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    FICO Announces Earnings of $6.59 per Share for Second Quarter Fiscal 2025

    4/29/25 4:15:00 PM ET
    $FICO
    Business Services
    Consumer Discretionary
    Get the next $FICO alert in real time by email

    Revenue of $499 million vs. $434 million in prior year

    FICO (NYSE:FICO), a global analytics software leader, today announced results for its second fiscal quarter ended March 31, 2025.

    Second Quarter Fiscal 2025 GAAP Results

    Net income for the quarter totaled $162.6 million, or $6.59 per share, versus $129.8 million, or $5.16 per share, in the prior year period.

    Net cash provided by operating activities for the quarter was $74.9 million versus $71.0 million in the prior year period.

    Second Quarter Fiscal 2025 Non-GAAP Results

    Non-GAAP Net Income for the quarter was $192.7 million versus $154.5 million in the prior year period. Non-GAAP EPS for the quarter was $7.81 versus $6.14 in the prior year period. Free cash flow was $65.5 million for the current quarter versus $61.6 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.

    Second Quarter Fiscal 2025 GAAP Revenue

    The company reported revenues of $498.7 million for the quarter as compared to $433.8 million reported in the prior year period, an increase of 15%.

    "In our second fiscal quarter, we again delivered strong results with revenue growth of 15%, and even stronger earnings growth," said Will Lansing, chief executive officer. "We reiterate our fiscal year 2025 guidance, which includes double-digit percentage growth for both revenue and earnings."

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

    • Scores revenues, which include the company's business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) solutions, were $297.0 million in the second quarter, compared to $236.9 million in the prior year period, an increase of 25%. B2B revenue increased 31%, driven largely by higher unit prices. B2C revenue increased 6% from the prior year period due to increased revenue from our indirect channel partners.
    • Software revenues, which include the company's analytics and digital decisioning technology, were $201.7 million in the second quarter, compared to $196.9 million in the prior year period, an increase of 2%, mainly due to increased license revenue recognized at a point in time. Software Annual Recurring Revenue at March 31, 2025 was up 3% year-over-year, consisting of 17% in platform ARR growth and a 3% decline in non-platform ARR. The total Software Dollar-Based Net Retention Rate was 102% on March 31, 2025, with platform software at 110% and non-platform software at 96%.

    Outlook

    We reiterate the following guidance for fiscal 2025:

     

    Fiscal 2025 Guidance

    Revenues

    $1.98 billion

    GAAP Net Income

    $624 million

    GAAP EPS

    $25.05

    Non-GAAP Net Income

    $712 million

    Non-GAAP EPS

    $28.58

    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 April 29, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its second 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 April 29, 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 https://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/newsroom

    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 Decision Management strategy and reengineering initiative, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use 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 in global economic conditions or in the markets we serve. 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)

     

     

     

     

     

    March 31, 2025

     

    September 30, 2024

     

    (In thousands)

    Assets

     

     

     

    Current assets:

     

     

     

    Cash and cash equivalents

    $

    146,641

     

     

    $

    150,667

     

    Accounts receivable, net

     

    492,542

     

     

     

    426,642

     

    Prepaid expenses and other current assets

     

    85,727

     

     

     

    40,104

     

    Total current assets

     

    724,910

     

     

     

    617,413

     

    Marketable securities

     

    45,400

     

     

     

    45,289

     

    Property and equipment, net

     

    50,552

     

     

     

    38,465

     

    Operating lease right-of-use assets

     

    27,572

     

     

     

    29,580

     

    Goodwill

     

    779,279

     

     

     

    782,752

     

    Other assets

     

    208,040

     

     

     

    204,385

     

    Total assets

    $

    1,835,753

     

     

    $

    1,717,884

     

    Liabilities and Stockholders' Deficit

     

     

     

    Current liabilities:

     

     

     

    Accounts payable and other accrued liabilities

    $

    79,951

     

     

    $

    102,285

     

    Accrued compensation and employee benefits

     

    76,511

     

     

     

    106,103

     

    Deferred revenue

     

    171,780

     

     

     

    156,897

     

    Current maturities on debt

     

    15,000

     

     

     

    15,000

     

    Total current liabilities

     

    343,242

     

     

     

    380,285

     

    Long-term debt

     

    2,513,179

     

     

     

    2,194,021

     

    Operating lease liabilities

     

    20,816

     

     

     

    21,963

     

    Other liabilities

     

    82,568

     

     

     

    84,294

     

    Total liabilities

     

    2,959,805

     

     

     

    2,680,563

     

     

     

     

     

    Stockholders' deficit

     

    (1,124,052

    )

     

     

    (962,679

    )

    Total liabilities and stockholders' deficit

    $

    1,835,753

     

     

    $

    1,717,884

     

    FAIR ISAAC CORPORATION

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME

    (Unaudited)

     

     

    Quarter Ended March 31,

     

    Six Months Ended March 31,

     

     

    2025

     

     

     

    2024

     

     

     

    2025

     

     

     

    2024

     

     

    (In thousands, except per share data)

    Revenues:

     

     

     

     

     

     

     

    On-premises and SaaS software

    $

    183,826

     

     

    $

    177,180

     

     

    $

    369,837

     

     

    $

    345,848

     

    Professional services

     

    17,870

     

     

     

    19,744

     

     

     

    36,152

     

     

     

    41,023

     

    Scores

     

    297,039

     

     

     

    236,885

     

     

     

    532,714

     

     

     

    428,997

     

    Total revenues

     

    498,735

     

     

     

    433,809

     

     

     

    938,703

     

     

     

    815,868

     

    Operating expenses:

     

     

     

     

     

     

     

    Cost of revenues

     

    87,630

     

     

     

    86,946

     

     

     

    174,975

     

     

     

    170,407

     

    Research and development

     

    45,037

     

     

     

    40,880

     

     

     

    90,182

     

     

     

    83,515

     

    Selling, general and administrative

     

    120,420

     

     

     

    110,867

     

     

     

    248,370

     

     

     

    215,196

     

    Amortization of intangible assets

     

    —

     

     

     

    275

     

     

     

    —

     

     

     

    550

     

    Total operating expenses

     

    253,087

     

     

     

    238,968

     

     

     

    513,527

     

     

     

    469,668

     

    Operating income

     

    245,648

     

     

     

    194,841

     

     

     

    425,176

     

     

     

    346,200

     

    Other expense, net

     

    (32,632

    )

     

     

    (22,107

    )

     

     

    (62,031

    )

     

     

    (42,876

    )

    Income before income taxes

     

    213,016

     

     

     

    172,734

     

     

     

    363,145

     

     

     

    303,324

     

    Provision for income taxes

     

    50,401

     

     

     

    42,935

     

     

     

    48,002

     

     

     

    52,460

     

    Net income

    $

    162,615

     

     

    $

    129,799

     

     

    $

    315,143

     

     

    $

    250,864

     

    Earnings per share:

     

     

     

     

     

     

     

    Basic

    $

    6.67

     

     

    $

    5.23

     

     

    $

    12.92

     

     

    $

    10.12

     

    Diluted

    $

    6.59

     

     

    $

    5.16

     

     

    $

    12.73

     

     

    $

    9.96

     

    Shares used in computing earnings per share:

     

     

     

     

     

     

     

    Basic

     

    24,389

     

     

     

    24,819

     

     

     

    24,383

     

     

     

    24,791

     

    Diluted

     

    24,685

     

     

     

    25,154

     

     

     

    24,756

     

     

     

    25,186

     

    FAIR ISAAC CORPORATION

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (Unaudited)

     

     

    Six Months Ended March 31,

     

     

    2025

     

     

     

    2024

     

     

    (In thousands)

    Cash flows from operating activities:

     

     

     

    Net income

    $

    315,143

     

     

    $

    250,864

     

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

     

     

     

    Depreciation and amortization

     

    6,950

     

     

     

    6,178

     

    Share-based compensation

     

    82,358

     

     

     

    67,022

     

    Changes in operating assets and liabilities

     

    (132,202

    )

     

     

    (119,159

    )

    Other, net

     

    (3,334

    )

     

     

    (11,750

    )

    Net cash provided by operating activities

     

    268,915

     

     

     

    193,155

     

    Cash flows from investing activities:

     

     

     

    Purchases of property and equipment

     

    (2,960

    )

     

     

    (5,403

    )

    Capitalized internal-use software costs

     

    (13,638

    )

     

     

    (5,380

    )

    Net activity from marketable securities

     

    (3,285

    )

     

     

    (1,257

    )

    Net cash used in investing activities

     

    (19,883

    )

     

     

    (12,040

    )

    Cash flows from financing activities:

     

     

     

    Proceeds from revolving line of credit and term loans

     

    450,000

     

     

     

    255,000

     

    Payments on revolving line of credit and term loans

     

    (132,500

    )

     

     

    (74,500

    )

    Proceeds from issuance of treasury stock under employee stock plans

     

    16,062

     

     

     

    14,937

     

    Taxes paid related to net share settlement of equity awards

     

    (198,531

    )

     

     

    (133,786

    )

    Repurchases of common stock

     

    (379,738

    )

     

     

    (243,473

    )

    Other, net

     

    (3,016

    )

     

     

    (1,400

    )

    Net cash used in financing activities

     

    (247,723

    )

     

     

    (183,222

    )

    Effect of exchange rate changes on cash

     

    (5,335

    )

     

     

    996

     

    Decrease in cash and cash equivalents

     

    (4,026

    )

     

     

    (1,111

    )

    Cash and cash equivalents, beginning of period

     

    150,667

     

     

     

    136,778

     

    Cash and cash equivalents, end of period

    $

    146,641

     

     

    $

    135,667

     

    FAIR ISAAC CORPORATION

    NON-GAAP RESULTS

    (Unaudited)

     

     

     

     

     

    Quarter Ended March 31,

     

    Six Months Ended March 31,

     

     

    2025

     

     

     

    2024

     

     

     

    2025

     

     

     

    2024

     

     

    (In thousands, except per share data)

    GAAP net income

    $

    162,615

     

     

    $

    129,799

     

     

    $

    315,143

     

     

    $

    250,864

     

    Amortization of intangible assets

     

    —

     

     

     

    275

     

     

     

    —

     

     

     

    550

     

    Share-based compensation expense

     

    41,704

     

     

     

    35,448

     

     

    82,358

     

     

     

    67,022

     

    Income tax adjustments

     

    (10,366

    )

     

     

    (9,096

    )

     

    (20,229

    )

     

     

    (17,011

    )

    Excess tax benefit

     

    (1,264

    )

     

     

    (1,934

    )

     

    (40,794

    )

     

     

    (25,709

    )

    Non-GAAP net income

    $

    192,689

     

     

    $

    154,492

     

     

    $

    336,478

     

     

    $

    275,716

     

     

     

     

     

     

     

     

     

    GAAP diluted earnings per share

    $

    6.59

     

     

    $

    5.16

     

     

    $

    12.73

     

     

    $

    9.96

     

    Amortization of intangible assets

     

    —

     

     

     

    0.01

     

     

     

    —

     

     

     

    0.02

     

    Share-based compensation expense

     

    1.69

     

     

     

    1.41

     

     

     

    3.33

     

     

     

    2.66

     

    Income tax adjustments

     

    (0.42

    )

     

     

    (0.36

    )

     

     

    (0.82

    )

     

     

    (0.68

    )

    Excess tax benefit

     

    (0.05

    )

     

     

    (0.08

    )

     

     

    (1.65

    )

     

     

    (1.02

    )

    Non-GAAP diluted earnings per share

    $

    7.81

     

     

    $

    6.14

     

     

    $

    13.59

     

     

    $

    10.95

     

     

     

     

     

     

     

     

     

    Free cash flow

     

     

     

     

     

     

     

    Net cash provided by operating activities

    $

    74,918

     

     

    $

    71,035

     

     

    $

    268,915

     

     

    $

    193,155

     

    Capital expenditures

     

    (9,427

    )

     

     

    (9,422

    )

     

     

    (16,598

    )

     

     

    (10,783

    )

    Free cash flow

    $

    65,491

     

     

    $

    61,613

     

     

    $

    252,317

     

     

    $

    182,372

     

    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 2025 Guidance

     

     

    (In millions, except per share data)

     

     

     

    GAAP net income

     

    $

    624

     

    Share-based compensation expense

     

     

    157

     

    Income tax adjustments

     

     

    (39

    )

    Excess tax benefit

     

     

    (30

    )

    Non-GAAP net income

     

    $

    712

     

     

     

     

    GAAP diluted earnings per share

     

    $

    25.05

     

    Share-based compensation expense

     

     

    6.31

     

    Income tax adjustments

     

     

    (1.58

    )

    Excess tax benefit

     

     

    (1.20

    )

    Non-GAAP diluted earnings per share

     

    $

    28.58

     

    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.

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250429766307/en/

    Investors/Analysts:

    Dave Singleton

    Fair Isaac Corporation

    (800) 459-7125

    [email protected]

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