Fair Isaac Q4 Earnings Top Estimates, Strong Scores Drive Up Sales Y/Y

Fair Isaac FICO reported fourth-quarter fiscal 2025 non-GAAP earnings of $7.74 per share, which surpassed the Zacks Consensus Estimate by 5.45% and jumped 18.3% year over year.Revenues of $515.8 million beat the consensus mark by 0.78% and increased 13.6% year over year. The Americas, EMEA, and Asia Pacific contributed 87%, 8% and 5% to total revenues, respectively. Scores (60.4% of revenues) increased 25% year over year to $311.6 million.FICO’s Top-Line DetailsSoftware revenues, which include Fair Isaac’s analytics and digital decisioning technology, as well as associated professional services, declined 0.2% year over year to $204.2 million.Software Annual Recurring Revenues (ARR) increased 4% year over year, consisting of 16% platform ARR growth but a 2% decline in non-platform ARR. Software Dollar-Based Net Retention Rate was 102% in the fiscal fourth quarter, with platform software at 112% and non-platform software at 97%. On-premises and SaaS Software (35.4% of revenues) increased 0.4% year over year to $182.4 million. Professional services (4.2% of revenues) were $21.8 million, down 4.8% year over year. Fair Isaac Corporation Price, Consensus and EPS Surprise Fair Isaac Corporation price-consensus-eps-surprise-chart | Fair Isaac Corporation QuoteScores include FICO’s business-to-business (B2B) scoring solutions and business-to-consumer (B2C) scoring solutions. B2B revenues increased 29% year over year, driven primarily by higher unit prices and an increase in volume of mortgage originations. B2C revenues rose 8% year over year due to increased revenues from myFICO.com business and indirect channel partners.Mortgage originations revenues rose 55% year over year. Auto originations revenues increased 24% year over year. Credit card, personal loan, and other origination revenues are up 7% year over year.FICO’s Operating DetailsResearch and development expenses, as a percentage of revenues, expanded 10 basis points (bps) on a year-over-year basis to 9.9%.Selling, general, and administrative expenses, as a percentage of revenues, decreased 270 bps year over year to 24.3%.Non-GAAP Operating margin was 54% in the fiscal fourth quarter of 2025 compared with 52% in the year-ago quarter.Adjusted EBITDA increased 18.3% year over year to $286.6 million in the reported quarter. The adjusted EBITDA margin in the fiscal fourth quarter of 2025 was 55.6% compared with 53.4% in the fiscal fourth quarter of 2024.FICO’s Balance Sheet & Cash FlowAs of Sept. 30, 2025, FICO had $134 million in cash and cash equivalents, and total debt was $3.06 billion. Cash flow from operations was $223.6 million in the fiscal fourth quarter compared with $286.2 million in the prior quarter. Free cash flow was $210.8 million for the reported quarter compared with $276.2 million reported in the prior quarter.In the fiscal fourth quarter, FICO repurchased 358K shares.FICO Reiterates Fiscal 2026 GuidanceFor fiscal 2026, FICO anticipates revenues of $2.35 billion.Non-GAAP earnings are projected to be $38.17 per share.FICO’s Zacks Rank & Other Stocks to ConsiderCurrently, FICO sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices ADI, Constellation Software CNSWF, and Ceragon Networks CRNT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1  Rank stocks here.Shares of Analog Devices have gained 11.1% year to date. Analog Devices is set to report fourth-quarter fiscal 2025 results on Nov. 25.Shares of Constellation Software have lost 18.3% year to date. Constellation Software is slated to report third-quarter 2025 results on Nov. 11.Shares of Ceragon Networks have lost 46.9% year to date. Ceragon Networks is set to report third-quarter 2025 results on Nov. 11.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Analog Devices, Inc. (ADI): Free Stock Analysis Report Fair Isaac Corporation (FICO): Free Stock Analysis Report Ceragon Networks Ltd. (CRNT): Free Stock Analysis Report Constellation Software Inc. (CNSWF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks