Revenue of $512 million vs. $440 million in prior year

FICO (NYSE:FICO), a global analytics software leader, today announced results for its first fiscal quarter ended December 31, 2025.

First Quarter Fiscal 2026 GAAP Results

Net income for the quarter totaled $158.4 million, or $6.61 per share, versus $152.5 million, or $6.14 per share, in the prior year period.

Net cash provided by operating activities for the quarter was $174.1 million versus $194.0 million in the prior year period.

First Quarter Fiscal 2026 Non-GAAP Results

Non-GAAP Net Income for the quarter was $175.6 million versus $143.8 million in the prior year period. Non-GAAP EPS for the quarter was $7.33 versus $5.79 in the prior year period. Free cash flow was $165.4 million for the current quarter versus $186.8 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.

First Quarter Fiscal 2026 GAAP Revenue

The company reported revenues of $512.0 million for the quarter as compared to $440.0 million reported in the prior year period, an increase of 16%.

"We had a good start to our fiscal year, with strong top and bottom-line growth," said Will Lansing, chief executive officer. "We reiterate our fiscal year 2026 guidance, which yields stronger growth than we achieved in FY25."

Revenues for the first 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 $304.5 million in the first quarter, compared to $235.7 million in the prior year period, an increase of 29%. B2B revenue increased 36%, 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 2% year-over-year with $207.5 million in the first quarter, compared to $204.3 million in the prior year period. Software Annual Recurring Revenue on December 31, 2025, was up 5% year-over-year, consisting of a 33% increase in platform ARR and an 8% decline in non-platform ARR. The total Software Dollar-Based Net Retention Rate was 103% on December 31, 2025, with platform software at 122% and non-platform software at 91%.

Outlook

We reiterate the following guidance for fiscal 2026:

	Fiscal 2026 Guidance
Revenues	$2.35 billion
GAAP Net Income	$795 million
GAAP EPS	$33.47
Non-GAAP Net Income	$907 million
Non-GAAP EPS	$38.17

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 January 28, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its first 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 January 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.

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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)

	December 31, 2025			September 30, 2025
	(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	162,034		$	134,136
Accounts receivable, net		495,117			529,148
Prepaid expenses and other current assets		41,656			41,881
Total current assets		698,807			705,165
Marketable securities		55,866			54,625
Property and equipment, net		73,711			67,713
Operating lease right-of-use assets		24,725			26,213
Goodwill		783,520			783,340
Other assets		217,531			231,077
Total assets	$	1,854,160		$	1,868,133
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable and other accrued liabilities	$	102,141		$	146,933
Accrued compensation and employee benefits		76,809			115,369
Deferred revenue		173,371			187,372
Current maturities on debt		399,738			399,541
Total current liabilities		752,059			849,215
Long-term debt		2,797,091			2,656,150
Operating lease liabilities		17,895			19,187
Other liabilities		95,249			89,365
Total liabilities		3,662,294			3,613,917

Stockholders' deficit		(1,808,134	)		(1,745,784	)
Total liabilities and stockholders' deficit	$	1,854,160		$	1,868,133

FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Quarter Ended December 31,
		2025			2024
	(In thousands, except per share data)
Revenues:
On-premises and SaaS software	$	188,221		$	186,011
Professional services		19,204			18,282
Scores		304,534			235,675
Total revenues		511,959			439,968
Operating expenses:
Cost of revenues		87,261			87,345
Research and development		49,912			45,145
Selling, general and administrative		140,737			127,950
Total operating expenses		277,910			260,440
Operating income		234,049			179,528
Other expense, net		(42,118	)		(29,399	)
Income before income taxes		191,931			150,129
Income tax provision (benefit)		33,558			(2,399	)
Net income	$	158,373		$	152,528
Earnings per share:
Basic	$	6.68		$	6.26
Diluted	$	6.61		$	6.14
Shares used in computing earnings per share:
Basic		23,723			24,378
Diluted		23,958			24,827

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

	Quarter Ended December 31,
		2025			2024
	(In thousands)
Cash flows from operating activities:
Net income	$	158,373		$	152,528
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,017			3,535
Share-based compensation		44,269			40,654
Changes in operating assets and liabilities		(45,135	)		(1,235	)
Other, net		12,558			(1,485	)
Net cash provided by operating activities		174,082			193,997
Cash flows from investing activities:
Purchases of property and equipment		(226	)		(841	)
Capitalized internal-use software costs		(8,480	)		(6,330	)
Net activity from marketable securities		(4,028	)		(1,771	)
Net cash used in investing activities		(12,734	)		(8,942	)
Cash flows from financing activities:
Proceeds from revolving line of credit and term loans		260,000			275,000
Payments on revolving line of credit and term loans		(120,000	)		(63,750	)
Proceeds from issuance of treasury stock under employee stock plans		2,132			3,261
Taxes paid related to net share settlement of equity awards		(104,379	)		(196,126	)
Repurchases of common stock		(171,169	)		(162,581	)
Other, net		(66	)		(22	)
Net cash used in financing activities		(133,482	)		(144,218	)
Effect of exchange rate changes on cash		32			(7,250	)
Increase in cash and cash equivalents		27,898			33,587
Cash and cash equivalents, beginning of period		134,136			150,667
Cash and cash equivalents, end of period	$	162,034		$	184,254

FAIR ISAAC CORPORATION NON-GAAP RESULTS (Unaudited)

	Quarter Ended December 31,
		2025			2024
	(In thousands, except per share data)
GAAP net income	$	158,373		$	152,528
Share-based compensation expense		44,269			40,654
Income tax adjustments		(11,375	)		(9,863	)
Excess tax benefit		(15,657	)		(39,530	)
Non-GAAP net income	$	175,610		$	143,789

GAAP diluted earnings per share	$	6.61		$	6.14
Share-based compensation expense		1.85			1.64
Income tax adjustments		(0.47	)		(0.40	)
Excess tax benefit		(0.65	)		(1.59	)
Non-GAAP diluted earnings per share	$	7.33		$	5.79

Free cash flow
Net cash provided by operating activities	$	174,082		$	193,997
Capital expenditures		(8,706	)		(7,171	)
Free cash flow	$	165,376		$	186,826
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)

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

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

GAAP diluted earnings per share	$	33.47
Share-based compensation expense		6.99
Income tax adjustments		(1.75	)
Excess tax benefit		(0.55	)
Non-GAAP diluted earnings per share	$	38.17
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/20260128991109/en/

Investors/Analysts:

Dave Singleton

Fair Isaac Corporation

(800) 459-7125

investor@fico.com