FICO Announces Earnings of $6.42 per Share for Fourth Quarter Fiscal 2025

BOZEMAN, Mont.--( BUSINESS WIRE)--FICO (NYSE:FICO), a global analytics software leader, today announced results for its fourth fiscal quarter ended September 30, 2025.

Fourth Quarter Fiscal 2025 GAAP Results

Net income for the quarter totaled $155.0 million, or $6.42 per share, versus $135.7 million, or $5.44 per share, in the prior year period. Fourth quarter results included a pre-tax charge of $10.9 million for restructuring, or $0.34 per share after tax.

Net cash provided by operating activities for the quarter was $223.7 million versus $226.5 million in the prior year period.

Fourth Quarter Fiscal 2025 Non-GAAP Results

Non-GAAP Net Income for the quarter was $187.0 million versus $163.2 million in the prior year period. Non-GAAP EPS for the quarter was $7.74 versus $6.54 in the prior year period. Free cash flow was $210.8 million for the current quarter versus $219.4 million in the prior year period. The Non-GAAP financial measures are described in the financial table captioned “Non-GAAP Results” and are reconciled to the corresponding GAAP results in the financial tables at the end of this release.

Fourth Quarter Fiscal 2025 GAAP Revenue

The company reported revenues of $515.8 million for the quarter as compared to $453.8 million reported in the prior year period, an increase of 14%.

“I am very proud of our performance in FY25, another record year for FICO,” said Will Lansing, chief executive officer. “I am also pleased to provide FY26 guidance, which includes even stronger growth than we achieved in FY25.”

Revenues for the fourth quarter of fiscal 2025 for the company’s two operating segments were as follows:

Outlook

The company is providing the following guidance for fiscal 2026:

Fiscal 2026 Guidance

Revenues

$2.35 billion

GAAP Net Income

$795 million

GAAP EPS

$33.47

Non-GAAP Net Income

$907 million

Non-GAAP EPS

$38.17

The Non-GAAP financial measures are described in the financial table captioned “Reconciliation of Non-GAAP Guidance.”

Company to Host Conference Call

The company will host a webcast on November 5, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its fourth quarter fiscal 2025 results and provide various strategic and operational updates. The call can be accessed at FICO's web site at www.fico.com/investors. A replay of the webcast will be available on our Past Events page through November 5, 2026.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 U.S. and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting four billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO ® Score, used by 90% of top U.S. lenders, is the standard measure of consumer credit risk in the U.S. and has been made available in over 40 other countries, improving risk management, credit access and transparency.

Learn more at http s ://www.fico.com /en

Join the conversation at https://x.com/FICO_corp & https://www.fico.com/blogs/

For FICO news and media resources, visit https:// www.fico.com/ en/new sroom

FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.

Statement Concerning Forward-Looking Information

Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of macroeconomic conditions on FICO’s business, operations and personnel, the success of the Company’s business strategies, the maintenance of its existing relationships and ability to create new relationships with customers, distributors and other business partners, its ability to continue to develop new and enhanced products and services and to enter new markets, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use or costs of consumer credit and other data, the failure to protect such data, the failure to realize the anticipated benefits of any acquisitions, or divestitures, and material adverse developments or uncertainty in global economic conditions or in the markets or industries that the Company serves. Additional information on these risks and uncertainties and other factors that could affect FICO’s future results are described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2024 and its subsequent filings with the SEC. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. FICO disclaims any intent or obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise.

FAIR ISAAC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

September 30, 2025

September 30, 2024

(In thousands)

Assets

Current assets:

Cash and cash equivalents

134,136

150,667

Accounts receivable, net

529,148

426,642

Prepaid expenses and other current assets

41,881

40,104

Total current assets

705,165

617,413

Marketable securities

54,625

45,289

Property and equipment, net

67,713

38,465

Operating lease right-of-use assets

26,213

29,580

Goodwill

783,340

782,752

Other assets

231,077

204,385

Total assets

1,868,133

1,717,884

Liabilities and Stockholders’ Deficit

Current liabilities:

Accounts payable and other accrued liabilities

146,933

102,285

Accrued compensation and employee benefits

115,369

106,103

Deferred revenue

187,372

156,897

Current maturities on debt

399,541

15,000

Total current liabilities

849,215

380,285

Long-term debt

2,656,150

2,194,021

Operating lease liabilities

19,187

21,963

Other liabilities

89,365

84,294

Total liabilities

3,613,917

2,680,563

Stockholders’ deficit

(1,745,784

)

(962,679

)

Total liabilities and stockholders’ deficit

1,868,133

1,717,884

FAIR ISAAC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Quarter Ended September 30,

Year Ended September 30,

2025

2024

2025

2024

(In thousands, except per share data)

Revenues:

On-premises and SaaS software

182,393

181,707

740,145

711,340

Professional services

21,806

22,899

82,149

86,536

Scores

311,552

249,203

1,168,575

919,650

Total revenues

515,751

453,809

1,990,869

1,717,526

Operating expenses:

Cost of revenues

91,176

89,574

353,722

348,206

Research and development

50,953

44,208

188,347

171,940

Selling, general and administrative

125,544

122,757

513,028

462,834

Amortization of intangible assets

—

917

Restructuring charges

10,922

—

10,922

—

Total operating expenses

278,595

256,631

1,066,019

983,897

Operating income

237,156

197,178

924,850

733,629

Other expense, net

(34,697

)

(25,795

)

(122,255

)

(91,604

)

Income before income taxes

202,459

171,383

802,595

642,025

Provision for income taxes

47,445

35,692

150,649

129,214

Net income

155,014

135,691

651,946

512,811

Earnings per share:

Basic

6.48

5.54

26.90

20.78

Diluted

6.42

5.44

26.54

20.45

Shares used in computing earnings per share:

Basic

23,909

24,501

24,239

24,676

Diluted

24,160

24,950

24,561

25,079

FAIR ISAAC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Year Ended September 30,

2025

2024

(In thousands)

Cash flows from operating activities:

Net income

651,946

512,811

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

14,952

13,827

Share-based compensation

156,667

149,439

Changes in operating assets and liabilities

(18,547

)

(20,485

)

Other, net

(26,211

)

(22,628

)

Net cash provided by operating activities

778,807

632,964

Cash flows from investing activities:

Purchases of property and equipment

(8,922

)

(8,884

)

Capitalized internal-use software costs

(30,485

)

(16,667

)

Net activity from marketable securities

(4,312

)

(2,442

)

Net cash used in investing activities

(43,719

)

(27,993

)

Cash flows from financing activities:

Proceeds from revolving line of credit and term loans

725,000

947,000

Payments on revolving line of credit and term loans

(1,368,750

)

(602,000

)

Proceeds from issuance of senior notes

1,500,000

—

Proceeds from issuance of treasury stock under employee stock plans

32,823

25,006

Taxes paid related to net share settlement of equity awards

(204,593

)

(139,188

)

Repurchases of common stock

(1,414,502

)

(821,702

)

Other, net

(20,307

)

(2,039

)

Net cash used in financing activities

(750,329

)

(592,923

)

Effect of exchange rate changes on cash

(1,290

)

1,841

Increase (decrease) in cash and cash equivalents

(16,531

)

13,889

Cash and cash equivalents, beginning of year

150,667

136,778

Cash and cash equivalents, end of year

134,136

150,667

FAIR ISAAC CORPORATION

NON-GAAP RESULTS

(Unaudited)

Quarter Ended September 30,

Year Ended September 30,

2025

2024

2025

2024

(In thousands, except per share data)

GAAP net income

155,014

135,691

651,946

512,811

Amortization of intangible assets

—

917

Restructuring charges

10,922

—

10,922

—

Share-based compensation expense

32,379

39,982

156,667

149,439

Income tax adjustments

(10,833

)

(10,134

)

(41,393

)

(38,083

)

Excess tax benefit

(529

)

(2,429

)

(44,159

)

(29,774

)

Non-GAAP net income

186,953

163,202

733,983

595,310

GAAP diluted earnings per share

6.42

5.44

26.54

20.45

Amortization of intangible assets

—

0.04

Restructuring charges

0.45

—

0.44

—

Share-based compensation expense

1.34

1.60

6.38

5.96

Income tax adjustments

(0.45

)

(0.41

)

(1.69

)

(1.52

)

Excess tax benefit

(0.02

)

(0.10

)

(1.80

)

(1.19

)

Non-GAAP diluted earnings per share

7.74

6.54

29.88

23.74

Free cash flow

Net cash provided by operating activities

223,669

226,478

778,807

632,964

Capital expenditures

(12,825

)

(7,123

)

(39,407

)

(25,551

)

Free cash flow

210,844

219,355

739,400

607,413

Note: The numbers may not sum to total due to rounding.

About Non-GAAP Financial Measures

To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude, to the extent applicable, such items as the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making.

FAIR ISAAC CORPORATION

RECONCILIATION OF NON-GAAP GUIDANCE

(Unaudited)

Fiscal 2026 Guidance

(In millions, except per share data)

GAAP net income

795

Share-based compensation expense

166

Income tax adjustments

(42

)

Excess tax benefit

(13

)

Non-GAAP net income

907

GAAP diluted earnings per share

33.47

Share-based compensation expense

6.99

Income tax adjustments

(1.75

)

Excess tax benefit

(0.55

)

Non-GAAP diluted earnings per share

38.17

Note: The numbers may not sum to total due to rounding.

About Non-GAAP Financial Measures