10-QPeriod: Q2 FY2026

FAIR ISAAC CORP Quarterly Report for Q2 Ended Mar 31, 2026

Filed April 28, 2026For Securities:FICO

Summary

Fair Isaac Corporation (FICO) reported strong financial performance for the quarter and six months ended March 31, 2026. Total revenues surged by 39% year-over-year for the quarter and 28% for the six-month period, driven by significant growth in the Scores segment, which saw a 60% increase in quarterly revenue. The Software segment also demonstrated growth, with its SaaS revenue component increasing and a healthy Dollar-Based Net Retention Rate of 109%. Profitability improved substantially, with operating income rising 64% and net income increasing 63% for the quarter. Diluted Earnings Per Share (EPS) also saw a significant boost, up 69% year-over-year for the quarter. The company's balance sheet strengthened, with cash and cash equivalents increasing to $219.4 million. FICO also actively managed its capital structure, issuing new senior notes and repurchasing a substantial amount of its common stock, reflecting confidence in its financial position and commitment to returning value to shareholders.

Financial Highlights

50 data points
Beta

Revenue

$691.68M

86.8% Gross Margin

Net Income

$264.46M

38.2% Net Margin

EPS (Diluted)

$11.14

Total Assets

$2.05B

Cash & Equivalents

$219.42M

Free Cash Flow

$223.09M

Financial Statements
Beta
Revenue$691.68M
Cost of Revenue$91.20M
Gross Profit$600.48M
R&D Expenses$53.92M
SG&A Expenses$144.10M
Operating Expenses$289.21M
Operating Income$402.46M
Net Income$264.46M
EPS (Basic)$11.19
EPS (Diluted)$11.14
Shares Outstanding (Basic)23.63M
Shares Outstanding (Diluted)23.75M

Key Highlights

  • 1Total revenues increased by 39% to $691.7 million in Q1 2026 compared to Q1 2025, and by 28% to $1.2 billion for the first six months of fiscal 2026.
  • 2The Scores segment experienced robust revenue growth of 60% year-over-year in the quarter, reaching $475.0 million.
  • 3Operating income and net income saw significant year-over-year increases of 64% and 63% respectively for the quarter, indicating strong operational efficiency.
  • 4Diluted EPS rose by 69% to $11.14 for the quarter ended March 31, 2026, demonstrating enhanced profitability on a per-share basis.
  • 5Cash and cash equivalents grew to $219.4 million as of March 31, 2026, from $134.1 million at the end of fiscal 2025.
  • 6The company issued $1.0 billion in senior notes and actively repurchased $611.3 million of its common stock during the quarter, signaling financial flexibility and a commitment to shareholder returns.
  • 7The Software segment maintained a healthy Dollar-Based Net Retention Rate of 109%, indicating strong customer retention and growth within the existing customer base.

Frequently Asked Questions

The substantial revenue increase was primarily driven by the strong performance of the Scores segment, which saw a 60% year-over-year revenue growth, largely due to increased business-to-business scores revenue attributed to higher unit prices and increased volume of mortgage originations. The Software segment also contributed with an 8% increase in on-premises and SaaS software revenue, notably driven by SaaS growth for Platform products.

Profitability improved significantly. Operating income increased by 64% year-over-year to $402.5 million for the quarter, and net income rose by 63% to $264.5 million. This was a result of strong revenue growth outpacing the increase in operating expenses, particularly benefiting from the higher-margin Scores segment.

As of March 31, 2026, FICO held $219.4 million in cash and cash equivalents, an increase from the previous fiscal year-end. The company managed its debt by issuing $1.0 billion in new senior notes and repaying the $400 million in 2018 Senior Notes. Total debt stood at $3.6 billion, with a revolving line of credit of $265 million drawn, and FICO remains compliant with its debt covenants.

The Software segment demonstrated a Dollar-Based Net Retention Rate of 109% as of March 31, 2026, indicating that the company is successfully retaining and growing revenue from its existing customer base. Annual Recurring Revenue (ARR) for the Software segment also grew to $788.8 million, a 10% increase year-over-year, showing a positive trend in recurring revenue streams.