FICO(FICO) - 2025 Q4 - Annual Results

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]