📈 FICO — Earnings Recap

EX-99.1 2 exhibit991erq22026.htm EX-99.1 Q2-26 Document Exhibit 99.1 FICO Announces Earnings of $11.14 per Share for Second Quarter Fiscal 2026 Revenue of $692 million vs. $499 million in prior year BOZEMAN, Mont.--(BUSINESS WIRE)--April 28, 2026--FICO (NYSE FICO), a global analytics software leader, today announced results for its second fiscal quarter ended March 31,2026. Second Quarter Fiscal 2026 GAAP Results Net income for the quarter totaled $264.5 million, or $11.14 per share, versus $162.6 million, or $6.59 per share, in the prior year period. Net cash provided by operating activities for the quarter was $223.4 million versus $74.9 million in the prior year period. Second Quarter Fiscal 2026 Non-GAAP Results Non-GAAP Net Income for the quarter was $296.8 million versus $192.7 million in the prior year period. Non-GAAP EPS for the quarter was $12.50 versus $7.81 in the prior year period. Free cash flow was $214.3 million for the current quarter versus $65.5 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 2026 GAAP Revenue The company reported revenues of $691.7 million for the quarter as compared to $498.7 million reported in the prior year period, an increase of 39%. We continue to deliver strong revenue and earnings growth, said Will Lansing, chief executive officer. We are pleased to announce that we are raising our full year guidance. Revenues for the second quarter of fiscal 2026 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 $475.0 million in the second quarter, compared to $297.0 million in the prior year period, an increase of 60%. B2B revenue increased 72%, primarily attributable to a higher mortgage origination scores unit price and an increase in volume of mortgage originations. B2C revenue increased 5% from the prior year period due mainly to increased revenue from our indirect channel partners. Software revenues, which include the company s analytics and digital decisioning technology, were up 7% year-over-year with $216.7 million in the second quarter, compared to $201.7 million in the prior year period. On March 31, 2026, Software Annual Recurring Revenue was up 10% year-over-year, consisting of a 49% increase in platform ARR and an 8% decline in non-platform ARR. The total Software Dollar-Based Net Retention Rate was 109% on March 31, 2026, with platform software at 136% and non-platform software at 90%. Outlook The company is updating its previously provided guidance for fiscal 2026 Previous Fiscal 2026 Guidance Updated Fiscal 2026 Guidance Revenues $2.35 billion $2.45 billion GAAP Net Income $795 million $825 million GAAP EPS $33.47 $35.60 Non-GAAP Net Income $907 million $946 million Non-GAAP EPS $38.17 $40.45 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 28, 2026, at 4 30 p.m. Eastern Time (1 30 p.m. Pacific Time) to report its second quarter fiscal 2026 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 28, 2027. 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. 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 business strategies, the maintenance of its existing relationships and ability to create new relationships with customers, distributors and other business partners, its ability to continue to develop new and enhanced products and services and to enter new markets, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use or costs 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 or uncertainty in global economic conditions or in the markets or industries that the Company serves. 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, 2025 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. FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, 2026 September 30, 2025 (In thousands) Assets Current assets Cash and cash equivalents $ 219,419 $ 134,136 Accounts receivable, net 619,957 529,148 Prepaid expenses and other current assets 61,397 41,881 Total current assets 900,773 705,165 Marketable securities 53,046 54,625 Property and equipment, net 79,623 67,713 Operating lease right-of-use assets 25,025 26,213 Goodwill 781,390 783,340 Other assets 208,392 231,077 Total assets $ 2,048,249 $ 1,868,133 Liabilities and Stockholders Deficit Current liabilities Accounts payable and other accrued liabilities $ 134,868 $ 146,933 Accrued compensation and employee benefits 87,259 115,369 Deferred revenue 183,163 187,372 Current maturities on debt — 399,541 Total current liabilities 405,290 849,215 Long-term debt 3,639,063 2,656,150 Operating lease liabilities 17,555 19,187 Other liabilities 87,991 89,365 Total liabilities 4,149,899 3,613,917 Stockholders deficit (2,101,650) (1,745,784) Total liabilities and stockholders deficit $ 2,048,249 $ 1,868,133 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Quarter Ended March 31, Six Months Ended March 31, 2026 2025 2026 2025 (In thousands, except per share data) Revenues On-premises and SaaS software $ 199,231 $ 183,826 $ 387,452 $ 369,837 Professional services 17,473 17,870 36,677 36,152 Scores 474,973 297,039 779,507 532,714 Total revenues 691,677 498,735 1,203,636 938,703 Operating expenses Cost of revenues 91,199 87,630 178,460 174,975 Research and development 53,916 45,037 103,828 90,182 Selling, general and administrative 144,097 120,420 284,834 248,370 Total operating expenses 289,212 253,087 567,122 513,527 Operating income 402,465 245,648 636,514 425,176 Other expense, net (46,436) (32,632) (88,554) (62,031) Income before income taxes 356,029 213,016 547,960 363,145 Provision for income taxes 91,571 50,401 125,129 48,002 Net income $ 264,458 $ 162,615 $ 422,831 $ 315,143 Earnings per share Basic $ 11.19 $ 6.67 $ 17.86 $ 12.92 Diluted $ 11.14 $ 6.59 $ 17.73 $ 12.73 Shares used in computing earnings per share Basic 23,628 24,389 23,676 24,383 Diluted 23,748 24,685 23,854 24,756 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended March 31, 2026 2025 (In thousands) Cash flows from operating activities Net income $ 422,831 $ 315,143 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 7,905 6,950 Share-based compensation 89,579 82,358 Changes in operating assets and liabilities (147,283) (132,202) Other, net 24,408 (3,334) Net cash provided by operating activities 397,440 268,915 Cash flows from investing activities Purchases of property and equipment (492) (2,960) Capitalized internal-use software costs (17,256) (13,638) Net activity from marketable securities (3,400) (3,285) Net cash used in investing activities (21,148) (19,883) Cash flows from financing activities Proceeds from revolving line of credit and term loans 880,000 450,000 Payments on revolving line of credit and term loans (890,000) (132,500) Proceeds from issuance of senior notes 1,000,000 — Payments on senior notes (400,000) — Proceeds from issuance of treasury stock under employee stock plans 14,935 16,062 Taxes paid related to net share settlement of equity awards (105,767) (198,531) Repurchases of common stock (776,565) (379,738) Other, net (11,847) (3,016) Net cash used in financing activities (289,244) (247,723) Effect of exchange rate changes on cash (1,765) (5,335) Increase (decrease) in cash and cash equivalents 85,283 (4,026) Cash and cash equivalents, beginning of period 134,136 150,667 Cash and cash equivalents, end of period $ 219,419 $ 146,641 FAIR ISAAC CORPORATION NON-GAAP RESULTS (Unaudited) Quarter Ended March 31, Six Months Ended March 31, 2026 2025 2026 2025 (In thousands, except per share data) GAAP net income $ 264,458 $ 162,615 $ 422,831 $ 315,143 Share-based compensation expense 45,310 41,704 89,579 82,358 Income tax adjustments (11,712) (10,366) (23,087) (20,229) Excess tax benefit (1,252) (1,264) (16,909) (40,794) Non-GAAP net income $ 296,804 $ 192,689 $ 472,414 $ 336,478 GAAP diluted earnings per share $ 11.14 $ 6.59 $ 17.73 $ 12.73 Share-based compensation expense 1.91 1.69 3.76 3.33 Income tax adjustments (0.49) (0.42) (0.97) (0.82) Excess tax benefit (0.05) (0.05) (0.71) (1.65) Non-GAAP diluted earnings per share $ 12.50 $ 7.81 $ 19.80 $ 13.59 Free cash flow Net cash provided by operating activities $ 223,358 $ 74,918 $ 397,440 $ 268,915 Capital expenditures (9,042) (9,427) (17,748) (16,598) Free cash flow $ 214,316 $ 65,491 $ 379,692 $ 252,317 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. FAIR ISAAC CORPORATION RECONCILIATION OF NON-GAAP GUIDANCE (Unaudited) Previous Fiscal 2026 Guidance Updated Fiscal 2026 Guidance (In millions, except per share data) GAAP net income $ 795 $ 825 Share-based compensation expense 166 185 Income tax adjustments (42) (45) Excess tax benefit (13) (19) Non-GAAP net income $ 907 $ 946 GAAP diluted earnings per share $ 33.47 $ 35.60 Share-based compensation expense 6.99 7.44 Income tax adjustments (1.75) (1.83) Excess tax benefit (0.55) (0.76) Non-GAAP diluted earnings per share $ 38.17 $ 40.45 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