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.
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| 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?
Research analysts who have asked questions during FAIR ISAAC earnings calls.
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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 (FICO) introduced the Mortgage Direct License Program, enabling tri-merge resellers to calculate and distribute FICO Scores without credit bureaus, aiming to reduce per-score fees by up to 50%.
- Under the new performance pricing model, lenders pay $4.95 per score plus a $33 funded loan fee upon loan closure; alternatively, the per-score-only model remains at $10 per score.
- The program aligns with calls to modernize U.S. mortgage credit infrastructure, promoting affordability, liquidity, and access across the $12 trillion mortgage market.
- FICO remains the only independent analytics provider, with its score used by 90% of top U.S. lenders to drive consistent, fair credit decisions.
- Average active balance climbed to £1,895, up 5.1% YoY, while average spending fell to £800, down 1.6% YoY.
- Percentage of balance paid dropped 7.7% YoY to 34.9%, indicating mounting repayment pressure.
- 1.39% of accounts missed one payment in July (+10.1% MoM, –10% YoY); average balances for one-, two- and three-missed-payment customers rose YoY by 6.4%, 6.9% and 8.1% to £2,385, £2,875 and £3,300, respectively.
- FICO cautions that these trends reflect affordability challenges and urges lenders to review limit strategies and offer early support to at-risk customers.
- Fair Isaac delivered Q3 revenues of $536 million (+20% YoY), GAAP net income of $182 million (+44%) and GAAP EPS of $7.40 (+47%), alongside non-GAAP net income of $211 million (+35%) and non-GAAP EPS of $8.57 (+37%).
- Scores segment revenue rose to $324 million (+34% YoY), while Software segment revenue reached $212 million (+3% YoY).
- Returned capital with the largest single-quarter buyback in company history, repurchasing 284,000 shares in Q3.
- Raised full-year guidance to $1.98 billion in revenue, GAAP net income of $630 million (EPS $25.60) and non-GAAP net income of $718 million (EPS $29.15).
- Announced launch of FICO Score 10BNPL and 10TBNPL, the first credit scores incorporating BNPL data, offered at no additional fee.
- FS Bancorp posted Q2 net income of $7.7 million, or $0.99 per diluted share, down from $9.0 million, or $1.13 per share, in Q2 2024.
- For the six months ended June 30, 2025, net income was $15.7 million, or $1.99 per diluted share, versus $17.4 million, or $2.20 per share, in the prior-year period.
- The Board approved the 50th consecutive quarterly cash dividend of $0.28 per share and a special dividend of $0.22 per share, payable August 21, 2025, to holders of record August 7, 2025.
- In Q2 2025, the company repurchased 132,282 shares at an average price of $38.92, with $0.7 million remaining under the current buyback plan, and authorized a new $5.0 million repurchase program.
- VantageScore leverages additional data sources (e.g., rental payments) to deliver a more inclusive, modern credit score used by 3,700 banks, including eight of the top 10, and grew 55% last year with over 42 billion scores delivered.
- In head-to-head tests, VantageScore captures 11% more delinquencies and defaults than its main competitor, enhancing predictive accuracy.
- VantageScore now scores 33 million more Americans; of those, 13 million have a score ≥620 and 5 million would qualify for a mortgage, unlocking approximately $1 trillion in incremental mortgage volume.
- The FHFA’s implementation of the 2018 law introduces competition into mortgage credit scoring, aiming to broaden homeownership access through technological innovation.
- FICO® Score 10 T is the company’s most predictive credit scoring model, decisively outperforming VantageScore 4.0 in mortgage origination predictive accuracy.
- Score 10 T delivers a 5 times greater improvement over Classic FICO than VantageScore 4.0, detecting 18% more defaulters in the critical score decile versus 3.4% for VantageScore 4.0.
- Since October 2022, Score 10 T has been approved by the FHFA for use by Fannie Mae and Freddie Mac in conforming mortgage originations.
- Early adopters with over $300 billion in annual mortgage originations and $1.5 trillion in servicing portfolios have implemented Score 10 T.
- Average UK credit card spending fell 4.1% month-on-month and 1.7% year-on-year to £790 in May 2025.
- Average card balances eased 0.4% month-on-month to £1,865, yet remained 4.7% above May 2024 levels.
- Percentage of overall balance paid rose to 35.6% (+4.7% month-on-month) but was down 5.8% year-on-year.
- Accounts with one missed payment jumped 10.4% month-on-month, though were 12.4% lower year-on-year, and three-payment delinquencies edged up 3.9% month-on-month.
- Cash withdrawals on cards increased 2.5% month-on-month, signalling growing consumer financial pressure.
- Shares plunged ~16–17% after Fannie Mae and Freddie Mac announced they will allow lenders to use VantageScore alongside FICO scores, challenging FICO’s mortgage scoring dominance.
- Volume surged to 759,411 shares versus an average of 262,303, indicating heightened investor reaction.
- Despite the selloff, analysts maintain an average target price of $2,234.04 (over 44% upside) and a consensus ‘Outperform’ rating of 2.2/5.
- FICO’s Bradesco partnership in Brazil cut loan processing times by 70% and extended over R$1 billion in digital rural credit to more than 500,000 farmers.
- Passive funds grew from $23 billion to $8.4 trillion between 1993 and 2021, rising from under 0.5% to 16% of the US stock market and contributing to higher valuations and volatility in the largest firms.
- The IPO market saw 15 traditional deals raise $7.9 billion in Q1 2025—the strongest first quarter since 2021—though deal activity tapered mid-quarter amid a brief market sell-off.
- Individuals aged 50+ can contribute up to $8,000 to IRAs in 2025 (including a $1,000 catch-up), must choose between upfront tax deductions (traditional) or tax-free withdrawals (Roth), and may qualify for the Saver’s Credit or future Saver’s Match.
- FICO stock fell from around $2,200 to $1,750 after FHFA Director Bill Pulte vowed closer review of FICO’s fees, raising concerns over potential regulatory and pricing pressures.
- FICO will introduce FICO Score 10 BNPL and FICO Score 10 T BNPL in Fall 2025, incorporating BNPL loan data into credit assessments.
- The models aggregate multiple BNPL loans and reflect modern repayment behaviors to deliver more accurate consumer credit scores.
- Offered alongside existing FICO Score versions at no additional cost, enabling lenders to transition smoothly.
- Designed to expand financial inclusion by improving evaluation of first-time credit users of BNPL products.
- Initiative backed by FICO’s strong financial position: $43.93 billion market capitalization and 80.83% gross profit margin.