Fair Isaac Corporation Reports 20% Revenue Growth to $536.4 Million for Quarter Ended June 30, 2025

Fair Isaac Corporation (FICO) reported strong financial results for the quarter and nine months ended June 30, 2025, with total revenues reaching $536.4 million, a 20% increase compared to $447.8 million in the same quarter of the previous year. For the nine-month period, revenues rose 17% to $1.475 billion from $1.264 billion. The company's net income for the quarter was $181.8 million, reflecting a 44% increase from $126.3 million year-over-year, while net income for the nine months was $496.9 million, up 32% from $377.1 million. Diluted earnings per share (EPS) also saw significant growth, increasing to $7.40 for the quarter and $20.12 for the nine months, representing increases of 47% and 34%, respectively.

The Scores segment was a key driver of this growth, with revenues increasing by 34% to $324.3 million in the quarter and by 28% to $857.0 million for the nine months. This growth was attributed to higher unit prices and increased volume in business-to-business scoring solutions, particularly in mortgage originations and a multi-year license renewal in the U.S. The Software segment also contributed, with revenues rising 3% to $212.1 million in the quarter and 4% to $618.1 million for the nine months, primarily due to growth in SaaS offerings.

FICO's operational metrics showed positive trends, with Annual Recurring Revenue (ARR) for the Software segment increasing by 4% to $739.1 million as of June 30, 2025. The company reported a Dollar-Based Net Retention Rate of 103%, indicating strong customer retention and expansion. The total employee headcount rose to 3,855, up from 3,588 a year earlier, reflecting the company's growth and investment in talent.

Strategically, FICO issued $1.5 billion in senior notes in May 2025, using the proceeds to repay existing term loans and revolving credit. The company also amended its credit agreement to increase its borrowing capacity under the unsecured revolving line of credit to $1.0 billion, extending its maturity to May 2030. Total debt stood at $2.8 billion as of June 30, 2025, compared to $2.2 billion at the end of the previous fiscal year. The company repurchased $511.3 million of its common stock during the quarter, part of an ongoing stock repurchase program.

Looking ahead, FICO expects its cash and cash equivalents, along with available borrowings and anticipated cash flows from operations, to be sufficient to meet its working capital needs for at least the next 12 months. The company remains focused on evaluating potential acquisitions and strategic investments to further enhance its growth trajectory.