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 June 30, 2022 ☐ 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 ot ...

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents Fair Isaac Corporation's unaudited condensed consolidated financial statements as of March 31, 2022, including balance sheets, income, equity, and cash flow statements with detailed notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$1.49 billion** while liabilities rose to **$2.15 billion**, increasing the stockholders' deficit to **$663.4 million** by March 31, 2022 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 | September 30, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$1,486,485** | **$1,567,776** | | Cash and cash equivalents | $174,219 | $195,354 | | Goodwill | $783,744 | $788,185 | | **Total Liabilities** | **$2,149,901** | **$1,678,718** | | Long-term debt | $1,664,674 | $1,009,018 | | **Total Stockholders' Deficit** | **($663,416)** | **($110,942)** | [Condensed Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Q2 2022 saw total revenues increase 8% to **$357.2 million**, with operating income up 50% to **$152.1 million** and diluted EPS rising 70% to **$3.95** Quarter Ended March 31, 2022 vs 2021 (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $357,195 | $331,361 | 8% | | Operating Income | $152,057 | $101,199 | 50% | | Net Income | $104,383 | $68,674 | 52% | | Diluted EPS | $3.95 | $2.33 | 70% | Six Months Ended March 31, 2022 vs 2021 (in thousands, except per share data) | Metric | Six Months 2022 | Six Months 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $679,556 | $643,775 | 6% | | Operating Income | $267,643 | $195,920 | 37% | | Net Income | $189,342 | $155,166 | 22% | | Diluted EPS | $7.02 | $5.23 | 34% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$247.5 million**, while financing activities used **$263.2 million**, primarily due to **$760.9 million** in stock repurchases Cash Flow Summary - Six Months Ended March 31 (in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $247,484 | $231,470 | | Net cash provided by (used in) investing activities | ($3,664) | $1,746 | | Net cash used in financing activities | ($263,162) | ($196,795) | | **Increase (decrease) in cash** | **($21,135)** | **$40,442** | - Financing activities were dominated by **$760.9 million** in common stock repurchases, funded by **$800 million** from credit facilities and **$550 million** from senior notes, offset by **$806.8 million** in repayments[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides crucial context on accounting policies, revenue disaggregation, segment performance, debt structure, and share-based compensation, noting the fiscal 2021 segment restructuring into 'Scores' and 'Software' - In Q4 fiscal 2021, operating segments were consolidated from three to two, forming a new **'Software'** segment alongside **'Scores'**, with retrospective financial adjustments[21](index=21&type=chunk)[67](index=67&type=chunk) Disaggregated Revenue by Segment - Q2 2022 vs Q2 2021 (in thousands) | Segment | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Scores | $183,742 | $168,719 | 9% | | Software | $173,453 | $162,642 | 7% | | **Total** | **$357,195** | **$331,361** | **8%** | - Revenues from the three major consumer reporting agencies constituted **39%** of total revenues in Q2 2022 and 2021, highlighting significant customer concentration[54](index=54&type=chunk) Segment Operating Income - Q2 2022 vs Q2 2021 (in thousands) | Segment | Q2 2022 Operating Income | Q2 2022 Op. Margin | Q2 2021 Operating Income | Q2 2021 Op. Margin | | :--- | :--- | :--- | :--- | :--- | | Scores | $162,716 | 89% | $146,542 | 87% | | Software | $53,500 | 31% | $17,200 | 11% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2022 financial performance, highlighting an 8% revenue increase and 50% operating income growth, driven by segment performance, a business divestiture, liquidity, and critical accounting policies Financial Highlights - Quarter Ended March 31, 2022 | Metric | Q2 2022 | % Change (YoY) | | :--- | :--- | :--- | | Total Revenue | $357.2M | 8% | | Operating Income | $152.1M | 50% | | Net Income | $104.4M | 52% | | Diluted EPS | $3.95 | 70% | - The Software segment's **Annual Recurring Revenue (ARR)** reached **$550.3 million** as of March 31, 2022, an **11%** increase year-over-year (excluding divestitures), with a **Dollar-Based Net Retention Rate (DBNRR)** of **110%**[92](index=92&type=chunk)[97](index=97&type=chunk)[101](index=101&type=chunk) - The company repurchased **$264.0 million** of common stock during the quarter and **$757.6 million** during the six months ended March 31, 2022[92](index=92&type=chunk)[154](index=154&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q2 2022 total revenues increased 8%, driven by 9% Scores growth and 7% Software growth, with operating income surging 50% due to revenue and C&R divestiture impacts - Scores segment revenue growth was driven by higher unit prices and increased **B2C revenue** from myFICO.com and royalties, offsetting declining mortgage origination volumes[107](index=107&type=chunk) - Software segment revenue grew from a large license deal and continued **SaaS growth**, partially offset by a **$15.9 million** impact from the C&R divestiture and reduced professional services[108](index=108&type=chunk) - Cost of revenues decreased by **$16.5 million (19%)** year-over-year, primarily due to lower personnel costs from the C&R business divestiture and reduced services business needs[116](index=116&type=chunk) - The Software segment's operating margin dramatically increased to **31%** in Q2 2022 from **11%** in Q2 2021, driven by the C&R business divestiture, higher-margin license revenue, and reduced professional services[138](index=138&type=chunk) [Capital Resources and Liquidity](index=34&type=section&id=Capital%20Resources%20and%20Liquidity) The company held **$174.2 million** in cash, with **$247.5 million** net cash from operations, and increased debt to **$1.79 billion** to fund share repurchases, including a new **$500 million** program - Net cash from operating activities increased by **$16.0 million** for the six months ended March 31, 2022, primarily due to a **$34.2 million** increase in net income[149](index=149&type=chunk) - In January 2022, the Board approved a new **$500.0 million** stock repurchase program, with **$400.2 million** remaining available as of March 31, 2022[153](index=153&type=chunk)[154](index=154&type=chunk) - Total debt significantly increased, including **$550 million** in new 4.00% Senior Notes issued in December 2021, bringing total debt to **$1.3 billion** in Senior Notes and **$511.3 million** under credit facilities[157](index=157&type=chunk)[158](index=158&type=chunk) [Critical Accounting Policies and Estimates](index=35&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Outlines significant judgments and estimates in financial statements, covering revenue recognition, business combinations, goodwill impairment, share-based compensation, and income tax estimations - Significant judgment is required in revenue recognition, particularly in identifying distinct performance obligations and establishing **standalone selling prices (SSP)**[168](index=168&type=chunk)[169](index=169&type=chunk) - Goodwill is assessed for impairment annually; a fiscal 2021 quantitative test, following reporting unit reorganization, showed no impairment due to substantial excess of fair value over carrying value[179](index=179&type=chunk)[180](index=180&type=chunk) - Incremental commission costs are capitalized and amortized over a **ten-year period**, reflecting the expected life of customer relationships including renewals[171](index=171&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate fluctuations on debt and investments, and foreign exchange rate changes on foreign-currency-denominated balances, managed with short-term forward contracts - The company holds **$1.3 billion** in fixed-rate Senior Notes and **$511.3 million** in variable-rate debt, making interest expense sensitive to rate changes[194](index=194&type=chunk)[195](index=195&type=chunk) - Foreign exchange risk is managed using short-term forward contracts (typically under three months) to hedge exposures in British pound, Euro, and Singapore dollar[32](index=32&type=chunk)[196](index=196&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were **effective** as of March 31, 2022[200](index=200&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter[201](index=201&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no material legal proceedings for the period - The report indicates **"Not applicable"**, signifying no material legal proceedings to disclose[203](index=203&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) Details significant risks including COVID-19 uncertainty, customer concentration, potential cessation of FICO® Score use by GSEs, competition, cybersecurity threats, and evolving data privacy regulations - Significant customer concentration is noted, with **89%** of fiscal 2021 revenues from the banking industry and a substantial portion from the three major U.S. consumer reporting agencies[213](index=213&type=chunk)[220](index=220&type=chunk) - A material risk arises if Fannie Mae and Freddie Mac approve other credit score models or cease requiring the **FICO® Score** for mortgages, potentially impacting Scores segment revenue[221](index=221&type=chunk) - The company faces routine cybersecurity threats from sophisticated actors; a breach could result in significant litigation, fines, and reputational damage[248](index=248&type=chunk)[249](index=249&type=chunk) - Evolving global data privacy laws like **GDPR** and **CCPA/CPRA** impose significant compliance costs and risks of substantial fines for violations[273](index=273&type=chunk)[275](index=275&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details stock repurchase activities for Q1 2022, including **579,875 shares** repurchased for **$264 million** and a new **$500 million** program authorized in January 2022 Issuer Purchases of Equity Securities (Quarter Ended March 31, 2022) | Month (2022) | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January | 374,875 | $437.96 | | February | 90,000 | $499.14 | | March | 115,000 | $477.35 | | **Total** | **579,875** | **$455.31 (weighted avg)** | - In January 2022, the Board of Directors approved a new stock repurchase program authorizing up to **$500.0 million** in share repurchases[297](index=297&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including corporate documents, CEO and CFO certifications, and interactive data files (XBRL) - Exhibits filed include CEO and CFO certifications pursuant to **Sarbanes-Oxley Sections 302 and 906**[302](index=302&type=chunk)

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Fair Isaac Corp (NYSE:FICO) Q1 2022 Earnings Conference Call January 27, 2022 5:00 PM ET Company Participants Steven Weber - VP, IR & Treasurer William Lansing - President, CEO & Director Michael McLaughlin - EVP & CFO Conference Call Participants Manav Patnaik - Barclays Kyle Peterson - Needham & Company Surinder Thind - Jefferies George Tong - Goldman Sachs Group Jeffrey Meuler - Robert W. Baird Ashish Sabadra - RBC Capital Markets Operator Greetings, thank you for standing by. Welcome to the Fair Isaac C ...

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 December 31, 2021 ☐ 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 o ...

FICO Decisions Fair Isaac Corporation Q4 20 Financial Highlights September 30, 2020 © 2020 Fair Isaac Corporation. Confidential. 1 © 2020 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation's express consent. Q4 2020 Highlights • Revenue: Q4 20 revenue of $374 million vs. Q4 19 revenue of $ 305 million or 23% increase. • Applications revenue of $168 million, or 12% y/y increase • Scores revenue of $153 m ...

Fair Isaac Corporation (NYSE:FICO) Q4 2020 Results Earnings Conference Call November 10, 2020 5:00 PM ET Company Participants Steve Weber - Vice President, Investor Relations Will Lansing - Chief Executive Officer Mike McLaughlin - Chief Financial Officer Conference Call Participants Manav Patnaik - Barclays Capital Kyle Peterson - Needham Jeff Meuler - Baird Brett Huff - Stephens Incorporated Jake Williams - Wells Fargo Surinder Thind - Jefferies Operator Greetings. And welcome to the Fair Isaac Corporatio ...

Financial Data and Key Metrics Changes - The company reported revenues of $314 million, flat compared to the same period last year, which was the highest revenue quarter ever [9] - GAAP net income was $64 million, with GAAP earnings of $2.15 per share; non-GAAP net income was $77 million, with non-GAAP EPS of $2.58 [9] - Free cash flow reached $99 million, the highest single quarter in company history, compared to $61 million in the same period last year, marking a 63% increase [31] - Total debt was reduced by about $20 million from the end of the second quarter, with a total debt face value of $938 million [9][32] Business Line Data and Key Metrics Changes - Software revenue decreased by 8% due to a tough comparison with the previous year, while the application segment was down 15% primarily due to lower upfront license revenues [10][22] - Decision Management Software segment revenues increased by 22% to $41 million, driven by increases in SaaS subscription revenues [25] - Scores segment revenues were up 14% to $132 million, with B2C revenues increasing by 21% and B2B revenues up 12% [11][26] Market Data and Key Metrics Changes - 79% of total revenues were derived from the Americas region, with EMEA contributing 14% and Asia-Pacific 7% [26] - The company experienced strong growth in the mortgage markets, with volumes up due to low interest rates, while auto volumes improved over the quarter [12][13] Company Strategy and Development Direction - The company is focused on digital transformation and innovation, with the introduction of the FICO Resilience Index to help assess consumer financial resiliency [14][15] - Management is confident in the company's ability to navigate the current economic environment while maintaining a commitment to strategic initiatives [36] - The company is not providing formal financial guidance due to the uncertain economic environment but is offering visibility into trending metrics [16][34] Management's Comments on Operating Environment and Future Outlook - Management noted that while the economic environment remains uncertain, the business model is resilient, and they are actively managing operations to address near-term challenges [20][36] - There is a focus on maintaining productivity and innovation despite the pandemic, with a strong pipeline of deals moving into the fourth quarter [8][10] Other Important Information - The effective tax rate for the quarter was about 16%, with expectations for the fiscal year around 9% to 11% [30] - The company has announced a new board authorization for $250 million of share repurchase [34] Q&A Session Summary Question: Insights on B2B Scores business growth - Management acknowledged that volume was lighter than expected, impacting growth, but pricing actions helped mitigate some effects [40][42] Question: B2C growth and any one-time deal activity - Management confirmed that the growth in B2C was genuine, driven by increased consumer interest in credit scores [44] Question: Budget issues affecting Software and Scores - Management indicated that while there is a cautious approach from clients, they are still moving forward with digital transformation initiatives [45] Question: Trends in mortgage and auto volumes - Management noted that mortgage volumes were strong, while auto volumes improved over the quarter, but credit card and personal loan volumes were down [12][13] Question: Demand for UltraFICO and Experian Boost - Management reported strong performance for Experian Boost, while UltraFICO is lagging due to Boost's success [52] Question: Future investment in software - Management stated that investment in software will continue as long as there is market demand for new solutions [54] Question: SaaS product development timeline - Management confirmed that APIs will be available for external use in the upcoming year, allowing for broader application development [57] Question: Disconnect between industry volumes and Scores revenues - Management acknowledged the disconnect but attributed it to the company's different lead generation strategies compared to bureaus [88] Question: Revenue impact from credit scoring recommendations - Management stated they are agnostic to the specific score versions used by clients and do not expect revenue increases from upgrades [90]

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 June 30, 2020 ☐ 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 ot ...

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, 2020 ☐ 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 ...