Fair Isaac Corporation
- Open
- 1161.65
- Day high
- 1198.90
- Day low
- 1160.00
- Prev close
- 1177.52
- Volume
- 248K
- Mkt cap
- $27.7B
- P/E (TTM)
- 37.5
- EPS (TTM)
- $31.84
- P/B
- -13.2
- P/S
- 12.3
- Yield
- —
- Per share
- —
Fair Isaac Corporation (FICO) is a Technology company listed on NYSE. The stock is down 36% over the past year. Drillr has 1 published research article covering FICO.
Fair Isaac Corporation (FICO) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 9 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FICO earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 28, 2026 | $10.89 | $12.50 | +14.8% | $692M | +9.8% |
| Jan 28, 2026 | $7.08 | $7.33 | +3.5% | $512M | +2.1% |
| Nov 5, 2025 | $7.32 | $7.74 | +5.7% | $516M | +0.5% |
| Jul 30, 2025 | $7.71 | $8.57 | +11.2% | $536M | +4.1% |
| Feb 4, 2025 | $6.09 | $5.79 | -4.9% | $440M | -2.7% |
| Jul 31, 2024 | $6.32 | $5.05 | -20.1% | $448M | +0.5% |
| Apr 25, 2024 | $5.81 | $6.14 | +5.7% | $434M | +1.9% |
| Jan 25, 2024 | $5.06 | $4.81 | -4.9% | $382M | -2.3% |
| Aug 2, 2023 | $5.25 | $5.66 | +7.8% | $399M | +2.4% |
| Apr 27, 2023 | $5.04 | $4.78 | -5.2% | $380M | +1.4% |
| Jan 26, 2023 | $4.18 | $4.26 | +1.9% | $345M | +0.1% |
| Aug 3, 2022 | $3.98 | $4.47 | +12.3% | $349M | +1.9% |
FICO insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 8, 2026 | LANSING WILLIAM Jdirector, officer: President and CEO | Tax | 236 | $1137.33 |
| Jun 8, 2026 | LANSING WILLIAM Jdirector, officer: President and CEO | Option | 784 | — |
| Jun 8, 2026 | LANSING WILLIAM Jdirector, officer: President and CEO | Grant | 784 | — |
| May 27, 2026 | Behl Nikhilofficer: President, Software | Tax | 998 | $1239.91 |
| May 27, 2026 | Behl Nikhilofficer: President, Software | Option | 2,194 | — |
| May 19, 2026 | Weber Steven P.officer: Executive Vice President & CFO | Option | 706 | — |
| May 19, 2026 | Weber Steven P.officer: Executive Vice President & CFO | Tax | 310 | $1098.59 |
| Mar 6, 2026 | Rees Joannadirector | Grant | 55 | $1464.01 |
| Mar 6, 2026 | ARREDONDO FABIOLA Rdirector | Grant | 198 | — |
| Mar 6, 2026 | ARREDONDO FABIOLA Rdirector | Option | 154 | — |
| Mar 6, 2026 | KELLY BRADEN Rdirector | Grant | 220 | — |
| Mar 6, 2026 | Rey David Adirector | Option | 94 | — |
| Mar 6, 2026 | Manolis Evadirector | Option | 154 | — |
| Mar 6, 2026 | KELLY BRADEN Rdirector | Grant | 363 | $1464.01 |
| Mar 6, 2026 | Rees Joannadirector | Grant | 198 | — |
Source: FICO SEC Form 4 filings, latest Jun 8, 2026. For informational purposes only — not investment advice.
See the full FICO insider & 13F page →Fair Isaac Corporation company profile
Overview
Fair Isaac Corporation (NYSE:FICO) is a leading analytics software company founded in 1956 and headquartered in Bozeman, Montana. The company pioneered the development of credit scoring technology and is best known for creating the ubiquitous FICO Score, which has become the industry standard for consumer credit risk assessment in the United States. Originally founded as Fair Isaac & Company, the company went public in 1987 and has evolved from a pure credit scoring business into a comprehensive provider of predictive analytics and decision management solutions serving financial services institutions, retailers, healthcare organizations, and government agencies worldwide.
Business
Fair Isaac Corporation operates in the predictive analytics and decision management software industry, providing solutions that help organizations automate and optimize their decision-making processes. The company's core offerings center around two main areas: credit risk assessment and enterprise decision management software. The company's most recognizable product is the FICO Score, a three-digit number ranging from 300 to 850 that represents a consumer's creditworthiness. This score is calculated using proprietary algorithms that analyze factors such as payment history, credit utilization, length of credit history, types of credit accounts, and recent credit inquiries. The FICO Score has become the de facto standard for credit decisions in the United States, with over 90% of top lenders using FICO Scores for credit decisioning. The company has continuously evolved this product, with recent versions including FICO Score 10 and FICO Score 10 T (which incorporates trended credit data). Beyond credit scoring, FICO provides comprehensive decision management software platforms that enable organizations to build, deploy, and manage predictive models and business rules for various use cases including fraud detection, marketing optimization, collections management, and regulatory compliance. The FICO Platform serves as the company's flagship software offering, providing a cloud-based environment where customers can develop and deploy advanced analytics solutions. The company operates through two primary business segments: 1. Scores Segment (approximately 55-60% of total revenue): This segment includes both business-to-business (B2B) scoring solutions sold to lenders and business-to-consumer (B2C) offerings through myFICO.com subscriptions. The B2B portion generates revenue from financial institutions that purchase FICO Scores for credit decisions, while B2C services allow consumers to access their own credit scores and monitoring services. 2. Software Segment (approximately 40-45% of total revenue): This segment encompasses the company's decision management platforms, fraud detection solutions, and professional services. Revenue comes from software licenses, cloud-based subscriptions (measured as Annual Recurring Revenue or ARR), and implementation services.
Revenue model
FICO generates revenue through multiple complementary business models that leverage its dominant position in credit scoring and decision analytics. The Scores business operates on a transactional model where FICO charges financial institutions a fee for each credit score pulled during loan origination, account management, or other credit decisions. For 2025, FICO announced mortgage score pricing at $4.95 per score, representing a significant increase from previous years. This creates a direct correlation between lending activity and FICO's revenue - when mortgage originations, auto loans, or credit card applications increase, FICO's revenue grows proportionally. The company also generates recurring revenue from B2C subscribers who pay monthly fees for credit monitoring services through myFICO.com. The Software business primarily follows a Software-as-a-Service (SaaS) subscription model, generating Annual Recurring Revenue (ARR) from enterprise customers who license FICO's decision management platforms. Customers typically sign multi-year contracts and often expand their usage over time, as evidenced by the company's strong net retention rates exceeding 105%. The software segment also includes professional services revenue from implementation and consulting work. Several factors significantly impact FICO's margins and growth trajectory. Positive margin drivers include the company's pricing power in credit scoring due to regulatory entrenchment and switching costs, the scalable nature of software platforms that can serve additional customers with minimal incremental costs, and the expansion of existing customer relationships through additional use cases. The company benefits from macroeconomic trends that increase lending activity, such as lower interest rates driving mortgage refinancing and originations. Margin pressures come from the cyclical nature of lending markets, where economic downturns reduce loan originations and thus score volumes. Increased competition in decision management software, regulatory challenges to credit scoring models, and the need for continuous investment in technology and talent to maintain competitive advantages also pressure margins. The company's high debt levels create interest expense that impacts net margins, though this is partially offset by aggressive share repurchase programs that reduce the share count.
Competitive moat
FICO possesses a formidable economic moat built primarily on regulatory entrenchment and network effects in the credit scoring industry. The company's strongest competitive advantage lies in the regulatory and institutional lock-in of FICO Scores within the U.S. mortgage system. Government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac are mandated to use FICO Scores for mortgage purchases, creating an effective regulatory moat that would require government action to dismantle. This entrenchment extends beyond regulation - decades of historical data, established risk models, and institutional familiarity create substantial switching costs for lenders. The network effects surrounding FICO Scores further strengthen this moat. As more lenders use FICO Scores, the scoring models become more accurate due to increased data volume, which in turn makes the scores more valuable to additional lenders. Consumers also benefit from score standardization, as a single FICO Score can be used across multiple lenders, creating a two-sided network effect. However, FICO's moat faces several potential challenges. Regulatory risk represents the most significant threat, as government agencies have occasionally questioned FICO's pricing practices and market dominance. Alternative credit scoring models, including those incorporating non-traditional data sources like rental payments or utility bills, could potentially erode FICO's market share over time. The rise of fintech lenders who may be more willing to experiment with alternative scoring methods also poses a competitive threat. In the software segment, FICO's moat is considerably weaker. While the company has strong customer relationships and domain expertise in financial services, the decision management software market faces intense competition from both specialized vendors and large technology companies. The software business relies more on execution excellence and customer satisfaction rather than structural competitive advantages, making it more vulnerable to disruption from well-funded competitors or technological shifts toward open-source alternatives.
Risks & safety
FICO presents a mixed margin of safety profile, with strong cash generation offset by concerning debt levels and premium valuation metrics. Overall Assessment: Moderate margin of safety due to strong cash flows but elevated financial and valuation risks. Liquidity and Solvency: - Cash and short-term investments: $147 million (Q2 2025) - Current ratio: 2.11, indicating adequate short-term liquidity - Debt-to-equity ratio: -2.27, reflecting negative shareholders' equity due to aggressive share repurchases - Total liabilities exceed total assets by over $1 billion, creating potential solvency concerns - Strong free cash flow generation: $73 million (Q2 2025), $193 million (Q1 2025) Valuation Metrics: - P/E ratio: 69.1x (Q2 2025), indicating expensive valuation - EV/EBITDA: 47.8x, well above historical software industry averages - Price appreciation has significantly outpaced earnings growth Other Considerations: - Highly cyclical revenue tied to lending market conditions - Concentration risk in mortgage scoring segment - Regulatory dependency creates both stability and vulnerability
Recent development
Over the past few years, FICO has executed several strategic initiatives to strengthen its market position and expand beyond traditional credit scoring. The company has focused heavily on platform modernization, with the FICO Platform (cloud-based SaaS offering) showing strong growth with ARR expanding 17-31% annually. This represents a strategic shift from traditional on-premise software installations to recurring revenue cloud subscriptions. The company has also pursued aggressive pricing strategies, most notably announcing mortgage score pricing increases to $4.95 per score for 2025, representing a significant premium to historical pricing levels. This pricing power demonstrates FICO's confidence in its market position and regulatory entrenchment. Product innovation has centered around FICO Score 10 T, which incorporates trended credit data to provide more predictive scoring models. The company has also expanded internationally through initiatives like launching Kenya-specific FICO scores and partnering with organizations like Chelsea Football Club for financial education programs. Partnership expansion has become increasingly important, with FICO developing relationships with system integrators like TCS and iSON Xperiences to create industry-specific solutions. The company has also focused on developing open APIs and ecosystem partnerships to broaden platform adoption beyond traditional financial services customers. Capital allocation has remained aggressive, with FICO continuing substantial share repurchase programs (including a new $1 billion authorization) while maintaining dividend payments. This strategy has resulted in negative shareholders' equity but has supported earnings per share growth through share count reduction.
FICO company profile · for informational purposes only — not investment advice.
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