10-K annual report · filed Nov 7, 2025

Fair Isaac (FICO) FY2025 10-K Annual Report

Short answer

Fair Isaac (FICO) filed its fiscal 2025 10-K annual report with the SEC on Nov 7, 2025. It reported revenue of $2.0B (+15.9% year over year) and net income of $652M.

  • Top risk flagged: Regulatory risk: FHFA approval affecting FICO Score use by Fannie Mae/Freddie Mac, with July 2025 policy allowing mortgage originators choice of credit scores

FY2025 key financial metrics · XBRL

Revenue
$2.0B
+15.9% YoY
Net income
$652M
+27.1% YoY
Operating margin
46.5%
+3.7 pp YoY
EPS (diluted)
$26.54
+29.8% YoY
ROE
-37.3%
+15.9 pp YoY
Operating cash flow
$779M
+23.0% YoY

Source: XBRL data from the Fair Isaac (FICO) FY2025 10-K on SEC EDGAR. USD.

Fair Isaac FY2025 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Core business: Global analytics software leader delivering predictive credit scoring and decision management solutions to financial services and other industries
  • New emphasis on expanding FICO® Platform, with $263.6M ARR (35% of software ARR) to enable modular, cloud-native analytics and decisioning
  • Strategic shift increasing indirect channel sales via value-added resellers and systems integrators to target medium-sized businesses
  • Fiscal 2025 revenues from Experian, TransUnion, Equifax agreements grew to 51% of total revenues, up from 45% in 2024 and 41% in 2023
  • Consumer-focused innovation in alternative data scoring with UltraFICO® and FICO® Score XD to expand credit access and empower financially underserved populations

Management Discussion & Analysis

  • Revenue $2.0B, up 16% YoY; Scores segment $1.17B (+27%), Software $822M (+3%)
  • Operating margin 46% vs 43%; Scores operating margin 88% stable; Software margin 30% vs 32%
  • Best segment: Scores revenue +$249M, operating income +$213M; Worst segment: Software margin down 2pts, operating income -$9.8M
  • Operating cash flow $779M vs $633M; share repurchases $1.4B vs $0.8B; capex (software development) up $13.8M to $43.7M
  • Outlook: $134M cash, $1B credit line; expects sufficient liquidity for 12+ months; issued $1.5B senior notes, repaid term loans; potential acquisition or investment opportunities noted; key risks include financing availability and refinancing terms

Risk Factors

  • Regulatory risk: FHFA approval affecting FICO Score use by Fannie Mae/Freddie Mac, with July 2025 policy allowing mortgage originators choice of credit scores
  • Macroeconomic risk: 92% revenues from banking industry exposed to global economic volatility, inflation, interest rates, and credit market disruptions
  • Operational vulnerability: Revenue concentration in three consumer reporting agencies (Experian, TransUnion, Equifax) with risk from relationship loss or changes
  • Competitive risk: Joint venture by Experian, TransUnion, Equifax selling competitive credit scoring products undermining FICO market share
  • Financial risk: Acquisition integration risks including goodwill impairment, undiscovered cybersecurity issues, and failure to realize anticipated revenue benefits

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