Core Insights - Fair Isaac (FICO) reported second-quarter fiscal 2025 earnings of $7.81 per share, exceeding the Zacks Consensus Estimate by 5.68% and showing a year-over-year increase of 27.2% [1] - Revenues reached $498.7 million, surpassing the consensus mark by 0.51% and increasing 15% year over year, with contributions from the Americas (86%), EMEA (9%), and Asia Pacific (5%) [1] Financial Performance - Software revenues rose 2.4% year over year to $201.7 million, driven by higher license revenue [3] - Software Annual Recurring Revenues (ARR) grew 3% year over year, with platform ARR increasing by 17% and non-platform declining by 3% [4] - Scores revenues increased 25.4% year over year to $297 million, with B2B revenues up 31% and B2C revenues up 6% [5] - Mortgage originations revenues surged 48% year over year, accounting for 54% of B2B revenues and 44% of total scores revenues [6] Operating Metrics - Research and development expenses as a percentage of revenues decreased by 40 basis points to 9% [8] - Selling, general and administrative expenses as a percentage of revenues fell by 140 basis points to 24.1% [8] - Adjusted EBITDA increased 21.6% year over year to $287.8 million, with an adjusted EBITDA margin of 57.7% [8] Balance Sheet and Cash Flow - As of March 31, 2025, FICO had $146.6 million in cash and cash equivalents and total debt of $2.5 billion, compared to $184.3 million in cash and $2.4 billion in debt as of December 31, 2024 [11] - Cash flow from operations was $74.9 million, down from $194 million in the previous quarter, with free cash flow at $65.5 million compared to $186.8 million in the prior quarter [11] Guidance - For fiscal 2025, FICO anticipates revenues of $1.98 billion and non-GAAP earnings projected at $28.58 per share [13]

Financial Data and Key Metrics Changes - The company reported Q2 revenues of $499 million, an increase of 15% year-over-year [5][15] - GAAP net income for the quarter was $163 million, up 25% from the prior year, with GAAP earnings per share at $6.59, a 28% increase [6][20] - Non-GAAP net income was $193 million, also up 25%, with non-GAAP earnings per share at $7.81, a 27% increase [6][20] - Free cash flow for the quarter was $65 million, a 6% increase year-over-year, with total free cash flow over the last four quarters at $677 million, up 45% [6][21] Business Line Data and Key Metrics Changes - In the Scores segment, revenues were $297 million, up 25% year-over-year, with B2B revenues increasing by 31% primarily due to mortgage originations [7][15] - B2C revenues grew by 6%, driven by indirect channel partners [7][15] - Mortgage origination revenues surged by 48%, accounting for 54% of B2B revenue and 44% of total Scores revenue [7][8] - The Software segment reported revenues of $202 million, a 2% increase from the prior year, with on-premises and SaaS software revenue growing by 4% [11][15] Market Data and Key Metrics Changes - The Americas region contributed 86% of total company revenues, while EMEA and Asia Pacific regions generated 9% and 5% respectively [16] - Total software ARR was $715 million, a 3% increase year-over-year, with platform ARR growing by 17% [12][17] - The dollar-based net retention rate was 102%, with platform NRR at 110% and non-platform at 96% [12][18] Company Strategy and Development Direction - The company continues to focus on innovation, with new products like the FICO Score mortgage simulator and FICO Score 10T being highlighted [9][10] - Partnerships with companies like Fujitsu and Dakado aim to enhance digital transformation and precision in the life insurance industry [13] - The company is committed to expanding its indirect sales channels and enhancing its partner network [11][112] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fiscal year guidance despite macroeconomic uncertainties [22] - The company noted that while there are headwinds in customer outreach programs, the overall business remains healthy [34][41] - Management emphasized the importance of customer education in maximizing the value of their offerings [115] Other Important Information - The company repurchased 112,000 shares in Q2 at an average price of $18.49 per share [22] - The effective tax rate for the quarter was 23.7%, with expectations of around 22% for the full year [20] Q&A Session Summary Question: How did results compare to expectations? - Management acknowledged the current environment's uncertainty and maintained a conservative approach to guidance [31] Question: What is the outlook for software reacceleration? - Management indicated that macroeconomic factors are influencing growth, but they remain optimistic about platform growth [32][34] Question: Any changes in credit origination volumes? - Management noted no significant changes in credit origination volumes but acknowledged the lag in data reporting [38][40] Question: Are there changes in customer behavior regarding platform sales cycles? - Management reported no significant changes in sales cycles, indicating that the platform remains a strategic purchase for customers [45][46] Question: What is the outlook for professional services revenue? - Management expects professional services revenue to increase in the second half of the year due to timing issues [117] Question: What are the strategic priorities moving forward? - Management highlighted upcoming innovations and the use of AI, with announcements expected at FICO World [121]

Q2 2025 FINANCIAL HIGHLIGHTS | Metric | Q2- | 24 | Q1- 25 | Q2- 25 | % Q/Q | % Y/Y | | --- | --- | --- | --- | --- | --- | --- | | (In millions, except for EPS) | | | | | | | | Scores Revenues | | $236.9 | $235.7 | $297.0 | 26% | 25% | | Software Revenues | | $196.9 | $204.3 | $201.7 | -1% | 2% | | Total Revenues | | $433.8 | $440.0 | $498.7 | 13% | 15% | | Software ARR | | $697.0 | $729.3 | $714.6 | -2% | 3% | | Software ACV Bookings | | $16.8 | $21.2 | $21.8 | 3% | 30% | | Non-GAAP Op. Margin* | | 53% | 5 ...

Core Insights - Fair Isaac (FICO) reported revenue of $498.74 million for the quarter ended March 2025, marking a year-over-year increase of 15% and an EPS of $7.81 compared to $6.14 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1][2] Financial Performance - The reported revenue of $498.74 million surpassed the Zacks Consensus Estimate of $496.22 million, resulting in a surprise of +0.51% [1] - The EPS of $7.81 exceeded the consensus estimate of $7.39, delivering a surprise of +5.68% [1] - Annual Recurring Revenue (ARR) for the platform was $234.70 million, below the average estimate of $248.73 million [4] - Total ARR was reported at $714.60 million, compared to the estimated $751.38 million [4] - Non-platform ARR was $479.90 million, lower than the average estimate of $502.65 million [4] Revenue Breakdown - Professional services revenue was $17.87 million, below the average estimate of $19.18 million, reflecting a year-over-year decline of -9.5% [4] - Software revenue reached $201.70 million, slightly below the average estimate of $211.53 million, with a year-over-year increase of +2.4% [4] - Scores revenue was $297.04 million, exceeding the average estimate of $286 million, with a year-over-year increase of +25.4% [4] - On-premises and SaaS software revenue was $183.83 million, below the average estimate of $192.35 million, with a year-over-year increase of +3.8% [4] - Business-to-consumer scores revenue was $54.55 million, surpassing the average estimate of $52.90 million, with a year-over-year increase of +6.2% [4] - Business-to-business scores revenue was $242.49 million, exceeding the average estimate of $235.89 million, with a year-over-year increase of +30.7% [4] Operating Income - Operating income for software was reported at $63.32 million, below the average estimate of $69.19 million [4] - Operating income for scores was $264.97 million, exceeding the average estimate of $254.48 million [4] Stock Performance - Fair Isaac's shares returned +5.4% over the past month, while the Zacks S&P 500 composite experienced a -0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Fair Isaac (FICO) came out with quarterly earnings of $7.81 per share, beating the Zacks Consensus Estimate of $7.39 per share. This compares to earnings of $6.14 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of 5.68%. A quarter ago, it was expected that this financial services company would post earnings of $6.21 per share when it actually produced earnings of $5.79, delivering a surprise of -6.76%. Empirical research shows ...

Fair Isaac Corporation (FICO) Q2 2025 Earnings Call April 29, 2025 05:00 PM ET Company Participants Dave Singleton - Vice President - IRWilliam Lansing - CEOSteve Weber - Executive VP & CFOSimon Clinch - PartnerFaiza Alwy - Managing Director, US Company ResearchJoshua Dennerlein - Head of Business & Information Services equity researchScott Wurtzel - SVP - Equity ResearchKevin McVeigh - Managing DirectorMatthew O'Neill - Managing Director Conference Call Participants Manav Patnaik - Managing Director, Equit ...

Exhibit 99.1 FICO Announces Earnings of $6.59 per Share for Second Quarter Fiscal 2025 Revenue of $499 million vs. $434 million in prior year BOZEMAN, Mont.--(BUSINESS WIRE)--April 29, 2025--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 pr ...

Table of Contents 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 March 31, 2025 ☐ 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 o ...

Core Viewpoint - Fair Isaac Corporation (FICO) is expected to report strong revenue and earnings growth for the second quarter of fiscal 2025, driven by innovations in its scoring business and increased adoption of its FICO Score 10T product. Financial Performance - The Zacks Consensus Estimate for second-quarter fiscal 2025 revenues is $496.22 million, indicating a 14.39% increase from the previous year [1] - The consensus estimate for earnings is $7.39 per share, reflecting a 20.36% year-over-year growth [1] Recent Performance Trends - FICO's earnings have missed the Zacks Consensus Estimate in three of the last four quarters, with an average negative surprise of 0.92% [2] - The company has seen sustained growth in Scores revenues, supported by continuous innovation and the incorporation of Buy Now, Pay Later loan data into its scoring models [3] Product Development and Market Position - The expansion of FICO Score 10T for non-GSE mortgages is likely to have driven revenue growth, supported by customer adoption and expansion among existing clients [4] - FICO's land-and-expand strategy and increased recurring revenues have strengthened its market position, contributing to sustained growth [5] Industry Leadership - FICO reported strong adoption momentum for FICO Score 10T in mortgage origination, with loans utilizing this score beginning to trade on the MCT Marketplace, indicating broader market acceptance [6] Earnings Expectations - According to the Zacks model, FICO has an Earnings ESP of -1.71% and a Zacks Rank of 3, suggesting a moderate likelihood of an earnings beat [7]

Core Viewpoint - Fair Isaac (FICO) is expected to report strong quarterly earnings and revenue growth, with analysts predicting earnings per share (EPS) of $7.39, a 20.4% increase year-over-year, and revenues of $496.22 million, reflecting a 14.4% increase compared to the same period last year [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 0.1% over the last 30 days, indicating a slight reevaluation by analysts [2]. - Revisions to earnings estimates are crucial as they serve as indicators for potential investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Revenues- Professional services' at $19.18 million, a decrease of 2.9% from the prior year [5]. - 'Revenues- Software' is projected to reach $211.53 million, an increase of 7.4% year-over-year [5]. - 'Revenues- Scores' are expected to be $286.00 million, reflecting a 20.7% increase from the previous year [5]. - 'Revenues- On-premises and SaaS software' are forecasted at $192.35 million, indicating an 8.6% year-over-year increase [6]. - 'Revenues- Scores- Business-to-consumer' is expected to be $52.90 million, a 3% increase from the prior year [6]. - 'Revenues- Scores- Business-to-business' is projected to reach $235.89 million, a significant increase of 27.2% year-over-year [6]. Annual Recurring Revenue (ARR) - 'Annual Recurring Revenue (ARR) - Platform' is estimated at $248.73 million, up from $201.40 million a year ago [7]. - The total 'Annual Recurring Revenue (ARR) - Total' is projected to be $751.38 million, compared to $697 million in the same quarter last year [7]. - 'Annual Recurring Revenue (ARR) - Non-Platform' is expected to reach $502.65 million, an increase from $495.60 million reported in the same quarter of the previous year [8]. Stock Performance - Fair Isaac shares have increased by 3.5% over the past month, contrasting with the Zacks S&P 500 composite's decline of 4.8% [9].