We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fair Isaac Q4 Earnings Top Estimates, Strong Scores Drive Up Sales Y/Y
Read MoreHide Full Article
Key Takeaways
Fair Isaac posted Q4 EPS of $7.74, up 18.3% year over year and topping estimates by 5.45%.
Revenues rose 13.6% to $515.8M, led by a 25% jump in Scores and solid B2B performance.
FICO expects fiscal 2026 revenues of $2.35B and non-GAAP earnings of $38.17 per share.
Fair Isaac (FICO - Free Report) reported fourth-quarter fiscal 2025 non-GAAP earnings of $7.74 per share, which surpassed the Zacks Consensus Estimate by 5.45% and jumped 18.3% year over year.
Revenues of $515.8 million beat the consensus mark by 0.78% and increased 13.6% year over year. The Americas, EMEA, and Asia Pacific contributed 87%, 8% and 5% to total revenues, respectively. Scores (60.4% of revenues) increased 25% year over year to $311.6 million.
FICO’s Top-Line Details
Software revenues, which include Fair Isaac’s analytics and digital decisioning technology, as well as associated professional services, declined 0.2% year over year to $204.2 million.
Software Annual Recurring Revenues (ARR) increased 4% year over year, consisting of 16% platform ARR growth but a 2% decline in non-platform ARR. Software Dollar-Based Net Retention Rate was 102% in the fiscal fourth quarter, with platform software at 112% and non-platform software at 97%. On-premises and SaaS Software (35.4% of revenues) increased 0.4% year over year to $182.4 million. Professional services (4.2% of revenues) were $21.8 million, down 4.8% year over year.
Fair Isaac Corporation Price, Consensus and EPS Surprise
Scores include FICO’s business-to-business (B2B) scoring solutions and business-to-consumer (B2C) scoring solutions. B2B revenues increased 29% year over year, driven primarily by higher unit prices and an increase in volume of mortgage originations. B2C revenues rose 8% year over year due to increased revenues from myFICO.com business and indirect channel partners.
Mortgage originations revenues rose 55% year over year. Auto originations revenues increased 24% year over year. Credit card, personal loan, and other origination revenues are up 7% year over year.
FICO’s Operating Details
Research and development expenses, as a percentage of revenues, expanded 10 basis points (bps) on a year-over-year basis to 9.9%.
Selling, general, and administrative expenses, as a percentage of revenues, decreased 270 bps year over year to 24.3%.
Non-GAAP Operating margin was 54% in the fiscal fourth quarter of 2025 compared with 52% in the year-ago quarter.
Adjusted EBITDA increased 18.3% year over year to $286.6 million in the reported quarter. The adjusted EBITDA margin in the fiscal fourth quarter of 2025 was 55.6% compared with 53.4% in the fiscal fourth quarter of 2024.
FICO’s Balance Sheet & Cash Flow
As of Sept. 30, 2025, FICO had $134 million in cash and cash equivalents, and total debt was $3.06 billion.
Cash flow from operations was $223.6 million in the fiscal fourth quarter compared with $286.2 million in the prior quarter. Free cash flow was $210.8 million for the reported quarter compared with $276.2 million reported in the prior quarter.
In the fiscal fourth quarter, FICO repurchased 358K shares.
FICO Reiterates Fiscal 2026 Guidance
For fiscal 2026, FICO anticipates revenues of $2.35 billion.
Non-GAAP earnings are projected to be $38.17 per share.
FICO’s Zacks Rank & Other Stocks to Consider
Currently, FICO sports a Zacks Rank #1 (Strong Buy).
Image: Bigstock
Fair Isaac Q4 Earnings Top Estimates, Strong Scores Drive Up Sales Y/Y
Key Takeaways
Fair Isaac (FICO - Free Report) reported fourth-quarter fiscal 2025 non-GAAP earnings of $7.74 per share, which surpassed the Zacks Consensus Estimate by 5.45% and jumped 18.3% year over year.
Revenues of $515.8 million beat the consensus mark by 0.78% and increased 13.6% year over year. The Americas, EMEA, and Asia Pacific contributed 87%, 8% and 5% to total revenues, respectively. Scores (60.4% of revenues) increased 25% year over year to $311.6 million.
FICO’s Top-Line Details
Software revenues, which include Fair Isaac’s analytics and digital decisioning technology, as well as associated professional services, declined 0.2% year over year to $204.2 million.
Software Annual Recurring Revenues (ARR) increased 4% year over year, consisting of 16% platform ARR growth but a 2% decline in non-platform ARR. Software Dollar-Based Net Retention Rate was 102% in the fiscal fourth quarter, with platform software at 112% and non-platform software at 97%. On-premises and SaaS Software (35.4% of revenues) increased 0.4% year over year to $182.4 million. Professional services (4.2% of revenues) were $21.8 million, down 4.8% year over year.
Fair Isaac Corporation Price, Consensus and EPS Surprise
Fair Isaac Corporation price-consensus-eps-surprise-chart | Fair Isaac Corporation Quote
Scores include FICO’s business-to-business (B2B) scoring solutions and business-to-consumer (B2C) scoring solutions. B2B revenues increased 29% year over year, driven primarily by higher unit prices and an increase in volume of mortgage originations. B2C revenues rose 8% year over year due to increased revenues from myFICO.com business and indirect channel partners.
Mortgage originations revenues rose 55% year over year. Auto originations revenues increased 24% year over year. Credit card, personal loan, and other origination revenues are up 7% year over year.
FICO’s Operating Details
Research and development expenses, as a percentage of revenues, expanded 10 basis points (bps) on a year-over-year basis to 9.9%.
Selling, general, and administrative expenses, as a percentage of revenues, decreased 270 bps year over year to 24.3%.
Non-GAAP Operating margin was 54% in the fiscal fourth quarter of 2025 compared with 52% in the year-ago quarter.
Adjusted EBITDA increased 18.3% year over year to $286.6 million in the reported quarter. The adjusted EBITDA margin in the fiscal fourth quarter of 2025 was 55.6% compared with 53.4% in the fiscal fourth quarter of 2024.
FICO’s Balance Sheet & Cash Flow
As of Sept. 30, 2025, FICO had $134 million in cash and cash equivalents, and total debt was $3.06 billion.
Cash flow from operations was $223.6 million in the fiscal fourth quarter compared with $286.2 million in the prior quarter. Free cash flow was $210.8 million for the reported quarter compared with $276.2 million reported in the prior quarter.
In the fiscal fourth quarter, FICO repurchased 358K shares.
FICO Reiterates Fiscal 2026 Guidance
For fiscal 2026, FICO anticipates revenues of $2.35 billion.
Non-GAAP earnings are projected to be $38.17 per share.
FICO’s Zacks Rank & Other Stocks to Consider
Currently, FICO sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices (ADI - Free Report) , Constellation Software (CNSWF - Free Report) , and Ceragon Networks (CRNT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Analog Devices have gained 11.1% year to date. Analog Devices is set to report fourth-quarter fiscal 2025 results on Nov. 25.
Shares of Constellation Software have lost 18.3% year to date. Constellation Software is slated to report third-quarter 2025 results on Nov. 11.
Shares of Ceragon Networks have lost 46.9% year to date. Ceragon Networks is set to report third-quarter 2025 results on Nov. 11.