 10% of the replacement cost, which is $2 million to $3 million. That's overall now $3 million to $4.5 million a year just because I built a churn sentinel in the data science App Store. This is where we're taking data out of the realm of just better and better dashboards into actual business execution and strategy. Now this is going to affect the way banking gets done everywhere. Big banks, giant jumbo banks, they're doing -- they've got teams that do this. Community banks don't. We have to give this to them. It's going to be a game changer. So the closed beta for the data science stuff is in January. Each machine learning app will be priced separately. Some will be very cheap. All this could be very, very valuable. We'll see how that goes, instant activation. And then membership in the data consortium that I mentioned at the beginning is required, if you want to benefit from the data consortium, you have to be a part of the data consortium. That's typically called a give-to-get model, and that's how we're going to run this. Okay. My last topic, which is my favorite topic is agentic okay? So I put the Agentic-AI future of Jack Henry. Is that grants enough for everybody? Okay. This is where I think we're all headed. Okay. The current state, if you just think about the architecture of any software system today, it looks something like this. You have a user. They're using a web browser on a laptop or wherever that web browser is using APIs, and then the APIs are causing a system of record, the back-end system to do work. And the system director could be very simple, and that can be very, very complex. It's all kinds of stuff that could be happening there. This is dumbed down to the end degree, but this is how they mostly work. And as I mentioned before, there's a thing called vibe coding, which allows amateurs to just make whatever they want with coding. You don't need to be a coder anymore to code. And so it's a little bit like if you've if you tried it, it's a little bit like conjuring the rapid out of the hat, which is I think it feels like magic. And so if you haven't tried it, you should definitely try it. It's easier than you think. Give it 5 minutes you'll do it, it will be amazing. Okay. So what's that going to do? That's going to create a whole bunch of different front-end oops, I'm adjusting something. It's going to create a whole bunch of different front-end possibilities. But guess what? Jack Henry, the system of record and the APIs, they still are what they are. You still need the banking core. You still need Financial Crimes Defender. You still need the new platform. You still need the services that Vana provides under the covers behind its web services, okay? So APIs and systems of record are what matters most. And the good news for Jack is that that's what the business that Jack Henry is building those. The next thing is that you can have agents. And so I think of that as a little bit of sort of the magician conduit, it's more like a remote control car or you just twiddle a button and then the car does what you say, drives away. So what that does is now I've got a human on their phone, talk to an AI bot. And now the AI bot is calling APIs and the APIs are still calling the system of record. So what happens there? And all of a sudden, it's too much work to launch a browser. I just want to talk to my bot and my bot will do the work. So the UI has become an impediment for some users, not all users. This is an overnight process. This is a 10-year process. I'm just trying to predict the future here. Where is this all headed? APIs will agents will not be one-to-one with apps. So once agents are using APIs, there's no reason why they shouldn't use multiple APIs. So what that gives you is something like this, where now you're talking to your phone, on your agent on your phone and then your agent is now calling multiple things. So now the new SORs don't have to be comprehensive, agents become the glue which is the kind of orchestration layer between all these things. So I did a non-Jack Henry example just to illustrate my concept because it's getting a little bit abstract. But I said go through my sales force opportunities and compare them to my inbox and outlook, build me an Excel spreadsheet of anyone who's asked me a question that I haven't responded to or anyone who hasn't corresponded with me in the last 30 days. Now I go through all the people I haven't corresponded with had a comment in the spreadsheet to the right of each row with 2 relevant ideas for messages, okay? So now I'm using Salesforce, Excel and outlook. And in 2 seconds, I wrote a prompt that I could run every day and have my to-do list of I'm in sales. He just don't always need humans though. I had a human texting with the agent on a phone on my previous examples, right? But kind of like what triggered that light when that [ atreticame ] at, it was a motion sensor. We're going to have similar things in our systems. And so I think of it as triggered by scheduling, triggered by an outside event like a male or it could be the A to A thing that I was describing earlier, where agents are calling agents. And so in that world, the humans become less relevant. So when we talk about automation of the banks or automation of any industry, the humans eventually get less relevant. So how about this, I have a trigger by timing example here at the beginning. Every weekday 9 to 5, check all 3 of my banks with the highest savings rate and transfer any balance over 5,000 from all my accounts to the highest-yielding savings account. You could write that quarry in 30 seconds, every 9 to 5, it runs, it calls all the APIs. And the banks are now suddenly in a sweep competition based on interest rate and they don't even know they're in it. All they're doing is giving up interest rate and balance data. They don't know what's happening. Okay. That's how powerful these things get. The other 1 I made on a vet-driven basis rather than timing is every morning at 8:00 AM, check my inbox for e-bills and notifications, use my online banking to pay them if they're under $300. It's over $300. It's going to be a text, transfer money from my savings to replenish the checking account. Okay. Again, that's a $0.03 thing that now takes care of my bill pay for -- what are both of these doing though? Both of them are calling Jack Henry APs to make that work. The inquiries, the higher savings rate balances, the transfers, the bill pays, the transfer back to replenish the money. That still needs Jack Henry behind the scenes to do it. So we love this model. And I think it's going to be interesting to see how it explodes. I made a business 1 for Silver Lake for a picker as well. Every morning, 7:15, go through all the exception items, using Silver Lake, check the customers previous for each one, check the customer's previous transactions to see how we handle prior exceptions, check their history in Synopsys. Synopsys is our CRM tool for those who don't use Salesforce, deciding the exception disposition of fees according to our bank policies and stage them up. And then if you recommend waving the fees, put a note in Synapsys and the CRM tool and stick an e-mail to the customer in my draft folder. I don't want to send it. I need a human in the loop. But now just with a couple of trumps I've changed the way we do exception item at the bank however. So what you end up with here, if you tile this together is you have humans, but you also have all these events talking to agents they're running anywhere with agent APIs, system of record. We think Jack Henry needs to be the key enabler in the middle of all this. So what do we do based on this? How do we execute on this? So now I've got a little primer on what Agentic AI is an analogy with restaurants. So the way we've always done it before is that we had AI inside our products, and I demoed 3 of those examples for you. It's very comfortable. It's like this guy going into the McDonald's to order. But in the future, we need to be a drive-through. We need people outside the restaurant to also be able to access our features inside the restaurant. And so here, I said millions of independent agents, it could be Anthropic agents running its space X data centers, open AI running at Azure. All of them are running anywhere, and they're all calling our APIs to do work. And you might say, well, I'm a fancy restaurant. I don't want to drive through, okay? But guess what? You're going to need drive-through. And I usually analogy sometime of Shake Shack. Shake Shack has a policy of not having drive-throughs, you're supposed to go into a Shake Shack. But if there's a Shake shack on the left, there was an in and out burger on the right, which 1 has 50x more cars and more customers than an out burger does. People route around Shake Shack because too much work to go there. And so if we don't offer drive-throughs in our APIs then people are going to route around us. Luckily, Jack Henry has had a strategy of being open and having APIs and being leaders in third-party integration for years. And so this plays to our strengths. So I think this is going to be a fantastic time for Jack Henry. We're harness agnostic. Again, and harness is 1 of those words that is a little bit technical. But if you think about Clacowor, copilot, Hermes, [indiscernible] Agent Force, et cetera. Everybody is trying to be the harness. And I've spent most of the 2025 thinking we needed to build our own harness and be a harness ourselves. But now I don't think that's true. I think we are the drive-thru. And so for us to say, well, we only serve pickup trucks when we only serve Toyotas, that will be a bad way to run a McDonald's. We need to provide the drive-through, and we need to be agnostic as to who drives up and what they want. And so whoever comes here, however they come. How do the people that the drive-through know what to order. We need to stick a menu out there in or behind the restaurant. And we say this is what we offer, this is what you call it, it's how much it costs, et cetera. This is a function of an MCP server, okay? So there's a lot of tech talk out there about model contact protocol, and there's a lot of esotericsm. At the end of the day, the people at the drive-through need to know what they can order before they come to the drive-through. And so this is how we do it. We're going to build our own MCP layer to handle all of this for our clients and our products systems of record. The last thing I would say on this is, even though we need drive-thrus, not everything is accessible in the drive-through, is it? If you're the Brink's guy, you can't get the bags of cash from yesterday's receipts, handed to you through the drive-through window. You got to -- you got a park and you got to go in to get the back of cash. And so what we need is a risk framework for what constitutes a burger and what constitutes a bag of cash. And we're going to use that to respect with our APIs that inside the risk framework, not all risks are created equal. So the verdicts of all this are SORs are what matter. Jack Henry is in the SOR business, okay? The stone tablet here is intentional. Trust is a paramount importance. Our customers and our customers of our customers, trust our banks as the custodians of their money and as a ledger of everything that means anything in the real world. We will continue to provide that to all these people. We're actively working on agentic APIs across our road map. I use this example of the S shafts, making the little dessert there or whatever it is. And he -- that Chef might like those who chefs and he's training them, and he trusts the but nothing goes out to the customer in a Michelin-star restaurant until the main -- the head chef reviews everything. So we always need human in the loop. It's what we do. And we need to get used to the fact that we're going to have exposure outside our walls. This is the drive-through window side. Every product in Jack Henry needs to establish this drive-through window for themselves so that things on the outside, the agents can get out of what they're doing. So I put all this together into -- I did -- that was a lot of slides for -- without a lot of practical examples. So I put together another demo to show what is it like to chat with Silver Lake. Okay. So here, I'm now in Microsoft Teams, I'm looking up a guy named Humberto Bagrin, and we found is customer ID in Silver Lake. And I'm like, yes, I want you to pull up the account. And then thanks for a minute and then it shows the account. And look, oh my gosh, there's 40 outbound checks for $1. That looks like testing or structuring of some sort. And then the teller is like, okay, I don't like that. I want you to suspend that account, put a restriction on their block it and then it says done, restriction placed status #6, restricted, okay? That person never logged in over link. They never launched a browser. They never searched a quarry for that. They didn't click a flag. They didn't drop down a box. They just told about what they wanted the bought did it. Now I accelerated that quite a bit. There's a lot of thinking time in there and so forth that we cut out of the video. But I just want to show you like this is the simplest example I could think of to show you guys what the future is, that we think Jack Henry has headed towards. So I went back to harness agnostic. This is our risk framework that we use. We have L5 is Level 5 risk, the leading data are moving money. That's the Brink's truck example. We're not going to do Level 5. Level 4 is where you get into environment, if you contact outside customers or even data exfiltration, if you combine reading acquiring data with L4 sending data outside you can get into bad combinations. So we're not going to do that. But guess what, there's a lot to do with 1 and 2, 3, Levels 1 through 3. This is a little framework we made to help our portfolio, think about their own priorities. So what you see here is read on the APIs, rules and statuses, comments, cases and others, reset passwords, update limits and so forth. Those are all yeses, and then I put in the L5 execute transactions as a no. all the way down the line because that's moving money. It's difficult to undo and we don't need to support that. So I want to emphasize that we're not doing that right now. And then the idea is that then -- if we had all the things that are wise and they're working, then now they're like LEGO blocks and we can make composable interlocking sets and then saying, well, we want to carry this and lock that and update the limit on that and put a note there. We can do all that stuff, and banks will be able to take entire workflows that they operate today, clicking all TAV between different tools, and they'll be able to orchestrate that in a single prompt in the not-too-distant future. This is what we're building to. So the last thing in my wrap-up is going to be that's Jack in the middle there. And 50 years ago, his innovation was that large banks had computer systems and small banks didn't. The largest banks in the country had armies of programmers and mainframe computers the size of buildings in those punch card readers and so on. And the small banks couldn't afford to do that. They were all still ledgers like they were in the 1800s. And Jack was like, you know what, I thought I could build a piece of software. And if I made it configurable. I can make it to where more than 1 bank could run in the same software, and that's how they could afford to run it. And that's what he did. So now it's 50 years later, we're going to revolutionize community banking again with all safety stuff. That's what's coming. We're very excited. There's a mountain of work to do to get there. But with me and my partnership with Mr. Ben over here, we're cranking on this every single day. That's what I got for you today. Thank you.

So we're running about 15 minutes ahead, but let's take a 20-minute break and come back at about 10 till, and that will give Ben a little bit of extra time, and we'll just start a little bit early. If you're looking for the restrooms, they're going to be to your left as you exit the room, and then we're going to have some refreshments down to the right as well. Thanks. [Break]

Really appreciate Keith. We're really glad that Keith is here. He and I are AI partners in this new world. So I'm glad you got a chance to hear him. We're not going to waste any time. We're going to get right into it. We're going to talk about platforms in the AI era. So I'm going to kind of pick up where Keith left off talking about what we're building. We're going to talk about the Jack Henry platform. And specifically, what makes Jack Henry different. Of course, Greg talked a lot about a lot of different things that make us different as a company. I'm going to talk to you about what makes our technology different and why that's really mattering and why we're winning new deals because of it. I'm also going to just talk you through what shipped since I last saw most of you. I know I saw a few of you at SI, and I've seen a few of you at different events that Vance has brought me in to you. But for the most part, I haven't seen most of you since September. So we're going to go through everything we've shipped since then provide an update for you all on what we're doing with business across the board, not just tap to local also Banno business and treasury. So you're going to kind of see our strategy there. And then I have 2 new announcements for you guys. So all right, Buck love, we're going to go fast. Oh, sorry, 1 more thing. I am going to show live demos. So you're going to see live software, you're going to see the platform in action. It's right here. You're also going to see real live consumer software. This is going to be Banno running on incredible bank. So I'm anymore -- I'm just tired of pure slide shows. We're going to show you some software as we go, all right? So you could see it for real. All right, for real. So without further ado, in 2020, I think you all know this, we set out to build a new kind of core system. The company had decided we actually needed to do this. There's a lot of different ideas. The market had these new Scicor showing up, okay, and beginning to build direct to digital experiences. At this point in time, back in 2020, we had a lot of early success building out the Banno Digital platform inside the company. We'll talk about that a little bit today. But we want to build a new core. The other thing is long-term Jack Henry has a strategy for consolidation over time, right? So we've been working on this for a while. The idea is actually we're percolating for 2 years pre-2020. But I wanted to kind of give you a time line for what happened and how we ended up building a platform. We had a vision to build a new core. That was in 2020. In August of 2022 is when -- well, before this, Greg had asked me to be the CTO of the company and take on this project. It was being run by a team, a small team inside the company. And we did that, and what we worked on as a team is, hey, let's realign this idea of building a core to let's build a platform, right? And basically, we work the entire plan, but a big part of building a platform in the cloud with all of the language comes with that is we needed a cloud partner. So we announced the GCP deal. Big shout out to Google and the GCB team. They've been an amazing partner, absolutely standing partner, for us in this build-out. I can't say enough great things about them. And then we updated the road map. Some of you who were here several Investor Days ago might remember me showing you a 3-year road map. How many of you remember that. All right? We hit every single thing on that road map on time and under budget, all right? So this core is basically done, and we're going to show it to you, all right? So updated road map in 2022. And right after that, we hit ChatGPT era, right? I mean you guys just got to see a great presentation by Keith talking you through where we are in that journey. And -- but I just wanted to articulate the fact that we actually decided to build a platform, be API first long before this happened. Then back to Investor Day of 2024. I'm going to come back to this in a minute. We get SaaS populists at the beginning of this year. And really, at the end of the day, I think most analysts and have had the good fortune, we've had a lot of inbound inquiry for the management team to meet with the large consulting firms. I just collected a few quotes from Gartner and McKinsey. But the bottom line here is the companies that win in this next age are going to be platform first companies, okay? They're going to be API first companies, cloud native, headless architectures, okay. Those companies are going to establish significant competitive moats, and we are 1 of those companies. But value is going to accrue to people who integrate the stack. I'm going to say that again, value accrue to people who integrate the stack. That's how this is going to work. Some quick quotes from McKinsey here. So what we're building is a new structure, a new platform around our foundational course to enable a faster pace of innovation. Our customers get a connected workspace to run their financial institution. This allows them to evolve at their pace, at their strategy, okay? The things that they want to do, I'm in the fortunate seat to get to meet with our customers every single week. I love it. It's 1 of my favorite things. And I don't meet anybody who has the exact same strategy as the last person or the last financial institution I met with. They all have unique strategies for how they want to grow, what the technology they want to adopt and how they want to build their bank or credit union. So the other big thing, you all know this, this is a big part of our message, but being on the Jack Henry stack allows you to avoid a large core conversion, okay? This is a very big deal for our customers. It also is attracting new customers. Greg talked about Wood for us as an example, where they want to be on the Jack Henry stack because they see a world where in which they won't have to do another 1 of these conversions, if that makes sense. All right. And then like this gives them a chance to launch and evolve new products on the platform, all right? So -- which is a big deal. So now we're going to just dig into what makes Jack Henry different. I did show these slides -- I don't know. I can't remember it was 2022 or '23. But I did show these slides. I want to revisit them. I built these way back in 2022 to really explain what I felt was the problem in the market with Scicor. I just want to say this upfront, I have a lot of respect for our competition in the Scicor market. I just saw a challenge that our customers are going to face if they were to adopt Scicor technology. And again, why did they do it? Just remember, it was for digital experiences. They needed to build new digital experiences, and they felt like they couldn't do this on traditional core systems, okay? And so we wanted -- they wanted these 4 to build new digital experiences on Scicor. The fundamental problem is there's no integration with the foundational core that runs the bank or the credit union sells and clears every single night and every single weekend. That's the problem. This is the problem in the entire industry, this little guy here, okay? And there's a few other things. And again, there's no shade to these competitors. Most don't have UI/UX, they're headless. Now I want to stop and talk about headless for a second. We are also headless. But we have a full UI, and you're going to get to see that today. And if you want to see more details, you can go up and check out the demo upstairs, okay? But our thing was, hey, a lot of customers, even like larger customers who have big teams, they don't want to spend their time building out a new UI/UX, even with AI tooling, right? That needs to be fit and finish and ready out of the box for them. But we are also headless. So we have 100% coverage of APIs, and I'm just going to show you this, you can -- I'm sure you won't go look at this for yourself, but if you do want to, all the API docs are here on the open Internet at jackhenry.dev, okay? Everything is here, right? So when we say we're API-first platform first, that is the case. However, we chose to build a UI. We knew we had to build a UI. And the other thing I wanted to mention is, I often say there's so much innovation that's possible for our customers in which there's no AI required. We're going a ton of stuff in A, I'm going to show you some live demos. You're going to see some cool stuff. But there's a lot of low-hanging fruit for efficiency gains that our customers can get if we just bring really good design into the back office of a bank or credit union, okay? And I'll give you some examples. Every time they bring 1 of these Scicor in, they have new compliance and regulatory and security concerns. Also, generally speaking, they need an additional team to run it, right? So they have the team that's running their foundational core, then they need to run their Scicor. All right? And then at the end of the day, as it stands today, and I think this will change, just to be clear, sometime in the future, I'm not smart enough to know when. But sometime in the future, these Scicors will be able to settle and clear a bank they -- or a credit union, they cannot do it today, all right? Okay. So my idea is very simple, like super simple. We had built this digital platform inside the company called Banno, you guys know it well, all right? And I was just like, why don't we just build a platform and connect it to our foundation, of course, and make this easy and help our customers avoid a conversion because how this could have gone, okay, is we could have said, hey, we're going to build a Scicor, and we're going to go compete with the likes of thought machine FINSA, et cetera. And we could be sitting here talking to you today explaining that we're now going to go to market and tell our customers that they have a conversion if they want to use the new technology, okay? How well do you think that would have gone over? Not very well, okay? So we needed to offer them a path. I'm going to kind of Cliff climb you through what that path looks like for our customers and a bunch of stories about customers that are taking that path today. So the idea is, hey, build a platform connected to the foundational core. And if we did that right, with really good integration to our existing core, our customers don't have optionality. And that would allow them to modernize and convert at their own pace. I think everybody knows that conversion is like a really scary thing for a CEO and management team at a bank or credit union. So we needed to break that up and allow them to take that at their own pace. So this is the mental model. You guys have seen this before in my presentations, but I just do it every single time. So everyone understands this is a foundational core system, all right? We enable the public cloud on top of that foundational core system. This is our wonderful partners at Google and the Google Cloud Platform, okay? Again, like I said, this has been an amazing partnership, full build out, I'll give you some stats on that later. So we enable a public cloud for our foundational core systems, that enables data in AI. You saw Keith give you a wonderful presentation about Jack Henry AI fabric and Gateway, okay? So that fabric and gateway runs on this platform, okay? So this platform is we -- and I would say anytime you sit down to build something new, you need a little luck, okay? You do need a little luck and we got lucky. We didn't -- I didn't know if ChatGPT was going to happen. I'm not that smart. We wanted to build AI native. We had talked to Google about it, even pre-ChatGPT, that we wanted to build an AI native platform and enable the Google AI stack at the time and that has just evolved to where we are now, and we are just basically natively AI ready, and you saw a bunch of examples of that in Keith's presentation. So that gets us to kind of where we were in the build-out in 2024. I'm going to come back to this in a second. But right here is where the magic is and where all the hard work is. We integrated this new platform to our foundational course. And a lot of people think like, well, why is that magic been? Well, this is the reason -- this is 1 of the big reasons why Woodforest Bank came to Jack Henry just this year. Because any time you go buy a Scicor, and you realize, "Oh, I got to integrate a bunch of human systems. I got to integrate a bunch of things on my foundational core. Every time that happens, you're now spending a lot of money. And folks have spent millions and millions and millions and millions. I'm not exaggerating. We know the numbers. millions of dollars, integrating these Scicors into their foundational core systems, right? This is a huge problem. What we offer is out-of-the-box integration to our foundational core for every single product that we offer on the platform, all right? Okay, I'm going to give you a quick example, so you have a mental model for how this works. We've done this dozens of times at this point, okay? Very simple. What you see on the left-hand side of your screen is the Fed. We manage all this orchestration to the Fed. My team runs all the internal integration here at Jack Henry. And what we can do is, on a Friday, we can coordinate with the bank or the credit union stop using their wires module. Our conversion team actually runs a small conversion is mostly automated, okay? We reroute, okay, for the Fed, and now that wires platform is running here. It's not just moving off a foundation of course. A lot of our customers actually use third-party wireless platforms, okay, competitive wires platforms, and they're now moving to our wires platform. okay? So it's not just coming off of our foundational core. It's also coming from third-party systems and it works the same though, makes sense, all right? So on a Friday, this happens. And our goal, what we say is CEO and CFO should never know this happened. This should be a nonevent at the bank or the credit union. All right. I'm going to stop and give you a fun story. We actually did 5 of these on the ISO conversion cutover. You're familiar with ISO 20022, it was a big day in financial services for a lot of us, all hands on deck, massive change in the wire protocol, okay? We actually converted 5 institutions that night. One of those was a credit union customer. And the feedback we got back on Monday was the CEO said that was the easiest thing my credit union has ever done. Absolutely amazing, right? Okay. And then the next day, they get a new UI/UX, okay, that they're running their wires on, right? They get a new wire room, they get new functionality that they've never had before. They get some AI assistance, they get a bunch of other things that we bring to the table. But that's not all. Remember, I said, "Hey, we deliver UI-UX, but let me tell you the rest of the story. We did that conversion for them last year during the ISO cutover. I just met with them again actually just several weeks ago, Monett, the CIO and their head of technology was there. And then what he explained to me is that they had gone in to jackhenry.dev, him and his team, okay? And they had worked with our API documentation. This is a big auto lender. So if you imagine, disbursements for auto lending, okay, the very manual process inside the credit union. And they took our headless platform, all right. And they orchestrated a bunch of automation inside the credit union, and he walked me through that. Now there's a bunch of really great people at that credit union that can go do other things. okay, at that credit union to provide value, all right? They automated the entire stack. They're over the moon, okay? Because they get a UI-UX, but they still get this headless automation, right? Again, Again, I'm going to make tasers to just say there's no AI required massive efficiency gain inside the credit union. So that's just 1 story of many that we're now seeing on the ground. So obviously, this enables a faster pace of innovation. When I say this, I mean this in 2 dimensions. One is it enables Jack Henry to deliver faster innovation, okay? So all the things I'm building in this fabric for Keith, then the rest of the company goes faster, right? The rest of our company gets -- the pace of engineering and development and product development, all is increasing, right? So we get a faster pace of innovation because we're building a platform, all right? But then our customers get a faster pace of innovation because they can build, okay? All right. And again, I'm going to say this 8,000 times in this presentation, but without a major conversion, without a major conversion. This is why people are moving to the Jack Henry platform, okay? What I call the Jack Henry full stack, right? Okay. September 2024, how many of you remember September 2024, were at the Hyatt, I think is where we were, all right. Yes. Okay. In September 2024, I spent a lot of time trying to explain to you all what I call stuff below the willing, right? Engine room stuff like this is what we're building and how we're building it and why. We literally had only 1 module running on this platform, all right? Now we had done a lot of work here, a lot of work below the wild line up to that point, a time. But here's everything we've built in the last 2 years. I'm just going to do this a couple of times in case you missed it. This is like my favorite part of the presentation. We're just going to -- maybe we'll just do this for the rest of the time. Is that enough? All right? Okay. Now these are actually -- there's actually more than this. I just want to decide to lignite side this later at this. There's a bunch more. But not only that, all that's running on form, both headless and with the UI. Okay. Is that in that core? Can we do it again? amazing, all right. And then those modules can be combined to build new kinds of products. So these are 6 examples of products that we have launched and live with customers in some form, all right? A new ledger amazing, you'll get a chance to see this in a second. We talked about domestic wires 2 years ago, but we now have international. We're just now rolling out international wires, all right? Exception not in processing, you're going to get a demo of that in a second. Tokenized deposits and stablecoin. Yes, Clarity Act just failed. I think that's kind of rippling its way to the markets. Hopefully, you're short bitcoin. Anyway, but just a reminder, we do have the Genius Act, which is a great beginning for stablecoins, right? But there still is a big fight over how those will be effectively "banked, right" interest accrual and those kinds of things. But we have tokenized deposits and support for USEC and we're part of the open USD efforts. We have a full module that supports that today. We'll come back and explain that later. We have built out a whole new ACH platform, early stages, Phase 1 deliverable. It's now live at customer sites. And then last but not least, because we have a real core a new one, we have deposit accounts. A couple of things about deposit accounts. Obviously, our foundation, of course, have amazing optionality for deposit accounts. They can -- combinatorially they can put together all kinds of different types of deposit accounts. And that's great. But what we focus on with the platform is building deposit accounts, debt a bank or credit union could not build themselves on their foundational court, does that make sense. So stuff like roundup checking, all right, stuff like that. Things that they would have to go have a third-party either build, do custom with us, et cetera, et cetera, okay? Also, things like stablecoin can now be bundled and combined into a deposit style account then offered, say, to a consumer or a business, okay? All right. So as you hopefully know, Scicor often go to market and pitch customers to launch a new brand, okay? Well, we are doing the same. We now have our first customer live on this platform running a new brand, all right? And the way this works, remember, we built this awesome digital platform. I'm a little biased. We'll talk a little bit more about that later. But Banno actually works natively on this platform works against this new core system and the technology that we've built. And much like some of our competitors, our customers can build a separate go-to-market brand, but they get 1 awesome feature. It settles and clears and integrates to their foundational core so they don't need a big team to run it. They can run it with their existing team, okay? They don't need new vendor due diligence because we're the vendor of choice. We're the primary vendor at the bank or the credit union. Okay, they don't need a new security team. They don't need new anything. So it's way more efficient to run a new brand on Banno plus platform, okay? Way more efficient like or is magnitude efficient than any of our competitors, all right? So anyway, I'm a little excited about this. Big shout out to hope Credit Union, who is an awesome partner. The brand that they're launching is a new type of brand to go bank the unbanked. Really amazing effort on their part. Okay. So just some numbers. We are now running active across 2 regions in GCP. The digital platform is now at 16 million users. It's actually a little more than that, but who's counting? I am. I'm counting. I'm sure you are, too. And then we have 1,030 financial institutions. So desks running and really kind of burning in scaling this platform. So it's not like this platform is just like barely having a few users on it. We now have millions of users running through, okay. All right. So it's not just that we're building, okay? And we're building a lot. You just saw what we built since we last saw you, right? We've also been building and developing partnerships and give our CEO, Greg Adelson, the management team and Erica Pelon, you get a chance to meet her for a lot of work and help in these efforts. But we are working really hard, and I want to -- we announced the move partnership, and we'll go through that here in a bit. But Move is now a primary partner on platform. So everything we built with Move is available actually here on our API docs in a head this way, okay? And I'm explaining why that matters in a second. But then we have circle, which we've enabled for USDC, we've announced that we're part of OSDC or OUSD and then Visa, MasterCard, big time partners for us. for real-time money movements and merchant acquiring, et cetera, right? So as these partners come on platform, what we do here is the same thing we're doing with our cores is we integrate -- deeply integrate to these partners, okay? All right? So literally, somebody can come along and put an agent on the system and do exactly what we do in Tap to Local against what we built for move. Does that make sense to everyone? All right? So we're both had less, and we have products. What this does is it enables all kinds of new ideas from our customers and enables us to then build new products that our customers can buy from us, things like tap to local, et cetera. That also enables new add-on sales for existing products. And I have a few examples for you. Okay, treasury. Just a couple of quick notes about treasury. We -- I'll go into a little bit more detail about this later, but I think we're now at the point where we can say this, we have 1 of the premier treasury products in the United States. We have customers going into places like New York City and competing directly with JPMorgan Chase and the bigs on treasury. Fund fact, I think Greg has said this publicly in earnings calls, but we are now winning core deals simply because of our treasury platform, all right? It's such a compelling product for them to go build big deposit bases and go compete. So we're very competitive. But what we've got here is we've got a bank that actually is going to New York City, closing 600, 700 new accounts per month up against the big banks, and they're winning, and it's awesome. They're growing like a weed adding literally -- I'm not exaggerating billions of deposits in months, okay, with our treasury product, super cool. But in order to compete, they needed access to stablecoin rails, right? They need access to stablecoin. So they are now piloting this in lower environment. So this is a little bit of engine room or below the waterline, but I wanted to explain this. I've seen questions coming in about regulatory, et cetera. There's 2 things to understand about regulatory to rest in our world. One is we don't get to talk to regulators at the bank or credit union. Everybody got that? We don't get to talk to them. And the credit union and the bank don't get to talk to our regulators that regulate us. If bank fix 1 thing in Washington, D.C. Bandwidth is that because it would be really nice if we could get a check mark, okay? That was good to go, GTG for a regulator at a bank or a credit union, but they can't see the regulatory dress that we have, okay? By the way, I'm a big believer in the United States regulatory system, I'm a big believer, okay? Like, it's great. It's hard, but it's great. So anyway, why is this important? Why does this matter at all? Well, we provide lower environments for the platform. So our customers get a chance to take something like stablecoin, run it in lower environments nonproduction and bring the regulators in to look at it. And you get a chance to see some of our regulatory functionality in the platform itself because the regulator can actually come in and audit the entire thing themselves, right? Super cool. And this allows them to get comfortable, educate their regulators, do their due diligence on us, which we're already a primary vendor. Again, this is a huge efficiency gain. It's easier for them to come to us to license this technology than it is for them to go outside and take on new due diligence efforts. Does that make sense, okay? Huge efficiency gain for them. So that's treasury. I want to talk about Victor FI. Greg mentioned it and talked about it at length. We love this acquisition, and we're in the process of moving Victor. We call it now Jack Henry payment orchestrator onto the platform. Now let me give you a future intuition about why this matters. This has already come up in deals that we have for Victor. So in combination with what we've done with Move and our card network partners, Visa, Mastercard, right? We can now offer Visa Direct and Mastercard Send natively to customers via Victor. That makes sense. Do you understand the strategy now, why would we buy Victor? What we can bring that in? Also, cool thing Victor has some functionality that the platform doesn't have, and we'll be utilizing that, okay, Super awesome, basically subaccounting, okay? And this gives us a combinatorial effect of what I call 1 plus 1 plus 1 equals 10, all right? So again, over here on the left, what you see is some of the modules on the platform that we're using out of the box to enable some of this functionality, all right? Cool. All right. I didn't -- I was on the slide, I want to just call out graph, right? I've not talked in public about graph at all. And it's important to probably start talking about it. This is what I call below the waterline technology, but it's actually a way simpler than you think. This is just entitlements rights and permissions, entitlements rights and permissions. If you and I are running a business together, and we have to entitle a bunch of people to go do stuff on our behalf like initiate a wire, okay? And then say you and I approve it, all those kinds of things. That is what the entry refers to as entitlements. What we realized because we had built a large digital platform, and we're the only core processor that's built 1 inside a core company, we realized that we needed to build a substrate that works for both the bank and the consumer, right? And that's because, traditionally, this gets super boring, so I won't bore you, but traditionally, Rice's Hollands permissions have been split between core systems and digital systems. This is a huge inefficiency for their customer. Massive. There's not a single customer that you can go talk to. If you ask them about this about entitlements in their digital system versus entitlements on their core, they will all go [ atorrible ], okay? So we saw a chance to go solve this. In addition, we already had an identity platform that we had built for Banno. We've now overhauled that identity platform, that is now getting rolled out to all of our customers. So everybody gets Jack Henry ID. And the other thing to understand about graph and our identity platform is that it is a big part of the middleware that we're building for our outside the base. This is a multiyear build as we're targeting getting outside -- getting Banno and Treasury outside the base, which Greg has talked about enough in public. Okay. So fine grain permissions, we actually built this design, we call it fine grade permissions at every level. All right, what do you need for AI agents -- you need fine grain permissions at every level, okay? All right. So let me explain. My simple way of explaining this is I've always said when we built Data Hub. So everything Keith is doing on the data side is being built on top of Data Hub. We built that. We talked about that in 2024. If we didn't have -- if we had to build Data Hub, Keith will be 2 years behind on his efforts in, okay? So I always say, like, no data AI, no identity, no fine grain permissions, no AI agents, all right? Well, we built 1 of these things already. Let me give you a quick intuition for this. If you have an AI agent, okay, on the consumer side that's doing something. And then back to you and I running a business and let's say we enable business agents to help us do our work. Okay. That identity of that agent is going to be linked to you and I right, as business owners. And if that agent does something, okay, who's responsible, you me, right? That's how the regulators will see it. We already have priors for this. This is not that complicated because we have had workflow for how long, like 2 decades. Okay. So how does that work? The identity of the person who built and designed the workflow, right? Okay, when the regulator comes and looks at a workflow automation inside the bank, they're going to be like, "Hey, you, who built this okay, there's an identity of somebody who did it. And then they're going to be like, well, okay, how did it run? That's the automation. And then, okay, who's running it, who is the human in the loop that did the final approval, right? That's cooling agent identity with human identity. And who is responsible, Fun fact, this is real story. Doing my 1 along with Greg, right? Driving back from Chicago with my wife, in my self-driving car. I'm not paying attention. I have it in Max mode. Don't judge me. I have it in Max mode. Just talking to Greg and drinking coffee, I'm not kidding. I'm just drinking coffee and myself diving car, my wife is in the passenger seat. I get pulled over. Who's getting a ticket? And in a car, okay, it's not the self-driving system, I get the ticket, right? I had to tell Greg, I have pulled over here been, yes, definitely speeding, and I was really fortunate that the police oiler came up to the passenger side and talked to my wife first because I would have got to take it, for sure. Anyway, didn't get a ticket, I got a warning on was really nice to my wife. I think it was just me, I get a ticket. Anyway, you get the point. No identity no fine grain permissions, no agents. We are in full rollout for both graph and Jack Henry identity. All right. Okay. We're going to keep moving here. Tap to local. Again, just an example of tap to local is leveraging our platform, obviously, move being a partner here, ledgering exceptions, orchestration and our entitlements permissions layer. Okay. But it's going to get more interesting for you all as investors because we're going to go do more high-grade partnerships. We have 2 more. We wanted to announce them here, but we're just not quite ready. We got some more eyes tees across, 2 more amazing partnerships coming. We will announce those at Connect. That will enable even more new products, again, with the combination of things we built, things we buy and then these partnerships, really high-grade partnerships. But I want to make sure I explain this. When we bring these partners in, we will build all the hard heavy lifting work to integrate them to the platform. That's what makes them valuable. Remember, back to my opening slide. The value is going to accrue to people who integrate the stack, okay? Value accrues to people iterate stack. Value accrues to people who iterate the stack. And that, over time, we're going to keep doing this, and we're not going to stop. Also, this isn't fancy work. This is hard work. This is what I call dirt, shovel, ditch, sweat, equity work, right? And it's like -- it requires analysts try Julie Morelands whole team. It requires people to really understand how systems work, partners working in the trenches with us, okay, and then my engineering team, who is super AI pilled and has software factories and just print and code, right? Okay. Basically then, I already said this, but to repeat it. This is going to allow us to build a whole new suite of products, okay? So this should get really fun for you all over the next couple of years because we're done with the below the waterline. So now the products are coming. Now the revenue is going to start to flow because customers then can purchase these as add-ons. I know you guys don't care about this slide and ask me about it later if you actually do. All right. We're in the early stages of rollout like I said, all of the primary component parts that you need for a TRUCOR processor are complete. I would argue that, again, again, there's no share of competitors. I would argue that almost all the competitors don't actually have a complete core system. They don't. We do, all right? And like I said, running active on the public cloud. And it is with integration to our existing foundational cores, and we got to do a demo. How many of you all want to see the software? Okay. Well, let's go. Okay. Real quick side note, if you care, this is our design system. So Greg talked about it, but it is open source, and it's on the Internet. We actually don't think this is -- we actually think having this open source is amazing. Keith talked about the acceleration of development. Having a design system, literally anybody on my team can connect the design system Cloudco and generate like 13 prototypes send it to a customer, get the feedback. So the pace of iteration just works like crazy. So this is open source. Our customers can use it. Our partners can use it, but that's effectively how we get the UI we have. And now you're looking at the UI, okay? So this is the platform. I'm going to just kind of give you a quick tour through a number of things. I'm going to start in the most boring part. And that's because I was feeling some questions in and around regulatory, but I thought I never really actually ever talk about this or show this. But I'm going to do this really quickly because we actually built this first, because my team has seen and felt a lot of regulatory address, and I've spent a good part of my life under regulatory dress as has most of my team. we're going to actually move this to audit, and I'll hit this really quick, so you can see this. We actually built this first. But there's a thing underneath hood that you can't see. So this is our entire audit trail for the entire platform, okay? But there's a special thing that we did that we actually can put controls in the platform. And then this is actually the work surface that the regulator can use to audit. So what you just saw, here's basically what happens in a regulatory exam. They look at a control. It says you do X, Y or Z. And then they say, okay, we want to see if you do X, Y or Z for this period, say, 3 months, all right? Then they will pull that up and they will audit you, thus an audit log or audit trail, all right? And I'm just giving you a quick look at what this looks like. What we wanted is that for the regulator to actually for our ability to hand this to a regulator and they can actually pull it up on iPad and audit and regulate the system, okay, live on the platform, okay? This is all real time. That's the most boring part, all right? Okay. We'll talk about wires. This is our wires platform. Also, if you like dark mode, pretty cool. We got dark mode, okay? Staring at a bright screen. You might see a [ Benolie ] this is actually a big deal for people that are working on a computer screen all day, especially processing wires, et cetera. I'm going to go back to live mod because it's a little easier to see, all right. Okay. So this is wires. Now we're multi-tenant SaaS, obviously, but we also are multi-institution for a single tenant. What that supports is people that run multiple charters. We have a bunch of them, okay? They're known as holding companies, okay, often. We have a bunch of those. So I'm actually just going to switch to a different tenant. This is how easy it is to just switch to a different tenant, right? So I'm in a completely different tenant. And you can see in this tenant, I have international wires enabled. So the national wires is here, okay? All right. We're going to switch back to the other one, which is Garden, and we're going to continue our little tour. All right? We're going to hit ACH really quick. We just launched ACH. It's been a long time since somebody built a new ACH Warehousing platform. You should check that out in the market, who's building these kinds of things, almost no one. This is now an additional module on the platform. Let's jump in to general ledger. So this is our GL. We built Data Hub in the early days below the water line because we knew we needed something for all of these modules, and that was a built-in reporting system, all right? I'm going to just hit reports for GL which is a huge part of any general ledger product. And these are just examples as boards that customers can build out on their own. And this is using a platform we call Jack Henry Insights, right? It's a built-in reporting platform that's in every single module, right? The customer actually buys this from us and pays for it, okay? So that's the general ledger. We're going to jump into exception item processing. One of the most boring parts of the bank, all right, and give you a taste of what we're doing with AI. So I have this preloaded, just so you know, sorted. So I had a particular item that I could work with. So in this particular exception, if I'm working this desk, I'm reading this thing like what is going on, I've got some notes. And I got this AI assistant that has given me some info on this. And if I look at this -- if I look at the details, okay, it's say, hey, suggestion is move this to checking. And I just wanted to notice that we've actually highlighted the fact that this is Mark savings and needs to be more checking, okay? You can see that little AI note there. We'll mark this as checking. And then you can see that, oh, okay, that's what the AI suggested, all right? And now we can approve it. These AI assistants are going to be all over the platform for every single work queue. Let me give you the quick intuition for this. If I'm a person running this on this desk, let's go back to ME running the business. And let's just say we've been at the bank for 8 years. We have a payroll cloud come through ACH and it [ banks ], ends up here. But we've never had a late payment in our life. What do you think 1 of our banks or credit unions is going to do. They're going to put that through and give you full, right? Well, that is institutional, it's just not captured in existing systems today. So we capture that, and we will present that as the next best. Again, human in the loop, all right? That's exception item processing, let's jump into digital assets. Again, we have support for Circle and USDC, over time, we'll have support for open USD as that comes to full mature fruition, and we can start building against that platform. In addition, we're doing tokenized deposits. But I want to give you a quick preview to that. We also have smart contracts on the platform, how many of you know how smart contracts work. Smart contracts are literally the opposite of LLMs, okay? They are 1,000% deterministic. Don't you think that needs a deterministic layer of automation. Yes, smart contracts. It's amazing already in the platform, all right? We'll announce some more stuff when we're at connect, but that's part of the platform that is being utilized today to pilot things like stablecoins, et cetera. Okay. I'm trying to slow myself down as I get [indiscernible]. Okay. We're going to jump over and just show you insights really quickly. So remember, back over here under general ledger, we had this reporting system. This reporting system, the underlying technology we call JH Insights and that is a first-class citizen first-class primitive on our platform, all right? And I'm going to jump into our help desk conversation platform. What this is, is we have this thing called Banno conversations. You guys have probably seen it over the years. It's a big reason why people buy Banno. It's a built-in help desk that allows them to do digital self-service in a really high-grade way. So this is just a dashboard built against that data, and we're solving like a really interesting kind of boring problem inside the credit union or the bank. You saw Keith's presentation, he's building this awesome analytics data platform. But 1 of the things we find inside a bank or a credit union, is they haven't a good data team a lot of times or they have a data warehousing product with a team working on that. But then there's like somebody [ John do ] out of desk who needs a report, and he's literally asking them to build a report. Well, that report could just be built with natural language and easily generated right on the platform. So we built this out. This is what we call insights. So I'm going to just jump into this particular one. And you can see -- and maybe like my boss hit me up and it's like, hey, I want to see an 8-month view of this, and I'm looking at this thing, I only got 3 months, 6 months, 12, I don't see 8. Okay. Can I see 8 months, all right. So we have a little AI assistant down here. We've got these all over the place in the platform. And so this is going to repay and give me 8 months. I'm going to say, hey, how about 18 months? Now could I come up here and muck with this report builder and build all that out, Short answer is, yes, I can, for sure. Let me give that a thumbs up. We don't need to give you the feedback now. All right. We'll run this for 18 months. But what we're doing is we're giving a normal person who doesn't understand how the data works, they don't understand anything, they can very quickly generate a report. -- right? And a dashboard, their boss asked them for something. They can go get that. And then like in this particular case, if I'm running the help desk, say, for the bank or the credit union I can just put this on my iPad and roll into a president and plug it in, and I can go through my dashboard, all right. Okay. So that's Jack Henry Insights. We got 1 more thing before we switch gears, I'm going to switch over. So what you've been looking at is really the banking side of the platform. Now I'm going to show you the credit union side, and I'm going to show you the integration. So now we switch gears now we're in a credit union. Now you might say, well, that isn't a real life use case. We actually have Shanon help me 9 customers?

12.

12, get Rumble, Silver Lake and Symitar One financial institution. Do we have a phenomenon where in which credit unions are buying banks, okay? We now can run this platform across both of them. You just saw me do it with 1 click, okay? But I'm going to jump into Symitar. Well, what's Symitar doing here? Well, when I said we had real integration wasn't kidding because what I'm doing now is pulling a member up that is on Symitar, all right? So we're actually completely overhauling our user interface for Symitar, and this is going out to customers. So I can look like all this information is on Symitar. So when I say we're doing deep integration to our existing foundational core systems, I'm not kidding. Not only can I see Meg's data, by the way, Meg's awesome, she leads our sales engineering team and the CTO office. She works with me. It's really great. But not only can I see all of Meg's information, I can also take actions, okay? I can take actions, I can move money. I can put stops in. I can loan recast, I can pay a line. I can manage cars, I can add it a member, okay? And there's a bunch more functionality coming, all right for our customers. Okay. So that's the tour. Just doing a quick time check. I'm actually doing pretty good. For once, Greg, doing good. All right. Okay. So that's the demo of the platform. What do you think? Good? Yes. Yes, yes. None of that existed 2 years ago like none of it, all right? Okay. So in 2018, we're going to switch gears and talk about Banno and Treasury and Tap to Local. So in 2011, we began building the Banno Digital platform inside Jack Henry. I'm going to come back and explain this. I realize this is just something we haven't explained a lot in public, so I really wanted to make sure our investors understood this part. In 2019, right before the pandemic, Greg came to me and he said, "Hey, since your own band really like you to take on our treasury product. There was a fledgling project inside the company to build a new treasury product. So we had the good fortune and privilege of taking that product on in 2019 and begin working in earnest. This is part of the story I wanted to make sure you guys understood. This is just a quick cross-section of the top digital competitors in our market, okay? You can see the names. I think all of these names should be familiar to you. These are great platforms, nothing negative to say about them. And also, they're partners of ours, okay? They're actually real partners of ours. They actually resell a lot of our products. But what I wanted to articulate is that all of their founding dates are before Banno. Banno is the newest platform that's been built. And it has the unique class that it was built inside a core company, all right? I always wondered when I was just a fintech hack and code with Wade and Iowa, I always wondered like what would happen if somebody really built one of these things inside a core processor. And that's what we did in 2018. The management team came to me and asked me what it would take to rebuild Banno from scratch inside the company with our core systems as the primary target. And we did that. And that then got us to where we are today with 1,030 financial institutions. We are, I believe, the largest platform by financial institution count, not user count, okay, but by financial institution count, okay, pretty awesome. And like I said, about 16 million users. Okay. I don't think there's any debate about this. Banno is best-in-class on retail. And what we've been up to for the last 4 or 5 years is building out the business side of this, okay, which is always the hardest build. If you go talk to any of these folks that are on the screen, they will all tell you this. And if you were closely following folks like Q2 or Alkami, they'll tell you how long it took them, okay, to build out the treasury functionality and the entire business functionality. And kudos to them, they've got great platforms. There's no shade here. I just wanted to give you kind of a reset of like where Banno is in its sort of life cycle and innovation. So that gets us to 2024, where we announced plans to build Tap2Local. And so that was me and way talking to you all, right, over at the Hyatt, explaining what we're going to do. We haven't started yet. It was just we had kind of inked our deal, right way. But really, what that gives us today, so I'm just previewing what I'm about to go through with you. What that gave us is a rounding out of our business strategy. So we have treasury, which I just talked about, amazing product. Our customers are having huge success with this. We have Banno Business, which is in massive rollout right now with the operational team, okay? And then we added micro and small, okay? A couple of things. Banno Business is for small to midsized, treasuries for large commercial. Now these -- all these products have overlap, and they also have features that each one can use. And I'm going to explain this here in a minute. Features that we build on Tap2Local, Banno Business customers want and Treasury customers want, all right? So this is an ecosystem now, okay? So don't just think, oh, it's just Tap2Local, no, it's like this is a platform ecosystem play. So we can service now somebody who is running an LLC on a retail account, going to the farmers market, maybe selling raw milk in Indiana, I go buy that stuff right next to my house. Super cool. You should try it. It's good for you. You don't have to though. It's kind of weird. In Indiana, it's fun fact. It says for cats and dogs only because that's what you have to by law, put on the label to sell it. I buy it. You should try it. All right. Anyway. So farmers markets, all that kind of stuff. And then like service businesses are notoriously underserved, so landscape companies, et cetera, et cetera, are notoriously underserved by our customers because they can't scale this, right? And then these midsized businesses are people with employees, okay? Maybe they got a crew, maybe they have some management team help, maybe they get some third-party finance help. And this line, I kind of refer to this, and this is a hazy line because it can depend, but this is the line where in which a business needs a CFO, roughly speaking. And what we have our customers, our customers are doing an amazing job with this actually. I'll just brag on Alpine Bank. So Alpine Bank, awesome customer, full stack Jack Henry customer. They spent 2 years breaking down their entire segmentation across these products, and this is how they're going to market, all right? Okay. Everyone knows that small business is a huge opportunity. The underpinning data for small business being an opportunity is this. So this is the -- this is just a quick graph of the number of new businesses opened in the U.S. I just kind of demarcated 2020 because of what happened here. And this is only going to grow, especially with AI. So back in 2024, this is actually 2023, I think. I don't have a date on here, but me and Wade were dreaming this whole thing up, like, hey, how do we go help our customers compete? We talked about that at Investor Day in September. So this is just for fun. This is me. And so after we left Investor Day in September, we had a lot of work to do. It wasn't just a tech build-out. We had to go get deals done with Visa and Mastercard, okay, our awesome friends of the card networks. And this is me and Greg and Wade actually coming back from the Mastercard trip where we just met with Mastercard executives in New York City. And this is my home, little airport, all right? Late at night, we got a picture. So anyway, but this was us getting to work on the deal side of what we did. And I just want to give a huge shout out to our card partners, Visa and Mastercard, absolutely amazing partnership. I really appreciate them because they sat down and listened to me, Greg and Wade to explain what we wanted to do. The kind of a lot of the ecosystem I just explained to you, I did it maybe in a shorter time with less detail, okay? Explain what we were doing and why. They loved it, both card brands. They loved it. And then in the meantime, what we did, one of the things that Visa and Mastercard, some wonderful people came to us and they said, "Hey, you really should do real-time money movement on the debit rails. What they didn't know is that me and Wade had already been thinking about that. Wait a minute. We're always thinking about stuff, right? So what we did in parallel, as we started working on Tap2Local, we built out Rapid Transfers. What is Rapid Transfers? It's pretty simple. This is just a quick demo. If you have 2 debit cards in your wallet, you can move money from one to the other. That's how it works, okay? Every big bank has this feature, fintech has this feature, and this is just the example of that working on our platform, okay? But I want you to remember this because this was a foundational build for us. We just didn't tell you tell anybody what we were doing. So this gets to one of our announcements that is coming, all right? But Wade and I always wanted to do what you smart people in the room would figure out what's coming next, what comes after this, right? What do you want to do once you have this? Well, anyway, we'll talk about it later. But in fact, what we realized as we built this out with Visa and Mastercard as our partners move as our enabling partner on the merchant acquiring side, right, is that not a single community financial institution in the U.S. has this feature, super weird, right? Big banks do, fintechs do. So our customers are super excited. Then we hit Tap2Local, okay? This is our brand for Tap2Local. But remember, this is delivered through the financial institutions brand inside Banno. You're going to get a full demo here in a second. But we saw a gap in the market on the phone inside the mobile banking or online banking experience that nobody had done. Nobody had done what we proposed to do you all -- what we proposed to you all 2 years ago to do. Also, there was a gap where some people had done like iPhone stuff, but they hadn't done Android. How many Android users in the room? Yes. We can't leave Android users behind. I know right over there. By the way, me and Wade have always been iPhone, Android, iPhone, Android. I don't know what that says about our personalities, but you can decide. This is me bragging on everybody, okay? Fun fact, we didn't tell you this, but me and Wade had been in a lot of rooms talking to a lot of people. And everyone, I mean everyone told us that this would take 2 years, okay? And me and Wade were like, no, we can do it. We can do it. What takes 2 years, 28-plus certifications on 4 card networks and Google and Apple. And by the way, you have to nail those certifications on all the card networks to get Apple to even consider or Google to even consider, right? This is a massive build. Also fun fact we learned along the way, Wade. Nobody had done this in the United States. You might say, well, this technology exists in the United States, you would name me the brand. Yes, they had grandfathered in from other countries where they certified in other places. Makes sense? So nobody had done it here. So we had huge walls to get through. I want to give a big shout out to Mastercard and Visa, American Express and Discover, all those teams are awesome. So massive shout out to the Move team. I've never seen such amazing work on their side and then a huge shout out to the Jack Henry team. This was like all hands on deck. We're basically working as one team with card brands, and we nailed 28 certifications in 7 months, all right? Again, I might be a little too [indiscernible] about that, but we did it. And we -- in the meantime, we built all these features and shipped them, okay? So these are all the features. I think we talked a lot about what we were going to do last time we saw you because we had open banking, we could do some cool stuff with QuickBooks, so we get automatic flow of data into QuickBooks, et cetera. All these features are enabled on day 1, but the initial payment experience was very minimal, okay, very minimal. We knew that, and we knew we had a lot to run down. So here's a time line. You can see on the famous time lines. Move partnership gets signed in September 2024, all right? And we announced it here at Investor Day. Like I said, me and Greg and Wade want to work, right? Got the Visa Mastercard deal done. And by the way, that is specifically between us and Visa and Mastercard, right? And then the build began in earnest from January. So January 2025, to August is when we landed all the certifications and the build was done. So not only did we land the certifications, the initial build was done, okay? And oh, by the way, we filed a couple of patents, maybe 1 or 2 patents along the way. We don't have to talk about that today, you can ask me in private after this presentation. And then we hit Connect. And last year at Connect in San Diego, I live demoed from an actual bank live in production back to local working from the stage, right? People think I was courageous to do such a thing, but it's the same place they hold ComicCon. They announced like all that WiFi works right there, right? So I wasn't scared. I've done it before. Anyway, live demo presentation in San Diego with live customers. Now the other thing I wanted to make sure we explain is from here, we had to do a wave rollout in Banno. By wave, we had to start with, say, 10 customers, expand to another wave of 80 and then 100, et cetera. We actually did 10 waves of rollout. It's not like you can just turn this on and push it all the way through to our customers, okay? So we did this in waves. We also want to make sure we did our best to communicate to customers what we were doing, et cetera. So between October 2025 and May 2026, we finished the rollout. So literally, we just finished this rollout in May. And since May, we've shipped a bunch of features, all right? So just since May, AI-powered product catalog, shopping cart, customer file, invoicing, payouts actually land this month, so I went ahead and put it on the screen. And then we just finished remote deposit capture for small business, right? So now in Tap2Local, you can accept card, right? You can send an invoice, okay? And then you can also accept checks. So this is a huge deal for folks that come to your house, right, service businesses and service industries. Okay. Just a couple of things about payouts. So this is the payout feature. Basically, super simply, this is businesses can send payouts to vendors or contractors without collecting their payments information. This is basically the same functionality as Rapid Transfers, but for business. Makes sense? But remember what I said about we're building a platform here, okay? Our treasury customers want this feature, okay? This will be native in Tap2Local, okay? Businesses love this feature, but that entire spectrum of businesses will actually use this. On the Tap2Local side, we built out product catalog. We have an AI-assisted image generation. A lot of our businesses don't have the time to go get photography done and all that kind of stuff. So -- and we'll give you a quick demo of that. And then invoicing. Invoicing is a huge building block for us because as we kind of -- I'll give you a bit of a forward-looking look at what we're doing on the product side, it's really important to build this small business flywheel that we get to access to capital. Access to capital gets the deposit flywheel going and invoicing is going to be a big part of that. You're smart, so you can figure some of that out. Okay. Do you guys want to see a demo? All right. This is -- by the way, this is for real. This isn't no joke. This is my account, so we'll kill that. This is my account [indiscernible] bank, all right? I have a business. I just want to call something out here. Everything you kind of see here is -- now I'm like wondering about the Internet. And just like this is -- wouldn't you believe it just my look. All right. There we go. Okay. Now we're cooking. Okay. So a couple of things I want to just start with. First of all, if you're running a business in today's world and you have like Square or some other merchant acquiring provider, you do not have this experience because here's my operating account at the bank, okay? So -- and when I take payments, the payments are actually going to come into the Move system, and this is my merchant account at Move. And look, I took a payment earlier today, all right? And that's pending. That $39.79 is going to come into my operating account, right? But I can see that right inside my app. This is incredible. This has never been done, okay? So that's my merchant account, and this is Tap2Local. All right. So we're going to give you a quick tour of this. And I am just going to get out of here quick. Okay. All right. So first of all, the merchant experience, I can go accept the payment. I can do a really fast payment. Like if I just want to take $12 from Greg Adelson, which I'd love to do, by the way, I can just do that, okay? And then I can take his card right here, okay? Super quick. So this is like our quick action. But we have invoicing. I had sent an invoice to Greg earlier. I don't know why I hate it. He owes me $30, all right? And then we have payment links. A fun thing we discovered about payment links is that you have a bunch of solar companies on this thing now. Average transaction size is like $17,000 for payment links. Super cool, so service businesses, et cetera. That's payment links. And then we've got our product catalog. I'm going to build a new product for you really quickly here in a second. And then we have a customer file, which my only customer right now is Greg. It's ironic because Greg doesn't drink coffee and I'm selling coffee. I should be selling [indiscernible] because I should be doing. Anyway -- or bourbon. I should be selling bourbon I should be doing. Anyway. Okay. So I'm just going to show you some fun features in our product catalog. We're going to add one. Notice we don't have a Breve Latte. How many of you like Breve latte? Come on. Half and half, cream. I like my [indiscernible] Latte with cream, okay. Anyway. Breve Latte. It's a good way to get fat. All right. Okay. Breve Latte. -- we'll just say this is a 12-ounce, all right? And this is our hey, I can choose some library and browse files, all that stuff. But we've got a nice little AI feature in here. We're going to just generate the image because I don't have time for this. If Greg is a customer of mine at the coffee cart at the farmers market, I just can quickly generate the thing I need to get for him, all right? And then I'm done. And I -- oh, I need to give it a price. So it's going to cost Greg $3.95. All right. We'll just do $3.95. We get done, great set of product. Now we've added to our product catalog. So now what I can do and I just need to grab my card because we're going to do this live. Like I said, this is for real. We're going to actually take a real payment. So I'm going to accept the payment. And I'm going to just do Americana, [indiscernible] Latte, Cortado and maybe some coffee beans, all right? And this is our shopping cart. If I want to add some more coffee beans, I can do that. And that gets us to $39.79, all right? And now this is our checkout. This is the experience that Wade and I were driving to. We don't think this experience really kind of exists anywhere like QR code, okay, get paid with Tap2Pay, so card present, card not present, payment link or QR code, and then I can send an invoice as well, okay? This is where the magic of invoicing comes in and this beautiful slide up checkout experience. Okay. But we're going to just do a Tap2Pay. All right. We're going to do tap. Come on. We know. i've only done this 30,000 times. I think he just wants to mess with me. Okay. Got to pay. We just accepted a payment live, I can e-mail a receipt, and we're done and out of here. So obviously, we have the ability to manage disputes. We talked about that. Actually, nobody has kind of built that, but it's kind of a boring part. We have built-in dispute management, et cetera. So now what's next? I think that's at least part of the reason why you guys are here. And this is going to get pretty exciting. The thing I want to tell you about the 2 announcements we have is that these ideas were originally in the pitch deck that me and Wade had kind of crafted to pitch Greg when we first pitched it to them. So we had contemplated this quite early on. But as with anything, you have to really build and scaffold this up. We have some things on the platform that weren't quite ready yet. We got a few other things we needed to do. Greg needed -- we needed Greg's help on a number of things. And also, Greg is a big fan of like crawl run, walk, okay? Execute, execute, execute. So what we're going to announce today, and this will be a full rollout in Connect. I want to just say 2 things about -- a couple of things about both of these things. These are built. They're effectively dev complete. So I'm not -- we don't have demos for you because we want to save the demos for Connect, all right? We will be -- I'll be back to my usual business of doing live demos on stage at our 50th anniversary. But this next thing might seem a little boring to you, but it is a really big deal, and that is expense management. So we're bringing expense management and virtual card issuance into the platform. Now a question, quiz time, quiz time, quiz time. Is this a Tap2Local feature, a Banno business feature or a treasury feature? Yes, that's right. Cool, right? Okay. I think if you're smart and you're in this space, which I think all of you are, you know about fintech competition, i.e., RAM, et cetera, right? This is effectively allowing our customers to go build and deliver a RAM-style competitor for expense management. Out of the box, you'll get instant virtual cards, granular spend controls, MCC restrictions, time of day limits, single use, if you want them, okay? So back to us running a business. We've got 5 people that need to do purchases for us or they're on the road or whatnot, we can actually give them granular spend controls. It's really an amazing thing. In addition, automated receipt capture, super cool technology, some AI enablement there. Vendor card payments, okay? Reloadable cards specifically locked to a vendor. So in my case, say, I've got somebody works for me that orders coffee beans. We can just lock that into that particular vendor or provider, all right? And then real-time visibility and ERP integration. Again, all of these things will run across our entire business platform. And then this is kind of what it looks like in the app, all right? Super cool. Employees request a card, track and manage the spend and then they can capture their receipts. Beautiful system. Again, we're pretty close to dev complete, and then we'll be demonstrating this and showing this at Jack Henry Connect, all right? Super cool. And again, like we serve the whole business spectrum. I just put this in here as a reminder, just in case I forgot. we add one more thing. This is actually a long-time dream, right, right, like a long time. I think back when we were initially building stuff in Iowa, I remember us being super bumbed when Cash App hit because we wanted to build something like this, all right? And we always -- there's a dream to always do this. And actually, back in that picture of us drinking a little too much tequila and talking about these ideas, we actually pondered this and we were trying to figure this out. Before I go into this, I really want to give Wade a ton of credit because this is, I don't know, 2 years of work on your part, an insane amount of meetings, coast to coast to coast to coast. It's difficult to give you the detail here, but -- for time constraints, but there was a window in the market that was going to enable somebody to go do this again, okay? It's been done before, but there's a window in the market. And then there's always like these market windows. And then there's these technology windows. That's one of the ways I like to think as an entrepreneur, like you have these technology windows that happen and then you have these market windows. And when those intersect, you get unique opportunities and usually, entrepreneurs just close those these days. They just get closed, okay, really quickly. So shouts out to Wade and the Move team for getting us there. And by the way, this technology is complete and ready to go and ready to embed, all right? So I'm sure you guys can kind of figure out what we're doing. We're excited to share with you today peer-to-peer money movement, all right? So this is a new kind of network. This is peer-to-peer payments built for fraud prevention first, powered by Move and our amazing partners at Mastercard and Visa in partnership with Jack Henry, all right? And I'm just going to give you a quick tour of this to help you understand how many of you have said to somebody, are you -- do you have Venmo or Cash App? How many of you said that? Or do you have Zelle? How many of you said that? This is a -- there is no in-network and out of network. If that is an in-network or out-of-network question, yes? This is -- this system is -- do you have a debit card, Andrew? Oh, you do. Cool. Well it work, all right? So it turns out 90% of U.S. consumers have debit cards. Again, I cannot give Visa and Mastercard a big enough shout out here, and I cannot give Move a big enough shout out for doing this, but this is a pretty big effort at Lyft. Native support for senders and recipients with multiple financial relationships. This kind of is referencing the technological window, universal support for pass keys and other kinds of fraud prevention that just wasn't available when those network-oriented apps were built before like Venmo, Cash App and Zelle as an example. All right. We can talk -- there's going to be a million questions about security. I'm not here to talk about security, but we have an amazing security-first story. Actually, I think this will end up being a much more secure network than any network that's been built. I'm just going to walk you through the experience, so you can see this. Just remember, this is going to be embedded in Banno. And there's another really cool thing here. Remember how we work at Jack Henry. So the Jack Henry partnership side is, we're going to be embedding this in our -- for our Banno customers and making it available for other customers not on Banno, right? But what the financial institution will be able to do is brand this to their brand so they get the brand equity for the peer-to-peer money movement. Makes sense. Much like Tap2Local can be branded to their brand, much like brand -- Banno can be branded to their brand. Again, we want to give brand leverage to the financial institution brand, okay? Of course, it will be powered by Move like we have in a lot of our screens. But this is basically the UX, okay? This is how it would work inside Banno. This is a sender experience, like if I need to send you money, Andrew, I can just say, "Hey, you would have to be in my context, of course, and I can just find you in my context and send this to you, right? You're going to get an SMS message, all right? Now there's some things we're doing here. I don't have time to talk about it, but you can actually do this over secure SMS, and we're working hard on that with some partners. So again, there's a whole verify loop that we have here. But again, Andrew, you're going to get a quick message up on your screen, okay? Arlene sent you $40 for lunch. All right. And then this is the flow you're going to go to -- go through and then you're literally going to be able to -- and if you want, you can use Apple Pay on your phone, right? And then you can just transfer the money using the debit card rails. Pretty simple, pretty cool. Lots of cool stuff to talk about. We'll explain a lot more at Connect as we kind of roll this out. But it's going to be, I think, a pretty magical new network, enrolled once paid anywhere, again, powered by Visa and Mastercard and our amazing partners with Move. What's next? Initial launch at Connect, all right? So we'll be talking about this. Working hard with our card partners on cross-border payments. So we have non-stablecoin options here. And then coming soon after that, because that's a retail experience that you just saw, kind of like rapid transfers. So rapid transfers was the foundation for peer-to-peer. Hopefully, you all put that together, all right. And much like Rapid Transfers, we're going to have a business version of this coming sometime in 2027. So -- and that is my time. Just as a quick wrap-up, platform companies win in the AI era. I think everyone agrees on this. We are AI-ready and fluent. We offer out-of-the-box integration to our customers. That's the heavy lift. That's the most expensive lift. We are shipping faster, I think, than anybody in the industry. We have best-in-class business platform on its way, and we're blockchain ready. So thank you so much. Appreciate it. And Mimi is next up. Am I suppose to see her.

Are you supposed to lower the table? Yes, we do.

I get this down for you.

We're not exactly the same height.

Tell me when.

Okay. Welcome, everyone. Thank you for joining. So So if I hit the green button. Thank you. Okay. So while it's hard to follow Greg, Keith and Ben, I do get the last word today. So for finance, that means telling you how it all adds up. What does this mean? So what I wanted to do is something a little different rather than kind of build anticipation. I want to start with the conclusion. And then because transparency is one of our 4 key tenets that we talked about earlier. So that should apply as much to how I present to what we're going to disclose. So here it is. Jack Henry's growth rate is going up measurably. And the reason is we can name it, and we're going to talk about it here in this session. So everything I show you from here on is that case for that sentence, validating why we're going to grow, why we're going to grow more in the near term and why we feel confident about it. So as always, we don't put numbers in front of you that we don't intend to stand behind. That's not the Jack Henry way. So we're going to go through the full case of that compounding growth, both top line and bottom line. Okay. Now before I jump into the details, I have a special shadow. Rene, our incredible -- thank you for walking back in. Perfect timing, Rene. Our incredible CAO, my partner in running the finance organization and my right hand for the last 4 years is celebrating her 30th anniversary at Jack Henry today. So I want to give Rene a special shout out. So she is definitely upping our average above 10. I am bringing it down, but we balance a bit. Okay. So let's jump into it. Okay, 4 pillars. This is the first and the last are kind of why you can trust the numbers. The middle 2 are why the numbers are going up. So sustainable, predictable, high reoccurring top line revenue, that's the kind of floor of the engine, okay? The next part of the story you know well. That's the part of the story we've been delivering year in, year out, and you've seen us deliver on that repeatedly. Then you layer on the revenue multipliers, okay? We're talking about the contracted booked already in the bank sales that our amazing sales team has already delivered the last couple of years, the Trifecta wins, the new cores, the larger institutional cores. That means more clients worth more. Then you layer on top the emerging revenue catalysts. You heard a lot of those today, the public-private cloud monetization, Banno expansion, small business, AI, a lot of the things that Ben and Keith talked about for the last several hours. So that's where all of that kind of -- that conversation of all those demos you just saw kind of layers on top. Then as we move beyond revenue, we talk about the free cash flow conversion that's funding reinvestment, M&A opportunities, shareholder returns, all off a very clean balance sheet, okay? So you have a predictable base, strengthening growth, strong cash flow, a clean balance sheet. And that's what will convert top line growth into double-digit EPS outcomes. Okay. So let's dive in. Okay. So before I can ask you to believe the forecast, let's talk about what we delivered. And today, we're going to kind of walk back and forth between time. We're stepping back. We're going to show what we did in '26. We're going to go all the way out to '29, kind of a little bit of bouncing in between. But '26 was a remarkable year. We had non-GAAP revenue of $2.5 billion, up 7.3% inside the long-term model, not a one-off, and we'll show that multiyear trend in a moment. We had non-GAAP operating margin up 92 basis points. As Greg mentioned, that's the third consecutive year of above 60 basis points of margin expansion. So that's not just a cost cycle, that's operating leverage compounded, okay? That delivers GAAP EPS up over 11.9%. So revenue growth plus margin expansion, converting to double-digit earnings growth. Then we talked about return on invested capital of over 23%, well above -- earning well above the cost of capital every day on every dollar we deploy. Over $539 million of free cash flow. So that's over 100% of free cash flow conversion, excluding asset sales. We did over $448 million of share repurchases that reduced shares outstanding over 4%. $179 million of dividends, the second -- 22nd consecutive calendar year of increases, and all while spending over $358 million in R&D for the future. So we funded that high almost 14% of revenue R&D commitment and still returned over $600 million. So that's not a trade-off we had to make, that's what this model does. So let's talk through a little bit and touch upon the revenue architecture framework. So -- and why it leads to top line predictability. So we have core, a $750 million a year business, up 7%, roughly 30% of revenue of the company, supported by over 1,600 core processing clients. And I'd like to think of core as the anchor capability. It's predictable, but it attaches a lot of ancillary growth around it. Then we have payments, over $917 million in revenue, approximately 37% of the company, the largest segment, slightly above the other 2. And I think about that as the volume engine of our business, accelerating as card and payment adoption rates rise. And then we have complementary, $740 million of revenue, up 7.7% growth and the fastest growing of the 3 segments with product diversity, digital growth that's fueling plus the new product innovation. And then the last that we don't talk about as often, but it's still important as one of our segments is Corporate and Other. And that's kind of the mix of like hardware, Connect Conference, other revenue. And those 3 of the major segments are roughly equal engines in size. So you don't have a single dependency of one that's dragging or compensating for the others. We're talking about 3 equal engines, each growing mid- to high single digits, leveraging the incredible same sales distribution pipeline and long-tenured client relationships. Okay. So -- then we talk about when we talk about the wins and what the wins mean, 58 wins, we talked about FY '26 being a record year, okay? So with that, we talk about the 58 wins is the fuel, right, that 14 institutions above $1 billion in size. And we're not just holding share, we're taking share. We're taking it upmarket. Greg talked a lot about the Trifecta wins at 59%, up 39% from prior year, okay? So when a client takes core payment and complementary together, that relationship is deeper, sticky, materially more valuable from a revenue perspective. And we can say that depending on the size of the institution and their profile, each one of those could be equal in size from a revenue perspective. So the impact of those trifectas can be material in terms of the revenue and the importance of that client to Jack Henry. And then we had approximately 40 complementary and payment products that attach to each one of those new 58 core wins. So that's a revenue multiplier in one statistic, which is why we talk a lot and we typically lead our calls in talking about those new core footprints. And we're really specific with the numbers, not everyone in the industry talks about numbers specifically, but we're really specific about that because of that engine, the multiyear impact that those core wins have, okay? Then we layer on top the new and emerging products, some of those we talked about today like small business, Defender, the platform and AI. They're early, but the direction of travel is clear, and we showed you earlier today, and you'll see demos upstairs during the cocktail hour on more of that. So the wins signed today, the wins signed over the past several years are going to be recognized over the next several years. The average contract level is still about 6 years. So with that, meeting with the high recurring revenue nature of our relationships, that 99% client retention, that win bringing in additional products and lasting multiple years. So that's the visibility behind the numbers I'm about to give you, and it gives us the confidence for those projections. So let's talk about FY '27. We talked about this at the year-end earnings call. So hopefully, this isn't new to everyone, but I just want to refresh it because this is the stage of a launching point as we go beyond this next year. But FY '27, the guidance, non-GAAP revenue was 6.3% to 7.3%. Again, another operating margin expansion year. I'd like to think about the 20% to 40% as the floor with aspirations higher, and we've delivered on that. Free cash flow conversion in the 80% to 100% range. Now on GAAP EPS, you'll notice that it's roughly about 5%. But as a reminder, the initial guide for deconversion revenue is $23 million. So starting kind of that low creates a bit of that gap on the EPS as a drag. And so we'll see how M&A happens this year. It's very episodic. We always talk about the low visibility that we have into M&A, but -- and that it's outside of control. But that EPS is not a signal about the health of the underlying operating businesses. We are guiding to what we feel confident we can deliver. That's been the pattern, and it remains true today. Okay. So now let's go beyond. So we don't guide beyond the current operating year, and I'm not changing that today. But we are doing something different, which is FY '28 and '29 and sharing our outlook, the trajectory our model produces. But I want to be direct about what's changing and how we're talking about it. For years, we've said in any given year, Jack Henry should produce revenue in the 7% to 8% range. That was a statement generally about a range we operate in. But what you see here is different. This is a trajectory. This is more specific, 6.3% to 7.3% in '27, roughly 6.7% to 7.7% in '28 and 7% to 8% in FY '29. Again, as I said at the start, growth rates that step up, not fade, and we're saying that because of the drivers that are identifiable and already in motion. The sales contracts that are already in the locker, the products that are in the hands of customers, the adoption trends that we've already started to see occurring. So it was 36 years of operations to reach $1 billion, 11 more to hit our second $1 billion in 2023. On this outlook, we're likely on a trajectory for hitting our third $1 billion in revenue in about 6 years. So we're compounding faster as we get larger. Now many overlook, and it's nice and easy to say in round numbers like, oh, why not 7% or 8% or for every 1%, you're talking about roughly $23 million of incremental revenue. And that's on top of the 7% to 8% we're already talking about. So that's finding big new businesses every year to generate that. And we feel confident in our ability to do that. So again, we're compounding faster as we get larger. And to be clear, FY '28 and '29 are an outlook. They're not guidance. We'll guide each year as we've come to it, but we're not going to put in a slide to you today that we don't believe in. We believe in this trajectory. So let's talk a little bit about catalysts. Everything you've heard today shows up in 1 of 2 places on this page, either more clients or more revenue per client. We've incorporated what we know today, but there's further potential from the new categories and the new account adoption trends that we're starting to see. Some of these represent early stage: stablecoins, faster payment use cases, AI-driven solutions. So some of these are a little bit further down the road, and we'll see as we get into them. Some of these are already -- many of these represent an upside to the forecast that already stands on its own. So we feel really good about that model. We feel really good about growing at a higher rate, and we feel very positive about the additional incremental catalysts that are not embedded in those numbers, okay? But we didn't want to get too far down the road in a market that is dynamically changing where account holds or behaviors are changing every day. But what we see through the things that we've built, through the things Ben has talked about, the things that Keith has talked about is that we have the capabilities to seize upon those. So until we get a little further down the road and know how the adoption is, some of these may be outside of those near-term windows in terms of meaningful contributions, but they're all upside. So let's switch gears just a bit and move beyond revenue to the high-quality balance sheet and what it supports. So again, reminding you, minimal debt, $1 billion untapped revolver. We have no refinancing wall. So the Fed moved 25 basis points while we were all sitting here today kind of as expected. We have no interest rate exposure to higher rates. We have no refinancing risk, no covenant implications. No highly leveraged situation that some of our peers have to. And that affords us a great freedom. We have free cash flow of 80% to 100% conversion of a highly predictable reoccurring revenue and compounding margin. So that clean balance sheet means we can act, seize attractive value-generating opportunities as they appear rather than to wait and ask whether we can afford to do so. As a CFO, I feel like that puts me in a very lucky position. Let's talk about capital allocation. So glad to have tax law clarity now behind us, returning back to attractive free cash flow percentages. So with tax law clarity, a healthy business performance, in FY '26, we were able to return back sizable share repurchases and retired over 4% of shares. So absent M&A over this time horizon between '26 and FY '29, we have the potential to reduce shareholder count outstanding over 11%. That's a meaningful number. So if we think about accelerants to EPS, if we think about even the cost of the dividend and the redeployment of capital by having less shares outstanding. So in FY '26, we also raised the authorization by 5 million shares, giving us the capacity to be opportunistic. We talk about 22 years of consecutive annual dividend increases and a commitment to the continuation of modest increases. So you have mid- to high single-digit revenue growth, expanding margins, a shrinking shareholder count. That's how a 7% to 8% top line becomes an EPS double-digit return to shareholders. Okay. So let's recap a little bit. And because I've talked fast, we're going to have more time for Q&A. So get the questions ready. We're prepared. So in closing, think about Jack Henry as sustainable top line. You have revenue multipliers, emerging catalysts, strong free cash flow with a disciplined capital approach, so everything we've shown you sits within one of those 4 pillars. Again, sustainable top line, revenue multipliers, emerging catalysts, strong free cash flow, okay? So we told you the line we're driving. We're committed to maintaining that and delivering on it because Jack Henry is a high-quality compounder with upside from here. And with that, I'm going to turn it back over to Greg.

Thank you, Mei. So anyway, thank you all. So we'll take some questions. We do have plenty of time. I do want to -- it's a recap slide. So just shows you a quick recap of what we covered today on each of the speakers. I won't spend a lot of time going through here. But there was an earnest effort to show you all not only from a standpoint of level of differentiation from the 5 key differentiators to what we are doing in AI. I think there's a strong belief in the industry that Jack Henry wasn't doing as much as we are, and we wanted to make sure you had a chance to see that in action. And then the other component was around the work that has been compiled over the last 2 years that Ben showed you, a significant amount of work and effort, some of it in partnership with Move, most of it in partnership with our teams here. But the things that we are doing are working because of the stuff and the foundation we built not only from the Jack and Jerry days, but what we've done with One Jack Henry, what we've done with the 4 tenets, what we've done with the Jack Henry Way, the things that allow us to work together as a team allows us to work much more quickly. And again, that's another level of differentiation for us in the space today. The other part is the financials, right? So we can spend some time talking about that and where we are. Again, we are and have been for 50 years, a pretty -- well, 40 years of being publicly traded, a pretty conservative base company. As Mimi articulated several times, we put out what we think we can hit. We don't know what '29 looks like other than what we see in today in our models. But again, the growth and the opportunity for us to continue to take advantage of some of the things that Ben showed you today and some of the things that Keith showed you, still pretty early. So a lot of those things are very, very lightly baked into the growth models for what we saw today. So I just want to make sure we reiterate that. What you saw today is what we've been executing on, the number of core wins, the number of products that we're driving, the opportunity with trifectas and things along that line. So I'll stop there and let you all ask any questions, and then we'll have some fun.

We're going to have a couple of microphones coming around. And if you would say your name and firm name for the transcript, please.

James Faucette, Morgan Stanley. Thanks so much for all the work that's gone into this. It's been really helpful. I want to talk about the -- or ask about the expected acceleration in growth. And can you just help us parse which of the three core or the largest segments, if you're expecting those to sustain kind of similar growth rates or if you expect one to grow faster than the other? And I know that as part of that, if we go back to the last Analyst Day, Greg, you talked quite a bit at that point about potential for benefit from moving to public cloud, and that doesn't seem to be part of the equation today. And is that -- am I reading that accurately? And then if we do see some public cloud starts come in, can that be an incremental driver?

So why don't you take the first part, and then I'll take the second part.

Sure. So while we didn't talk about individual segments today, I think it's pretty clear that all 3 are expected to grow. You have all the momentum from the core wins that should have the core segment continuing to grow quite strongly. Also from -- you mentioned public cloud, but I'll say from a private cloud perspective, too, we think there's a potential in this tightened kind of frontier model universe to see a faster uptake in the shift from on-premise to private cloud. So we're at 79% today. That's been growing at a very steady clip the last several years. There's a potential that, that could -- you could see over the next couple of years, an acceleration of that. So within each segment, I think you're going to expect to see growth across all of them, but premature to talk about individual segments.

So the other part of the question, I think there's two components. I'll kind of take on the private cloud first. So part of what we think is going to be an acceleration is frontier models and the concern of operating in on-prem with our institutions, especially those of any of the sizes that we typically represent a concern of how they're going to be able to handle the speed of vulnerability management and things along that line. We're already getting some larger institutions that have kind of said, "Hey, we're going to stay on-prem forever, now having conversations with us". So I think that's part of the acceleration. As I mentioned, last year, we did 36 into outs. And again, I'm not going to forecast what we think the number is going to be, but most of -- about almost half of those were larger institutions, and I think that will continue. But what was absolutely embedded into the entire presentation of Ben was public cloud. So every module that gets consumed as that module is consumed, those modules are built in the public cloud. So as we're releasing a new wires platform, that's all public cloud API first, as we're releasing general ledger. If you're talking about going full core into the public cloud, yes, that's still some time before we think folks are going to fully adopt that. But what we believe is that as they start to incrementally adopt each of the components, then ultimately, as they've adopted enough of those components, they're now in the public cloud. We actually have opportunities with some larger institutions. So some of the larger institutions, in fact, one that we just met with last week, their CEO said to us, no way I am doing a core change. But I am interested in doing incremental change. And so that creates opportunities for us to do that. So I think that's -- it's embedded. And one of the things that we do is that it's not a one-for-one. So let's just use the Wires platform as an example. We had talked about the lift between going from on-prem to private cloud being roughly 2x, right? We've been talking about that as far as 2x the revenue. We said to go from private cloud to public cloud would be roughly a 20% lift. And we're seeing that because each of the components that we build actually has a lift in revenue as we roll that out. So if the domestic Wires platform that was running on the core was running at X when we sell them the opportunity to go to the public cloud, we're seeing roughly about a 20% lift in revenue from that standpoint. So that's kind of the summary on that.

Dave Koning at Baird. So I guess my question Tap2Local, super interesting. Where does that fall, I guess, in the revenue statement, like which segment? What are the unit economics like? Like are you paid per FI spread on volume and maybe relative size you expect the next few years?

So it's a good question. So a couple of components there. So one, from a cost standpoint, it's a rev share. So we do a rev share with Move, so based on transaction volumes, and it's really based -- so unlike typical card issuing on the merchant side, you're getting -- like for us, we don't make anything on the interchange, right, with -- related to our card issuing business. Our banks and credit unions make that. In this particular business, we get part of that spread. So larger transactions, larger opportunities. And that's why I think Ben referenced one that did a $17,000 transaction, right? We'd like to see a lot more of those. So there's opportunities on the rev spread. We also do some type of rev share with our institutions as well. So there's an opportunity for them to pick up noninterest fee income on that component. All of that revenue will fall in and is falling in the Payment segment. And so that will continue to be a part of that. Even though it's sold through the digital platform, it's actually the payments are where we're counting it into the Payments segment. And then from a modeling standpoint, I will tell you that we've continued to be fairly conservative in that. I think we have publicly said that we believe that this takes off the way we believe it will. It will be the second largest business in our Payments segment behind our card business, and we still believe that. But we need to see some more -- candidly, we just need to see some more proof points on that. Some of the things that Ben and Wade have built over the last 3 months, as they showed from May to now, we believe -- and we're starting to see it with the number of merchants that are coming on, the number of transactions. I've actually tasked these guys to give us 10 to 20x the number of transactions that we saw last year. And so that's the part of the mantra. So anything you want to add to that?

Madison Suhr from Raymond James. Maybe Mimi, you made a comment around the 20 to 40 basis points of margin tends to be more of the floor. You've done 60 basis points plus over the last few years. I know you're not necessarily guiding FY '28 or '29. But as we think about revenue accelerating, would you expect kind of the year-over-year margin improvement in the business to also accelerate? And also how critical is driving trifecta wins to improving the overall margin structure of the business?

Yes. So again, we're going to start conservative and aim to be. So I believe that, that is the floor that the engine produces, but we certainly aim for more. We're compensated more. We believe that it can drive more. And we believe that the trends in the business from a mix from a public cloud usage, there's a lot of trends that support margin expansion inherently in the model. In the short term, we've talked about there's some headwinds to that, right? We're investing quite heavily to move to the public cloud. We're getting out of the data center ownership business. There's some costs associated with that. There's some costs associated with protecting ourselves against frontier models in the very short term. So listen, it's early to say in the year. We're only a couple of months in, but we're feeling great about the way it continues. But it doesn't take heroics for this business to produce margin.

Andrew Schmidt, KeyBanc Capital Markets. Really good content. If I could ask 2 questions, one organizational and one FY FY '29 outlook. Just first organization, as we move towards this sort of modernization paradigm, are there larger things that need to change culturally or organizationally as we think about moving faster, dev process, things like that? First question. And second question, I think it's helpful to unpack sort of '28 and '29. I understand that 7% to 8% sustainable. And then it sounds like there's some optionality from the revenue multipliers, emerging catalysts that aren't baked in. And then the flip side, obviously, there's things like equipment sales, payments volumes that some assumptions you have to make there. So maybe just what's included versus what's not, just more clarity in terms of optionality on the longer-term outlook.

Why don't you take that one?

Yes. So why don't we take that one first. So we're building in what we know today. So we're building in the pipeline we know of sales that are coming online based on installation slots. We're basing it on the trends of product adoption that we've already started to see. We're basing it on expectations of certain acceleration of known products in the marketplace today. That being said, there are some that are more volatile than others like hardware. We always talk about particularly on the in-house customers that are buying IBM hardware. Sometimes that varies based on the cycle of releases from IBM. So that can have a little volatility. We're not expecting like huge numbers that are different from historical patterns. But in any 1 year, that can be a headwind or a tailwind. We are not expecting a huge acceleration to the question we just answered from James, like we're not expecting an outsized acceleration of on-premise to private cloud. That could be upside. We're not expecting radical change in the volume of faster payments. It's growing at roughly 50% today. It's been a great growth engine, but on small dollars. So we're expecting modest uptake. But to some of these things, if stablecoin or faster payments really starts to accelerate or SMB is faster than we think it will be, those are all upsides to the model today.

Before I answer the organizational question, let me just add on to that. So I think there's a couple of other components, which are important. Back to my original statement. We have been for 40 years, a very conservative company in our approach. So I would argue to say that there's more outside the model than there is inside the model because it's what we know. And so there's a lot of ifs ands and opportunities in there. And the reality is if we told you that we were going to be at 8.5% or 9%, you'd remember that, right? So you'd come back. So we don't know exactly where some of these things, but we're at the precipice of that happening. As Ben alluded to, a lot of the stuff that we have been building all under the watermark, I think, is what you used as the term. We're kind of -- I mean, you're never done, done, but you're mostly done with building that out, building a foundation. So I talked about in my presentation about the foundation of this company being built way back 50 years ago. Well, that's what Ben was doing. He's building the foundation so we can build on top of it and build faster. So as those products are coming to life, what we don't know is how fast are they going to come to life. And so that's the key. So we are very bullish on where we're going, but we're also trying to be very reasonable in our approach, knowing you all don't forget. So that's kind of that component. The next piece is the organizational question. You are 100% right. So workforce management, the changing and dynamic of the type of people we hire. As resignations and retirements have happened, we've looked at different types of people that we brought into the organization. Fortunately, people like Keith and Ben, a lot of people want to come work with them. And so we get a lot of folks that want to come work. We've also, as you know, kept a remote environment, which allows us to be very flexible and get some of the best of the best. And so -- but the skill sets of the people that we need are definitely changing. In fact, not to put her on the spot, but we just hired a new Chief People Officer, and she's in the room too, today, and she starts here in a couple of weeks. But the reality is that was something we talked to her about during the interview process is that we need to make sure that from a skilling up and all that, that we're covering the people that we need. And honestly, we've had that conversation with our team that if you are not going through the process of skilling yourself up to the things that we need to be for the future, then you probably won't have a home. And so we've been very direct with our team like we are in everything, and that's part of the conversation.

[indiscernible] those two points together, too, because there's a point of -- we are building the velocity of development. We're building the velocity of deployment. We're building the velocity of scaling and supporting within our organizations, using AI, et cetera. But part of this is the capacity of digestion from customers. right? So you can get newer better things in hands, but how do we help them be ready? How do we help them in a faster patching world? So it's both internal to our organization, but also helping externally as well. this side of the room.

Bill Carcache with Piper Sandler. Thank you for all the details. Given that your core client base operates in such a highly regulated environment, it seems like all of the things that you ran through today are sort of deepening your competitive advantage and perhaps making it more difficult for competitors to be able to enter some of these different categories of investments where you you're deploying time and your expertise. Maybe could you talk about in this environment of elevated fears of displacement risk, how do you feel from a competitive perspective? There were some comments about competition dispersed throughout the presentation, but if you could just perhaps share some of your thinking around the competitive environment and your positioning broadly.

Yes. Thank you for the question. So I think there's a couple of components. So again, we're not up here calling all of our competitors are viable competitors for a variety of different reasons and have been for many, many years. What we have tried to do over the last several years is to highly focus on the level of prioritization that would allow our customers being community and regional banks in the U.S. to win. Some of them have been distracted with other things through the years. So whether that be merchant acquiring businesses or whether that be wealth management businesses, whatever it is. But this is all we do. And so we've been exclusively focused. So we've doubled down on that through the innovation. So what we're trying to point out now is that as we've continued to invest 14% to 15% back into our infrastructure and products and things along that line, we've continued to build more and more of a gap between the product sets that were available through our competitors versus what's available through us today, which has allowed us to have 58 new core wins. And again, not throwing shade, but you don't hear those two talk about the number of wins that they have each year. And so that is a huge component of why we think, again, from the number of bigger institutions we're talking to, to the opportunity to work with fintechs with our Victor FI acquisition and things along that line. So we're continuing to build moats and opportunities. Now do those things last forever? Probably not. And so we're continuing to make sure that we double down and stay ahead of the game and not lose sight of what's important. But that's really what the essence is. We gave you a lot of examples, whether that be culturally, servicely, innovation-wise. And really, it's about execution. The things that we were able to show you in 2 years that we've done, again, you'll be hard-pressed to find any of that from any of our competition.

It's Darrin Peller from Wolfe Research. Can you just start off, just two quick questions. One is more on the regulatory environment and one is going to be more on the contribution to growth. But just if you could just touch on the recent joint statement on the community bank's engagement with core service providers that came out, I think it was Friday from the OCC, FDIC and Fed. Just how do you see that potentially impacting the industry and particularly you guys versus others, whether it's liability or contract structures? And then just my follow-up, I'll ask them both now is really just when we think about the contribution to revenue from these exciting new areas, where are you? What inning are you now in terms of where any of the Payments initiatives are? Are they 0.5% of revenue in '27 yet? They were just being built. AI, when is that going to contribute to revenue? And just curious a little bit more in terms of finite time lines.

You want to hit the first part?

Yes, I can do both. You can start on the other one. I'll hit the regulatory.

So very early innings. Even on things like Financial Crimes Defender that we've been out in the marketplace selling, if you think about that new and emerging category, you're talking low single digits, like very low single digits as a percentage of total revenue. So having -- and some others are growing at 50% plus kind of growth rate. So what we expect is over this time horizon, that to grow meaningfully in terms of the contribution of these new categories.

And that's why I was saying earlier about where we are in some of these new initiatives. It's so early that we understand what the opportunities are, and we've built the models for what we believe, but it's still so early to understand how successful. Financial Crimes has been out there longer. We know we had 187 deals last year. We understand that there's opportunity there. There's a replacement of an existing product that we have Yellowhammer. There's all those things that happen. But everything else that you typically saw was really brand new. And again, back to the conservative nature of the model itself. From a regulatory standpoint, I'll just give you a tagline that actually the ABA came out with themselves. Not all core providers are the same. And we're not. And so the way we operate isn't the same as some of what our competitors and how they operate. Some of it's -- one of the big challenges is around not having coterminous terms on products, which we do. Some of our competitors do not. So there's a lot of challenges with that. So from a standpoint of being united as an industry, we are. There's a coalition that has been created where all of the -- especially the Fs and some of the others and us are all working together with -- in Washington, D.C. and we actually just hired somebody to be a focal point for us in that same endeavor. But the reality is -- and we've been able to show this in some of the meetings, some of the challenges that are being explained are not things that we do or practices that we have. And so just to be really honest, we're not as concerned.