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Fair Isaac Corporation (FICO) is a leading applied analytics company that specializes in providing software and scoring solutions to enhance business decision-making processes. The company operates through two primary segments: Scores and Software, offering a range of products that cater to both business-to-business (B2B) and business-to-consumer (B2C) markets . FICO's solutions are widely utilized in industries such as financial services, insurance, telecommunications, and retail, and the company has a global presence in over 100 countries .
- Scores - Offers scoring solutions that are integral to credit decision-making processes.
- B2B Scoring Solutions - Widely used by banks and financial institutions for credit decisions.
- B2C Scoring Solutions - Includes consumer-focused offerings like myFICO.com subscriptions.
- Software - Provides pre-configured analytic and decision management solutions for various business needs, including account origination, customer management, fraud detection, and marketing.
- Non-Platform Software - Encompasses a range of decision management solutions tailored to specific business needs.
- FICO® Platform - A modular software offering that supports advanced analytics and decision use cases.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
William J. Lansing ExecutiveBoard | Chief Executive Officer, Director | None | CEO since 2012, joined FICO's Board in 2006. Extensive leadership experience in technology and e-commerce. | View Report → |
James M. Wehmann Executive | Executive Vice President, Scores | None | EVP of Scores since 2012. Drives innovation and growth in FICO's Scores segment. | |
Mark R. Scadina Executive | Executive Vice President, General Counsel, Corporate Secretary | None | General Counsel since 2009. Oversees legal, compliance, and corporate governance matters. | |
Michael S. Leonard Executive | Vice President, Chief Accounting Officer | None | CAO since 2011. Oversees accounting operations, ensuring compliance and financial integrity. | |
Nikhil Behl Executive | Executive Vice President, Software | None | EVP of Software since July 2024. Former Chief Marketing Officer, driving FICO's brand and platform growth. | |
Richard S. Deal Executive | Executive Vice President, Chief Human Resources Officer | None | CHRO since 2015. Leads FICO's "people first" strategy, achieving high engagement and low turnover. | |
Steven P. Weber Executive | Executive Vice President, Chief Financial Officer | None | CFO since May 2023. Nearly 20 years at FICO, previously VP of Investor Relations, Tax, and Treasury. | |
Thomas A. Bowers Executive | Executive Vice President, Corporate Strategy | None | EVP of Corporate Strategy since August 2020. Former McKinsey Senior Partner and EVP at American Savings Bank. | |
Braden R. Kelly Board | Chairman of the Board | Partner at Health Evolution Partners | Director since 2013, Chairman since 2016. Provides expertise in strategic M&A and healthcare investments. | |
David A. Rey Board | Director | None | Director since 2011. Former EVP at UnitedHealth Group and partner at Accenture. | |
Eva Manolis Board | Director | Director at iRobot Corporation | Director since 2018. Former VP at Amazon, with expertise in consumer-facing technology and corporate governance. | |
Fabiola R. Arredondo Board | Director | Director at Campbell Soup Company, Burberry PLC, and FINRA Board of Governors | Director since 2020. Investment and strategy expert with leadership experience at Yahoo and BBC. | |
H. Tayloe Stansbury Board | Director | CEO at Kaleidescape, Inc.; Director at Watermark Insights, LLC | Director since 2023. Former CTO at Intuit and CIO at VMware, with expertise in technology leadership. | |
Joanna Rees Board | Director | Executive Chairman at West Global | Director since 2015. Venture capital leader with expertise in marketing and brand strategy. | |
Marc F. McMorris Board | Director | Co-CEO at Carrick Capital Partners | Director since 2015. Private equity expert with a focus on technology and SaaS. |
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You mentioned that there was a few million dollars of additional one-time revenue in the Scores revenue this quarter that isn't necessarily in your run rate; can you clarify the nature of these one-time items and how they might affect future revenue expectations?
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Despite significant investment in your software platform and expectations of margin improvement through scalability, with high R&D spending likely to continue, when can we expect to see meaningful margin expansion in the software segment, and what specific milestones will indicate progress?
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With your aggressive share repurchase program continuing even as the stock reaches all-time highs and a PE ratio north of 100, how do you justify this capital allocation strategy over other uses such as strategic investments or dividends?
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Regarding your partnership with TCS, could you provide more details on how you are managing IP sharing and potential risks, especially as they develop proprietary solutions based on your decisioning IP in verticals where you don't currently participate?
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Given the macroeconomic uncertainty and higher interest rates potentially affecting mortgage volumes, how confident are you in implementing planned price increases for mortgage scores in 2025 without impacting demand, and what are your strategies to mitigate potential pushback from customers?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
VantageScore | A joint venture entity established by the three major U.S. consumer reporting agencies, which is selling a credit scoring product competitive with our products. |
CRIF Ratings | Operates in the European Union and is a competitor in the Scores segment. |
LexisNexis | A data provider that competes in the Scores segment. |
ChoicePoint | A data provider that competes in the Scores segment. |
Credit Karma | Competes with offerings that deliver credit scores, credit reports, and consumer credit education solutions directly to consumers. |
Credit Sesame | Competes with offerings that deliver credit scores, credit reports, and consumer credit education solutions directly to consumers. |
Experian | Competes in multiple markets including fraud, customer origination, customer management, and marketing services. |
Competes with offerings that deliver credit scores, credit reports, and consumer credit education solutions directly to consumers. | |
Competes in the customer origination and marketing services markets. | |
Nice Actimize | Competes in the fraud market for banking. |
Competes in the fraud market for banking, marketing services, and decision platform markets. | |
BAE Systems Applied Intelligence | Competes in the fraud market for banking. |
SAS | Competes in the fraud market for banking, customer management, marketing services, and decision platform markets. |
Competes in the fraud market for banking. | |
Competes in the fraud market for banking and decision platform markets. | |
Feedzai | Competes in the fraud market for banking. |
Featurespace | Competes in the fraud market for banking. |
Competes in the customer origination market. | |
Competes in the customer origination market. | |
Competes in the customer origination market. | |
Competes in the marketing services market. | |
Competes in the marketing services market. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Experian | Distributes FICO® credit scores | All | Contributed >10% of total revenues in fiscal 2024. Part of the 45% collectively from the three agencies in fiscal 2024. |
TransUnion | Distributes FICO® credit scores | All | Contributed >10% of total revenues in fiscal 2024. Part of the 45% collectively from the three agencies in fiscal 2024. |
Equifax | Distributes FICO® credit scores | All | Contributed >10% of total revenues in fiscal 2024. Part of the 45% collectively from the three agencies in fiscal 2024. |
Recent press releases and 8-K filings for FICO.
- Fair Isaac Corporation announced its intent to offer $1.5 billion in senior notes due 2033, aimed at repaying existing debt and general corporate purposes.
- The offering will be conducted as a private placement, targeting qualified institutional buyers under regulatory exemptions.
- Total revenue reached $499 million, up 15% YoY, with GAAP net income of $163 million and GAAP EPS of $6.59, reflecting strong profitability.
- The Scores segment delivered $297 million in revenue with B2B revenues up 31% and marked increases in mortgage origination revenues (up 48% YoY).
- The company generated $65 million in free cash flow for Q2 and achieved $677 million in free cash flow over the last 4 quarters, while repurchasing 112,000 shares as part of its capital return strategy.
- In its Software segment, revenue modestly increased to $202 million (up 2% YoY), with total ARR of $715 million and strong platform performance, despite a challenging CCS environment.