Fair Isaac Corporation (FICO) reported a strong financial performance for the quarter ended December 31, 2025, with total revenues reaching $511.96 million, a 16% increase from $439.97 million in the same quarter of the previous year. The company's net income also saw a modest rise, amounting to $158.37 million, up 4% from $152.53 million year-over-year. Operating income increased significantly by 30% to $234.05 million, reflecting improved operational efficiency and revenue growth across its segments.
The Scores segment was a key driver of this growth, generating $304.53 million in revenue, a 29% increase compared to $235.68 million in the prior year. This surge was primarily attributed to higher business-to-business scores revenue, which benefited from increased unit pricing and a rise in mortgage originations. The Software segment, while growing at a slower pace, contributed $207.43 million, up 2% from $204.29 million, with notable growth in professional services and SaaS offerings.
FICO's operational metrics also indicated positive trends, with an Annual Recurring Revenue (ARR) for the Software segment reaching $766 million, a 5% increase from the previous year. The company reported a Dollar-Based Net Retention Rate of 103%, indicating strong customer retention and expansion. The total employee headcount rose to 3,762, reflecting a 4% increase from the previous year, which aligns with the company's growth strategy and investment in talent.
In terms of strategic developments, FICO continued to focus on enhancing its product offerings and expanding its market presence. The company reported a total debt of $3.20 billion as of December 31, 2025, up from $3.06 billion at the end of the previous quarter, primarily due to ongoing investments and share repurchase activities. FICO repurchased $162.7 million of its common stock during the quarter, demonstrating its commitment to returning value to shareholders.
Looking ahead, FICO expressed confidence in its financial outlook, supported by its cash and cash equivalents of $162 million and available borrowings from a $1 billion revolving line of credit. The company anticipates that its current financial position will be sufficient to meet its working capital needs and support future growth initiatives. FICO's management remains focused on leveraging its analytics capabilities to drive business decisions and enhance customer engagement across its diverse client base.
About FAIR ISAAC CORP
Fair Isaac Corporation (FICO) is a global analytics company specializing in credit scoring, decision management, and predictive analytics. Its core products include the FICO Score, widely used in U.S. credit decisions, and software solutions for fraud detection, customer engagement, and risk management. Serving financial institutions, insurers, retailers, and government agencies worldwide, FICO enables data-driven decisions to improve business outcomes and financial literacy.
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