Fair Isaac Stock Earnings Reports

FICO reported a strong Q1 FY2026: total revenue $512M (+16% YoY), GAAP EPS $6.61 (+8% YoY) and non-GAAP EPS $7.33 (+27% YoY). Free cash flow was $165M for the quarter and $718M over the last 4 quarters (+7% YoY). Scores revenue was the primary driver at $305M (+29% YoY), led by higher B2B mortgage pricing and volumes; mortgage originations accounted for a large share of growth. Software revenue was $207M (+2% YoY) with platform ARR of $303M (+33% YoY) and total software ARR $766M (+5% YoY). ACV bookings were a record $38M in the quarter (T12M ACV $119M, +36% YoY), supporting management’s view that ARR growth will accelerate in FY26. Management reiterated FY26 guidance but described it as conservative given macro and rate uncertainty. Key product/market developments: FICO Mortgage Direct Licensing Program now has 5 resellers onboard (major reseller coverage estimated at ~70–80% of the reseller market) and multiple participants are in late-stage testing; FICO Score 10T is positioned as materially more predictive and fair, with Direct License availability planned for 10T in H1 CY2026 (timing for industry approvals remains uncertain); strategic partnership with Plaid to launch an enhanced UltraFICO Score (cash-flow enabled) in H1 CY2026; FICO recognized as a Leader in the 2026 Gartner Magic Quadrant for Decision Intelligence Platforms. Capital allocation: $163M of buybacks in Q1 (95k shares at ~$1,707/share); cash and marketable securities $218M; total debt $3.2B (W.A. interest 5.22%). Management reiterated commitment to buybacks and continued modest operating expense growth as they invest in go‑to‑market and platform expansion. Risks/uncertainties highlighted: timing and approval of 10T and any LLPA/grid changes, macro/mortgage volume sensitivity, bureau/regulatory dynamics, and transition from non‑platform to platform ARR.