The drop in **Cash and cash equivalents** in **Q2 2024** was primarily driven by a combination of lower cash inflows from operating activities and higher cash outflows from financing activities. Specifically, operating activities generated **$71.0 million** in net cash compared to **$89.8 million** in the prior period, while financing activities saw increased outflows—highlighted by higher tax payments related to equity settlements and increased repurchases of common stock, among other factors. This overall shift led to a net decrease in cash and cash equivalents during the quarter.  **[0000814547-24-000016_fico-20240331.htm:33]** **[0000814547-24-000015_exhibit991erq22024.htm:0]** 

Why did Cash and cash equivalents drop in Q2 2024?

The surge in **Cash and cash equivalents** in Q1 2025 was primarily driven by a significant increase in **operating activities**, where net cash provided rose by **$71,877 thousand** due to improvements in net income, timing of receipts and payments, and non‑cash adjustments. This operating strength helped to offset higher cash outflows from **investing activities** and **financing activities**, as well as a negative effect from exchange rate changes.  **[0000814547-25-000008_fico-20241231.htm:27]** **[0000814547-25-000008_fico-20241231.htm:3]** 

What drove the surge in Cash and cash equivalents in Q1 2025?

The sharp increase in **Long-term debt** in Q2 2024 was mainly driven by a significant rise in borrowings under the **revolving line of credit**, which increased by **$223,000 thousand** during the period. This increase more than offset the slight decrease in the term loan balance and the modest reduction in debt issuance costs.  **[0000814547-24-000015_exhibit991erq22024.htm:2]** **[0000814547-24-000016_fico-20240331.htm:9]** 

What caused the sharp increase in Long-term debt in Q2 2024?

The drastic drop in **Current maturities on debt** in **Q2 2024** is primarily due to the repayment of the **revolving line of credit**, which reduced the balance from **$35,000 thousand** to **$0**, thereby lowering the current maturities from **$50,000 thousand** as of September 30, 2023, to **$15,000 thousand** as of March 31, 2024.  **[0000814547-24-000016_fico-20240331.htm:9]** **[0000814547-24-000015_exhibit991erq22024.htm:2]** 

Why did Current maturities on debt drop so drastically in Q2 2024?

The significant increase in Property and equipment, net in Q2 2024 was primarily driven by the **addition of internal-use software valued at $5,380 thousand** and a **reduction in accumulated depreciation and amortization from $88,001 thousand to $77,425 thousand**, which together contributed to the overall rise in the net value.  **[0000814547-24-000016_fico-20240331.htm:9]** 

What explains the significant jump in Property and equipment, net in Q2 2024?

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Operating cash flow in Q2 2024 was lower largely because the benefits from rising net income and non‑cash adjustments were largely offset by changes in operating assets and liabilities. According to the documents, while there was a **$51.7 million increase in net income** and a **$10.0 million increase in non‑cash items**, these gains were counterbalanced by a **$50.8 million decrease** related to the timing of receipts and payments in the ordinary course of business, which contributed significantly to the lower operating cash flow in Q2 2024.  **[0000814547-24-000016_fico-20240331.htm:33]** 

Why was operating cash flow so low in Q2 2024?

The surge in Q3 2024 operating cash flow was driven by an **increase in net income** by **$49.2 million**, a **rise in non-cash items** (including share-based compensation and depreciation) by **$33.4 million**, and a **timing effect of receipts and payments** contributing an additional **$19.0 million**.  **[0000814547-24-000024_fico-20240630.htm:34]** 

What drove the surge in operating cash flow in Q3 2024?

The documents indicate that while there was a significant increase in capital expenditures—from **$1,526 thousand** in Q2 2023 to **$9,422 thousand** in Q2 2024—the specific reasons for this marked rise were not explicitly detailed. However, it is noted that such increases are typically driven by **investments in infrastructure, technology upgrades, or expansion initiatives**.  **[0000814547-24-000015_exhibit991erq22024.htm:3]** 

What led to the marked increase in capital expenditures in Q2 2024?

621814a5a25217d8035eebb6a193186748b9de3cbb25e284badce053b36d5376

31bbf092cd029858ffded59d1bceb980e4ea979a3fe91e390de1d963bab4396d

Total Revenues (USD, thousands)

Operating Expenses (USD, thousands)

Operating Income (USD, thousands)

Interest Expense, Net (USD, thousands)

Other Income, Net (USD, thousands)

Income Before Income Taxes (USD, thousands)

Income Tax Provision (Benefit) (USD, thousands)

Net Income (USD, thousands)

2283a6acdf2e1664f11bd6f6529ef0fe68d3d48e9a645749084d09a266eb8308

Cash and cash equivalents (USD, thousands)

Accounts receivable, net (USD, thousands)

Prepaid expenses and other current assets (USD, thousands)

Total current assets (USD, thousands)

Marketable securities (USD, thousands)

Property and equipment, net (USD, thousands)

Operating lease right-of-use assets (USD, thousands)

Goodwill (USD, thousands)

Deferred income taxes (USD, thousands)

Other assets (USD, thousands)

Total assets (USD, thousands)

Accounts payable (USD, thousands)

Accrued compensation and employee benefits (USD, thousands)

Other accrued liabilities (USD, thousands)

Deferred revenue (USD, thousands)

Current maturities on debt (USD, thousands)

Total current liabilities (USD, thousands)

Long-term debt (USD, thousands)

Operating lease liabilities (USD, thousands)

Other liabilities (USD, thousands)

Total liabilities (USD, thousands)

Common stock (USD, thousands)

Additional paid-in-capital (USD, thousands)

Treasury stock, at cost (USD, thousands)

Retained earnings (USD, thousands)

Accumulated other comprehensive loss (USD, thousands)

Total stockholders’ deficit (USD, thousands)

Total liabilities and stockholders’ deficit (USD, thousands)

1682b38ac39e149264a73572c483738d7d70befc1b6802aaf5e81dc27fa022cc

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from Debt [USD, Thousands]

Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

75ac61e67dbbcce4113cc1bf629836acd57d9b1f164d58ae79d76b73fb109204

Total Revenue [USD, Thousands]

Cost of Goods Sold (COGS) [USD, Thousands]

Selling, General, and Administrative Expenses (SG&A) [USD, Thousands]

Research and Development (R&D) [USD, Thousands]

Depreciation and Amortization (D&A) [USD, Thousands]

Interest Expense [USD, Thousands]

Operating Income (EBIT) [USD, Thousands]

Net Income [USD, Thousands]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

b3e1067d1f1669d9d05819d83111833666f5ceb49f7baffc70cece9b2e75e8d1

d25e4c5a45bc7e8fd2f620f01895cfb4ab0fee222fa955036f41eca88cd60615

Annual Recurring Revenue for Platform (millions)

Annual Recurring Revenue for Non-Platform (millions)

Annual Recurring Revenue for Total (millions)

Percentage of ARR for Platform (percentage)

Percentage of ARR for Non-Platform (percentage)

YoY Change for ARR for Platform (percentage)

YoY Change for ARR for Non-Platform (percentage)

YoY Change for ARR for Total (percentage)

Dollar-Based Net Retention Rate for Platform (percentage)

Dollar-Based Net Retention Rate for Non-Platform (percentage)

Dollar-Based Net Retention Rate for Total (percentage)

ACV Bookings for Total on-premises and SaaS software (millions)

f00df5fe392b0bd3047b69e12bb162f6fa3aee4946946afb41fc296d99125063

ca7b0fefa2582f84f30fd319a2d63bb7fa632add3d6bf1a47f694209c2cb391f

Americas

- Scores Revenue

- Software Revenue

North America

Latin America

Europe, Middle East, and Africa

Asia Pacific

United States

United Kingdom

Other countries

Total Revenue

38b21e4d85e2a3a84355f3e83dafe5f48aa3ab60ae2ccb1e40ba0831d1d1f509

FAIR ISAAC (FICO)

Financials