Fair Isaac Q4 Earnings Top Estimates, Strong Scores Drive Up Sales Y/Y

Fair Isaac FICO 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, Constellation Software CNSWF, and Ceragon Networks CRNT, 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.

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This article originally published on Zacks Investment Research (zacks.com).

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