Q4 2025 Fair Isaac Corp Earnings Call Transcript
Key Points
- Fair Isaac Corp (FICO) reported Q4 revenues of $516 million, up 14% over the previous year, and full fiscal year revenues of $1.991 billion, up 16% year-over-year.
- The Scores segment saw a significant increase, with Q4 revenues of $312 million, up 25% from the prior year, driven by B2B scores.
- FICO's latest innovation, the FICO Score 10T, is the most predictive and inclusive credit scoring model on the market, showing significant improvements in predictive accuracy.
- The company announced the FICO Mortgage Direct License Program, which aims to drive competition, transparency, and cost savings in the mortgage market.
- Fair Isaac Corp (FICO) achieved record annual free cash flow and reported a 22% increase in free cash flow over the last four quarters.
- The Software segment's performance was flat year-over-year, with a 7% decline in non-platform revenue due to the end-of-life legacy products.
- Sequential revenue was down due to lower point-in-time revenues from scores and software licenses, as well as seasonality and lower professional services revenues.
- The company faces uncertainties in the macroeconomic environment, which could impact future performance and guidance.
- There is a potential time lag in revenue recognition from the performance-based pricing model in the FICO Mortgage Direct License Program.
- Fair Isaac Corp (FICO) is being conservative in its FY26 guidance due to uncertainties in market conditions and the timing of new initiatives.
Good day, and thank you for standing by. Welcome to the fourth-quarter 2025 FICO earnings conference Call. (Operator Instructions)
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 fourth-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. Information concerning these risks and uncertainties
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