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 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]

Core Insights - FICO stock is currently trading within a historical support zone, which has previously led to significant rebounds, averaging a peak gain of 22.8% after testing this level [2][4] Company Overview - Fair Isaac is recognized for creating the FICO credit score, a standard in assessing consumer credit risk, and develops analytics and fraud-detection software for various industries [3] Market Conditions - The global credit scoring market is experiencing growth due to AI integration and digital lending, although FICO faces challenges from high valuations and increased competition [4] Financial Performance - FICO reported impressive Q4 FY25 earnings and solid FY26 guidance, driven by its Scores segment and the adoption of FICO Score 10T [4] - Revenue growth for FICO is at 15.9% for the last twelve months (LTM) and an average of 13.1% over the last three years [10] - The company has a free cash flow margin of nearly 37.1% and an operating margin of 47.0% LTM [10] Valuation Metrics - FICO stock is currently trading at a price-to-earnings (PE) multiple of 54.9, indicating high valuation pressure despite growth potential [10]

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]

Group 1 - Tesla achieved record deliveries of 497,099 vehicles in Q3, indicating strong demand and operational efficiency [1] - Fair Isaac (FICO) announced that it will make its predictive credit scores directly available to credit report vendors, impacting the traditional credit bureau model [1] - The move by FICO caused a significant drop in shares of credit bureaus Equifax, Experian, and TransUnion, highlighting a shift in the credit scoring landscape [1] Group 2 - Equifax received a Relative Strength Rating upgrade to 71, indicating improving technical performance [3] - The performance of Fair Isaac and credit score stocks declined as the agency chief focused on reducing mortgage costs, affecting market sentiment [3] - Equifax is approaching a key technical measure, suggesting potential for further stock performance improvement [3]

Core Insights - Fair Isaac Corporation (FICO) reported third-quarter fiscal 2025 non-GAAP earnings of $8.57 per share, exceeding the Zacks Consensus Estimate by 10.87% and increasing 37.1% year over year [1][9] - Revenues reached $536.4 million, surpassing the consensus mark by 3.4% and growing 19.8% year over year, with contributions from the Americas (87%), EMEA (8%), and Asia Pacific (5%) [1][9] - Scores, which account for 60.5% of total revenues, rose 34.3% year over year to $324.3 million [1][9] Revenue Breakdown - Software revenues, including analytics and digital-decisioning technology, increased 2.8% year over year to $212.1 million [2] - Software Annual Recurring Revenues (ARR) grew 4% year over year, with platform ARR up 18% and non-platform ARR down 2% [3] - On-premises and SaaS Software, making up 35% of revenues, increased 2.2% year over year to $187.9 million [3] - Professional services revenues, accounting for 4.5% of total revenues, rose 7% year over year to $24.2 million [3] Scoring Solutions - Business-to-business (B2B) scoring solutions revenues surged 42% year over year, driven by higher unit prices and increased mortgage originations [4] - Business-to-consumer (B2C) scoring solutions revenues increased 6% year over year, supported by higher royalties from scores sold through credit reporting agencies [4] Origination Revenues - Mortgage-originations revenues increased 53% year over year [5] - Auto-originations revenues rose 23% year over year [5] - Credit card, personal loan, and other origination revenues grew 3% year over year [5] Strategic Initiatives - FICO launched FICO Score10 BNPL and FICO Score10T BNPL models, integrating Buy-Now-Pay-Later data into credit scoring, promoting financial inclusion globally [6] Operating Performance - Research and development expenses as a percentage of revenues decreased by 110 basis points year over year to 8.8% [7] - Selling, general and administrative expenses as a percentage of revenues fell by 200 basis points year over year to 25.9% [7] - Adjusted EBITDA increased 31.9% year over year to $312.3 million, with an adjusted EBITDA margin of 58.2% compared to 52.9% in the prior year [7] Financial Position - As of June 30, 2025, FICO had $189 million in cash and cash equivalents, with total debt at $2.8 billion [8] - Cash flow from operations was $286.2 million, up from $213.3 million in the prior year [8] - Free cash flow for the quarter was $276.2 million, compared to $205.7 million in the previous year [8] Guidance - FICO reiterated its fiscal 2025 guidance, projecting revenues of $1.98 billion and non-GAAP earnings of $29.15 per share [9][11] Share Repurchase - In the fiscal third quarter, FICO repurchased 284,000 shares [10]

Core Insights - Fair Isaac (FICO) reported revenue of $498.74 million for the quarter ended March 2025, marking a year-over-year increase of 15% and an EPS of $7.81 compared to $6.14 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1][2] Financial Performance - The reported revenue of $498.74 million surpassed the Zacks Consensus Estimate of $496.22 million, resulting in a surprise of +0.51% [1] - The EPS of $7.81 exceeded the consensus estimate of $7.39, delivering a surprise of +5.68% [1] - Annual Recurring Revenue (ARR) for the platform was $234.70 million, below the average estimate of $248.73 million [4] - Total ARR was reported at $714.60 million, compared to the estimated $751.38 million [4] - Non-platform ARR was $479.90 million, lower than the average estimate of $502.65 million [4] Revenue Breakdown - Professional services revenue was $17.87 million, below the average estimate of $19.18 million, reflecting a year-over-year decline of -9.5% [4] - Software revenue reached $201.70 million, slightly below the average estimate of $211.53 million, with a year-over-year increase of +2.4% [4] - Scores revenue was $297.04 million, exceeding the average estimate of $286 million, with a year-over-year increase of +25.4% [4] - On-premises and SaaS software revenue was $183.83 million, below the average estimate of $192.35 million, with a year-over-year increase of +3.8% [4] - Business-to-consumer scores revenue was $54.55 million, surpassing the average estimate of $52.90 million, with a year-over-year increase of +6.2% [4] - Business-to-business scores revenue was $242.49 million, exceeding the average estimate of $235.89 million, with a year-over-year increase of +30.7% [4] Operating Income - Operating income for software was reported at $63.32 million, below the average estimate of $69.19 million [4] - Operating income for scores was $264.97 million, exceeding the average estimate of $254.48 million [4] Stock Performance - Fair Isaac's shares returned +5.4% over the past month, while the Zacks S&P 500 composite experienced a -0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Fair Isaac (FICO) reported quarterly earnings of $7.81 per share, exceeding the Zacks Consensus Estimate of $7.39 per share, and up from $6.14 per share a year ago, representing an earnings surprise of 5.68% [1] - The company posted revenues of $498.74 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.51%, and an increase from $433.81 million year-over-year [2] - Fair Isaac has surpassed consensus EPS estimates only once in the last four quarters, indicating mixed performance in earnings expectations [2][6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $7.80 on revenues of $518.78 million, and for the current fiscal year, it is $29.16 on revenues of $1.99 billion [7] - The estimate revisions trend for Fair Isaac is currently mixed, leading to a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which Fair Isaac belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, which may impact the stock's performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, highlighting the importance of tracking these revisions for investment decisions [5]

Core Viewpoint - Fair Isaac (FICO) reported mixed financial results for Q1 fiscal 2025, with earnings per share missing estimates but revenues showing year-over-year growth. The company is experiencing a positive trend in its stock performance, outperforming the S&P 500, but there are concerns about future earnings guidance and downward estimate revisions [1][2][10]. Financial Performance - Q1 fiscal 2025 earnings were $5.79 per share, missing the Zacks Consensus Estimate by 6.76% but increasing 20.4% year over year [2]. - Revenues reached $440 million, a 15.2% increase year over year, but fell short of consensus estimates by 3.25% [2]. - Software revenues grew 8% year over year to $204.3 million, with Software Annual Recurring Revenues (ARR) increasing 6% [3]. Revenue Breakdown - The Americas contributed 87% to total revenues, while EMEA and Asia Pacific contributed 8% and 5%, respectively [2]. - On-premises and SaaS software revenues accounted for 42.3% of total revenues, increasing 10.3% year over year to $186 million [4]. - Scores, which include B2B and B2C scoring solutions, increased 22.7% year over year to $235.7 million, representing 53.6% of total revenues [4]. Segment Performance - B2B revenues surged 30% year over year, primarily due to higher unit prices and increased mortgage originations, while B2C revenues grew 3% [5]. - Mortgage originations revenues skyrocketed 110% year over year, making up 44% of B2B revenues and 34% of total scores revenues [5]. - Auto originations revenues increased by 5%, while credit card and personal loan revenues declined by 3% year over year [5]. Operating Metrics - Research & development expenses as a percentage of revenues decreased by 90 basis points to 10.3%, while selling, general, and administrative expenses increased by 180 basis points to 29.1% [7]. - Operating margin improved to 40.8%, expanding 120 basis points year over year [7]. Balance Sheet and Cash Flow - As of December 31, 2024, FICO had $184 million in cash and cash equivalents and total debt of $2.4 billion, up from $151 million in cash and $2.2 billion in debt as of September 30, 2024 [8]. - Cash flow from operations was $194 million, down from $226.4 million in the previous quarter, while free cash flow decreased to $187 million from $219.4 million [9]. Future Guidance - For fiscal 2025, FICO anticipates revenues of $1.98 billion and non-GAAP earnings of $28.58 per share [10]. - Recent estimates have trended downward, indicating a potential shift in market sentiment towards the stock [11][13].