Executive Summary

Q4 FY25 revenue was $515.8M (+14% YoY) and GAAP EPS was $6.42; non-GAAP EPS was $7.74. Both revenue and EPS modestly exceeded Wall Street consensus, with EPS a clear beat and revenue a slight beat . Consensus EPS: $7.36*; consensus revenue: $513.9M*.
Scores segment strength was the driver: $311.6M (+25% YoY) on B2B price uplift in mortgage; Software was flat at $204.2M with 17% platform growth offset by declines in non-platform legacy products .
FY26 guidance introduced and framed as “even stronger growth than FY25”: revenue $2.35B, GAAP EPS $33.47, non-GAAP EPS $38.17; management highlighted pricing initiatives could add upside beyond guided numbers but timing/volume uncertainty remains .
Cash generation remained robust: Q4 free cash flow $210.8M; FY25 FCF $739.4M (+22% YoY), with elevated buybacks ($536M in Q4; $1.41B FY25) underpinning capital returns .

What Went Well and What Went Wrong

What Went Well

Scores momentum and pricing: Scores revenue $311.6M (+25% YoY); B2B +29% on higher mortgage origination score unit price; B2C +8% via myFICO and channel partners .
Record sales execution in software: ACV bookings $32.7M, best quarterly performance since disclosure began; FY ACV $102M—the strongest annual level—supporting ARR acceleration in FY26 as deals go live .
Margin expansion and confident FY26 outlook: Non-GAAP operating margin 54% vs 52% last year; “guiding even stronger growth than we achieved in fiscal 2025” .

Management quotes:

“I am very proud of our performance in FY25, another record year for FICO… pleased to provide FY26 guidance, which includes even stronger growth than we achieved in FY25.” — CEO Will Lansing .
“We expect some of the pricing initiatives in 2026 to have an additional impact beyond our guided numbers.” — CEO Will Lansing .

What Went Wrong

Sequential revenue down from Q3 due to lower point-in-time revenues (scores & software licenses), seasonality, and lower professional services .
Platform ARR performance tempered by usage reductions from select CCS customers; total Software ARR +4% YoY to $747M with platform +16% and non-platform −2% .
$10.9M restructuring charge impacted GAAP results; interest expense increased; guidance conservatism driven by macro and mortgage “trigger leads” uncertainty .

Financial Results

Headline Metrics vs YoY, Sequential, and Street (Q4 FY25)

Metric	Q4 2024	Q3 2025	Q4 2025	Consensus Q4 2025
Revenue ($USD Millions)	$453.8	$536.4	$515.8	$513.9*
GAAP Diluted EPS ($)	$5.44	$7.40	$6.42	$7.36*
Non-GAAP Diluted EPS ($)	$6.54	$8.57	$7.74	n/a
GAAP Net Income ($USD Millions)	$135.7	$181.8	$155.0	n/a
Non-GAAP Net Income ($USD Millions)	$163.2	$210.6	$187.0	n/a
Non-GAAP Operating Margin (%)	52%	n/a	54%	n/a

Values retrieved from S&P Global for estimate figures.*

Segment Revenue Breakdown

Segment / Line	Q4 2024 ($M)	Q3 2025 ($M)	Q4 2025 ($M)
Scores	$249.2	$324.3	$311.6
Software (Total)	$204.6	$212.1	$204.2
On-premises & SaaS	$181.7	$187.9	$182.4
Professional Services	$22.9	$24.2	$21.8

Additional segment KPIs (Q4 FY25 commentary):

B2B Scores +29% YoY on mortgage score unit price; B2C +8% YoY .
Software platform revenue +17% YoY; non-platform −7% YoY within quarter .

KPIs and Cash Generation

KPI	Q4 2024	Q4 2025
Free Cash Flow ($USD Millions)	$219.4	$210.8
Cash from Operations ($USD Millions)	$226.5	$223.7
Software ARR ($USD Millions)	n/a	$747 (+4% YoY)
Platform ARR ($USD Millions)	n/a	$263 (+16% YoY)
Non-Platform ARR ($USD Millions)	n/a	$484 (−2% YoY)
Dollar-Based NRR (Total / Platform / Non-Platform)	n/a	102% / 112% / 97%
ACV Bookings ($USD Millions)	$22.1	$32.7

Capital structure and returns (Q4 FY25):

Total debt $3.06B; weighted avg interest rate 5.27%; revolver balance $275M .
Share repurchases: 358k shares at $1,499 avg ($536M in Q4; $1.41B FY25) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($)	FY2025	$1.98B	$1.98B (maintained in Q3 update)	Maintained
GAAP Net Income ($)	FY2025	$624M	$630M	Raised
GAAP EPS ($)	FY2025	$25.05	$25.60	Raised
Non-GAAP Net Income ($)	FY2025	$712M	$718M	Raised
Non-GAAP EPS ($)	FY2025	$28.58	$29.15	Raised
Revenue ($)	FY2026	n/a	$2.35B	New
GAAP Net Income ($)	FY2026	n/a	$795M	New
GAAP EPS ($)	FY2026	n/a	$33.47	New
Non-GAAP Net Income ($)	FY2026	n/a	$907M	New
Non-GAAP EPS ($)	FY2026	n/a	$38.17	New
Tax Rate (Net Effective / Operating)	FY2026	n/a	24% / 25%	New
Operating Expenses YoY Growth	FY2026	n/a	Similar YoY growth vs FY25	New

Qualitative guidance nuance:

Management expects pricing initiatives in FY26 may add upside beyond guided figures, but volume/timing uncertain .
Scores guidance assumes no significant macro improvement; no loss of market share anticipated in auto/card/personal loan .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2025)	Previous Mentions (Q3 2025)	Current Period (Q4 2025)	Trend
AI/Technology initiatives	Platform ARR +17% YoY; total ARR +3% YoY	Platform revenue momentum; groundwork for next-gen platform	GA of FICO Focused Foundation Model (FFM: FLM, FSM); 35% lift in fraud analytics; 1,000x fewer resources vs conventional GenAI	Accelerating innovation
Mortgage ecosystem & pricing	FY25 guidance reiterated; B2B price-driven growth	Raised FY25 guidance; insurance score license renewal	Direct License Program details; performance model ($4.95 per score + funded loan fee); Zactus partnership; optionality vs bureaus	Structural shift underway
Software commercial momentum	ARR +3% YoY; steady NRR	Continued ARR growth; bookings improving	Best quarterly ACV bookings ($32.7M); FY bookings $102M; ARR expected to accelerate in FY26 as deals go live	Improving
Regional mix	n/a	n/a	Americas 87%, EMEA 8%, APAC 5% of Q4 revenue	Stable
Regulatory/Policy (FHFA/GSEs)	n/a	n/a	Constructive FHFA engagement; expectation 10T will be made available at GSEs (timing not specified)	Positive momentum, timing TBD
Pricing across non-mortgage scores	n/a	n/a	Modest increases (inflation-plus) across segments; select areas above COLA	Stable to modestly higher

Management Commentary

Strategic push on platform and GenAI: “We announced upcoming general availability of next-generation FICO Platform… and the groundbreaking FICO Marketplace.”
Domain-specific GenAI leadership: “FICO FFM… delivers accurate and auditable outcomes… more than 35% lift in transaction analytic models… up to 1,000 times fewer resources compared to conventional GenAI models.”
Mortgage market modernization: “Our FICO Mortgage Direct License Program… provides optionality with performance and per-score models… eliminating reliance on the three nationwide credit bureaus.”
Guidance confidence with prudence: “We expect some of the pricing initiatives in 2026 to have an additional impact beyond our guided numbers… it’s difficult to estimate the timing and magnitude.”

Q&A Highlights

FHFA/GSEs and 10T: Constructive FHFA dialogue; confident 10T will be released at GSEs; timing unspecified .
Direct license pricing cadence: Guidance conservative given performance model’s payment timing (funding date) and mix uncertainty; potential spillover of fees into FY27 .
Resellers/bureau pricing: Reseller fee structures TBD; FICO does not control reseller mark-ups .
Non-mortgage pricing: Expect inflation-plus adjustments; selective segments above COLA; no dramatic changes .
ARR conversion: Bookings expected to convert to ARR as early as Q1 FY26 .
Mortgage volumes & trigger leads: Guidance haircut due to uncertainty; easier to raise than lower guidance; market share retention expected .

Estimates Context

Q4 FY25 actual vs consensus: Revenue $515.8M vs $513.9M*; non-GAAP EPS $7.74 vs $7.36*; GAAP EPS $6.42 vs non-GAAP consensus reference—company emphasizes non-GAAP for comparability . Values retrieved from S&P Global.*
Trend vs prior quarters: Q3 FY25 beat on both revenue and EPS; Q2 FY25 EPS beat with slight revenue miss .

Metric	Q2 2025	Q3 2025	Q4 2025
Revenue Estimate ($M)	500.6*	515.4*	513.9*
Revenue Actual ($M)	498.7	536.4	515.8
EPS Estimate ($)	7.44*	7.70*	7.36*
EPS Actual (Non-GAAP) ($)	7.81	8.57	7.74

Values retrieved from S&P Global.*

Implications: Models should lift FY26 revenue/EPS and Scores pricing assumptions; however, mortgage volume sensitivity, performance-fee timing, and platform usage temper over-exuberance .

Key Takeaways for Investors

Scores remains the engine: price-led growth and mortgage origination mix drove a strong quarter; expect continued monetization from direct licensing optionality and potential downstream usage capture via funded-loan fees .
Software acceleration setup: record ACV and planned go-lives point to ARR uptick in FY26; platform NRR 112% supports land-and-expand thesis .
FY26 guide is strong yet conservative: explicit upside from pricing initiatives not fully embedded given volume/timing uncertainty; room for upward revisions as reseller mix and payment timing normalize .
Watch mortgage macro and “trigger leads”: volumes remain rate-sensitive; guidance haircuts reflect caution—rate declines would be upside, but not modeled .
Capital allocation: robust FCF and buybacks continue; debt cost manageable at 5.27%—supports EPS growth but monitor interest expense trend .
Regulatory posture favorable: constructive FHFA dialogue; expectation of FICO 10T availability at GSEs could reinforce competitive moat and adoption .
Near-term trading setup: modest beat and confident FY26 guide with structural pricing narrative are positive; any concrete reseller commercialization updates (e.g., Xactus go-live) could be catalysts .

Additional Relevant Press Releases (Q4 FY25)

FICO and Xactus multi-year partnership confirming participation in the FICO Mortgage Direct License Program (first verification provider) .
Launch of FICO Mortgage Direct License Program with performance and per-score models; up to 50% per-score fee savings via elimination of bureau mark-ups .

Notes on non-GAAP adjustments: Q4 non-GAAP net income and EPS add back restructuring ($10.9M) and share-based comp, and adjust for tax items and excess tax benefit; reconciliation provided in the release .

FAIR ISAAC CORP (FICO)·Q4 2025 Earnings Summary