FICO(US:FICO) ZACKS·2026-01-29 18:30Core Insights - Fair Isaac Corporation (FICO) reported first-quarter fiscal 2026 non-GAAP earnings of $7.33 per share, exceeding the Zacks Consensus Estimate by 5.54% and reflecting a year-over-year increase of 26.6% [2] - Revenues reached $512 million, surpassing the consensus mark by 2.76% and showing a 16.6% year-over-year growth [2] - The Scores segment, which constitutes 59.5% of total revenues, increased by 29.2% year over year to $304.5 million [2] Revenue Breakdown - The Americas contributed 88% to total revenues, while EMEA and Asia Pacific accounted for 8% and 4%, respectively [2] - Software revenues, including analytics and digital decisioning technology, rose 1.5% year over year to $207.4 million [3] - Software Annual Recurring Revenues (ARR) increased by 5% year over year to $766 million, with platform ARR growing by 33% but non-platform ARR declining by 8% [4] Performance Metrics - The Software Dollar-Based Net Retention Rate was 103%, with platform software at 122% and non-platform software at 91% [4] - On-premises and SaaS Software, which made up 36.8% of revenues, increased by 1.2% year over year to $188.2 million [4] - Professional services revenues, accounting for 3.8% of total revenues, rose by 5% year over year to $19.2 million [4] Originations Growth - B2B scoring solutions saw a revenue increase of 36% year over year, driven by higher unit prices and increased mortgage originations [5] - B2C revenues grew by 5% year over year, supported by higher revenues from myFICO.com and indirect channel partners [5] - Mortgage originations revenues surged by 60% year over year, while auto originations revenues increased by 21% [6] Operating Efficiency - Research and development expenses as a percentage of revenues decreased by 50 basis points year over year to 9.7% [7] - Selling, general, and administrative expenses as a percentage of revenues fell by 160 basis points year over year to 27.5% [7] - Non-GAAP Operating margin improved to 45.7% in the fiscal first quarter of 2026, up from 40.8% in the same quarter last year [7] Financial Health - Adjusted EBITDA rose by 26.5% year over year to $282.2 million, with an adjusted EBITDA margin of 55.1% compared to 50.7% in the previous year [8] - As of December 31, 2025, FICO had $162 million in cash and cash equivalents, up from $134 million as of September 30, 2025 [9] - Total debt stood at $3.19 billion, with cash flow from operations at $174 million for the fiscal first quarter [9] Future Guidance - For fiscal 2026, FICO anticipates revenues of $2.35 billion and non-GAAP earnings projected at $38.17 per share [11]