Revenue of $692 million vs. $499 million in prior year

FICO (NYSE:FICO), a global analytics software leader, today announced results for its second fiscal quarter ended March 31, 2026.

Second Quarter Fiscal 2026 GAAP Results

Net income for the quarter totaled $264.5 million, or $11.14 per share, versus $162.6 million, or $6.59 per share, in the prior year period.

Net cash provided by operating activities for the quarter was $223.4 million versus $74.9 million in the prior year period.

Second Quarter Fiscal 2026 Non-GAAP Results

Non-GAAP Net Income for the quarter was $296.8 million versus $192.7 million in the prior year period. Non-GAAP EPS for the quarter was $12.50 versus $7.81 in the prior year period. Free cash flow was $214.3 million for the current quarter versus $65.5 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.

Second Quarter Fiscal 2026 GAAP Revenue

The company reported revenues of $691.7 million for the quarter as compared to $498.7 million reported in the prior year period, an increase of 39%.

"We continue to deliver strong revenue and earnings growth," said Will Lansing, chief executive officer. "We are pleased to announce that we are raising our full year guidance."

Revenues for the second 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 $475.0 million in the second quarter, compared to $297.0 million in the prior year period, an increase of 60%. B2B revenue increased 72%, primarily attributable to a higher mortgage origination scores unit price and an increase in volume of mortgage originations. B2C revenue increased 5% from the prior year period due mainly to increased revenue from our indirect channel partners.
Software revenues, which include the company's analytics and digital decisioning technology, were up 7% year- over-year with $216.7 million in the second quarter, compared to $201.7 million in the prior year period. On March 31, 2026, Software Annual Recurring Revenue was up 10% year-over-year, consisting of a 49% increase in platform ARR and an 8% decline in non-platform ARR. The total Software Dollar-Based Net Retention Rate was 109% on March 31, 2026, with platform software at 136% and non-platform software at 90%.

Outlook

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

	Previous Fiscal 2026 Guidance	Updated Fiscal 2026 Guidance
Revenues	$2.35 billion	$2.45 billion
GAAP Net Income	$795 million	$825 million
GAAP EPS	$33.47	$35.60
Non-GAAP Net Income	$907 million	$946 million
Non-GAAP EPS	$38.17	$40.45

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 April 28, 2026, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to report its second 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 April 28, 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 http s ://www.fico.com /en

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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)

	March 31, 2026			September 30, 2025
	(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	219,419		$	134,136
Accounts receivable, net		619,957			529,148
Prepaid expenses and other current assets		61,397			41,881
Total current assets		900,773			705,165
Marketable securities		53,046			54,625
Property and equipment, net		79,623			67,713
Operating lease right-of-use assets		25,025			26,213
Goodwill		781,390			783,340
Other assets		208,392			231,077
Total assets	$	2,048,249		$	1,868,133
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable and other accrued liabilities	$	134,868		$	146,933
Accrued compensation and employee benefits		87,259			115,369
Deferred revenue		183,163			187,372
Current maturities on debt		—			399,541
Total current liabilities		405,290			849,215
Long-term debt		3,639,063			2,656,150
Operating lease liabilities		17,555			19,187
Other liabilities		87,991			89,365
Total liabilities		4,149,899			3,613,917

Stockholders' deficit		(2,101,650	)		(1,745,784	)
Total liabilities and stockholders' deficit	$	2,048,249		$	1,868,133

FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Quarter Ended March 31,						Six Months Ended March 31,
	2026			2025			2026			2025
	(In thousands, except per share data)
Revenues:
On-premises and SaaS software	$	199,231		$	183,826		$	387,452		$	369,837
Professional services		17,473			17,870			36,677			36,152
Scores		474,973			297,039			779,507			532,714
Total revenues		691,677			498,735			1,203,636			938,703
Operating expenses:
Cost of revenues		91,199			87,630			178,460			174,975
Research and development		53,916			45,037			103,828			90,182
Selling, general and administrative		144,097			120,420			284,834			248,370
Total operating expenses		289,212			253,087			567,122			513,527
Operating income		402,465			245,648			636,514			425,176
Other expense, net		(46,436	)		(32,632	)		(88,554	)		(62,031	)
Income before income taxes		356,029			213,016			547,960			363,145
Provision for income taxes		91,571			50,401			125,129			48,002
Net income	$	264,458		$	162,615		$	422,831		$	315,143
Earnings per share:
Basic	$	11.19		$	6.67		$	17.86		$	12.92
Diluted	$	11.14		$	6.59		$	17.73		$	12.73
Shares used in computing earnings per share:
Basic		23,628			24,389			23,676			24,383
Diluted		23,748			24,685			23,854			24,756

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

	Six Months Ended March 31,
	2026			2025
	(In thousands)
Cash flows from operating activities:
Net income	$	422,831		$	315,143
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		7,905			6,950
Share-based compensation		89,579			82,358
Changes in operating assets and liabilities		(147,283	)		(132,202	)
Other, net		24,408			(3,334	)
Net cash provided by operating activities		397,440			268,915
Cash flows from investing activities:
Purchases of property and equipment		(492	)		(2,960	)
Capitalized internal-use software costs		(17,256	)		(13,638	)
Net activity from marketable securities		(3,400	)		(3,285	)
Net cash used in investing activities		(21,148	)		(19,883	)
Cash flows from financing activities:
Proceeds from revolving line of credit and term loans		880,000			450,000
Payments on revolving line of credit and term loans		(890,000	)		(132,500	)
Proceeds from issuance of senior notes		1,000,000			—
Payments on senior notes		(400,000	)		—
Proceeds from issuance of treasury stock under employee stock plans		14,935			16,062
Taxes paid related to net share settlement of equity awards		(105,767	)		(198,531	)
Repurchases of common stock		(776,565	)		(379,738	)
Other, net		(11,847	)		(3,016	)
Net cash used in financing activities		(289,244	)		(247,723	)
Effect of exchange rate changes on cash		(1,765	)		(5,335	)
Increase (decrease) in cash and cash equivalents		85,283			(4,026	)
Cash and cash equivalents, beginning of period		134,136			150,667
Cash and cash equivalents, end of period	$	219,419		$	146,641

FAIR ISAAC CORPORATION NON-GAAP RESULTS (Unaudited)

	Quarter Ended March 31,						Six Months Ended March 31,
	2026			2025			2026			2025
	(In thousands, except per share data)
GAAP net income	$	264,458		$	162,615		$	422,831		$	315,143
Share-based compensation expense		45,310			41,704			89,579			82,358
Income tax adjustments		(11,712	)		(10,366	)		(23,087	)		(20,229	)
Excess tax benefit		(1,252	)		(1,264	)		(16,909	)		(40,794	)
Non-GAAP net income	$	296,804		$	192,689		$	472,414		$	336,478

GAAP diluted earnings per share	$	11.14		$	6.59		$	17.73		$	12.73
Share-based compensation expense		1.91			1.69			3.76			3.33
Income tax adjustments		(0.49	)		(0.42	)		(0.97	)		(0.82	)
Excess tax benefit		(0.05	)		(0.05	)		(0.71	)		(1.65	)
Non-GAAP diluted earnings per share	$	12.50		$	7.81		$	19.80		$	13.59

Free cash flow
Net cash provided by operating activities	$	223,358		$	74,918		$	397,440		$	268,915
Capital expenditures		(9,042	)		(9,427	)		(17,748	)		(16,598	)
Free cash flow	$	214,316		$	65,491		$	379,692		$	252,317

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	$	795		$	825
Share-based compensation expense		166			185
Income tax adjustments		(42	)		(45	)
Excess tax benefit		(13	)		(19	)
Non-GAAP net income	$	907		$	946

GAAP diluted earnings per share	$	33.47		$	35.60
Share-based compensation expense		6.99			7.44
Income tax adjustments		(1.75	)		(1.83	)
Excess tax benefit		(0.55	)		(0.76	)
Non-GAAP diluted earnings per share	$	38.17		$	40.45

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/20260428146072/en/

Investors/Analysts:

Dave Singleton

Fair Isaac Corporation

(800) 459-7125

investor@fico.com

FICO Announces Earnings of $11.14 per Share for Second Quarter Fiscal 2026