Revenue of $674 million vs. $536 million in prior year

FICO (NYSE:FICO), a global analytics software leader, today announced results for its third fiscal quarter ended June 30, 2026.

Third Quarter Fiscal 2026 GAAP Results

Net income for the quarter totaled $237.2 million, or $10.45 per share, versus $181.8 million, or $7.40 per share, in the prior year period.

Net cash provided by operating activities for the quarter was $380.4 million versus $286.2 million in the prior year period.

Third Quarter Fiscal 2026 Non-GAAP Results

Non-GAAP Net Income for the quarter was $276.6 million versus $210.6 million in the prior year period. Non-GAAP EPS for the quarter was $12.18 versus $8.57 in the prior year period. Free cash flow was $370.3 million for the current quarter versus $276.2 million in the prior year period. The Non-GAAP financial measures are described in the financial table captioned "Non-GAAP Results" and are reconciled to the corresponding GAAP results in the financial tables at the end of this release.

Third Quarter Fiscal 2026 GAAP Revenue

The company reported revenues of $674.2 million for the quarter as compared to $536.4 million reported in the prior year period, an increase of 26%.

"We delivered another quarter of strong performance, driven by the successful execution of our strategic priorities," said Will Lansing, chief executive officer. "We are pleased to announce that we are raising our full year guidance."

Revenues for the third quarter of fiscal 2026 for the company’s two operating segments were as follows:

Scores revenues, which include the company’s business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) solutions, were $458.9 million in the third quarter, compared to $324.3 million in the prior year period, an increase of 41%. B2B revenue increased 49%, primarily attributable to a higher mortgage origination scores unit price. B2C revenue increased 5% from the prior year period, primarily due to increased royalties derived from scores sold indirectly to consumers through credit reporting agencies.
Software revenues, which include the company’s analytics and digital decisioning technology, were up 2% year-over-year with $215.3 million in the third quarter, compared to $212.1 million in the prior year period. On June 30, 2026, Software Annual Recurring Revenue (ARR) was up 10% year-over-year, consisting of a 62% increase in platform ARR and a 17% decline in non-platform ARR. The total Software Dollar-Based Net Retention Rate was 109% on June 30, 2026, with platform software at 148% and non-platform software at 82%.

Outlook

The company is updating its previously provided guidance for fiscal 2026:

	Previous Fiscal 2026 Guidance	Updated Fiscal 2026 Guidance
Revenues	$2.45 billion	$2.53 billion
GAAP Net Income	$825 million	$850 million
GAAP EPS	$35.60	$36.86
Non-GAAP Net Income	$946 million	$979 million
Non-GAAP EPS	$40.45	$42.43

The Non-GAAP financial measures are described in the financial table captioned "Reconciliation of Non-GAAP Guidance."

Company to Host Conference Call

The company will host a webcast on July 29, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its third quarter fiscal 2026 results and provide various strategic and operational updates. The call can be accessed at FICO's web site at www.fico.com/investors. A replay of the webcast will be available on our Past Events page through July 29, 2027.

About FICO

FICO (NYSE:FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 U.S. and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting four billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO^® Score, used by 90% of top U.S. lenders, is the standard measure of consumer credit risk in the U.S. and has been made available in over 40 other countries, improving risk management, credit access and transparency.

Learn more at https://www.fico.com/en

Join the conversation at https://x.com/FICO_corp & https://www.fico.com/blogs/

For FICO news and media resources, visit https://www.fico.com/en/newsroom

FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.

Statement Concerning Forward-Looking Information

Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of macroeconomic conditions on FICO’s business, operations and personnel, the success of the Company’s business strategies, the maintenance of its existing relationships and ability to create new relationships with customers, distributors and other business partners, its ability to continue to develop new and enhanced products and services and to enter new markets, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use or costs of consumer credit and other data, the failure to protect such data, the failure to realize the anticipated benefits of any acquisitions or divestitures, and material adverse developments or uncertainty in global economic conditions or in the markets or industries that the Company serves. Additional information on these risks and uncertainties and other factors that could affect FICO’s future results are described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2025 and its subsequent filings with the SEC. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. FICO disclaims any intent or obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise.


FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

	June 30, 2026			September 30, 2025
	(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	248,444		$	134,136
Accounts receivable, net		592,530			529,148
Prepaid expenses and other current assets		40,589			41,881
Total current assets		881,563			705,165
Marketable securities		56,093			54,625
Property and equipment, net		90,988			67,713
Operating lease right-of-use assets		23,087			26,213
Goodwill		791,815			783,340
Other assets		193,827			231,077
Total assets	$	2,037,373		$	1,868,133
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable and other accrued liabilities	$	128,904		$	146,933
Accrued compensation and employee benefits		110,863			115,369
Deferred revenue		205,424			187,372
Current maturities on debt		300,000			399,541
Total current liabilities		745,191			849,215
Long-term debt		5,282,389			2,656,150
Operating lease liabilities		15,621			19,187
Other liabilities		91,307			89,365
Total liabilities		6,134,508			3,613,917

Stockholders’ deficit		(4,097,135	)		(1,745,784	)
Total liabilities and stockholders’ deficit	$	2,037,373		$	1,868,133

FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Quarter Ended June 30,						Nine Months Ended June 30,
		2026			2025			2026			2025
	(In thousands, except per share data)
Revenues:
On-premises and SaaS software	$	196,969		$	187,915		$	584,421		$	557,752
Professional services		18,322			24,191			54,999			60,343
Scores		458,897			324,309			1,238,404			857,023
Total revenues		674,188			536,415			1,877,824			1,475,118
Operating expenses:
Cost of revenues		87,017			87,571			265,477			262,546
Research and development		53,708			47,212			157,536			137,394
Selling, general and administrative		170,835			139,114			455,669			387,484
Total operating expenses		311,560			273,897			878,682			787,424
Operating income		362,628			262,518			999,142			687,694
Other expense, net		(47,969	)		(25,527	)		(136,523	)		(87,558	)
Income before income taxes		314,659			236,991			862,619			600,136
Provision for income taxes		77,487			55,202			202,616			103,204
Net income	$	237,172		$	181,789		$	660,003		$	496,932
Earnings per share:
Basic	$	10.46		$	7.49		$	28.28		$	20.41
Diluted	$	10.45		$	7.40		$	28.12		$	20.12
Shares used in computing earnings per share:
Basic		22,670			24,284			23,341			24,350
Diluted		22,703			24,575			23,470			24,696

FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Nine Months Ended June 30,
		2026			2025
	(In thousands)
Cash flows from operating activities:
Net income	$	660,003		$	496,932
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		12,123			10,931
Share-based compensation		141,910			124,288
Changes in operating assets and liabilities		(66,268	)		(64,961	)
Other, net		30,112			(12,052	)
Net cash provided by operating activities		777,880			555,138
Cash flows from investing activities:
Purchases of property and equipment		(1,355	)		(4,751	)
Capitalized internal-use software costs		(26,491	)		(21,831	)
Net activity from marketable securities		1,380			(3,808	)
Other, net		(12,810	)		—
Net cash used in investing activities		(39,276	)		(30,390	)
Cash flows from financing activities:
Proceeds from revolving line of credit and term loans		2,950,000			450,000
Payments on revolving line of credit and term loans		(1,015,000	)		(1,368,750	)
Proceeds from issuance of senior notes		1,000,000			1,500,000
Payments on senior notes		(400,000	)		—
Proceeds from issuance of treasury stock under employee stock plans		14,935			21,908
Taxes paid related to net share settlement of equity awards		(111,275	)		(203,188	)
Repurchases of common stock		(3,045,992	)		(866,520	)
Other, net		(15,013	)		(20,242	)
Net cash used in financing activities		(622,345	)		(486,792	)
Effect of exchange rate changes on cash		(1,951	)		426
Increase in cash and cash equivalents		114,308			38,382
Cash and cash equivalents, beginning of period		134,136			150,667
Cash and cash equivalents, end of period	$	248,444		$	189,049

FAIR ISAAC CORPORATION
NON-GAAP RESULTS
(Unaudited)

	Quarter Ended June 30,						Nine Months Ended June 30,
		2026			2025			2026			2025
	(In thousands, except per share data)
GAAP net income	$	237,172		$	181,789		$	660,003		$	496,932
Share-based compensation expense		52,331			41,930			141,910			124,288
Income tax adjustments		(13,434	)		(10,332	)		(36,521	)		(30,560	)
Excess tax benefit		537			(2,836	)		(16,372	)		(43,630	)
Non-GAAP net income	$	276,606		$	210,551		$	749,020		$	547,030

GAAP diluted earnings per share	$	10.45		$	7.40		$	28.12		$	20.12
Share-based compensation expense		2.31			1.71			6.05			5.03
Income tax adjustments		(0.59	)		(0.42	)		(1.56	)		(1.24	)
Excess tax benefit		0.02			(0.12	)		(0.70	)		(1.77	)
Non-GAAP diluted earnings per share	$	12.18		$	8.57		$	31.91		$	22.15

Free cash flow
Net cash provided by operating activities	$	380,440		$	286,223		$	777,880		$	555,138
Capital expenditures		(10,097	)		(9,984	)		(27,845	)		(26,582	)
Free cash flow	$	370,343		$	276,239		$	750,035		$	528,556

Note: The numbers may not sum to total due to rounding.

About Non-GAAP Financial Measures

To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude, to the extent applicable, such items as the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making.


FAIR ISAAC CORPORATION
RECONCILIATION OF NON-GAAP GUIDANCE
(Unaudited)

	Previous Fiscal 2026 Guidance			Updated Fiscal 2026 Guidance
	(In millions, except per share data)

GAAP net income	$	825		$	850
Share-based compensation expense		185			188
Income tax adjustments		(45	)		(46	)
Excess tax benefit		(19	)		(13	)
Non-GAAP net income	$	946		$	979

GAAP diluted earnings per share	$	35.60		$	36.86
Share-based compensation expense		7.44			8.15
Income tax adjustments		(1.83	)		(2.00	)
Excess tax benefit		(0.76	)		(0.59	)
Non-GAAP diluted earnings per share	$	40.45		$	42.43

Note: The numbers may not sum to total due to rounding.

About Non-GAAP Financial Measures

View source version on businesswire.com: https://www.businesswire.com/news/home/20260729336793/en/

Investors/Analysts:

Dave Singleton

Fair Isaac Corporation

(800) 459-7125

investor@fico.com