Fair Isaac (FICO) FY2025 10-K Annual Report
Fair Isaac (FICO) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Nov 7, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Fair Isaac FY2025 10-K Analysis
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
Fair Isaac FY2025 Key Financial MetricsXBRL
Revenue
$2.0B
▲ +15.9% YoY
Net Income
$652M
▲ +27.1% YoY
Operating Margin
46.5%
▲ +374bp YoY
Net Margin
32.7%
▲ +289bp YoY
ROE
-37.3%
▲ +1593bp YoY
Total Assets
$1.9B
▲ +8.7% YoY
EPS (Diluted)
$26.54
▲ +29.8% YoY
Operating Cash Flow
$779M
▲ +23.0% YoY
Source: XBRL data from Fair Isaac FY2025 10-K filing on SEC EDGAR. All figures in USD.
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