Core Insights - Fair Isaac Corporation (FICO) reported fourth-quarter fiscal 2025 non-GAAP earnings of $7.74 per share, exceeding the Zacks Consensus Estimate by 5.45% and reflecting an 18.3% year-over-year increase [1] - Revenues reached $515.8 million, surpassing the consensus mark by 0.78% and increasing 13.6% year over year, with contributions from the Americas (87%), EMEA (8%), and Asia Pacific (5%) [1] - Scores, which account for 60.4% of total revenues, rose 25% year over year to $311.6 million [1] Revenue Breakdown - Software revenues, including analytics and digital decisioning technology, declined 0.2% year over year to $204.2 million [2] - Software Annual Recurring Revenues (ARR) increased 4% year over year, driven by a 16% growth in platform ARR, while non-platform ARR declined by 2% [3] - On-premises and SaaS Software, making up 35.4% of revenues, increased 0.4% year over year to $182.4 million [3] - Professional services revenues, accounting for 4.2% of total revenues, decreased 4.8% year over year to $21.8 million [3] Scoring Solutions Performance - Business-to-business (B2B) scoring solutions revenues increased 29% year over year, primarily due to higher unit prices and increased mortgage originations [4] - Business-to-consumer (B2C) scoring solutions revenues rose 8% year over year, driven by growth in myFICO.com and indirect channel partners [4] - Mortgage originations revenues surged 55% year over year, while auto originations revenues increased by 24% [5] Operating Metrics - Research and development expenses as a percentage of revenues increased by 10 basis points year over year to 9.9% [6] - Selling, general, and administrative expenses as a percentage of revenues decreased by 270 basis points year over year to 24.3% [6] - Non-GAAP Operating margin improved to 54% in the fourth quarter of fiscal 2025, compared to 52% in the same quarter of the previous year [6] Financial Performance - Adjusted EBITDA rose 18.3% year over year to $286.6 million, with an adjusted EBITDA margin of 55.6% compared to 53.4% in the prior year [7] - As of September 30, 2025, FICO had $134 million in cash and cash equivalents, with total debt at $3.06 billion [8] - Cash flow from operations was $223.6 million in the fourth quarter, down from $286.2 million in the prior quarter, while free cash flow was $210.8 million compared to $276.2 million previously [8] Future Guidance - FICO anticipates fiscal 2026 revenues of $2.35 billion and non-GAAP earnings of $38.17 per share [9][10]