Core Insights - Fair Isaac Corporation (FICO) reported fourth-quarter fiscal 2025 non-GAAP earnings of $7.74 per share, exceeding the Zacks Consensus Estimate by 5.45% and reflecting an 18.3% year-over-year increase [1] - Revenues reached $515.8 million, surpassing the consensus mark by 0.78% and increasing 13.6% year over year, with contributions from the Americas (87%), EMEA (8%), and Asia Pacific (5%) [1] - Scores, which account for 60.4% of total revenues, rose 25% year over year to $311.6 million [1] Revenue Breakdown - Software revenues, including analytics and digital decisioning technology, declined 0.2% year over year to $204.2 million [2] - Software Annual Recurring Revenues (ARR) increased 4% year over year, driven by a 16% growth in platform ARR, while non-platform ARR declined by 2% [3] - On-premises and SaaS Software, making up 35.4% of revenues, increased 0.4% year over year to $182.4 million [3] - Professional services revenues, accounting for 4.2% of total revenues, decreased 4.8% year over year to $21.8 million [3] Scoring Solutions Performance - Business-to-business (B2B) scoring solutions revenues increased 29% year over year, primarily due to higher unit prices and increased mortgage originations [4] - Business-to-consumer (B2C) scoring solutions revenues rose 8% year over year, driven by growth in myFICO.com and indirect channel partners [4] - Mortgage originations revenues surged 55% year over year, while auto originations revenues increased by 24% [5] Operating Metrics - Research and development expenses as a percentage of revenues increased by 10 basis points year over year to 9.9% [6] - Selling, general, and administrative expenses as a percentage of revenues decreased by 270 basis points year over year to 24.3% [6] - Non-GAAP Operating margin improved to 54% in the fourth quarter of fiscal 2025, compared to 52% in the same quarter of the previous year [6] Financial Performance - Adjusted EBITDA rose 18.3% year over year to $286.6 million, with an adjusted EBITDA margin of 55.6% compared to 53.4% in the prior year [7] - As of September 30, 2025, FICO had $134 million in cash and cash equivalents, with total debt at $3.06 billion [8] - Cash flow from operations was $223.6 million in the fourth quarter, down from $286.2 million in the prior quarter, while free cash flow was $210.8 million compared to $276.2 million previously [8] Future Guidance - FICO anticipates fiscal 2026 revenues of $2.35 billion and non-GAAP earnings of $38.17 per share [9][10]

Core Insights - PostFinance, Switzerland's leading digital bank, is enhancing its fraud protection and customer communication by expanding its partnership with FICO, utilizing FICO® Falcon® Fraud Manager and FICO® Customer Communication Services [1][2][3] Company Overview - PostFinance serves approximately 2.4 million customers in Switzerland and processes around 4 million transactions daily, with a total transaction value of CHF 5.9 billion [2] - The bank's debit cards account for an estimated one-third of all debit card transactions in Switzerland, both domestically and internationally [2] Technology and Solutions - FICO Falcon Fraud Manager employs artificial intelligence and is backed by over 100 patents in fraud detection, protecting more than 4 billion payment cards globally [2][4] - The partnership aims to provide instant communication with customers when fraud is suspected, thereby improving customer experience and protection [2][3] Strategic Importance - This expansion supports PostFinance's digital transformation and reinforces its leadership in electronic banking, particularly through its e-finance portal [2][3] - The collaboration reflects PostFinance's commitment to exceeding customer expectations in fraud protection and communication [2][3]

Core Insights - Fair Isaac (FICO) reported quarterly earnings of $7.74 per share, exceeding the Zacks Consensus Estimate of $7.34 per share, and showing an increase from $6.54 per share a year ago, resulting in an earnings surprise of +5.45% [1] - The company achieved revenues of $515.75 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.78% and increasing from $453.81 million year-over-year [2] - Fair Isaac has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $7.06 on revenues of $508 million, while for the current fiscal year, the estimate is $39.26 on revenues of $2.4 billion [7] - The earnings outlook is crucial for investors, as it reflects current consensus expectations and any recent changes in those expectations [4] Stock Performance - Fair Isaac shares have declined approximately 19.3% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for it to outperform 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 30% of over 250 Zacks industries, suggesting a favorable environment for stock performance [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 Data and Key Metrics Changes - The company reported Q4 revenues of $516 million, up 14% year-over-year, and full fiscal year revenues of $1.991 billion, up 16% compared to the prior year [6][22] - GAAP net income for the quarter was $155 million, an increase of 14%, with GAAP earnings of $6.42 per share, up 18% from the prior year [29] - For the full fiscal year, GAAP net income was $652 million, equating to $26.54 of earnings per share, up 27% and 30% respectively [29] Business Line Data and Key Metrics Changes - In the software segment, Q4 revenues were $204 million, flat year-over-year, while for the full year, revenues were $822 million, up 3% from last year [7][22] - The scores segment saw Q4 revenues of $312 million, up 25% year-over-year, driven primarily by B2B scores, which were up 29% [9][23] - Total scores revenues for the full year were $1.169 billion, up 27%, with mortgage origination revenues up 52% year-over-year [23] Market Data and Key Metrics Changes - The Americas region accounted for 87% of total company revenues, while EMEA generated 8% and Asia-Pacific delivered 5% [22] - The company noted that mortgage origination revenues accounted for 55% of B2B revenue and 45% of total scores revenue [23] Company Strategy and Development Direction - The company plans to advance its direct and indirect distribution strategy and invest to capture market opportunities from innovations like the FICO Platform [9] - The FICO Mortgage Direct License Program aims to drive competition and transparency in the mortgage market, allowing trimerge resellers to calculate and distribute FICO scores directly [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stronger growth in fiscal 2026, guiding for revenues of $2.35 billion, an increase of 18% over fiscal 2025 [33] - The company remains conservative in its guidance due to uncertainties in the macro environment, particularly regarding mortgage volumes and interest rates [72][78] Other Important Information - The company reported free cash flow of $211 million in Q4, with total free cash flow of $739 million over the last four quarters, representing a 22% increase year-over-year [30] - The company has a patent portfolio of over 230 issued patents, reinforcing its position in responsible AI development [9] Q&A Session Summary Question: Broader discussions with the FHFA and approval timeline for FICO 10T - Management confirmed constructive conversations with the FHFA and expressed confidence in the eventual release of FICO 10T [37] Question: Assumptions around the direct licensing model and its impact - Management indicated a conservative approach to guidance due to uncertainties in the macro environment and potential timing lags in performance-based fees [40][41] Question: Long-term pricing strategy and adjustments - Management stated that while they see a value gap in pricing, specific future pricing strategies remain uncertain [45][46] Question: Feedback from lenders on pricing models - Positive reception to the direct model was noted, with lenders appreciating the optionality provided by the two pricing models [50] Question: Adoption of FICO 10T in the non-conforming market - Management highlighted the importance of predictiveness in the non-conforming market and noted ongoing positive feedback from lenders [53] Question: Mortgage volume assumptions and potential upside - Management emphasized conservatism in volume assumptions, particularly regarding interest rates and market share retention [78] Question: Implementation progress with resellers - Management confirmed that resellers are on pace for adoption and that operational hurdles are minimal [82] Question: Performance model availability and pricing flexibility - Management clarified that pricing for the multi-year agreement with Zactus is set for 2026, with annual adjustments expected thereafter [75]

Financial Data and Key Metrics Changes - The company reported Q4 revenues of $516 million, up 14% year-over-year, and for the full fiscal year, revenues reached $1.991 billion, an increase of 16% compared to the prior year [6][22] - GAAP net income for the quarter was $155 million, up 14%, with GAAP earnings of $6.42 per share, an 18% increase from the prior year [28][29] - Non-GAAP net income for the quarter was $187 million, up 15%, with non-GAAP earnings per share of $7.74, an 18% increase year-over-year [29] - Free cash flow for the quarter was $211 million, with a total of $739 million over the last four quarters, representing a 22% year-over-year increase [30] Business Line Data and Key Metrics Changes - In the software segment, Q4 revenues were $204 million, flat year-over-year, while for the fiscal year, revenues were $822 million, up 3% from last year [7][22] - The scores segment saw Q4 revenues of $312 million, up 25% year-over-year, driven primarily by B2B scores, which increased by 29% [9][23] - Total scores revenues for the fiscal year were $1.169 billion, up 27%, with mortgage origination revenues up 52% year-over-year [23] Market Data and Key Metrics Changes - The Americas region accounted for 87% of total company revenues, while EMEA generated 8% and Asia-Pacific delivered 5% [22] - The company anticipates no significant improvement in the macro environment for its Scores business, with expectations of stable market share and volume in auto, card, and personal loan originations [24] Company Strategy and Development Direction - The company plans to advance its direct and indirect distribution strategy and invest to capture market opportunities emerging from innovations like the FICO Platform and FICO FFM [9][24] - The FICO Mortgage Direct License Program aims to drive competition and transparency in the mortgage market, with significant interest from resellers and lenders [12][13] - The company maintains a focus on efficiencies and prioritizes resources for strategic initiatives, including headcount for distribution and development of the FICO Platform [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stronger growth in fiscal 2026, guiding for revenues of $2.35 billion, a 18% increase over fiscal 2025 [33] - The company is being conservative in its guidance due to uncertainties in the macro environment, particularly regarding mortgage volumes and interest rates [72] - Management highlighted the importance of maintaining a competitive edge through innovations and the value provided by FICO scores [45][56] Other Important Information - The company has a patent portfolio of over 230 issued patents and nearly 80 pending applications, reinforcing its position in responsible AI development [9] - The effective tax rate for the quarter was 23.4%, with a full-year net effective tax rate of 18.8% [29][30] Q&A Session Summary Question: Feedback from FHFA and FICO 10T approval timeline - Management confirmed constructive conversations with the FHFA and expressed confidence in the eventual release of FICO 10T [36] Question: Assumptions around direct licensing model in guidance - Management indicated a conservative approach in guidance due to uncertainties in the macro environment and potential timing issues with the performance model [39][40] Question: Long-term pricing strategy - Management stated that while they recognize a value gap, specific pricing strategies for 2027 and beyond are not yet determined [44][45] Question: Feedback from lenders on pricing models - Positive reception to the direct model was reported, with lenders appreciating the optionality provided by the two pricing models [49] Question: Adoption of FICO 10T in the non-conforming market - Management noted that lenders in the non-conforming market prioritize default risk and are satisfied with the performance of FICO 10T [53] Question: Mortgage volume assumptions in guidance - Management acknowledged conservatism in guidance due to uncertainties around interest rates and trigger leads [72] Question: Reseller adoption of the direct model - Management confirmed that resellers are on pace for adoption, with no significant operational hurdles anticipated [82] Question: Credit bureaus and performance model availability - Management indicated uncertainty regarding the split between the per-score and performance models among lenders [85]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenues of $516 million, a 14% increase year-over-year, and for the full fiscal year, revenues reached $1.991 billion, up 16% compared to the prior year [4][21] - The company achieved record annual free cash flow, with Q4 free cash flow of $211 million and total free cash flow of $739 million over the last four quarters, representing a 22% year-over-year increase [28][29] - GAAP net income for Q4 was $155 million, up 14%, with GAAP earnings per share of $6.42, an 18% increase from the prior year [26][27] Business Line Data and Key Metrics Changes - In the software segment, Q4 revenues were $204 million, flat year-over-year, while for the full fiscal year, revenues were $822 million, up 3% [5][21] - The scores segment saw Q4 revenues of $312 million, a 25% increase year-over-year, driven primarily by B2B scores, which were up 29% [8][22] - For the full year, scores revenues totaled $1.169 billion, up 27%, with mortgage origination revenues up 52% in Q4 [22] Market Data and Key Metrics Changes - The Americas region accounted for 87% of total company revenues, while EMEA generated 8% and Asia-Pacific delivered 5% [21] - The company reported a dollar-based net retention rate of 102% for the quarter, with platform NRR at 112% and non-platform NRR at 97% [24] Company Strategy and Development Direction - The company plans to advance its direct and indirect distribution strategy and invest to capture market opportunities emerging from innovations like the FICO Platform and FICO FFM [8][30] - The FICO Mortgage Direct License Program aims to drive competition and transparency in the mortgage market, with significant interest from resellers and lenders [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stronger growth in fiscal 2026, guiding for revenues of $2.35 billion, a projected 18% increase over fiscal 2025 [30] - The company remains conservative in its guidance due to uncertainties in the macro environment, particularly regarding mortgage volumes and interest rates [50][51] Other Important Information - The company has a patent portfolio of over 230 issued patents, with many related to AI, reinforcing its position in responsible AI development [8] - Total debt at the end of the quarter was $3.06 billion, with a weighted average interest rate of 5.27% [28] Q&A Session Summary Question: What are the recent discussions with the FHFA regarding FICO 10T? - Management confirmed constructive conversations with the FHFA and expressed confidence in the eventual release of FICO 10T [31] Question: Can you clarify the assumptions around the direct licensing model in the guidance? - Management indicated a conservative approach due to uncertainties in the macro environment and potential timing issues with the performance model [32][34] Question: What feedback have you received from lenders regarding the pricing models? - Positive reception to the direct model was reported, with lenders appreciating the optionality provided by the two pricing models [37][38] Question: How do you view the adoption of FICO 10T in the non-conforming market? - Management noted strong interest and satisfaction among lenders regarding the predictiveness of FICO 10T, although adoption processes can be slow [39][40] Question: What is the outlook for mortgage volume in your guidance? - The company remains conservative in its assumptions, with mortgage volumes expected to vary primarily with interest rates [50][51]

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Financial Performance - Total revenue for Q4 2025 was $5158 million, a decrease of 4% compared to Q3 2025, but an increase of 14% compared to Q4 2024[3] - Scores revenue in Q4 2025 reached $3116 million, down 4% from Q3 2025, but up 25% year-over-year[3] - Software revenue in Q4 2025 was $2042 million, a decrease of 4% compared to Q3 2025, and flat compared to Q4 2024[3] - Software ARR increased to $7473 million, a 1% increase quarter-over-quarter and a 4% increase year-over-year[3] - ACV Bookings for software reached $327 million, a 22% increase quarter-over-quarter and a 48% increase year-over-year[3] - Non-GAAP diluted EPS was $774, a decrease of 10% quarter-over-quarter, but an increase of 18% year-over-year[3] - Adjusted EBITDA was $2866 million, down 8% quarter-over-quarter, but up 18% year-over-year[3] - Full year revenues reached $235 billion[26] Segment Performance - Scores operating income was $2728 million in Q4 2025, a decrease of 4% quarter-over-quarter, but an increase of 24% year-over-year, with an operating margin of 88%[25] - Software operating income was $557 million in Q4 2025, an 18% decrease both quarter-over-quarter and year-over-year, with an operating margin of 27%[25] Balance Sheet - Cash and investments decreased to $1888 million, a 21% decrease quarter-over-quarter and a 4% decrease year-over-year[24] - Total assets increased to $18681 billion, a 0% increase quarter-over-quarter and a 9% increase year-over-year[24]

Financial Performance - FICO reported fourth quarter fiscal 2025 revenue of $516 million, a 14% increase from $454 million in the prior year[4] - Net income for the quarter was $155 million, or $6.42 per share, compared to $135.7 million, or $5.44 per share, in the prior year[2] - Non-GAAP net income for the quarter was $187 million, with a non-GAAP EPS of $7.74, up from $6.54 in the prior year[3] - Scores revenues increased by 25% to $311.6 million, driven by a 29% rise in B2B revenue and an 8% increase in B2C revenue[4] - Software revenues remained flat at $204.2 million, with a 4% year-over-year increase in Software Annual Recurring Revenue[4] - GAAP net income for Q4 2025 was $155,014,000, an increase from $135,691,000 in Q4 2024, representing a growth of 14.3%[16] - Non-GAAP net income for Q4 2025 reached $186,953,000, compared to $163,202,000 in Q4 2024, reflecting a year-over-year increase of 14.5%[16] - GAAP diluted earnings per share (EPS) for Q4 2025 was $6.42, up from $5.44 in Q4 2024, marking a 18% increase[16] - Non-GAAP diluted EPS for Q4 2025 was $7.74, compared to $6.54 in Q4 2024, indicating a growth of 18.4%[16] - Free cash flow for Q4 2025 was $210,844,000, slightly down from $219,355,000 in Q4 2024, a decrease of 2.3%[16] - Net cash provided by operating activities for the year ended September 30, 2025, was $778,807,000, an increase from $632,964,000 in 2024, representing a growth of 23%[16] Guidance and Projections - FICO provided fiscal 2026 guidance with expected revenues of $2.35 billion and GAAP net income of $795 million[5] - For fiscal 2026, GAAP net income is projected to be $795,000,000, with a non-GAAP net income guidance of $907,000,000[20] - GAAP diluted EPS guidance for fiscal 2026 is set at $33.47, while non-GAAP diluted EPS is expected to be $38.17[20] - Share-based compensation expense for fiscal 2026 is estimated at $166,000,000, which will impact both GAAP and non-GAAP earnings[20] Balance Sheet and Cash Flow - The company reported a total assets increase to $1.87 billion from $1.72 billion year-over-year[10] - Total liabilities rose to $3.61 billion, up from $2.68 billion in the prior year[10] - Cash and cash equivalents decreased to $134.1 million from $150.7 million year-over-year[14] - The company incurred a pre-tax restructuring charge of $10.9 million, impacting earnings by $0.34 per share after tax[2] Non-GAAP Financial Measures - The company emphasizes the use of non-GAAP financial measures for better transparency and operational decision-making, excluding certain non-recurring items[21]

Core Insights - FICO reported a net income of $155.0 million for the fourth fiscal quarter of 2025, translating to $6.42 per share, an increase from $135.7 million or $5.44 per share in the same period last year [1] Financial Performance - The fourth quarter results included a pre-tax restructuring charge of $10.9 million, which equates to $0.34 per share after tax [1] - Net cash provided by operating activities was not detailed in the provided text, indicating a focus on net income and restructuring impacts [1]