Core 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]

Core Insights - FICO has been recognized as a Leader in the 2026 Gartner® Magic Quadrant™ for Decision Intelligence Platforms [1] Company Summary - The recognition by Gartner highlights FICO's strong position and capabilities in the decision intelligence sector [1]

Core Viewpoint - Fair Isaac Corporation (FICO) is a significant player in the global analytics software industry, recognized for its innovative solutions that assist businesses in making data-driven decisions [1] Financial Performance - FICO reported an earnings per share (EPS) of $7.33 for the quarter, surpassing the estimated EPS of $7.08 and the Zacks Consensus Estimate of $6.95, marking a 26.56% increase from the $5.79 per share reported in the same quarter last year [2][6] - The company's revenue reached approximately $511.96 million, exceeding the anticipated revenue of about $501.28 million and showing a substantial increase from the $440 million reported in the same period the previous year, representing a growth of 16.3% [3][6] Growth Potential - Despite a negative debt-to-equity ratio of -1.76, FICO is considered a promising growth stock, with a favorable Growth Score and a top Zacks Rank indicating strong growth prospects [4] - FICO's consistent outperformance of consensus revenue estimates over the past four quarters highlights its growth potential [3] Valuation Metrics - The company's valuation metrics include a price-to-earnings (P/E) ratio of approximately 55.95 and a price-to-sales ratio of 18.39, indicating that investors are willing to pay a premium for FICO's earnings and sales [5] - The current ratio of 0.83 suggests potential challenges in covering short-term liabilities with short-term assets, yet FICO's strong financial performance and growth potential make it an attractive option for investors [5][6]

Core Viewpoint - Fair Isaac (FICO) reported quarterly earnings of $7.33 per share, exceeding the Zacks Consensus Estimate of $6.95 per share, and showing an increase from $5.79 per share a year ago, indicating a strong performance in the financial services sector [1] Financial Performance - The company achieved revenues of $511.96 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.76% and up from $439.97 million year-over-year [2] - Fair Isaac has consistently outperformed consensus EPS estimates over the last four quarters, with an earnings surprise of +5.54% in the latest report [1][2] Stock Performance and Outlook - Fair Isaac shares have declined approximately 8.6% since the beginning of the year, contrasting with the S&P 500's gain of 1.9%, raising questions about future stock performance [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $10.71 for the upcoming quarter and $40.22 for the current fiscal year [7] Industry Context - The Computers - IT Services industry, to which Fair Isaac belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Another company in the same industry, Unisys, is expected to report quarterly earnings of $0.60 per share, reflecting a year-over-year increase of +81.8%, although its EPS estimate has been revised down by 27.8% in the last 30 days [9]

Financial Data and Key Metrics Changes - The company reported Q1 revenues of $512 million, up 16% year-over-year [6] - GAAP net income was $158 million, an increase of 4%, with GAAP earnings of $6.61 per share, up 8% from the prior year [6] - Non-GAAP net income reached $176 million, up 22%, and non-GAAP earnings were $7.33 per share, up 27% [6] - Free cash flow for Q1 was $165 million, with a total of $718 million in free cash flow over the last four quarters, a 7% increase year-over-year [7] Business Line Data and Key Metrics Changes - Scores segment revenues were $305 million, up 29% year-over-year, driven by B2B Scores growth [7][16] - B2B revenues increased by 36%, primarily due to higher mortgage origination scores unit price and increased volume [16] - Software segment revenues were $207 million, up 2% year-over-year, with platform revenue growth of 37% and a 13% decline in non-platform revenue [7][19] - Software ACV bookings for the quarter were a record $38 million, with trailing 12-month ACV bookings reaching $119 million, a 36% increase [17] Market Data and Key Metrics Changes - 88% of total company revenues came from the Americas region, while EMEA generated 8% and Asia Pacific delivered 4% [20] - Mortgage originations revenues were up 60% year-over-year, accounting for 51% of B2B revenue and 42% of total scores revenue [16] Company Strategy and Development Direction - The company is focused on expanding its FICO Mortgage Direct Licensing Program and enhancing the FICO Score 10T for better predictive accuracy [9][10] - The strategy includes broadening reach beyond financial services into other verticals, leveraging partnerships and the new platform [52] - The company aims to empower customers with real-time insights and connected decisions throughout the customer lifecycle [14] Management's Comments on Operating Environment and Future Outlook - Management reiterated fiscal 2026 guidance, expressing confidence in exceeding it based on strong execution and market demand [6][24] - The macro environment remains uncertain, influencing the decision not to raise guidance at this time [32] - The company is optimistic about the adoption of new products and innovations, particularly in the mortgage and software segments [24][106] Other Important Information - The company repurchased 95,000 shares for a total cost of $163 million in Q1, viewing share repurchases as an attractive use of cash [23] - The effective tax rate for the quarter was 17.5%, with an expected full-year net effective tax rate of 24% [22] Q&A Session Summary Question: Significance of the 10T and timing for approval - Management noted ongoing adoption on the non-conforming side but could not provide a specific timeline for general availability [30] Question: Concerns regarding FICO Direct and performance model - Management addressed concerns about score calculation accuracy, stating that resellers will use the same algorithm as bureaus [38] Question: Timeline for LLPA grids - Management indicated that no one knows the timeline for LLPA grids, citing challenges in making them work effectively [35] Question: Mortgage revenue growth drivers - Management confirmed that growth was driven by a combination of price, volume, and refinancing activity [85] Question: Trends in software business and customer engagement - Management highlighted strong growth in platform ARR and ongoing efforts to migrate customers to the new platform [62]

Financial Data and Key Metrics Changes - The company reported Q1 revenues of $512 million, up 16% year-over-year [6] - GAAP net income was $158 million, an increase of 4%, with GAAP earnings of $6.61 per share, up 8% from the prior year [6] - Non-GAAP net income reached $176 million, up 22%, and non-GAAP earnings were $7.33 per share, up 27% [6] - Free cash flow for Q1 was $165 million, with a total of $718 million in free cash flow over the last four quarters, a 7% increase year-over-year [7] Business Line Data and Key Metrics Changes - Scores segment revenues were $305 million, up 29% year-over-year, driven by B2B scores growth [7][16] - B2B revenues increased by 36%, primarily due to higher mortgage origination scores unit price and increased volume [16] - Software segment revenues were $207 million, up 2% year-over-year, with platform revenue growth of 37% and a 13% decline in non-platform revenue [7][19] Market Data and Key Metrics Changes - 88% of total company revenues came from the Americas region, while EMEA generated 8% and Asia Pacific delivered 4% [20] - Mortgage originations revenues were up 60% year-over-year, accounting for 51% of B2B revenue and 42% of total scores revenue [16] Company Strategy and Development Direction - The company is focused on expanding its FICO Mortgage Direct Licensing Program and enhancing the FICO Score 10 T for better credit risk assessment [9][10] - The strategy includes broadening reach beyond financial services into other verticals, leveraging partnerships and the new platform [52] - The company aims to empower customers with real-time insights and decision-making capabilities through its next-generation platform [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding fiscal year guidance, citing strong execution in the scores business and software bookings growth [24] - The macroeconomic environment remains uncertain, influencing the decision not to raise guidance at this time [32] - The company anticipates continued growth in mortgage revenues driven by price, volume, and refinancing activity [85] Other Important Information - The company repurchased 95,000 shares for a total cost of $163 million in Q1, viewing share repurchases as an attractive use of cash [23] - The effective tax rate for the quarter was 17.5%, with an expected full-year net effective tax rate of 24% [22] Q&A Session Summary Question: Significance of LoanPass and timing for Ten T approval - Management noted ongoing adoption on the non-conforming side but could not provide a specific timeline for Ten T's general availability [30] Question: Timeline for LLPA grids - Management indicated that no one knows the timeline for LLPA grids due to challenges in implementation [35] Question: Concerns regarding FICO Direct and performance model - Management addressed concerns about score calculation accuracy, stating that resellers will use the same algorithm as bureaus [38] Question: Timeline for direct license program resellers going live - Management could not provide a specific timeline but assured that integration testing is ongoing [42] Question: Revenue model for performance model vs. per score model - Management clarified that the performance model is optional, allowing flexibility for lenders [45] Question: Trends in software business and investment cycle - Management confirmed ongoing investments in the software business, anticipating margin expansion from increased volume and customer adoption [99]

Financial Data and Key Metrics Changes - The company reported Q1 revenues of $512 million, up 16% year-over-year [4] - GAAP net income for the quarter was $158 million, an increase of 4%, with GAAP earnings of $6.61 per share, up 8% from the prior year [4] - Non-GAAP net income was $176 million, up 22%, with non-GAAP earnings of $7.33 per share, up 27% year-over-year [4] - Free cash flow for Q1 was $165 million, with a total of $718 million in free cash flow over the last four quarters, a 7% increase year-over-year [5] Business Line Data and Key Metrics Changes - Scores segment revenues were $305 million, up 29% year-over-year, driven by B2B scores growth [5][13] - B2B revenues increased by 36%, primarily due to higher mortgage origination scores unit price and increased volume [13] - B2C revenues grew by 5%, mainly from indirect channel partners [13] - Software segment revenues were $207 million, up 2% from the prior year, with platform revenue growth of 37% and a 13% decline in non-platform revenue [5][17] Market Data and Key Metrics Changes - 88% of total company revenues came from the Americas region, while EMEA generated 8% and Asia Pacific delivered 4% [18] - Mortgage originations revenues were up 60% year-over-year, accounting for 51% of B2B revenue and 42% of total scores revenue [13] - Auto originations revenues increased by 21%, while credit card, personal loan, and other originations revenues rose by 10% year-over-year [14] Company Strategy and Development Direction - The company is focused on expanding its FICO Mortgage Direct Licensing Program and enhancing the FICO Score 10 T, which is expected to be available for direct licensing in the first half of 2026 [6][7] - The strategy emphasizes empowering customers with real-time insights and decision-making capabilities, with a commitment to innovation and customer engagement [11] - The company aims to broaden its reach beyond financial services, targeting other verticals while maintaining a strong focus on its core market [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding fiscal year guidance, citing strong execution in the scores business and growth in software bookings and ARR [21] - The macroeconomic environment remains uncertain, influencing the decision not to raise guidance at this time [29][30] - Management highlighted the importance of ongoing testing and integration for new products, particularly in the mortgage market [39] Other Important Information - The company repurchased 95,000 shares for a total cost of $163 million in Q1, viewing share repurchases as an attractive use of cash [20] - The effective tax rate for the quarter was 17.5%, with an expected full-year net effective tax rate of 24% [19] Q&A Session Summary Question: Significance of the Ten T and timing for approval - Management noted ongoing adoption on the non-conforming side but could not provide a specific timeline for general availability [26][27] Question: Concerns regarding FICO Direct and performance model - Management addressed concerns about score calculation accuracy, stating that resellers will use the same algorithm and technology as the bureaus [33][34] Question: Timeline for LLPA grids - Management indicated that no one knows the timeline for LLPA grids, citing challenges with gaming and adverse selection issues [32][34] Question: Mortgage revenue growth drivers - Management confirmed that revenue growth was driven by a combination of price, volume, and refinancing activity [78] Question: Software business investment cycle - Management stated that they continue to invest in the software business and anticipate margin expansion as the new platform scales profitably [96]

Investor Presentation Q1 FY2026 January 28, 2026 Forward-looking Statements / Non-GAAP Financial Measures Certain statements made in this presentation are forward-looking under the Private Securities Litigation Reform Act of 1995. Those statements involve many risks and uncertainties that could cause actual results to differ materially. Information concerning these risks and uncertainties is contained in the Company's filings with the SEC, particularly in the Risk Factors and Forward-Looking Statements port ...

Revenue and Income - Total revenues for the quarter ended December 31, 2025, were $512.0 million, a 16% increase from $440.0 million in the same quarter of 2024[77] - Revenues for the Scores segment reached $304.5 million, reflecting a 29% increase from $236.0 million in the prior year[77] - Annual Recurring Revenue (ARR) for the Software segment as of December 31, 2025, was $766.0 million, a 5% increase from $730.0 million a year earlier[82] - Operating income for the quarter was $234.0 million, a 30% increase from $180.0 million in the same quarter of 2024[82] - Net income for the quarter was $158.4 million, a 4% increase from $152.0 million in the prior year[82] - Diluted EPS for the quarter was $6.61, an 8% increase from $6.12 in the same quarter of 2024[82] - Total revenues for the quarter ended December 31, 2025, were $511.96 million, a 16% increase from $439.97 million in the same quarter of 2024[94] - The Scores segment generated $304.53 million in revenue, accounting for 59% of total revenues, with a 29% increase from $235.68 million in 2024[91] - Software segment revenues increased to $207.43 million, representing 41% of total revenues, with a 2% increase from $204.29 million in 2024[91] - Operating income for the quarter was $234.05 million, a 30% increase from $179.53 million in the prior year[94] - Net income for the quarter was $158.37 million, a 4% increase from $152.53 million in the same quarter of 2024[94] Cash Flow and Debt - Cash flows from operating activities were $174.1 million, down from $194.0 million in the same quarter of 2024[82] - Total debt balance increased to $3.2 billion as of December 31, 2025, compared to $3.1 billion as of September 30, 2025[82] - Net cash provided by operating activities decreased to $174.1 million for the quarter ended December 31, 2025, down from $194.0 million in the same quarter of 2024, a decrease of $19.9 million[116] - Net cash used in investing activities increased to $12.7 million for the quarter ended December 31, 2025, compared to $8.9 million in the same quarter of 2024, an increase of $3.8 million[117] - Net cash used in financing activities decreased to $133.5 million for the quarter ended December 31, 2025, from $144.2 million in the same quarter of 2024, a decrease of $10.7 million[118] - As of December 31, 2025, the company had $415.0 million in borrowings outstanding under a revolving line of credit at a weighted-average interest rate of 5.000%[121] - The carrying value of the Senior Notes was $2.8 billion as of December 31, 2025, with compliance to all financial covenants[122] - The company issued $1.5 billion of senior notes in May 2025, requiring interest payments at a rate of 6.00% per annum, maturing on May 15, 2033[122] Expenses - Research and development expenses rose by $4.77 million to $49.91 million, maintaining 10% of total revenues[98] - Selling, general and administrative expenses increased by $12.79 million to $140.74 million, decreasing as a percentage of revenues from 29% to 27%[100] - Interest expense increased by $12.52 million to $42.01 million, primarily due to the issuance of $1.5 billion in Senior Notes[102] Tax and Cash Position - The effective income tax rate was 17.5% for the quarter ended December 31, 2025, compared to (1.6)% in 2024[105] - As of December 31, 2025, the company had $162.0 million in cash and cash equivalents, sufficient to meet capital requirements for at least the next 12 months[113] Stock Repurchase and Financial Management - Total share repurchases during the quarter were $162.7 million, compared to $159.7 million in the same quarter of 2024[82] - The company has a stock repurchase program with an aggregate cost authorization of $1.0 billion, with $180.9 million remaining as of December 31, 2025, and $162.7 million expended during the quarter[119] Foreign Exchange Management - The company entered into foreign currency forward contracts to manage foreign exchange rate risk, with contract amounts including €6.9 million and £10.3 million as of December 31, 2025[130] Cash Flow Variability - The company experienced a $43.9 million decrease in cash flows from operating activities due to the timing of receipts and payments, partially offset by an $18.1 million increase in non-cash items[116]

Exhibit 99.1 FICO Announces Earnings of $6.61 per Share for First Quarter Fiscal 2026 Revenue of $512 million vs. $440 million in prior year BOZEMAN, Mont.--(BUSINESS WIRE)--January 28, 2026--FICO (NYSE:FICO), a global analytics software leader, today announced results for its first fiscal quarter ended December 31, 2025. First Quarter Fiscal 2026 GAAP Results Net income for the quarter totaled $158.4 million, or $6.61 per share, versus $152.5 million, or $6.14 per share, in the prior year period. Net cash ...