Earnings release
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Exhibit 99.1 FICO Announces Earnings of $6.59 per Share for Second Quarter Fiscal 2025 Revenue of $499 million vs. $434 million in prior year BOZEMAN, Mont.--(BUSINESS WIRE)--April 29, 2025--FICO (NYSE:FICO), a global analytics software leader, today announced results for its second fiscal quarter ended March 31, 2025. Second Quarter Fiscal 2025 GAAP Results Net income for the quarter totaled $162.6 million, or $6.59 per share, versus $129.8 million, or $5.16 per share, in the prior year period. Net cash provided by operating activities for the quarter was $74.9 million versus $71.0 million in the prior year period. Second Quarter Fiscal 2025 Non-GAAP Results Non-GAAP Net Income for the quarter was $192.7 million versus $154.5 million in the prior year period. Non-GAAP EPS for the quarter was $7.81 versus $6.14 in the prior year period. Free cash flow was $65.5 million for the current quarter versus $61.6 million in the prior year period. The Non-GAAP financial measures are described in the financial table captioned “Non-GAAP Results” and are reconciled to the corresponding GAAP results in the financial tables at the end of this release. Second Quarter Fiscal 2025 GAAP Revenue The company reported revenues of $498.7 million for the quarter as compared to $433.8 million reported in the prior year period, an increase of 15%. “In our second fiscal quarter, we again delivered strong results with revenue growth of 15%, and even stronger earnings growth,” said Will Lansing, chief executive officer. “We reiterate our fiscal year 2025 guidance, which includes double-digit percentage growth for both revenue and earnings.” Revenues for the second quarter of fiscal 2025 for the company’s two operating segments were as follows: • Scores revenues, which include the company’s business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) solutions, were $297.0 million in the second quarter, compared to $236.9 million in the prior year period, an increase of 25%. B2B revenue increased 31%, driven largely by higher unit prices. B2C revenue increased 6% from the prior year period due to increased revenue from our indirect channel partners. • Software revenues, which include the company’s analytics and digital decisioning technology, were $201.7 million in the second quarter, compared to $196.9 million in the prior year period, an increase of 2%, mainly due to increased license revenue recognized at a point in time. Software Annual Recurring Revenue at March 31, 2025 was up 3% year-over-year, consisting of 17% in platform ARR growth and a 3% decline in non-platform ARR. The total Software Dollar-Based Net Retention Rate was 102% on March 31, 2025, with platform software at 110% and non-platform software at 96%.
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Outlook We reiterate the following guidance for fiscal 2025: Fiscal 2025 Guidance Revenues $1.98 billion GAAP Net Income $624 million GAAP EPS $25.05 Non-GAAP Net Income $712 million Non-GAAP EPS $28.58 The Non-GAAP financial measures are described in the financial table captioned “Reconciliation of Non-GAAP Guidance.” Company to Host Conference Call The company will host a webcast on April 29, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its second quarter fiscal 2025 results and provide various strategic and operational updates. The call can be accessed at FICO’s web site at www.fico.com/investors. A replay of the webcast will be available on our Past Events page through April 29, 2026. About FICO FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 U.S. and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting four billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO Score, used by 90% of top U.S. lenders, is the standard measure of consumer credit risk in the U.S. and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at https://www.fico.com/en Join the conversation at https://x.com/FICO_corp & https://www.fico.com/blogs/ For FICO news and media resources, visit https://www.fico.com/en/newsroom FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries. ®
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Statement Concerning Forward-Looking Information Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of macroeconomic conditions on FICO’s business, operations and personnel, the success of the Company’s Decision Management strategy and reengineering initiative, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to protect such data, the failure to realize the anticipated benefits of any acquisitions, or divestitures, and material adverse developments in global economic conditions or in the markets we serve. Additional information on these risks and uncertainties and other factors that could affect FICO’s future results are described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2024 and its subsequent filings with the SEC. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. FICO disclaims any intent or obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise.
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FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, 2025 September 30, 2024 (In thousands) Assets Current assets: Cash and cash equivalents $ 146,641 $ 150,667 Accounts receivable, net 492,542 426,642 Prepaid expenses and other current assets 85,727 40,104 Total current assets 724,910 617,413 Marketable securities 45,400 45,289 Property and equipment, net 50,552 38,465 Operating lease right-of-use assets 27,572 29,580 Goodwill 779,279 782,752 Other assets 208,040 204,385 Total assets $ 1,835,753 $ 1,717,884 Liabilities and Stockholders’ Deficit Current liabilities: Accounts payable and other accrued liabilities $ 79,951 $ 102,285 Accrued compensation and employee benefits 76,511 106,103 Deferred revenue 171,780 156,897 Current maturities on debt 15,000 15,000 Total current liabilities 343,242 380,285 Long-term debt 2,513,179 2,194,021 Operating lease liabilities 20,816 21,963 Other liabilities 82,568 84,294 Total liabilities 2,959,805 2,680,563 Stockholders’ deficit (1,124,052) (962,679) Total liabilities and stockholders’ deficit $ 1,835,753 $ 1,717,884
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FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Quarter Ended March 31, Six Months Ended March 31, 2025 2024 2025 2024 (In thousands, except per share data) Revenues: On-premises and SaaS software $ 183,826 $ 177,180 $ 369,837 $ 345,848 Professional services 17,870 19,744 36,152 41,023 Scores 297,039 236,885 532,714 428,997 Total revenues 498,735 433,809 938,703 815,868 Operating expenses: Cost of revenues 87,630 86,946 174,975 170,407 Research and development 45,037 40,880 90,182 83,515 Selling, general and administrative 120,420 110,867 248,370 215,196 Amortization of intangible assets — 275 — 550 Total operating expenses 253,087 238,968 513,527 469,668 Operating income 245,648 194,841 425,176 346,200 Other expense, net (32,632) (22,107) (62,031) (42,876) Income before income taxes 213,016 172,734 363,145 303,324 Provision for income taxes 50,401 42,935 48,002 52,460 Net income $ 162,615 $ 129,799 $ 315,143 $ 250,864 Earnings per share: Basic $ 6.67 $ 5.23 $ 12.92 $ 10.12 Diluted $ 6.59 $ 5.16 $ 12.73 $ 9.96 Shares used in computing earnings per share: Basic 24,389 24,819 24,383 24,791 Diluted 24,685 25,154 24,756 25,186
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FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended March 31, 2025 2024 (In thousands) Cash flows from operating activities: Net income $ 315,143 $ 250,864 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,950 6,178 Share-based compensation 82,358 67,022 Changes in operating assets and liabilities (132,202) (119,159) Other, net (3,334) (11,750) Net cash provided by operating activities 268,915 193,155 Cash flows from investing activities: Purchases of property and equipment (2,960) (5,403) Capitalized internal-use software costs (13,638) (5,380) Net activity from marketable securities (3,285) (1,257) Net cash used in investing activities (19,883) (12,040) Cash flows from financing activities: Proceeds from revolving line of credit and term loans 450,000 255,000 Payments on revolving line of credit and term loans (132,500) (74,500) Proceeds from issuance of treasury stock under employee stock plans 16,062 14,937 Taxes paid related to net share settlement of equity awards (198,531) (133,786) Repurchases of common stock (379,738) (243,473) Other, net (3,016) (1,400) Net cash used in financing activities (247,723) (183,222) Effect of exchange rate changes on cash (5,335) 996 Decrease in cash and cash equivalents (4,026) (1,111) Cash and cash equivalents, beginning of period 150,667 136,778 Cash and cash equivalents, end of period $ 146,641 $ 135,667
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FAIR ISAAC CORPORATION NON-GAAP RESULTS (Unaudited) Quarter Ended March 31, Six Months Ended March 31, 2025 2024 2025 2024 (In thousands, except per share data) GAAP net income $ 162,615 $ 129,799 $ 315,143 $ 250,864 Amortization of intangible assets — 275 — 550 Share-based compensation expense 41,704 35,448 35.448 82,358 67,022 Income tax adjustments (10,366) (9,096) -9.096 (20,229) (17,011) Excess tax benefit (1,264) (1,934)(1,934) (40,794) (25,709) Non-GAAP net income $ 192,689 $ 154,492 $ 336,478 $ 275,716 GAAP diluted earnings per share $ 6.59 $ 5.16 $ 12.73 $ 9.96 Amortization of intangible assets — 0.01 — 0.02 Share-based compensation expense 1.69 1.41 3.33 2.66 Income tax adjustments (0.42) (0.36) (0.82) (0.68) Excess tax benefit (0.05) (0.08) (1.65) (1.02) Non-GAAP diluted earnings per share $ 7.81 $ 6.14 $ 13.59 $ 10.95 Free cash flow Net cash provided by operating activities $ 74,918 $ 71,035 $ 268,915 $ 193,155 Capital expenditures (9,427) (9,422) (16,598) (10,783) Free cash flow $ 65,491 $ 61,613 $ 252,317 $ 182,372 Note: The numbers may not sum to total due to rounding. About Non-GAAP Financial Measures To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude, to the extent applicable, such items as the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to- period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making.
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FAIR ISAAC CORPORATION RECONCILIATION OF NON-GAAP GUIDANCE (Unaudited) Fiscal 2025 Guidance (In millions, except per sharedata) GAAP net income $ 624 Share-based compensation expense 157 Income tax adjustments (39) Excess tax benefit (30) Non-GAAP net income $ 712 GAAP diluted earnings per share $ 25.05 Share-based compensation expense 6.31 Income tax adjustments (1.58) Excess tax benefit (1.20) Non-GAAP diluted earnings per share $ 28.58 Note: The numbers may not sum to total due to rounding. About Non-GAAP Financial Measures To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude, to the extent applicable, such items as the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to- period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making. Contacts Investors/Analysts: Dave Singleton Fair Isaac Corporation (800) 459-7125 investor@fico.com