Fair Isaac Corporation Earnings Recaps
FICO's shares fell 14.7% after the Q3 earnings report as investors reacted negatively to the Software segment's poor performance, marked by a 25% decline in non-platform revenue, and cautious indications of deceleration despite growth in Scores and platform revenue.
Key takeaways
- Total Q3 revenue grew 26% year-over-year to $674 million, driven primarily by a 41% increase in Scores segment revenue to $459 million.
- Software segment revenue showed a mixed picture: platform revenue surged 66%, but was offset by a 25% decline in non-platform revenue, suggesting challenges in legacy or non-core offerings.
- GAAP net income increased 30% to $237 million, while non-GAAP net income rose 31% to $277 million; GAAP EPS grew 41% to $10.45, non-GAAP EPS climbed 42% to $12.18.
- Free cash flow for the quarter reached $370 million with aggressive capital return activities, including a record $1.96 billion in share repurchases.
- Despite positive developments in credit scoring products and adoption programs, the cautious tone around software growth and sector-specific headwinds likely weighed on investor sentiment.
FICO reported second quarter revenue of $692 million, up 39% year-over-year, with shares rising 2.9% post-earnings—reflecting a market response that was generally neutral. The company modestly raised its full-year guidance and highlighted significant growth in its core Scores segment and ongoing expansion in software platform revenues.
Key takeaways
- GAAP net income reached $264 million (+63%), with GAAP EPS of $11.14 (+69%) versus the prior year.
- Scores segment revenue grew 60% year-over-year to $475 million, led by B2B and continued B2C momentum.
- Software segment revenues were $217 million (+7%), with platform revenue growth of 54% offsetting a 12% decline in non-platform software.
- Free cash flow hit $214 million in Q2, and the company repurchased $605 million of stock during the quarter.
- FICO updated licensing terms for its new Score 10T in response to regulatory changes and emphasized ongoing investments in AI and platform capabilities targeting highly regulated financial clients.
FICO delivered strong Q1 2026 results with a 16% year-over-year revenue increase to $512 million, reaffirming full-year guidance amid ongoing capital returns and expanding product offerings.
Key takeaways
- GAAP net income rose 4% to $158 million, while non-GAAP net income increased 22% to $176 million.
- The Scores segment saw revenue growth of 29%, driven significantly by B2B Scores.
- Free cash flow reached $165 million, contributing to a total of $718 million over the past year, up 7% year-over-year.
- Notable partnerships formed, including the strategic agreement with Plaid for the next-generation UltraFICO Score, set for launch in H1 2026.
- FICO's decision intelligence software was recognized as a leader by Gartner, enhancing its market positioning.
FICO delivered strong fourth-quarter results with revenues of $516 million, a 14% year-over-year increase, and achieved record annual free cash flow, outperforming fiscal '25 guidance across all metrics.
Key takeaways
- Q4 revenues increased to $516 million, with full-year revenues reaching $1.991 billion, up 16% year-on-year.
- The Scores segment demonstrated robust growth, with Q4 revenues of $312 million, a 25% increase driven mainly by B2B scores.
- FICO introduced innovative products, including the FICO focused foundation model, enhancing transaction analytics and operational efficiency.
- Continued demand for FICO scores underscores their status as the industry standard, with notable competitive traction despite alternative offerings.
- Significant interest in the newly launched FICO mortgage direct license program aims to enhance competition and accessibility in the mortgage market.
FICO reported a robust third quarter for 2025, with revenues soaring 20% year-over-year to $536 million and net income increasing 44% to $182 million, leading to an upward revision in fiscal year guidance.
Key takeaways
- GAAP earnings per share rose 47% to $7.40, while non-GAAP earnings per share increased 37% to $8.57.
- Free cash flow reached a record $276 million, supported by over $0.5 billion in share buybacks, marking FICO's largest quarterly repurchase.
- Significant growth in the Scores segment with revenues up 34%, driven primarily by B2B Scores and the introduction of innovative credit scoring models incorporating BNPL data.