Financial Performance - Total revenues reached $440 million, a 15% increase year-over-year but a 3% decrease quarter-over-quarter[3] - Scores revenues were $235.7 million, up 23% year-over-year but down 5% quarter-over-quarter[3] - Software revenues remained relatively flat quarter-over-quarter at $204.3 million, showing an 8% increase year-over-year[3] - Adjusted EBITDA was $223.1 million, an 18% increase year-over-year but an 8% decrease quarter-over-quarter[3] - Non-GAAP diluted EPS was $5.79, a 20% increase year-over-year but an 11% decrease quarter-over-quarter[3] Software Metrics - Software ARR increased to $729.3 million, a 6% increase year-over-year and a 1% increase quarter-over-quarter[3] - Software ACV Bookings were $21.2 million, a 16% increase year-over-year but a 4% decrease quarter-over-quarter[3] - Platform ARR reached $227.7 million, while Non-Platform ARR was $501.6 million[20] Segment Performance - Scores operating income was $203.8 million, with an 86% operating margin[33] - Software operating income was $60.7 million, with a 30% operating margin[33] Balance Sheet - Cash and investments increased to $230.2 million, a 17% increase both year-over-year and quarter-over-quarter[31]

Core Insights - Fair Isaac reported strong year-over-year growth in revenue and net income but fell short of analyst expectations for adjusted EPS and revenue [2][3] Financial Performance - Revenue for Q1 2025 was $440 million, a 15% increase from $382.1 million in Q1 2024, but below the expected $452 million [2][4] - Adjusted EPS was $5.79, missing the analysts' estimate of $6.09, but up 20% from $4.81 in the previous year [2][4] - GAAP net income reached $152.5 million, a 26% increase from $121.1 million in the same quarter last year [2][4] - Free cash flow improved significantly to $186.8 million, a 55% increase from $120.8 million year-over-year [4] Business Overview - Fair Isaac is recognized for its FICO Scores, a key measure of consumer credit risk in the U.S., and focuses on scoring solutions and software for credit risk management [5] - The company is expanding its service offerings through the FICO Platform, a cloud-based solution that centralizes analytics and decision-making capabilities [5] Strategic Focus - The company aims to transition current software offerings to the FICO Platform and leverage innovations in analytics and decision management [6] - Strategic partnerships are being formed to expand distribution channels and capture new customer segments while maintaining market leadership [6] Segment Performance - The Scores segment generated $235.7 million in revenue, reflecting a 23% growth from $192.1 million last year, driven by a 30% increase in business-to-business scores [7] - The Software segment reported $204.3 million in revenue, an 8% increase from $189.9 million, attributed to higher recurring revenues and license fees [8] - The FICO Platform contributed to a 20% increase in annual recurring revenue (ARR), indicating successful customer engagement [8] Technological Advancements - Fair Isaac is leveraging artificial intelligence (AI) and machine learning (ML) to enhance its competitive position and adapt to market changes [9] Financial Outlook - Management projects revenue of approximately $1.98 billion for fiscal 2025, with GAAP net income targeted at $624 million, indicating optimism for double-digit growth [11] - The strategic vision emphasizes sustained growth in software and scoring solutions amidst evolving economic conditions [12]

Core Insights - FICO plans to incorporate buy now, pay later (BNPL) data into its credit score analysis following a joint study with Affirm, indicating a shift in credit scoring methodologies [1][2] - The study revealed that over 85% of consumers who opened a new BNPL account experienced a consistent impact on their FICO scores, suggesting potential benefits for both consumers and lenders [3] Group 1: Study Findings - The study compared FICO scores of over 500,000 consumers with at least one new Affirm BNPL loan against a benchmark population without such loans, demonstrating the potential positive impact of BNPL data on credit scores [2][3] - The inclusion of BNPL data could lead to score increases for some consumers while enhancing model risk performance for lenders, highlighting the importance of BNPL data in the credit ecosystem [2][3] Group 2: Consumer Trends - Over 56% of consumers reported using BNPL options last year, with 76% of these users expressing high satisfaction levels, indicating a growing acceptance and reliance on BNPL services [4] - Consumers living paycheck-to-paycheck are four times more likely to utilize BNPL options compared to those who are not, showcasing the demographic's dependence on such financial solutions [4]

Core Insights - Fair Isaac (FICO) reported revenue of $439.97 million for the quarter ended December 2024, reflecting a year-over-year increase of 15.2% [1] - Earnings per share (EPS) for the quarter was $5.79, up from $4.81 in the same quarter last year [1] - The reported revenue was below the Zacks Consensus Estimate of $454.73 million by 3.25%, and the EPS fell short of the consensus estimate of $6.21 by 6.76% [1] Revenue Breakdown - On-premises and SaaS software revenue was $186.01 million, slightly below the average estimate of $186.12 million, representing a year-over-year increase of 10.3% [4] - Scores revenue reached $235.68 million, compared to the estimated $251.58 million, marking a 22.7% increase year-over-year [4] - Professional services revenue was $18.28 million, below the average estimate of $20.61 million, showing a decline of 14.1% year-over-year [4] - Software revenue was reported at $204.29 million, slightly below the estimate of $206.72 million, with a year-over-year increase of 7.6% [4] Stock Performance - Fair Isaac's shares have returned -7.1% over the past month, contrasting with a +1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Fair Isaac (FICO) reported quarterly earnings of $5.79 per share, missing the Zacks Consensus Estimate of $6.21 per share, but showing an increase from $4.81 per share a year ago, resulting in an earnings surprise of -6.76% [1] - The company posted revenues of $439.97 million for the quarter ended December 2024, which was 3.25% below the Zacks Consensus Estimate and an increase from $382.06 million year-over-year [2] - Fair Isaac shares have declined approximately 8.2% since the beginning of the year, contrasting with the S&P 500's gain of 1.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $7.61, with expected revenues of $494.43 million, and for the current fiscal year, the consensus EPS estimate is $29.76 on revenues of $2.01 billion [7] - The estimate revisions trend for Fair Isaac is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which Fair Isaac belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Total revenues for the quarter ended December 31, 2024, were $440.0 million, a 15% increase from $383.5 million in the same quarter of 2023[84] - Revenues for the Scores segment were $235.7 million, reflecting a 23% increase from $191.5 million in the prior year[84] - Annual Recurring Revenue (ARR) for the Software segment as of December 31, 2024, was $729.3 million, a 6% increase from $688.0 million as of December 31, 2023[84] - Operating income for the quarter was $179.5 million, a 19% increase from $150.8 million in the same quarter of 2023[84] - Net income for the quarter was $152.5 million, representing a 26% increase from $121.1 million in the prior year[84] - Diluted EPS for the quarter was $6.14, a 28% increase from $4.80 in the same quarter of 2023[84] - Total revenues for the quarter ended December 31, 2024, were $439.97 million, a 15% increase from $382.06 million in the same quarter of 2023[97] - Operating income for the quarter was $179.53 million, reflecting a 19% increase from $151.36 million in the prior year[109] - Net income for the quarter was $152.53 million, a 26% increase compared to $121.07 million in the same quarter of 2023[97] Cash Flow and Debt - Cash flows from operating activities were $194.0 million, compared to $122.1 million in the same quarter of 2023[84] - Total debt balance increased to $2.4 billion as of December 31, 2024, up from $2.2 billion as of September 30, 2024[84] - Net cash provided by operating activities increased to $194.0 million for the quarter ended December 31, 2024, up from $122.1 million in the same quarter of 2023, representing a $71.9 million increase[119] - Net cash used in investing activities rose to $8.9 million for the quarter ended December 31, 2024, compared to $2.4 million in the prior year, primarily due to a $6.3 million increase in capitalized internal-use software costs[120] - Net cash used in financing activities increased to $144.2 million for the quarter ended December 31, 2024, from $99.9 million in the same quarter of 2023, largely due to a $90.9 million increase in common stock repurchases[121] - The company has a new stock repurchase program authorized for up to $1.0 billion, with $600.7 million remaining as of December 31, 2024, after spending $159.7 million during the quarter[122] - As of December 31, 2024, the company had $425.0 million in borrowings under the revolving line of credit at a weighted-average interest rate of 5.762%[125] - The carrying value of the Senior Notes was $1.3 billion as of December 31, 2024, with compliance to all financial covenants[126] Expenses - Research and development expenses increased by $2.5 million, with R&D expenses as a percentage of revenues decreasing to 10% from 11% year-over-year[101] - Selling, general and administrative expenses rose by $23.6 million, with these expenses as a percentage of revenues increasing to 29% from 27% year-over-year[103] Segment Performance - Dollar-Based Net Retention Rate for the Software segment was 105% as of December 31, 2024[84] - Scores segment revenues increased by $43.6 million, driven by a $42.0 million rise in business-to-business scores revenue and a $1.6 million increase in business-to-consumer revenue[94] - Software segment revenues rose by $14.3 million, primarily due to a $17.3 million increase in on-premises and SaaS software revenue, partially offset by a $3.0 million decrease in professional services revenue[95] - Segment operating income for Scores increased by $35.1 million, while Software segment operating income rose by $5.6 million, contributing to a total segment operating income increase of $37.0 million[111] Tax and Legal Matters - The effective income tax rate for the quarter was (1.6)%, compared to 7.3% in the same quarter of 2023, influenced by excess tax benefits related to share-based compensation[108] - FICO is involved in a consolidated putative class action lawsuit alleging antitrust claims related to the distribution of FICO Scores, with some claims allowed to proceed to discovery[139] Risk Management - The company is exposed to market risks related to interest rates and foreign exchange rates, managing these risks through various financial instruments[131] - The company has entered into foreign currency forward contracts to mitigate foreign exchange rate risks associated with foreign-currency-denominated receivables[134] - As of December 31, 2024, FICO has outstanding foreign currency forward contracts with a total contract amount of $8,600,000 for Euro (EUR), $8,460,000 for British pound (GBP), and $8,967,000 for Singapore dollar (SGD)[135] - The fair value of the foreign currency forward contracts as of December 31, 2024, is $8,958,000 for Euro (EUR), $10,600,000 for British pound (GBP), and $6,600,000 for Singapore dollar (SGD)[135] - On September 30, 2024, the total contract amount for foreign currency forward contracts was $13,000,000 for Euro (EUR), $12,237,000 for British pound (GBP), and $7,404,000 for Singapore dollar (SGD)[135] - The fair value of the foreign currency forward contracts as of September 30, 2024, was $14,531,000 for Euro (EUR), $16,400,000 for British pound (GBP), and $5,800,000 for Singapore dollar (SGD)[135] Internal Controls - FICO's disclosure controls and procedures were evaluated and deemed effective as of December 31, 2024, ensuring timely reporting of required information[136] - No changes in FICO's internal control over financial reporting were identified during the reporting period that materially affected its internal controls[137]

First Quarter Fiscal 2025 Non-GAAP Results Exhibit 99.1 FICO Announces Earnings of $6.14 per Share for First Quarter Fiscal 2025 Revenue of $440 million vs. $382 million in prior year BOZEMAN, Mont.--(BUSINESS WIRE)--February 4, 2025--FICO (NYSE:FICO), a global analytics software leader, today announced results for its first fiscal quarter ended December 31, 2024. First Quarter Fiscal 2025 GAAP Results Net income for the quarter totaled $152.5 million, or $6.14 per share, versus $121.1 million, or $4.80 per ...

Fair Isaac Corporation (FICO) is set to report its first-quarter fiscal 2025 results on Feb. 4.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The Zacks Consensus Estimate for first-quarter fiscal 2025 revenues is pegged at $454.73 million, suggesting an increase of 19.02% from the year-ago quarter’s reported figure.The consensus mark for earnings is pegged at $6.21 per share, up 0.8% over the past 30 days, indicating 29.11% year-over-year growth.The company’s earnings missed the Zack ...

Shares of Fair Isaac Corporation FICO is trading a little lower Wednesday. This follows yesterday's announcement that the company will report its first quarter fiscal 2025 results on Feb. 4 after the market closes.Certain charts can offer valuable lessons to traders. The chart of Fair Isaac is one of them. This is why our trading team has made it our Stock of the Day.Some price levels are more important than others in the stock market. These are called support and resistance levels.Support is a large concen ...

Fair Isaac Corporation’s (FICO) shares jumped 47.5% in the trailing 12 months, outperforming the broader Zacks Computer and Technology sector’s appreciation of 27% and the Zacks Computers - IT Services industry’s growth of 8.7%.FICO’s positive share price movement has been driven by the growing adoption of FICO Scores and the strong demand for its advanced analytics platform across various industries. This strong market presence has fueled significant revenue growth in the Scores segment, which increased 19 ...