10-K · November 6, 2024
FICO’s 10-K describes a strong, entrenched franchise built on the FICO® Score and analytics software with a strategic push to migrate products onto FICO® Platform. The filing reports ARR from FICO® Platform based…
Earnings analysis · 10-Q
FICO earnings analysis
Filed April 28, 2026 · Our reading of the company's report
The latest report
FICO reported Q2 revenue of $691.7M, up 39% year-over-year, driven by a 60% YoY surge in Scores revenue to $475.0M and 7% growth in Software to $216.7M. Operating income rose to $402.5M (64% YoY) and GAAP diluted EPS…
Read full summary
FICO reported Q2 revenue of $691.7M, up 39% year-over-year, driven by a 60% YoY surge in Scores revenue to $475.0M and 7% growth in Software to $216.7M. Operating income rose to $402.5M (64% YoY) and GAAP diluted EPS was $11.14 (69% YoY). Cash from operations for the six months was $397.4M, cash and cash equivalents increased to $219.4M, but total debt rose to $3.6B as of March 31, 2026.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $11.14
What stood out
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Strong top-line beat and YoY growth
Total revenues were $691.7 million during the quarter, a 39% increase versus the quarter ended March 31, 2025 (revenue increase of $192.9 million).
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Scores segment surge
Scores revenue was $474.973 million for the quarter, up $177.934 million or 60% versus $297.039 million in the prior-year quarter.
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Software ARR and retention improvement
Software ARR was $788.8 million as of March 31, 2026 (a 10% increase YoY) and Software dollar-based net retention rate was 109% as of March 31, 2026.
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Operating leverage
Operating income rose to $402.465 million (58% of revenues) for the quarter, a 64% increase versus $245.648 million in the prior-year quarter.
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EPS acceleration
Diluted GAAP EPS was $11.14 for the quarter, a 69% increase versus the quarter ended March 31, 2025.
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Strong operating cash flow (YTD)
Cash flows from operating activities were $397.4 million during the six months ended March 31, 2026, versus $268.9 million in the six months ended March 31, 2025.
What to watch
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Elevated leverage
Total debt balance was $3.6 billion as of March 31, 2026, up from $3.1 billion as of September 30, 2025.
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Higher interest expense
Interest expense, net increased to $44.579 million for the quarter (up $13.201 million or 42% versus $31.378 million in the prior-year quarter).
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Large share repurchases consuming cash
Total share repurchases during the quarter were $611.3 million and $773.9 million during the six months ended March 31, 2026, reducing liquidity.
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Concentration of revenue mix shift
Scores represented 69% of revenues for the quarter ($474.973 million), up from 60% in the prior-year quarter, increasing reliance on Scores revenue performance.
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Ongoing litigation exposure
Antitrust litigation remains pending: claims were largely dismissed but a Sherman Act Section 2 claim and accompanying state law claims against FICO were allowed to proceed through discovery (no monetary amount disclosed).
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No material risk-factor updates
Item 1A states 'There have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K.'
Management's outlook
The Form 10-Q MD&A contains forward-looking statement language but does not provide numeric FY guidance. (See the company's contemporaneous 8-K/earnings release for updated FY2026 guidance: revenues $2.45B and GAAP diluted EPS $35.60.)
Earlier filings 4
10-Q · August 2, 2023
FICO reported quarter revenues of $398,688 (amounts per filing) with strong year-over-year growth, margin expansion and higher EPS. Revenue growth was broad-based across Software (including professional services) and…
10-Q · April 27, 2023
FICO reported quarterly revenue of $380,266,000 for the quarter ended March 31, 2023, up from $357,195,000 a year earlier, driven by Scores and Software growth. Operating income increased to $159,761,000 but net income…
10-Q · May 5, 2021
FICO delivered a stronger quarter: revenue rose to $331,361,000 (Q) vs $307,971,000 a year ago and diluted EPS improved to $2.33 from $1.94. Gross profit and operating income expanded (cost of revenues steady at…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.