Fair Isaac Earnings Call Transcripts
Fiscal Year 2026
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Share buybacks and steady price increases have strengthened the business, with new mortgage pricing models addressing regulatory concerns. FICO Score 10T is positioned as more predictive than competitors, while the software platform is growing rapidly and leveraging AI for decisioning. Industry relationships remain strong, and pricing strategies are tailored by market.
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Q2 saw 39% revenue growth and 63% net income growth, driven by strong mortgage and platform performance. Full-year guidance was raised, with no expected volume loss to VantageScore and continued robust capital returns through record share repurchases.
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Q1 2026 saw 16% revenue growth and strong margin expansion, with robust performance in both Scores and Software segments. Five major resellers joined the Direct License Program, and platform ARR grew 33%. Guidance is reiterated amid macro uncertainty, with management confident in exceeding targets.
Fiscal Year 2025
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Q4 and FY 2025 saw double-digit revenue and earnings growth, record free cash flow, and strong segment performance. FY 2026 guidance projects continued robust growth, with conservative assumptions due to macro uncertainty and new pricing models in the mortgage segment.
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Q3 revenue grew 20% year-over-year to $536M, with GAAP net income up 44% and record free cash flow. Score segment led growth, especially in mortgage and auto, while software ARR rose 4%. Full-year guidance was raised, and the company executed its largest-ever share buyback.
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Second quarter revenue grew 15% year-over-year to $499 million, with strong gains in Scores and steady Software performance. Free cash flow and margins expanded, and guidance was reiterated despite macro uncertainty. Share repurchases and new partnerships supported growth.
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The company is investing in software platform efficiency and innovation in scores, with new products expected this year. Software ARR growth has slowed but is projected to accelerate, and capital allocation remains focused on share repurchases. Origination volumes and B2C scores are rebounding amid stable macro conditions.
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Q1 2025 revenue rose 15% year-over-year to $440M, with strong growth in both scores and software segments. Free cash flow surged 55%, and guidance for fiscal 2025 was reiterated, reflecting confidence despite macroeconomic and FX headwinds.
Fiscal Year 2024
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Fourth quarter revenue grew 16% year-over-year, with strong gains in both score and software segments. Fiscal 2025 guidance calls for double-digit growth in revenue and earnings, supported by robust free cash flow and continued capital returns to shareholders.
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Q3 revenue grew 12% year-over-year to $448 million, with record free cash flow and strong ACV bookings. Full-year guidance was raised, driven by robust scores and software segment growth, while share repurchases and a new $1 billion buyback were announced.