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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (date of earliest event reported) February 4, 2025

FAIR ISAAC CORPORATION
(Exact name of registrant as specified in its charter)


Delaware

1-11689

94-1499887
(State or other jurisdiction
of incorporation)
(Commission
 File Number)
(IRS Employer
Identification Number)
5 West Mendenhall, Suite 105
Bozeman,Montana59715
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code 406-982-7276  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value per shareFICONew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b‑2 of this chapter).
Emerging growth company
☐
    
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



TABLE OF CONTENTS

Item 2.02. Results of Operations and Financial Condition.
Item 9.01. Financial Statements and Exhibits.
                 Exhibit 99.1
Signature




Item 2.02. Results of Operations and Financial Condition.

On February 4, 2025, Fair Isaac Corporation (the “Company”) reported its financial results for the quarter ended December 31, 2024. See the Company’s press release dated February 4, 2025, which is furnished as Exhibit 99.1 hereto and incorporated by reference in this Item 2.02.

Item 9.01    Financial Statements and Exhibits.
(d) Exhibits.

ExhibitDescription
99.1
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FAIR ISAAC CORPORATION
By:
/s/ STEVEN P. WEBER
Steven P. Weber
Executive Vice President and Chief Financial Officer
Date:February 4, 2025


Exhibit 99.1
FICO Announces Earnings of $6.14 per Share
for First Quarter Fiscal 2025

Revenue of $440 million vs. $382 million in prior year

BOZEMAN, Mont.--(BUSINESS WIRE)--February 4, 2025--FICO (NYSE:FICO), a global analytics software leader, today announced results for its first fiscal quarter ended December 31, 2024.

First Quarter Fiscal 2025 GAAP Results
Net income for the quarter totaled $152.5 million, or $6.14 per share, versus $121.1 million, or $4.80 per share, in the prior year period.
Net cash provided by operating activities for the quarter was $194.0 million versus $122.1 million in the prior year period.

First Quarter Fiscal 2025 Non-GAAP Results
Non-GAAP Net Income for the quarter was $143.8 million versus $121.2 million in the prior year period. Non-GAAP EPS for the quarter was $5.79 versus $4.81 in the prior year period. Free cash flow was $186.8 million for the current quarter versus $120.8 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.

First Quarter Fiscal 2025 GAAP Revenue
The company reported revenues of $440.0 million for the quarter as compared to $382.1 million reported in the prior year period, an increase of 15%.
“We had a good start to our fiscal year, with strong top and bottom-line 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 first 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 $235.7 million in the first quarter, compared to $192.1 million in the prior year period, an increase of 23%. B2B revenue increased 30%, driven largely by higher unit prices and an increase in volume of mortgage originations. B2C revenue increased 3% 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 $204.3 million in the first quarter, compared to $189.9 million in the prior year period, an increase of 8%, mainly due to increased recurring revenue and license revenue. Software Annual Recurring Revenue was up 6% year-over-year, consisting of 20% platform ARR growth and 1% growth in non-platform. The Software Dollar-Based Net Retention Rate was 105% on December 31, 2024, with platform software at 112% and non-platform software at 100%.


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 February 4, 2025 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its first 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 February 4, 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.





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.



FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, 2024September 30, 2024
(In thousands)
Assets
Current assets:
Cash and cash equivalents$184,254 $150,667 
Accounts receivable, net350,924 426,642 
Prepaid expenses and other current assets60,658 40,104
Total current assets595,836 617,413
Marketable securities45,925 45,289 
Property and equipment, net43,018 38,465 
Operating lease right-of-use assets28,309 29,580 
Goodwill775,551 782,752 
Other assets 217,969 204,385 
Total assets$1,706,608 $1,717,884 
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable and other accrued liabilities$73,852 $102,285 
Accrued compensation and employee benefits77,109 106,103 
Deferred revenue165,359 156,897 
Current maturities on debt15,000 15,000 
Total current liabilities331,320 380,285 
Long-term debt 2,406,100 2,194,021 
Operating lease liabilities20,881 21,963 
Other liabilities86,471 84,294 
Total liabilities2,844,772 2,680,563 
Stockholders’ deficit(1,138,164)(962,679)
Total liabilities and stockholders’ deficit$1,706,608 $1,717,884 


FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

 Quarter Ended December 31,
 20242023
 (In thousands, except per share data)
Revenues:
On-premises and SaaS software$186,011 $168,668 
Professional services18,282 21,279 
Scores235,675 192,112 
Total revenues439,968 382,059 
Operating expenses:
Cost of revenues87,345 83,461 
Research and development45,145 42,635 
Selling, general and administrative127,950 104,329 
Amortization of intangible assets— 275 
Total operating expenses260,440 230,700 
Operating income179,528 151,359 
Other expense, net(29,399)(20,769)
Income before income taxes150,129 130,590 
Income tax provision (benefit)(2,399)9,525 
Net income$152,528 $121,065 
Earnings per share:
Basic$6.26 $4.89 
Diluted$6.14 $4.80 
Shares used in computing earnings per share:
Basic24,378 24,764 
Diluted24,827 25,219 


FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Quarter Ended December 31,
 20242023
 (In thousands)
Cash flows from operating activities:
Net income$152,528 $121,065 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization3,535 2,824 
Share-based compensation40,654 31,574 
Changes in operating assets and liabilities (1,235)(30,343)
Other, net (1,485)(3,000)
Net cash provided by operating activities 193,997 122,120 
Cash flows from investing activities:
Purchases of property and equipment(841)(1,361)
Capitalized internal-use software costs(6,330)— 
Net activity from marketable securities (1,771)(1,057)
Net cash used in investing activities(8,942)(2,418)
Cash flows from financing activities:
Proceeds from revolving line of credit and term loans275,000 170,000 
Payments on revolving line of credit and term loans(63,750)(70,750)
Proceeds from issuance of treasury stock under employee stock plans3,261 4,499 
Taxes paid related to net share settlement of equity awards(196,126)(131,911)
Repurchases of common stock(162,581)(71,704)
Other, net(22)— 
Net cash used in financing activities (144,218)(99,866)
Effect of exchange rate changes on cash(7,250)3,807 
Increase in cash and cash equivalents33,587 23,643 
Cash and cash equivalents, beginning of period150,667 136,778 
Cash and cash equivalents, end of period$184,254 $160,421 


FAIR ISAAC CORPORATION
NON-GAAP RESULTS
(Unaudited)
 Quarter Ended December 31,
 20242023
 (In thousands, except per share data)
GAAP net income$152,528 $121,065 
Amortization of intangible assets— 275 
Share-based compensation expense40,654 31,574 
Income tax adjustments(9,863)(7,915)
Excess tax benefit(39,530)(23,775)
Non-GAAP net income$143,789 $121,224 
GAAP diluted earnings per share$6.14 $4.80 
Amortization of intangible assets— 0.01 
Share-based compensation expense1.64 1.25 
Income tax adjustments(0.40)(0.31)
Excess tax benefit(1.59)(0.94)
Non-GAAP diluted earnings per share$5.79 $4.81 
Free cash flow
Net cash provided by operating activities$193,997 $122,120 
Capital expenditures(7,171)(1,361)
Free cash flow$186,826 $120,759 
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)
 Fiscal 2025 Guidance
 (In millions, except per share data)
 
GAAP net income$624 
Share-based compensation expense157 
Income tax adjustments(39)
Excess tax benefit(30)
Non-GAAP net income$712 
GAAP diluted earnings per share$25.05 
Share-based compensation expense6.31 
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

v3.25.0.1
Cover
Feb. 04, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 04, 2025
Entity Registrant Name FAIR ISAAC CORP
Entity Incorporation, State or Country Code DE
Entity File Number 1-11689
Entity Tax Identification Number 94-1499887
Entity Address, Address Line One 5 West Mendenhall, Suite 105
Entity Address, City or Town Bozeman,
Entity Address, State or Province MT
Entity Address, Postal Zip Code 59715
City Area Code 406
Local Phone Number 982-7276
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value per share
Trading Symbol FICO
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000814547
Amendment Flag false
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