FICO Reports Q4 FY26 Revenue Up 27% to $657M; Withholds FY27 Guidance

Financial Highlights & Performance Overview

Fair Isaac Corporation (NYSE: FICO) reported its fourth-quarter fiscal 2026 financial results under Item 2.02:

• Total Revenue: $657.0 million, up 27% from $515.8 million in Q4 FY2025. Full-year FY2026 revenue reached $2.535 billion compared to $1.991 billion in FY2025.
• GAAP Net Income & EPS: Net income reached $175.0 million ($8.12 per diluted share), compared to $155.0 million ($6.42 per diluted share) in the prior-year period.
• Non-GAAP Performance: Non-GAAP Net Income was $239.3 million, resulting in Non-GAAP EPS of $11.10 (up 43% from $7.74 in Q4 FY2025).
• Cash Flow: Net cash provided by operating activities totaled $294.2 million (vs. $223.7 million YoY), with free cash flow rising to $284.3 million (vs. $210.8 million YoY).

Segment Breakdown

1. Scores Segment:

   • Revenue rose 33% YoY to $413.8 million.
   • B2B revenue grew 39%, driven primarily by higher mortgage origination scores unit pricing, which offset declining mortgage origination volumes.
   • B2C revenue climbed 3% YoY, driven by higher indirect credit reporting agency royalties.

2. Software Segment:

   • Revenue increased 19% YoY to $243.2 million.
   • Software Annual Recurring Revenue (ARR) grew 14% YoY, led by a 72% increase in platform ARR offsetting an 18% decline in non-platform ARR.
   • Total Software Dollar-Based Net Retention Rate stood at 112% (156% for platform software, 82% for non-platform software).

Significant One-Time Items

GAAP results were impacted by three material one-off items during the quarter:

• Antitrust Accrual: A $65.0 million accrual for a proposed settlement regarding antitrust class action litigation involving the Scores business.
• Investment Gain: A $48.0 million non-operating gain from the sale of an equity minority interest.
• Restructuring: A $27.3 million restructuring charge stemming from a planned workforce reduction.

Outlook & Forward Guidance

FICO declined to provide guidance for fiscal year 2027. Management cited the ongoing transition to bespoke mortgage origination pricing (such as the FICO Preferred Program) alongside persistently elevated interest rates and affordability constraints weighing on mortgage originations.