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1. Company Snapshot

1.a. Company Description

Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.It operates through two segments, Scores and Software.The Software segment offers pre-configured decision management solution designed for various business problems or processes, such as marketing, account origination, customer management, customer engagement, fraud detection, financial crimes compliance, collection, and marketing, as well as associated professional services.


This segment also provides FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases.The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to analytics to be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings.Fair Isaac Corporation markets its products and services primarily through its direct sales organization and indirect channels, as well as online.


The company was formerly known as Fair Isaac & Company, Inc.and changed its name to Fair Isaac Corporation in July 1992.Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.

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1.b. Last Insights on FICO

Fair Isaac Corporation's recent performance was driven by strong Q4 2025 earnings, with revenue up 14% year-over-year to $516 million and EPS of $6.42, beating estimates. The company's Scores segment grew 25% year-over-year, driven by mortgage B2B revenue up 52% year-over-year. FICO's transition to the FICO Platform and advancements in AI are powering growth. The company's direct licensing model and minimal CapEx support robust EPS growth. Institutional investors, such as Ascent Wealth Partners LLC and Clear Harbor Asset Management LLC, have recently acquired positions in the company.

1.c. Company Highlights

2. FICO's Q1 Earnings: A Strong Start to the Year

FICO reported Q1 revenues of $512 million, up 16% over the prior year, with GAAP net income of $158 million, up 4%, and GAAP earnings of $6.61 per share, up 8%. Non-GAAP net income was $176 million, up 22%, and non-GAAP earnings were $7.33 per share, up 27%. The company's Scores segment revenues were $305 million, up 29% versus the prior year, driven by B2B Scores and continued growth in B2C Scores. The Software segment delivered $207 million in Q1 revenues, up 2% over the prior year.

Publication Date: Feb -02

📋 Highlights
  • Q1 Revenue Growth: Revenues reached $512M (+16% YoY), with non-GAAP EPS at $7.33 (+27% YoY).
  • Strong Scores Segment Performance: Scores revenue hit $305M (+29% YoY), driven by B2B and B2C growth, including 4 new resellers and a MeridianLink DLP.
  • Software Segment Momentum: Generated $207M revenue (+2% YoY), with 37% platform revenue growth and successful launches of FICO Marketplace and Enterprise Fraud Solution.
  • FICO 10T Adoption: Over 500 lenders in the Adopter Program, $377B in annual originations, and partnerships like Plaid for UltraFICO Score expansion.
  • Uncertain Timelines: FICO 10T Direct Licensing likely H1 2026, but LLPA grid alignment and macroeconomic factors may delay broader adoption.

Segment Performance

The Scores business had another strong quarter, with the FICO Mortgage Direct Licensing Program adding 4 new strategic reseller participants. The company's software business is seeing growth in bookings and ARR, reflecting the value of its innovation in the market. FICO achieved general availability of FICO Marketplace and FICO Focused Foundation Model since FICO World 2025.

Guidance and Outlook

FICO maintained its guidance, but management is confident that they will beat it. The company will revisit its guidance on the Q2 earnings call. As Steven Weber noted, "We're only 3 months in, and there are a lot of questions in the macro environment." The actual EPS of $7.33 beat estimates of $7.08, indicating a strong start to the year.

Valuation

With a P/E Ratio of 53.66 and an EV/EBITDA of 39.58, FICO's valuation appears to be premium. Analysts estimate next year's revenue growth at 17.6%, which may justify some of the premium. However, the ROE of -48.24% and Net Debt / EBITDA of 3.09 raise some concerns. The company's ROIC of 52.96% is a positive note.

Growth Prospects

FICO's investments in go-to-market across the board, both in software and Scores, are expected to drive growth. The company's software business is seeing a trend of bigger deals and more momentum, with FY '26 ACV bookings expected to be significantly higher than FY '25. As William Lansing noted, "We're seeing a lot of innovation on new use cases."

3. NewsRoom

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FICO Educational Analytics Challenge Program Continues its Third Year, Empowering Students with Hands-On Experience Building Responsible AI Models

Feb -02

Source: businesswire.com

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National Pension Service Buys 2,113 Shares of Fair Isaac Corporation $FICO

Feb -02

Source: defenseworld.net

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Mirae Asset Global Investments Co. Ltd. Lowers Stake in Fair Isaac Corporation $FICO

Feb -02

Source: defenseworld.net

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Yacktman Asset Management LP Makes New $3.79 Million Investment in Fair Isaac Corporation $FICO

Feb -02

Source: defenseworld.net

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FICO Recognized in the 2026 Gartner® Critical Capabilities Report for Decision Intelligence Platforms

Jan -30

Source: businesswire.com

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Fair Isaac Q1 Earnings Call Highlights

Jan -30

Source: defenseworld.net

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FICO UK Credit Card Market Report: November 2025

Jan -30

Source: businesswire.com

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Fair Isaac Q1 Earnings Top Estimates, Strong Scores Drive Up Sales Y/Y

Jan -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.85%)

6. Segments

Scores

Expected Growth: 10.2%

Growing demand for credit scores drives Fair Isaac Corporation's growth, fueled by increasing adoption in emerging markets, rising regulatory requirements, and the need for efficient risk assessment.

Software

Expected Growth: 7.3%

Increasing demand for fraud and risk management solutions, coupled with the adoption of advanced analytics and decision management platforms, drives growth in Fair Isaac Corporation's software solutions for financial services and other industries.

7. Detailed Products

FICO Score

A three-digit credit score that summarizes an individual's credit history and creditworthiness

Decision Management Suite

A platform that enables organizations to automate and optimize decision-making processes

Falcon Fraud Manager

A fraud detection and prevention solution that identifies and prevents fraudulent transactions

FICO Origination Manager

A solution that streamlines and automates the loan origination process

FICO Customer Communication Services

A solution that enables personalized customer communication and engagement

FICO Analytic Modeler

A predictive analytics and modeling solution that enables organizations to build and deploy models

FICO Decision Central

A cloud-based decision management platform that enables organizations to make data-driven decisions

8. Fair Isaac Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Fair Isaac Corporation's credit scoring models are highly specialized and difficult to replicate, reducing the threat of substitutes.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative credit scoring models, Fair Isaac Corporation's strong brand recognition and market presence mitigate this power.

Bargaining Power Of Suppliers

Fair Isaac Corporation has a diverse supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

The high barriers to entry in the credit scoring market, including the need for significant investment in data and analytics, reduce the threat of new entrants.

Intensity Of Rivalry

While there is some rivalry in the credit scoring market, Fair Isaac Corporation's strong market position and brand recognition help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 157.45%
Debt Cost 6.53%
Equity Weight -57.45%
Equity Cost 10.13%
WACC 4.47%
Leverage -274.07%

11. Quality Control: Fair Isaac Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Intuit

A-Score: 5.6/10

Value: 1.0

Growth: 8.1

Quality: 8.6

Yield: 1.0

Momentum: 7.0

Volatility: 8.0

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Salesforce

A-Score: 5.0/10

Value: 2.3

Growth: 8.9

Quality: 8.3

Yield: 1.0

Momentum: 2.5

Volatility: 7.0

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AppLovin

A-Score: 4.8/10

Value: 0.0

Growth: 9.7

Quality: 8.4

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

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Cadence Design Systems

A-Score: 4.6/10

Value: 0.0

Growth: 7.2

Quality: 8.5

Yield: 0.0

Momentum: 6.0

Volatility: 6.0

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ServiceNow

A-Score: 4.4/10

Value: 0.3

Growth: 9.0

Quality: 7.8

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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FICO

A-Score: 4.2/10

Value: 2.0

Growth: 8.3

Quality: 7.4

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1450.91$

Current Price

1450.91$

Potential

-0.00%

Expected Cash-Flows