GAAP Revenue Growth

FY 2026

no prior guidance

4.2% to 5.4% "

no prior guidance

Non-GAAP Revenue Growth

FY 2026

6% to 6.5% "

5.8% to 7% "

raised

Deconversion Revenue

FY 2026

$22 million to $28 million " "

$16 million "

lowered

Non-GAAP Margin Expansion

FY 2026

60 to 70 basis points "

20 to 40 basis points "

lowered

GAAP EPS

FY 2026

$6 to $6.09 "

$6.32 to $6.44 per share "

raised

GAAP Tax Rate

FY 2026

23% "

23.75% "

raised

Free Cash Flow Conversion

FY 2026

65% to 75% "

Approximately 85% to 100% in future years "

raised

Q1 Non-GAAP Revenue Growth

FY 2026

no prior guidance

Approximately 7% to 7.5% "

no prior guidance

Quarterly Revenue Cadence

FY 2026

no prior guidance

Strongest in Q1, lower in Q2, increasing in Q3 and Q4 "

no prior guidance

Free Cash Flow Impact from Tax Legislation

FY 2026

no prior guidance

Two scenarios: 1. Significant impact in FY 2026 with limited nonrecurring impact in FY 2027; 2. Spreading the benefit across FY 2026 and FY 2027 "

no prior guidance

Recurring Revenue Stability and Core Contract Wins

Previous calls consistently reported that recurring revenue was very high (ranging from 92–93% of total revenue) and core wins, although variable in number (6 wins in Q1, 11 in Q2, and 11–28 in Q3), came with growing asset sizes and increasing cloud migration " " " " " . " " "

In Q4 2025, recurring revenue remained stable at 91% with 51 new core wins (including larger deals and increased cloud migration with 77% of core clients on the private cloud). " "

Continued strong and stable performance with increased deal sizes and a higher focus on cloud migration—consistent relevance with an upward shift in quality of wins. " " " " "

Digital Innovation and Accelerated Product Rollouts

Across Q1 (with new Banno deals and Financial Crimes Defender contracts " " ), Q2 (with significant digital platform growth and innovative payment solutions " " ), and Q3 (highlighting progress on the public cloud-native platform and various beta innovations " ), the focus was on steady digital innovation and rollout of new solutions.

In Q4 2025, the company stressed accelerated product rollouts, highlighted an SMB strategy roadmap, and reiterated its success in winning larger core deals—all underscoring a continued emphasis on digital innovation. " " "

Digital innovation remains a core priority; Q4 demonstrates an accelerated pace with a new emphasis on SMB strategy and faster execution while building on consistent progress from previous periods. " " "

M&A Activity, Consolidation, and Revenue Recognition Delays

Earlier periods noted moderate impacts from M&A activity and consolidation—Q1 discussed anticipatory measures and some implementation delays " " " , Q2 highlighted modest convert merge revenue and timing shifts " " " , and Q3 acknowledged increased M&A with potential deconversion revenue effects and project delays. " " "

In Q4 2025, management mentioned short-term revenue headwinds driven by increased M&A activity and deconversion revenue as well as some implementation delays, with future impacts expected to extend into fiscal 2026. " " "

The topic remains consistently important; however, Q4 emphasizes near‐term headwinds and cautious outlook from increased consolidation, reflecting a shift toward more immediate revenue timing concerns. " " "

Pricing Pressure and Competitive Margin Challenges

Q1 discussions noted relatively low pricing sensitivity with strong win rates " , Q2 highlighted bundling strategies and a neutral competitive dynamic " " , and Q3 underscored stable market conditions and some competitive pressures without a major strategic shift. " "

In Q4 2025, the focus sharpened on renewal pricing pressure and competitive pricing adjustments; management detailed strategic changes in renewal processes and compensation to counter short-term compression while maintaining premium pricing. " " "

While competitive pressures have been a recurring theme, Q4 shows a proactive shift with targeted strategies to mitigate pricing pressure, reinforcing a stable yet competitive market environment. " " "

Legacy Hardware Decline and Transition to Cloud Solutions

In Q1, legacy hardware was noted as a significant drag with a $7 million impact, while discussions in Q2 and Q3 focused on declining hardware sales (e.g., down $2–$11 million) and an ongoing shift to cloud solutions (with increasing percentages of clients on private cloud, e.g., 73–76%). " " " "

Q4 2025 reinforced that legacy hardware revenue continues to decline due to ongoing client migration to the cloud—with 77% of clients now hosted in the private cloud—and expects this trend to persist into FY 2026. "

The decline in legacy hardware and transition to cloud are consistently recognized; Q4 confirms the accelerated migration with higher cloud adoption rates and reduced hardware demand. " " "

Financial Flexibility through Robust Free Cash Flow Conversion

Q1 calls reported a 72% trailing 12‑month conversion despite a 50% Q1 rate " " , Q2 showed a 73% conversion with strong trailing free cash flow " " , and Q3 indicated a conversion range between 65% to 75% with ongoing improvements. " "

In Q4 2025, free cash flow conversion reached 90%, with management highlighting robust financial flexibility, zero debt and plans for significant share repurchases. "

A consistently improving trend in free cash flow conversion, now achieving a robust level that underpins financial flexibility and strategic capital allocation. " " "

Customer Optimism and Large Deal Wins Expanding Market Share

Q1 discussions focused on record sales attainment and a strong pipeline (e.g., six competitive wins including a $7 billion deal " " ), Q2 highlighted significant competitive wins and major renewals supporting market share expansion " " " " , and Q3 emphasized maintained high win rates even amidst competitive pressures. " "

In Q4 2025, customer optimism surged with 23 core wins in Q4 (and 51 for the fiscal year), larger core deals with increased asset sizes, and a continued push on cloud migration, underscoring market share expansion. "

Customer optimism and large deal wins remain a central driver; Q4 shows strengthening performance with higher win counts, larger deals, and continued backing from an extremely robust pipeline. " " "

Payments Segment Growth Driven by Emerging Offerings

Q1 reported 6% revenue growth with emerging platforms like Zelle, RTP, and FedNow " " , Q2 detailed a 6% growth with mention of the PayCenter and improved margins " " " , and Q3 documented accelerated adoption rates for faster payments and fraud prevention solutions. "

Q4 2025 saw continued growth with a 6% increase in non‑GAAP revenue driven by emerging offerings such as the Zelle platform, real‑time payments and significant new contracts for fraud prevention, maintaining momentum. " "

Payments growth is consistent across periods with steady revenue increases and emerging offerings playing a key role; the story remains of healthy platform adoption and gradual scaling of solutions. " " "

Interest Rate Sensitivity Impacting Future Earnings

Mentioned in Q1 where interest income was noted to be sensitive to rate changes, with future earnings dependent on Fed actions. " Q2 and Q3 did not address this topic.

Q4 2025 did not mention interest rate sensitivity at all.

Interest rate sensitivity, discussed only in Q1, is no longer a focal point in the current period, suggesting a reduced emphasis or lower immediate impact compared to earlier discussions. "