10-QPeriod: Q1 FY2026

FAIR ISAAC CORP Quarterly Report for Q1 Ended Dec 31, 2025

Filed January 28, 2026For Securities:FICO

Summary

Fair Isaac Corporation (FICO) reported strong revenue growth driven primarily by its Scores segment, which saw a 29% increase year-over-year, reaching $304.5 million. This growth was attributed to higher unit pricing and increased mortgage origination volumes in their business-to-business scores, as well as increased royalties from business-to-consumer scores. Total revenues for the quarter rose 16% to $512.0 million, demonstrating robust top-line performance. While the Scores segment excelled, the Software segment experienced a modest 2% revenue increase, with growth in SaaS for Platform products partially offset by a decrease in higher-margin software recognized at a point in time. Profitability also saw a significant improvement, with operating income increasing 30% to $234.0 million, largely due to the strong performance of the Scores segment. Net income grew 4% to $158.4 million, and diluted Earnings Per Share (EPS) rose 8% to $6.61. The company's financial position remains solid, with $162.0 million in cash and cash equivalents and a revolving credit facility of $1.0 billion. FICO continues its share repurchase program, demonstrating confidence and returning capital to shareholders. The company anticipates sufficient liquidity to fund its operations and upcoming debt obligations.

Financial Highlights

50 data points
Beta

Revenue

$511.96M

83.0% Gross Margin

Net Income

$158.37M

30.9% Net Margin

EPS (Diluted)

$6.61

Total Assets

$1.85B

Cash & Equivalents

$162.03M

Free Cash Flow

$173.86M

Financial Statements
Beta
Revenue$511.96M
Cost of Revenue$87.26M
Gross Profit$424.70M
R&D Expenses$49.91M
SG&A Expenses$140.74M
Operating Expenses$277.91M
Operating Income$234.05M
Net Income$158.37M
EPS (Basic)$6.68
EPS (Diluted)$6.61
Shares Outstanding (Basic)23.72M
Shares Outstanding (Diluted)23.96M

Key Highlights

  • 1Total revenues increased by 16% year-over-year to $512.0 million.
  • 2Scores segment revenue surged by 29% to $304.5 million, driven by B2B scores linked to mortgage origination volumes and B2C scores from increased royalties.
  • 3Operating income grew significantly by 30% to $234.0 million, reflecting strong segment performance.
  • 4Net income increased by 4% to $158.4 million, and diluted EPS rose 8% to $6.61.
  • 5Software segment ARR grew 5% year-over-year to $766.0 million, with a Dollar-Based Net Retention Rate (DBNRR) of 103%.
  • 6The company maintained a strong cash position with $162.0 million in cash and cash equivalents at quarter-end.
  • 7FICO continued its share repurchase program, spending $162.7 million during the quarter.

Frequently Asked Questions

Revenue growth was primarily driven by the Scores segment, which saw a substantial 29% increase. This was fueled by higher unit pricing and increased volumes in business-to-business (B2B) scores, particularly related to mortgage originations, and by increased royalties from business-to-consumer (B2C) scores sold through credit reporting agencies. Total revenues for the quarter increased by 16%.

The Scores segment significantly outperformed the Software segment. While Scores revenue grew 29%, the Software segment saw a more modest 2% increase in revenue. This was due to a $2.2 million rise in on-premises and SaaS software revenue, largely driven by SaaS growth in Platform products, and a $0.9 million increase in professional services. However, the overall Software segment operating income decreased slightly due to increased hosting costs and a reduction in sales of higher-margin software recognized at a point in time.

FICO maintains a solid financial position. As of December 31, 2025, the company had $162.0 million in cash and cash equivalents. They also have access to a $1.0 billion unsecured revolving line of credit. The company expects its cash flows from operations, combined with its cash reserves and credit line, to be sufficient to cover its working capital needs and upcoming debt obligations, including the $400 million senior notes due in the next 12 months.

The OBBBA, enacted on July 4, 2025, allows for the immediate expensing of domestic research and experimental (R&E) expenditures and an election to accelerate unamortized domestic R&E expenditures over one or two years. These provisions are effective for FICO in fiscal year 2026 and were reflected in the company's results for the quarter ended December 31, 2025. The specific financial impact of these provisions is detailed within the company's tax disclosures.