KabuDo

NYSE: FICO · Application Software

Fair Isaac

Fair Isaac (FICO) owns the FICO Score, which its 10-K calls the standard measure of consumer credit risk in the U.S., used in most U.S. credit decisions, and sells analytics and decision-management software (FICO Platform, fraud, origination and marketing tools). Fiscal 2025 (year ended September 30, 2025) revenue was $1,991 million: Scores $1,169 million (59%) and Software $822 million. Net income was $652 million. Scores are distributed mainly through Experian, TransUnion and Equifax, which together generated 51% of revenue. Heavy buybacks funded partly with debt have left stockholders’ equity negative.

Last updated

Analysis last edited: October 24, 2026 · Financial data fetched: October 24, 2026 09:47 (SEC EDGAR) · Source 10-K filed: November 7, 2025

Built on10-K FY2025 · filed 2025-11-0710-Q (quarter ended 2026-06-30) · filed 2026-07-29Proxy statement (2026)

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

01

At a glanceFrom SEC data

Eight headline measures, each placed among the companies covered on this site.

Revenue growth
9.0%

Higher than 57% of 372 non-financial companies

Average yearly growth over the years shown

Operating margin
46.5%

Higher than 95% of 311 non-financial companies

Latest fiscal year (FY2025)

ROIC minus WACC
+47.5 pts

Higher than 96% of 311 non-financial companies

Return on capital above (or below) its estimated cost

Net debt ÷ EBITDA
3.1x

Higher than 74% of 304 non-financial companies

Below 0 means more cash than debt

Cash conversion
1.19x

Higher than 22% of 349 non-financial companies

Operating cash flow ÷ net income

Dividend raises
—

Years the dividend per share rose, of the last 5

P/E today
21.8x

Latest close 2026-11-04; trailing 12 months to 2026-06-30

Beta
1.10

Above 1 = moves more than the market

Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.

02

Valuation todayFrom SEC data

Price-based measures at the latest close, next to the same measures at the last fiscal year-end.

Share price$747.58close on 2026-11-04

Market cap$17.77B

P/E today
21.8x

At FY2025 year-end: 56.4x

Earnings: trailing 12 months to 2026-06-30

P/B today
—

At FY2025 year-end: —

Book value at FY2025 year-end

EV/EBITDA today
22.0x

At FY2025 year-end: 41.0x

EBITDA for FY2025

FCF yield today
4.3%

At FY2025 year-end: 2.2%

Free cash flow for FY2025

Dividend yield today
—

Dividends per share for FY2025

“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.

03

What changed since last earningsFrom SEC data

The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.

Quarter ended Jun 30, 2026.

These figures are behind: a newer quarter was reported on Nov 4, 2026, but SEC's structured data doesn't include it yet. Read the release ↗

  • Revenue↑ +25.7%$536M → $674M (vs. a year earlier)
  • Operating margin↑ +4.8 pts48.9% → 53.8% (vs. a year earlier)
  • Net income↑ +30.5%$182M → $237M (vs. a year earlier)
  • Diluted EPS↑ +41.2%$7.40 → $10.45 (vs. a year earlier)
  • Cash↑ +13.2%$219M → $248M (vs. previous quarter-end)
  • Long-term debt↑ +53.4%$3.64B → $5.58B (vs. previous quarter-end)

Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.

From the earnings release of Nov 4, 2026.

Key changes

  • Q4 revenues $657.0M versus $515.8M. Source sentence
    The company reported revenues of $657.0 million for the quarter as compared to $515.8 million reported in the prior year period, an increase of 27%.
  • B2B revenue up 39%. Source sentence
    B2B revenue increased 39%, primarily attributable to a higher mortgage origination scores unit price, partially offset by a decline in mortgage originations volume.
  • Not providing fiscal 2027 guidance at this time. Source sentence
    Because of these factors, we are not providing fiscal year 2027 guidance at this time.

Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗

04

Company profileFrom SEC dataShow

Legal name
FAIR ISAAC CORP
Headquarters
BOZEMAN, MT
Incorporated in
Delaware
Fiscal year end
09/30
Exchange & ticker
NYSE: FICO
Industry
Application Software
CIK
814547

Workforce (as of FY2025 year-end)

  • Employees

    3,811

Source: Form 10-K (FY2025) cover page and business description

05

Earnings calendarFrom SEC dataShow

When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.

Next report

Q1 FY2027

Quarter end: December 2026. In past years, Q1 results were released 25–35 days after quarter end (Jan 28, 2026; Feb 4, 2025; Jan 25, 2024). No date has been announced in the sources this site uses.

Reporting pattern

  • Fiscal year ends around September 30.
  • Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
  • Earnings releases came 25–37 days after quarter end over the last 12 quarters.
QuarterQuarter endedEarnings release (8-K)Report filed (10-Q / 10-K)
Q4 FY2026Sep 30, 2026Nov 4, 2026 (+35 days)Nov 6, 2026 10-K (+37 days)
Q3 FY2026Jun 30, 2026Jul 29, 2026 (+29 days)Jul 29, 2026 10-Q (+29 days)
Q2 FY2026Mar 31, 2026Apr 28, 2026 (+28 days)Apr 28, 2026 10-Q (+28 days)
Q1 FY2026Dec 31, 2025Jan 28, 2026 (+28 days)Jan 28, 2026 10-Q (+28 days)
Q4 FY2025Sep 30, 2025Nov 5, 2025 (+36 days)Nov 7, 2025 10-K (+38 days)
Q3 FY2025Jun 30, 2025Jul 30, 2025 (+30 days)Jul 30, 2025 10-Q (+30 days)
Q2 FY2025Mar 31, 2025Apr 29, 2025 (+29 days)Apr 29, 2025 10-Q (+29 days)
Q1 FY2025Dec 31, 2024Feb 4, 2025 (+35 days)Feb 4, 2025 10-Q (+35 days)
Q4 FY2024Sep 30, 2024Nov 6, 2024 (+37 days)Nov 6, 2024 10-K (+37 days)
Q3 FY2024Jun 30, 2024Jul 31, 2024 (+31 days)Jul 31, 2024 10-Q (+31 days)
Q2 FY2024Mar 31, 2024Apr 25, 2024 (+25 days)Apr 25, 2024 10-Q (+25 days)
Q1 FY2024Dec 31, 2023Jan 25, 2024 (+25 days)Jan 25, 2024 10-Q (+25 days)

Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.

06

Flagship products & servicesSite analysis

  • Scores

    FICO Score (B2B)

    Examples: FICO Score 10 BNPL, FICO Score 10T BNPL

    Credit scores for lenders, distributed mainly through Experian, TransUnion and Equifax.

  • Scores

    myFICO (B2C)

    Subscription access to FICO Scores, credit reports and credit education for consumers.

  • Software

    FICO Platform

    Modular platform for advanced analytics and decision use cases.

  • Software

    Decisioning applications

    Examples: FICO Falcon fraud, FICO Decision Modeler, FICO Blaze Advisor, FICO Xpress Optimization

    Pre-configured solutions for account origination, customer management, engagement, fraud detection and marketing.

From the Form 10-K, FY2025, year ended 2025-09-30.

U.S., worldwide and country/regional share of flagship products/services

Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.

  • FICO Score

    U.S. consumer credit risk scoring

    U.S. share

    Standard measure

    Company-disclosed

    “The FICO Score, which is the standard measure of consumer credit risk in the U.S. It is used in most U.S. credit decisions.”

    Worldwide share

    —

    Not disclosed

Sources:

No percentage share is given.

07

Recent strategic focusSite analysis

Recent developments.

  1. Nine months to June 2026

    Revenue $1,878M versus $1,475M (+27%); Scores revenue $1,238M versus $857M; net income $660M versus $497M.

    Source: Form 10-Q (quarter ended 2026-06-30)

  2. Workforce reduction

    On October 1, 2026 FICO committed to eliminating about 15% of positions, integrating AI-driven product development; pre-tax charges about $27.0M.

    Source: Form 8-K (2026-10-06) — Item 2.05 workforce reduction

  3. Capital return

    New $2.0B repurchase program and a $1.5B ASR with Wells Fargo (June 2026); $1.0B of 6.250% notes due 2034 issued March 2026.

    Source: Form 8-K (2026-06-08) — Items 1.01, 8.01 credit agreement amendment, $2.0B buyback and ASR

Capex ÷ D&A (FY2025)

0.60x

Below depreciation — investment is being pared back

formulacapital expenditures ÷ depreciation & amortization

e.g.$9M ÷ $15M = 0.60x

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

R&D-to-revenue ratio (FY2025)

9.5%

formularesearch & development expense ÷ revenue × 100

e.g.$188M ÷ $1,991M × 100 = 9.5%

termsResearch & development (R&D) · Revenue (net sales)

Where the money goes, over time

Unit: $M. Capex went from $22M in FY2020 to $9M in FY2025

  • Capex
  • R&D

formulacapital expenditures ÷ depreciation & amortization

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-07

08

Key figures at a glanceFrom SEC data

FY2020–FY2025, 6 years.

Revenue (FY2025)

$1.99B

As reported in the 10-K

Revenue CAGR (5 years)

+9.0%▲favorable

formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1

e.g.($1,991M ÷ $1,295M) ^ (1÷5) − 1 = 9.0%

termsCAGR · ^ (exponent) · Revenue (net sales)

Operating margin (FY2025)

46.5%▲favorable

+23.6pt vs. 5 years ago

formulaoperating income ÷ revenue × 100

e.g.$925M ÷ $1,991M × 100 = 46.5%

termsOperating income · Revenue (net sales)

ROE (FY2025)

—▼caution

6-year average: 71.4%

As reported in the 10-K

P/B (FY2025 end)

—

formulafiscal year-end closing price ÷ book value per share

termsP/B · BVPS

Period-end (fiscal year-end) value, not today's P/B

EV/EBITDA (FY2025 end)

41.0x

formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)

e.g.($35,564M + $3,056M − $134M) ÷ ($925M + $15M) = 41.0x

termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)

Period-end (fiscal year-end) value, not today's multiple

  • ▲

    Revenue grew +9.0% a year over 5 years (strong growth)

    From $1.29B in FY2020 to $1.99B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.

  • ▲

    Operating margin improved: 22.9% → 46.5%

    How much operating profit is left per $100 of revenue. It moved +23.6 points over 5 years — pricing power, cost control, and product mix all show up here.

  • ▼

    Equity ratio is -93.5% (relatively heavy reliance on debt)

    The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).

  • ▲

    Free cash flow was positive in 6 of 6 years

    Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.

  • ▲

    ROE averaged 71.4% over 6 years (latest: —)

    How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.

09

Business modelSite analysis

Licenses FICO Scores, distributed mainly through the three U.S. consumer reporting agencies and sold directly to consumers via myFICO, and sells SaaS and on-premises decisioning software with professional services.

How money and goods flow at Fair Isaac
  1. 01 what it draws on

    Inputs & resources

    • 3,811 employees in 28 countries (35% U.S., 40% India)
    • 204 U.S. and 26 foreign patents
    • Credit data held by consumer reporting agencies
  2. 02 what it does

    Activities

    • B2B scores (FICO Score) for lenders
    • B2C scores via myFICO.com
    • FICO Platform and decisioning applications
  3. 03 who it serves

    Customers

    • Banks, card issuers, mortgage and auto lenders
    • Consumer reporting agencies (51% of revenue)
    • Insurers, retailers, telecoms, public agencies
  4. 04 how money comes in

    How it earns

    • Scores $1,169M
    • Software $822M (fiscal 2025)

How the business makes money

  • Scores revenue grew 27% in fiscal 2025, driven by B2B scores (+$236.7M).
  • Software is sold as SaaS or on-premises with sales cycles that can exceed a year.
  • Launched the FICO Mortgage Direct License Program, with Xactus as a participant.

Government & regulation around the business

Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.

FICO’s research under U.S. government contracts can be made public.

  • Government as customer

    Government contracts

    Under U.S. government contracts, the government may publish research results, limiting FICO’s advantage.

    Supports and constrainsTouches: Customers · How it earns

    Source: Form 10-K (FY2025)

  • Trade & export rules

    Trade policy

    Tariffs and trade policies could disrupt credit markets it serves.

    Constrains the businessTouches: Customers

    Source: Form 10-K (FY2025)

Revenue by segment (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • Scores

    1,168.6 (59%)
  • Software

    822.3 (41%)

Source: Form 10-K (FY2025, year ended 2025-09-30) — Item 7, segment results Total revenues $1,990.9M.

10

Where it earnsSite analysis

Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.

Largest market (FY2025)

Americas — 87% of revenue

Revenue by country / region (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • Americas

    1,732.4 (87%)
  • Europe, Middle East and Africa

    159.8 (8%)
  • Asia Pacific

    98.7 (5%)

Source: Form 10-K (FY2025, year ended 2025-09-30) — Note on revenue by geographic market Total $1,990.9M; Scores revenue is almost entirely in the Americas.

11

Contract structureSite analysisShow

Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.

12

Customers & suppliersSite analysis

Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.

Customers

Lenders, consumer reporting agencies, insurers, retailers, telecoms and consumers in more than 80 countries.

Named by the company

Experian, TransUnion and Equifax are named as distribution partners; each contributed more than 10% of revenue.

What the filings disclose

Suppliers

Consumer reporting agencies supply the credit data on which FICO Scores are calculated.

Named by the company

No other supplier is named.

13

Competitors & peersSite analysis

Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.

FICO names competitors for Scores and for each Software market.

Competitors named in the 10-K

Credit scores

Direct-to-consumer credit services

Fraud solutions (banking)

Customer origination

Marketing services

Decision platforms

Source: Form 10-K (FY2025, year ended 2025-09-30)

Peer group the company chose

Compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.

The 2026 proxy describes a peer group of similar-size companies from relevant industries but does not list them; the pay-versus-performance peer group is the S&P 500 Application Software Index.

Source: Proxy statement (2026)

Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.

14

Six years of financialsFrom SEC data

Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.

Revenue over time

Unit: $M

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-07

Profit over time (operating → net)

Unit: $M

  • Operating income
  • Pretax income
  • Net income

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-07

Margins over time

Unit: %

  • Operating margin
  • Net margin

formulaoperating income ÷ revenue × 100

termsOperating income · Revenue (net sales)

formulanet income attributable to the company ÷ revenue × 100

termsNet income (attributable to the company)

Cash flow over time

Unit: $M (below zero = cash went out)

  • Operating CF
  • Investing CF
  • Free CF

formulacash flow from operations − capital expenditures

termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-07

Financial stability & capital efficiency

Unit: %

  • Equity ratio
  • ROE

formulatotal equity ÷ total assets × 100 (as reported in the 10-K)

termsStockholders’ equity · Total assets

formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)

termsNet income (attributable to the company) · Stockholders’ equity

Earnings per share (EPS) and dividend per share

Unit: $

  • EPS

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-07

Line itemFY202010-K on EDGAR ↗FY202110-K on EDGAR ↗FY202210-K on EDGAR ↗FY202310-K on EDGAR ↗FY202410-K on EDGAR ↗FY202510-K on EDGAR ↗
Income statement ($M)
Revenue1,2951,3171,3771,5141,7181,991
Operating income296505542643734925
Pretax income257473471554642803
Net income (attributable)236392374429513652
Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100—1.7%4.6%9.9%13.5%15.9%
Operating margincalcoperating income ÷ revenue × 10022.9%38.4%39.4%42.5%42.7%46.5%
Net margincalcnet income attributable to the company ÷ revenue × 10018.3%29.8%27.1%28.4%29.9%32.7%
Balance sheet ($M)
Total assets1,6061,5681,4421,5751,7181,868
Total equity331-111-802-688-963-1,746
Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable7501,0091,8241,8622,2093,056
Equity ratio20.6%-7.1%-55.6%-43.7%-56.0%-93.5%
ROE71.4%—————
Cash flow ($M)
Operating CF365424509469633779
Investing CF-25138-6-16-28-44
Financing CF-289-524-547-455-593-750
Free cash flowcalccash flow from operations − capital expenditures343416503465624770
Cash and equivalents157195133137151134
Per share & other
EPS ($)7.9013.4014.1816.9320.4526.54
BVPS ($)11.38-4.02-31.88-27.78-39.47-73.46
P/E (x)53.929.729.151.395.056.4
EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)39.722.221.435.366.241.0
P/B (x)calcfiscal year-end closing price ÷ book value per share37.38—————

P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.

Last 8 quarters

Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.

Quarter endedRevenueOperating incomeNet incomeDiluted EPS
2026-06-30$674M+25.7%$363M+38.1%$237M+30.5%$10.45
2026-03-31$692M+38.7%$402M+63.8%$264M+62.6%$11.14
2025-12-31$512M+16.4%$234M+30.4%$158M+3.8%$6.61
2025-09-30 †$516M+13.6%$237M+20.3%$155M+14.2%—
2025-06-30$536M$263M$182M$7.40
2025-03-31$499M$246M$163M$6.59
2024-12-31$440M$180M$153M$6.14
2024-09-30 †$454M$197M$136M—

† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.

15

Is ROIC above WACC?From SEC data

ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.

ROIC (FY2025)

57.9%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

e.g.$925M × (1 − 20%) ÷ $1,278M × 100 = 57.9%

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

WACC (this site’s estimate)

10.41%

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

e.g.Equity weight: $35.56B ÷ ($35.56B + $3.06B) = 92.1%

e.g.Debt weight: $3.06B ÷ ($35.56B + $3.06B) = 7.9%

e.g.WACC: 11.0% × 92.1% + 4.4% × (1 − 20%) × 7.9% = 10.41%

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

ROIC − WACC

+47.5pt▲favorable

Earning more than the cost of capital (ROIC > WACC in 6 of 6 years)

formulaROIC − WACC (positive means the business earns more than its cost of capital)

termsROIC · WACC

How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 8.6%–12.6% and ROIC − WACC runs +45.3 to +49.3 points. The sign holds across this range. This describes the latest year and does not predict future value creation.

WACC 10.41% is this site’s estimate under the assumptions below (not a figure the company has published)

Risk-free rate
4.95% (10-year Treasury, 2026-11-03)
β
1.10 (price-derived adjusted beta)
Equity risk premium
5.5%
Cost of equity
11.00%
Cost of debt
4.37%
Tax rate
20% (effective rate, FY2023–FY2025)
Capital structure (equity : debt)
92% : 8%
→ Change assumptions and recalculate

ROIC over time, vs. WACC

Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red

  • ROIC (above WACC)
  • ROIC (below WACC)
  • WACC 10.41%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

Try different WACC assumptions

β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).

Initial β: 1.10 (price-derived adjusted beta. Raw β 1.15, R² 0.10, 130 weeks)

formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)

e.g.0.67 × 1.146 + 0.33 = 1.098

termsβ (beta)

Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.

Cost of equity11.00%

formularisk-free rate + β × equity risk premium

e.g.5.0% + 1.1 × 5.5% = 11.0%

termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)

Market value of equity$35.56B

formulafiscal year-end closing price × shares outstanding (= market cap)

termsMarket capitalization · Market value of equity

Interest-bearing debt$3.06B
Cost of debt4.37%

formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)

termsInterest-bearing debt · Risk-free rate

Capital structure (equity weight : debt weight)92% : 8%

16

What the price implies (DCF)From SEC data

A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.

Growth the price implies (price on 2026-11-04)

6.7%

Perpetual FCF growth: g = r − FCF ÷ EV = 10.4% − 3.7%

Past FCF growth (FY2020–FY2025)

+17.6%

Compound annual rate, 5 years

Past revenue growth (FY2020–FY2025)

+9.0%

Compound annual rate, 5 years

Inputs (FY2025): free cash flow $770M (operating CF − capex); enterprise value $20.69B = market cap $17.77B (latest close, 2026-11-04) + debt $3.06B − cash and short-term investments $134M; r = WACC of 10.4% using this page’s default assumptions (β 1.10, risk-free 5.0%, market premium 5.5%).

Three WACC scenarios

The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.

Try your own assumptions

V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.

Theoretical enterprise value

$20.81B

FCF $770M ÷ (10.4% − 6.7%)

Theoretical ÷ actual enterprise value

1.01x

Above 1x: these assumptions value the business above the market did

How sensitive the answer is

Theoretical ÷ actual enterprise value for each combination of r and g.

g \ r8.4%9.4%10.4%11.4%12.4%
0%0.44x0.40x0.36x0.33x0.30x
2%0.58x0.50x0.44x0.40x0.36x
4%0.85x0.69x0.58x0.50x0.44x
6%1.55x1.09x0.85x0.69x0.58x
8%9.30x2.66x1.55x1.09x0.85x

A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.

17

Earnings qualityFrom SEC dataShow

The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.

  • ✓

    Operating CF ÷ net income: averages 1.25x

    Profit is backed by cash coming in.

  • ✓

    Accrual ratio (latest): -7.1%

    A small share of profit rests on accounting estimates.

  • ✓

    Core-earnings share (operating income ÷ pretax income): 115%

    Most profit comes from core operations.

  • ✓

    Days sales outstanding: 94 → 88 days

    No major slowdown in collecting on sales.

Operating CF vs. net income

Unit: $M — operating CF above net income means profit is backed by cash

  • Operating CF
  • Net income

formulacash flow from operations ÷ net income attributable to the company

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formula(net income − operating CF) ÷ average total assets × 100

termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-07

Profit bridge (FY2025)

Unit: $M — what moved profit from operating income to net income

  • Profit (each stage)
  • Pushed profit up
  • Pushed profit down

formulaoperating income ÷ income before income taxes × 100

termsOperating income · Income before income taxes (pretax income)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-07

Receivables & inventory days

Unit: days — days grow when receivables or inventory build up faster than sales

  • Days sales outstanding

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

termsInventory · Cost of revenue (COGS)

Worked examples (latest period)

formulacash flow from operations ÷ net income attributable to the company

e.g.$779M ÷ $652M = 1.19x

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formulaoperating income ÷ income before income taxes × 100

e.g.$925M ÷ $803M × 100 = 115%

termsOperating income · Income before income taxes (pretax income)

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

e.g.($427M + $529M) ÷ 2 ÷ $1,991M × 365 = 88 days

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

termsInventory · Cost of revenue (COGS)

18

Who holds the sharesFrom SEC dataShow

How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.

Institutions, insiders and everyone else, 13F holdings as of 2026-06-30

“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.

Held by 13F filers
100.0%
Directors & officers (shares)
3.0%
Everyone else (est.)
0.0%

individuals and other non-13F holders

Directors & officers (voting power)
3.0%

no separate voting figure; shown as shares

Institutional-ownership rank
62 of 416

1 = most institutional; 15% of covered companies have more

Beta (adjusted)
1.10

above 1 = swings more than the market

  • 21.6M shares reported by 845 13F filers ÷ 21.6M shares outstanding on 2026-07-17. Option positions are excluded.
  • Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
  • A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.

Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-01-27 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-17)

19

Strengths & weaknessesSite analysis

Strengths

  1. 1. Standard U.S. credit score

    The FICO Score is the standard measure of consumer credit risk in the U.S. and is used by nearly all major banks, card issuers, mortgage lenders and auto loan originators.

    Evidence: Form 10-K (FY2025, year ended 2025-09-30)

  2. 2. High and rising margins

    Operating income rose from $296M (fiscal 2020) to $925M (fiscal 2025) on revenue up from $1,295M to $1,991M.

    Evidence: SEC EDGAR XBRL

  3. 3. Strong Scores growth

    Scores revenue grew 19% in fiscal 2024 and 27% in fiscal 2025.

    Evidence: Form 10-K (FY2025, year ended 2025-09-30)

Weaknesses

  1. 1. Concentration on credit bureaus

    Agreements with the three consumer reporting agencies generated 51% of fiscal 2025 revenue, and the same agencies own competitor VantageScore.

    Evidence: Form 10-K (FY2025, year ended 2025-09-30)

  2. 2. Negative equity and rising debt

    Stockholders’ deficit of $1,746M and debt of $3,056M at Sep 30, 2025, with $1.0B more notes issued in March 2026.

    Evidence: Form 10-K (FY2025, year ended 2025-09-30)

20

What draws investors to itSite analysis

Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.

P/E (FY2025)

56.4x

Price at fiscal year-end ÷ diluted EPS

Dividend yield (FY2025)

—

Dividends per share ÷ fiscal year-end price

Payout ratio (FY2025)

—

Dividends per share ÷ diluted EPS

FCF yield (FY2025)

2.2%

(Operating CF − capex) ÷ market cap

  1. 1. Rapid EPS growth

    Diluted EPS rose from $7.90 (fiscal 2020) to $26.54 (fiscal 2025); nine-month fiscal 2026 diluted EPS was $28.12.

    What has to hold
    Score pricing and volumes keep rising.
    The other side
    Mortgage policy changes and competition.

    Evidence: SEC EDGAR XBRL

  2. 2. Share count shrinkage

    Repurchases cut shares from about 29M (fiscal 2020) to about 24M (fiscal 2025).

    What has to hold
    Buybacks continue.
    The other side
    Funded partly by debt.

    Evidence: SEC EDGAR XBRL

Fiscal years end September 30. Book value per share is negative because accumulated buybacks exceed retained earnings. FICO has paid no dividend since May 2017.

21

ResilienceSite analysisShow

How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.

1. Financial buffer (FY2025)

Cash & short-term investments ÷ debt due within a year

0.3x

$134M vs. $400M

Interest coverage (operating income ÷ interest expense)

6.9x

$925M vs. $134M

Free cash flow ÷ dividends paid

—

2. Worst year in the record, and the recovery

FigureWorst year-over-year changeBack to the prior level?
RevenueNo decline in the record—
Operating incomeNo decline in the record—

Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.

3. Business resilience (from the 10-K)

  • Recession record

    Operating income rose every year from fiscal 2020 through fiscal 2025.

    Source: SEC EDGAR XBRL

23

Risks (including geopolitical)Site analysis

Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.

Risk map

Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).

Impact
High
123
Med
456
Low
LowMedHigh

Likelihood →

"Company disclosure" vs. "this site’s assessment"

The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.

Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.

  1. 1Law & regulation

    Mortgage score policy (FHFA)

    Company disclosure (summarized from the 10-K)
    Use of FICO Scores for mortgages sold to Fannie Mae and Freddie Mac depends on FHFA approval; in July 2025 the FHFA Director permitted lenders to choose which credit score they submit.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact High / Likelihood Med
  2. 2Customer/supplier concentration

    Consumer reporting agency relationships

    Company disclosure (summarized from the 10-K)
    Loss of or a significant change in a relationship with Experian, TransUnion or Equifax could materially hurt revenue.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact High / Likelihood Med
  3. 3Competition & technology shift

    VantageScore and other scores

    Company disclosure (summarized from the 10-K)
    VantageScore, a joint venture of the three bureaus, sells a competing credit score; software markets face larger rivals.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact High / Likelihood Med
  4. 4Law & regulation

    Antitrust litigation

    Company disclosure (summarized from the 10-K)
    Putative class actions allege FICO monopolized credit score distribution (Sherman Act Section 2).
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  5. 5Demand & macro

    Credit volumes

    Company disclosure (summarized from the 10-K)
    Largest customers’ businesses depend on favorable macroeconomic conditions and lending activity.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  6. 6Funding & liquidity

    Debt-funded buybacks

    Company disclosure (summarized from the 10-K)
    Debt rose to fund repurchases, including a $1.5B accelerated share repurchase in June 2026.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med

24

What to watch going forwardSite analysis

  • Adoption of alternative scores in mortgages after the FHFA’s July 2025 change, and uptake of the FICO Mortgage Direct License Program.
  • Progress of the antitrust class action in the Northern District of Illinois.
  • Settlement of the $1.5 billion ASR, expected in fiscal Q4 2026.
  • Execution of the October 2026 plan to cut about 15% of positions (about $27.0M of charges in fiscal Q4 2026).

25

Source documentsShow

This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.

Last updated

Analysis last edited: October 24, 2026 · Financial data fetched: October 24, 2026 09:47 (SEC EDGAR) · Source 10-K filed: November 7, 2025

Built on10-K FY2025 · filed 2025-11-07Proxy statement (2026)

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

This page is this site’s own analysis based on public information, and does not represent Fair Isaac’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.