Q2 2025 Fair Isaac Corp Earnings Call Transcript
Key Points
- Fair Isaac Corp (FICO) reported a strong quarter with revenues of $499 million, up 15% from the previous year.
- GAAP net income increased by 25% to $163 million, and GAAP earnings per share rose by 28% to $6.59.
- The Scores segment saw a significant revenue increase of 25%, driven by a 31% rise in B2B revenues, particularly from mortgage originations.
- FICO continues to innovate with the introduction of the FICO Score 10 T and a Kenya-specific FICO score, enhancing financial inclusion.
- The company is expanding its partner channels, including a new partnership with Fujitsu to support digital transformation in Japanese financial institutions.
- The Software segment only saw a modest revenue increase of 2%, with professional services declining by 9%.
- There are macroeconomic uncertainties affecting customer conservatism, impacting growth in usage of certain services.
- Non-platform ARR declined by 3%, indicating challenges in maintaining growth in non-platform services.
- The company faces headwinds in CCS usage as some customers delay or downsize outreach programs due to macro volatility.
- Operating expenses are expected to rise in the second half of the year due to events like the FICO World Conference and other marketing activities.
Good day and thank you for standing by. Welcome to the second-quarter 2025 FICO earnings conference call. (Operator Instructions) Please be advised today's conference is being recorded.
I would now like to hand the conference over to your speaker today. Dave Singleton, please go ahead.
Good afternoon, and thank you for attending FICO's second-quarter earnings call. I'm Dave Singleton, Vice President of Investor Relations, and I'm joined today by our CEO, Will Lansing; and our CFO, Steve Weber.
Today, we issued a press release that describes financial results compared to the prior year. On this call, management will also discuss results in comparison with the prior quarter to facilitate an understanding of the run rate of the business.
Certain statements made in this presentation are forward looking under the Private Securities Litigation Reform Act of 1995. Those statements involve many risks and uncertainties that could cause actual results to differ materially.
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