Fair Isaac Stock Earnings Reports

FICO reported a very strong Q2: revenue $692M (+39% YoY), GAAP net income $264M (+63%) and non-GAAP EPS $12.50 (+60% YoY). Management raised FY26 guidance (revenue to $2.45B; GAAP EPS $35.60; non-GAAP EPS $40.45) after strong H1 results. Scores remain the primary growth engine: Scores revenue was $475M (+60% YoY), driven by higher B2B/mortgage pricing and volumes (mortgage originations revenue +127% YoY and accounted for ~63% of Scores revenue). Software revenue was $217M (+7% YoY) with platform revenue up ~54% YoY; platform ARR reached $349M (44% of total ARR) and platform NRR was 136% (company dollar-based NRR 109%). Free cash flow was $214M for the quarter and $867M over the last four quarters. FICO executed its largest-ever quarterly buyback ($605M, 484k shares) and continues opportunistic repurchases under a $1.5B authorization. Balance sheet: cash & equivalents ~$272M and total debt $3.64B (W.A. rate 5.5%).

Key strategic items: FICO announced a lower FICO Score 10T performance pricing option ($0.99 per score + $65 funding fee) to promote broad adoption, especially in mortgages; the direct licensing program is close to go-live but awaits FHFA/reseller approvals and GSE timing for historical data release. Management emphasized FICO’s positioning on AI: long-standing investment, patents (137 AI-related), and a platform built for explainability, governance, and regulated use-cases—arguing that regulatory and explainability requirements limit black-box AI in underwriting. Management expects no material share loss to VantageScore in FY26 and is conservatively modeling score volumes in guidance. Operating margin expanded materially (non-GAAP operating margin 65%), and operating expenses are expected to trend modestly up into H2 due to personnel and marketing (including FICO World).