Fair Isaac (FICO)
Information Technology · $19.9B market cap · SEC CIK 0000814547
fundamentals score out of 100
Next reports on Nov 3, 2026, after the close, with analysts expecting $11.26 in earnings per share.
The case for FICO
- Revenue up 24.1% on the year.
- Generated $770M of free cash flow in FY2025, 39% of revenue.
- 34% of revenue drops through to net profit.
- Earnings per share up 35.4%.
- Earns 42% a year on everything it owns (return on assets).
- A PEG of 0.69: a P/E of 24.4× is low for EPS growing 35%.
The case against
- Down 37.4% over the past year.
- Owes more than it owns: shareholder equity is -$1.8B, usually the result of buybacks funded with debt. ROE and price-to-book mean little here.
- Near the bottom of its 52-week range, 54% below the high. Falling prices usually have a reason; find it first.
- Long-term debt of $2.8B against $162M of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 56 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 64 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 90 |
| Momentumhow the price has behaved lately | 12 |
| Stabilityhow violently it moves, what it owes and what it pays you | 18 |
- Shareholder equity is negative, so return on equity, price-to-book and debt-to-equity are left out.
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 24.4× |
|---|---|
| Price / book | n/m (negative equity) |
| Price / sales | 8.3× |
| Revenue growth (YoY) | +24.1% |
| EPS growth (YoY) | +35.4% |
| Gross margin | 85% |
| Operating margin | 52% |
| Net margin | 34% |
| Return on assets | 41.8% (ROE not meaningful: negative equity) |
| Debt / equity | n/m (negative equity) |
| Current ratio | 1.18 |
| Dividend yield | none |
| Beta | 1.35 |
| 52-week range | $870.01 – $1,998 |
| Position in that range | 4% of the way up |
| 3-month return | -15.7% |
| 1-year return | -37.4% |
Five years of financials, as filed
Pulled from Fair Isaac's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $2.0B | $1.7B | $1.5B | $1.4B | $1.3B |
| Operating income | $925M | $734M | $643M | $542M | $505M |
| Net income | $652M | $513M | $429M | $374M | $392M |
| Operating cash flow | $779M | $633M | $469M | $509M | $424M |
| Capital expenditure | $8.9M | $8.9M | $4.2M | $6.0M | $7.6M |
| Total assets | $1.9B | $1.7B | $1.6B | $1.5B | $1.5B |
| Total liabilities | $3.7B | $2.8B | $2.3B | $2.3B | $2.0B |
| Shareholder equity | -$1.8B | -$1.1B | -$726M | -$802M | -$538M |
| Cash | $162M | $184M | $160M | $140M | $162M |
| Long-term debt | $2.8B | $2.4B | $1.8B | $1.8B | $1.6B |
| Free cash flow | $770M | $624M | $465M | $503M | $416M |
| Operating margin | 46.5% | 42.7% | 42.5% | 39.4% | 38.4% |
| Net margin | 32.7% | 29.9% | 28.4% | 27.1% | 29.8% |
| Diluted shares | 24.6M | 25.1M | 25.4M | 26.3M | 29.3M |
Share count is down 16.1% over 4 years. Buybacks have been shrinking the pie.
What Fair Isaac says it does
Fair Isaac Corporation (NYSE: FICO) (together with its consolidated subsidiaries, the "Company," which may also be referred to in this report as "we," "us," "our," and "FICO") is a global analytics software leader. We were founded in 1956 on the premise that data, used intelligently, can improve business decisions. Today, FICO’s software and the widely used FICO ® Score operationalize analytics, enabling thousands of businesses in more than 80 countries to uncover new opportunities, make timely decisions that matter, and execute them at scale. Most leading banks and credit card issuers rely on our solutions, as do insurers, retailers, telecommunications providers, automotive lenders, consumer reporting agencies, public agencies, and organizations in other industries. We also serve consumers through online services that enable people to access and understand their FICO Scores — the standard measure of consumer credit risk in the…
Risk factors FICO lists in its 10-K
- Business, Market and Strategy Risks
- We may not be successful in executing the business strategy for our Software segment, which could cause our growth prospects and results of operations to suffer
- We derive a substantial portion of our revenues from a small number of products and services, and if the market does not continue to accept these products and services, our revenues will decline
- Score by Fannie Mae and Freddie Mac were to cease or decline, it could have a material adverse effect on our revenues, results of operations and stock price
- We are subject to significant competition in the markets in which we operate, and our products and pricing strategies, and those of our competitors, could decrease our product sales and market share
- We will continue to rely upon proprietary technology rights, and if we are unable to protect them, our business could be harmed
- If we fail to keep up with rapidly changing technologies, our products could become less competitive or obsolete
- Our reengineering efforts may cause our growth prospects and profitability to suffer
- If we are unable to access new markets or develop new sales and distribution channels, our business and growth prospects could suffer
- Our acquisition activities may disrupt our ongoing business and may involve increased expenses, and we may not realize the financial and strategic goals contemplated at the time of a transaction
- There can be no assurance that strategic divestitures will provide business benefits
- Our revenues, results of operations and overall financial performance may be negatively impacted by health epidemics or other disease outbreaks
- The failure to obtain certain forms of data from our customers or others for our use in product development could harm our business
- The failure to recruit and retain qualified personnel could hinder our ability to successfully manage our business