Total Revenue

+15%

Total Revenue increased to $498.7 million from $433.8 million, driven by a robust upgrade in Scores revenue (+25% YoY) and modest growth in Software revenue (+2.4% YoY). This reflects an overall improvement in both high‐margin B2B segments (e.g., mortgage originations) and recurring software revenue, building on the strong momentum from previous periods. " "

Scores Revenue

+25%

Scores Revenue surged to $297.0 million primarily due to strong growth in the B2B component, which includes significant increases in mortgage origination revenues. The dramatic YoY increase builds on earlier trends where enhanced pricing and volume improvements contributed substantially to segment strength. " " "

Software Revenue

+2.4%

Software Revenue reached $201.7 million, showing a relatively flat performance with a modest increase. This stability is attributed to the balance between growing recurring (SaaS) and license revenues and offsetting declines in professional services—a trend consistent with prior period performance. " " "

Geographic – Americas

+18%

Americas revenue climbed to $429.0 million owing to the strong contribution from both Scores and Software segments. The region's dominant performance reflects sustained demand and improved execution in key products, reinforcing its historically significant share of overall revenue. " "

Operating Income

+26%

Operating Income increased to $245.6 million from $194.8 million, benefitting from higher overall revenues and enhanced margins, particularly in the high-margin Scores segment. This improvement, similar to previous quarters, came despite rising segment and corporate expenses, highlighting effective cost management and product mix improvements. " "

Net Income

+25%

Net Income grew to $162.6 million from $129.8 million, driven by the combination of robust revenue increases, improved operating efficiency, and favorable tax impacts. The net income performance continues the positive trajectory seen in earlier periods and benefits from both operational and financial enhancements. " "

Robust Sales Pipeline & Revenue Growth

Q1 2025, Q3 2024, and Q4 2024 earnings calls emphasized a strong sales pipeline, noting volatility in large deals and steady overall revenue growth. " " "

Q2 2025 highlighted the FICO World event as the #1 pipeline driver, strong demand with robust bookings, and a 15% revenue growth along with optimism despite macro uncertainties. " " " " "

Consistent focus with enhanced optimism and emphasis on personalized events driving pipeline quality, despite caution from broader economic headwinds.

Platform Innovation & Adoption

Q1 2025, Q3 2024, and Q4 2024 stressed “land and expand” strategies, impressive platform ARR and NRR growth, reengineering efforts, and strategic partnerships. " " "

Q2 2025 reiterated continuous platform innovation with new solutions, partnerships (e.g., dacadoo), and solid platform ARR growth (17% increase) despite some macro challenges. " " "

Steady strategic emphasis with a deepening focus on partnerships and scalability improvements; sentiment remains strongly positive.

Capital Allocation & Share Buybacks

Prior calls in Q1, Q3, and Q4 2024 demonstrated a disciplined approach with significant share repurchases and flexible debt management. " " "

Q2 2025 continued this theme, reporting a repurchase of 112,000 shares at an attractive price and noting the prepayable nature of floating debt. " "

Consistently maintained strategy reflecting long-term value focus and disciplined capital management.

Macroeconomic Uncertainty Impact

Across Q1 2025, Q3 2024, and Q4 2024, executives acknowledged a fluid economic environment impacting mortgage volumes, deal timing, and forecasting, with cautious guidance. " " "

Q2 2025 stressed macro uncertainty affecting deal closures and usage, yet maintained optimism regarding overall business health and pipeline strength. " "

A recurring concern that is consistently managed with conservative guidance, balancing caution with underlying business optimism.

Decline in Non-Platform Revenue Segments

Q1 2025 and Q3 2024 pointed to modest non-platform ARR growth (or near flat performance) and noted seasonal usage patterns; Q4 2024 mentioned slight declines tied to volume-based factors. " " "

Q2 2025 reported a 3% decline in non-platform ARR and a non-platform NRR of 96%, attributing challenges largely to macroeconomic factors affecting usage (e.g., CCS). " " "

Ongoing challenge with consistently muted growth, suggesting pressure to migrate customers toward platform products.

Margin Compression & Operating Expense Pressure

Q3 2024 illustrated marked margin contraction (430 basis points in software) due partly to the FICO World event, while Q1 2025 and Q4 2024 highlighted mixed expense pressures with some nonrecurring items. " " "

Q2 2025 showed improvement with a non‐GAAP operating margin rising to 58% (up from 53% last year) and a 3% drop in operating expenses, though caution is noted due to expected event-related costs later. " " "

An evolving situation with signs of margin expansion and cost discipline emerging, despite event-driven expenses adding temporary pressure.

Emerging B2C Growth Opportunities (myFICO)

Q3 2024 and Q4 2024 reported declines in myFICO volumes (down 2% and 1% respectively), while Q1 2025 reflected modest growth of 3% boosted by marketing investments. " " " "

Q2 2025 showcased a turnaround with B2C revenues up 6% year-over-year and a 70% increase in users checking free FICO scores on myfico.com. " "

A notable reversal from earlier declines, suggesting renewed momentum and potential for significant growth in consumer engagement.

BNPL Data Integration in FICO Scores

Not mentioned in Q3 or Q4 2024 earnings calls.

Q1 2025 discussed integrating BNPL data with Affirm, citing studies indicating improved predictive performance and potential score boosts; it is not mentioned in Q2 2025. " "

An emergent, exploratory topic introduced in Q1 2025 that may influence future credit scoring models, though its focus appears to fluctuate between periods.

Strategic Pricing Initiatives

Q3 2024 emphasized a pricing strategy aimed at encouraging adoption through flexible usage, while Q1 2025 and Q4 2024 discussed socialized pricing, minimal elasticity, and the prospect of added pricing impact beyond guidance. " " "

Q2 2025 highlighted pricing adjustments in auto origination effective January 2025 with expectations of incremental revenue contributions through phased roll‐in. " "

A constant theme with evolving emphasis—shifting from general accessibility to more targeted repricing in key segments, underlining its strategic revenue contribution.

Limited Visibility on Key Performance Metrics

Q3 2024 and Q1 2025 noted volatility (e.g., in ACV bookings, mortgage volumes, and software flows) alongside seasonal unpredictability; Q4 2024 touched on macro uncertainties affecting forecasts. " " "

Q2 2025 reiterated limited visibility particularly on platform ARR growth and CCS usage, underscoring the inherent unpredictability in customer behavior amid economic uncertainty. " "

A persisting theme; recurring mentions highlight a cautious sentiment regarding forecast accuracy, though the underlying business remains robust.

Regulatory Impact & FICO Score 10T Adoption

Q3 2024 showed initial adoption with modest volumes; Q4 2024 detailed strong adoption numbers amid uncertain FHFA timelines; Q1 2025 discussed delays and robust non-GSE uptake. " " " "

Q2 2025 reported a favorable regulatory environment with strong adoption of FICO Score 10T for non-GSE mortgages, including impressive sign-up figures from clients handling over $284 billion in annualized originations. " "

Steady momentum in upgrading to FICO Score 10T is evident, with positive regulatory sentiment bolstering adoption even as implementation timelines remain fluid.