FICO earnings analysis
What we found in FICO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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).
- 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.
- 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.
- 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.
- EPS acceleration
- Diluted GAAP EPS was $11.14 for the quarter, a 69% increase versus the quarter ended March 31, 2025.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Elevated leverage
- Total debt balance was $3.6 billion as of March 31, 2026, up from $3.1 billion as of September 30, 2025.
- 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).
- 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.
- 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.
- 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).
- 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.'
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $11.14
- Gross margin
- 87.0%
- Operating margin
- 58.0%
- Segment
- Scores: $474,973,000 (69% of revenues for the quarter; +$177,934,000, 60% YoY vs $297,039,000)
- Segment
- Software: $216,704,000 (31% of revenues for the quarter; +$15,008,000, 7% YoY vs $201,696,000)
What they said about what is next.
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.)
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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