fico-20241231

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-11689

Fair Isaac Corporation

(Exact name of registrant as specified in its charter)


Delaware		94-1499887
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

5 West Mendenhall, Suite 105		59715
Bozeman,	Montana
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 406-982-7276

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	FICO	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


Yes			☐			No			☒

The number of shares of common stock outstanding on January 21, 2025 was 24,418,138 (excluding 64,438,645 shares held by us as treasury stock).

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TABLE OF CONTENTS


	PART I – FINANCIAL INFORMATION

Item 1.	Unaudited Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	29

	PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults Upon Senior Securities	30
Item 4.	Mine Safety Disclosures	30
Item 5.	Other Information	30
Item 6.	Exhibits	31
Signatures		32

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PART I – FINANCIAL INFORMATION

Item 1. Unaudited Financial Statements

FAIR ISAAC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	December 31, 2024		September 30, 2024
	(In thousands, except par value data)
Assets
Current assets:
Cash and cash equivalents	$	184,254	$	150,667
Accounts receivable, net	350,924		426,642
Prepaid expenses and other current assets	60,658		$	40,104
Total current assets	595,836		617,413
Marketable securities	45,925		$	45,289
Property and equipment, net	43,018		38,465
Operating lease right-of-use assets	28,309		29,580
Goodwill	775,551		782,752

Deferred income taxes	93,485		86,513
Other assets	124,484		117,872
Total assets	$	1,706,608	$	1,717,884
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	23,190	$	22,473
Accrued compensation and employee benefits	77,109		106,103
Other accrued liabilities	50,662		79,812
Deferred revenue	165,359		156,897
Current maturities on debt	15,000		15,000
Total current liabilities	331,320		380,285
Long-term debt	2,406,100		2,194,021
Operating lease liabilities	20,881		21,963
Other liabilities	86,471		84,294
Total liabilities	2,844,772		2,680,563
Commitments and contingencies
Stockholders’ deficit:
Preferred stock ($0.01 par value; 1,000 shares authorized; none issued and outstanding)	—		—
Common stock ($0.01 par value; 200,000 shares authorized, 88,857 shares issued and 24,443 and 24,392 shares outstanding at December 31, 2024 and September 30, 2024, respectively)	244		244
Additional paid-in-capital	1,201,828		1,366,572
Treasury stock, at cost (64,414 and 64,465 shares at December 31, 2024 and September 30, 2024, respectively)	(6,285,951)		(6,138,736)
Retained earnings	4,053,398		3,900,870
Accumulated other comprehensive loss	(107,683)		(91,629)
Total stockholders’ deficit	(1,138,164)		(962,679)
Total liabilities and stockholders’ deficit	$	1,706,608	$	1,717,884

See accompanying notes.

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FAIR ISAAC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)


	Quarter Ended December 31,
	2024		2023
	(In thousands, except per share data)
Revenues:
On-premises and SaaS software	$	186,011	$	168,668
Professional services	18,282		21,279
Scores	235,675		192,112
Total revenues	439,968		382,059
Operating expenses:
Cost of revenues	87,345		83,461
Research and development	45,145		42,635
Selling, general and administrative	127,950		104,329
Amortization of intangible assets	—		275


Total operating expenses	260,440		230,700
Operating income	179,528		151,359
Interest expense, net	(29,488)		(24,162)
Other income, net	89		3,393
Income before income taxes	150,129		130,590
Income tax provision (benefit)	(2,399)		9,525
Net income	152,528		121,065
Other comprehensive income (loss):
Foreign currency translation adjustments	(16,054)		8,703
Comprehensive income	$	136,474	$	129,768
Earnings per share:
Basic	$	6.26	$	4.89
Diluted	$	6.14	$	4.80
Shares used in computing earnings per share:
Basic	24,378		24,764
Diluted	24,827		25,219

See accompanying notes.

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FAIR ISAAC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(Unaudited)


	Common Stock			Additional Paid-in-Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Deficit
(In thousands)	Shares	Par Value
Balance at September 30, 2024	24,392	$	244	$	1,366,572	$	(6,138,736)	$	3,900,870	$	(91,629)	$	(962,679)
Share-based compensation	—	—		40,654		—		—		—		40,654
Issuance of treasury stock under employee stock plans	130

SEC Form 10-Q filed by Fair Isaac Corporation