Fair Isaac Corporation Reports 15% Revenue Growth and Strong Net Income for Quarter Ended March 31, 2025

Fair Isaac Corporation (FICO) reported strong financial results for the quarter and six months ended March 31, 2025, with total revenues reaching $498.7 million, a 15% increase compared to $433.8 million in the same period last year. For the six-month period, revenues totaled $938.7 million, also reflecting a 15% growth from $815.9 million in the prior year. The company's net income for the quarter was $162.6 million, up 25% from $129.8 million a year earlier, while net income for the six months was $315.1 million, a 26% increase from $250.9 million. Diluted earnings per share rose to $6.59 for the quarter and $12.73 for the six months, marking increases of 28% in both cases.

The Scores segment was a significant driver of growth, with revenues increasing by 25% to $297.0 million in the quarter and by 24% to $532.7 million for the six months. This growth was attributed to higher unit prices and increased volume in business-to-business scoring solutions. The Software segment saw a more modest revenue increase of 2% to $201.7 million for the quarter and 5% to $406.0 million for the six months, primarily due to a rise in on-premises and SaaS software revenue, which was partially offset by a decline in professional services revenue.

Operationally, FICO reported a 5% increase in employee headcount, bringing the total to 3,718 as of March 31, 2025. The company also noted a Dollar-Based Net Retention Rate of 102% for its Software segment, indicating stable customer retention and growth in existing accounts. Annual Recurring Revenue for the Software segment was reported at $714.6 million, a 3% increase year-over-year. The company continues to focus on expanding its market presence, particularly in the analytics software sector, which serves a diverse range of industries including banking, insurance, and telecommunications.

FICO's cash flow from operating activities improved significantly, totaling $268.9 million for the six months ended March 31, 2025, compared to $193.2 million in the prior year. The company ended the period with $146.6 million in cash and cash equivalents, down slightly from $150.7 million at the end of September 2024. Total debt increased to $2.5 billion, up from $2.2 billion, reflecting ongoing investments and share repurchase activities. FICO repurchased $207.0 million of its common stock during the quarter, part of a broader $1.0 billion stock repurchase program initiated in July 2024.

Looking ahead, FICO remains optimistic about its growth trajectory, supported by strong demand for its analytics solutions and a solid financial position. The company anticipates that its cash reserves, combined with available credit facilities and operating cash flows, will be sufficient to meet its capital requirements for the foreseeable future. FICO continues to evaluate potential acquisitions and strategic partnerships to enhance its product offerings and market reach.