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]