Fair Isaac Corporation FICO
NYSEApplication softwareFinancials to Sep 30, 2026 · Updated Nov 11, 2026
Moat ranks
Balance sheet
| $B | Sep '25 | Sep '26 |
|---|---|---|
| Cash | 0.1 | 0.2 |
| Securities | 0.0 | 0.0 |
| Restricted cash | 0.1 | 0.1 |
| Debt | 3.1 | 5.3 |
| Net cash | -2.9 | -5.0 |
| Equity | -1.7 | -3.9 |
- Debt / EBITDA
- 4.10×
- Debt / equity
- –
- Leases (9/30/26)
- $31M
- Diluted shares
- 23M
- Book value / share
- −$168.49
- Price / book
- –
- Net cash / share
- −$219.31
- Market cap
- $15.6B
- Enterprise value
- $20.7B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 27.4% | +13.7 pts | |
| Operating margin | 40.6% | -5.4 pts | |
| FCF margin | 43.3% | +2.4 pts | |
| Capex / revenue | 1.5% | -1.0 pts | |
| Software annual recurring revenue | $851M | +14% | |
| Platform annual recurring revenue | $453M | +72% | |
| Non-platform annual recurring revenue | $398M | -18% | |
| Software dollar-based net retention | 112.0% | +10.0 pts | |
| Scores revenue | $414M | +33% |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About FICO
FICO licenses consumer credit scores and sells software for lending, fraud and business decisions. Scores supplied 65.2% of FY2026 revenue.
- De Facto Standard
U.S. lenders widely use FICO scores.
- Format Lock In
Backwards-compatible score scales and stable score-to-risk relationships reduce change costs for lenders and keep legacy underwriting processes usable across model versions.
- Data Workflow Lockin
FICO's software is embedded in high-stakes decision workflows (fraud, onboarding, credit risk), creating operational switching costs once data, rules, and models are in production.
- Nov 4, 2026
FICO withheld FY2027 guidance during mortgage-pricing negotiations, increasing uncertainty around the Scores growth model despite $850.9 million Software ARR.
- Oct 29, 2026
FICO and plaintiffs agreed a proposed $65 million antitrust settlement term sheet; a Q4 accrual recognizes the cost, but final court approval remains outstanding.
- Oct 23, 2026
FICO held its wholesale mortgage bundle at $10 for Preferred Program lenders, defending usage while limiting year-over-year price expansion.
- Oct 6, 2026
UWM reaffirmed FICO on every broker credit pull alongside other models, supporting continued use without exclusivity.
- Oct 1, 2026
FICO approved a workforce reduction of about 15%, with an expected $27 million pretax charge and completion by Q3 FY2027.
Ownership
Go deeper on FICO
- Compare stock research toolsFundamentals, valuation and screening platforms for FICO.19 tools
- See FICO's price chartNo price chart here yet. See price history and indicators.17 tools
- Read FICO's earnings callsTranscripts and audio of results calls, with management's own words.15 tools
- Investing tool dealsCurrent discounts on research, charting and tracking tools.89 deals
On this page
Financial record
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Trend | Change 2017–26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | ||||||||||||
| Revenue | 29.00 | 32.08 | 38.29 | 43.25 | 44.99 | 52.27 | 59.67 | 68.48 | 81.06 | 110.27 | +16.0%/yr | |
| Cash flow | 7.00 | 7.15 | 8.59 | 12.19 | 14.48 | 19.34 | 18.49 | 25.24 | 31.71 | 46.64 | +23.5%/yr | |
| Earnings | 4.14 | 4.06 | 6.34 | 7.90 | 13.40 | 14.18 | 16.93 | 20.45 | 26.54 | 36.32 | +27.3%/yr | |
| Free cash flow | 6.38 | 6.15 | 7.80 | 11.46 | 14.23 | 19.11 | 18.32 | 24.22 | 30.10 | 45.00 | +24.2%/yr | |
| Capex | 0.61 | 1.00 | 0.79 | 0.73 | 0.26 | 0.23 | 0.17 | 1.02 | 1.60 | 1.64 | +11.5%/yr | |
| Dividends | 0.04 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | – | |
| Book value | 14.46 | 9.22 | 9.57 | 11.06 | -3.79 | -30.44 | -27.12 | -38.39 | -71.08 | -168.49 | – | |
| Diluted shares (M) | 32 | 31 | 30 | 30 | 29 | 26 | 25 | 25 | 25 | 23 | -3.7%/yr | |
| Totals ($B) | ||||||||||||
| Revenue | 0.9 | 1.0 | 1.2 | 1.3 | 1.3 | 1.4 | 1.5 | 1.7 | 2.0 | 2.5 | +11.7%/yr | |
| Operating income | 0.2 | 0.2 | 0.3 | 0.3 | 0.5 | 0.5 | 0.6 | 0.7 | 0.9 | 1.3 | +24.0%/yr | |
| Net income | 0.1 | 0.1 | 0.2 | 0.2 | 0.4 | 0.4 | 0.4 | 0.5 | 0.7 | 0.8 | +22.6%/yr | |
| Free cash flow | 0.2 | 0.2 | 0.2 | 0.3 | 0.4 | 0.5 | 0.5 | 0.6 | 0.7 | 1.0 | +19.6%/yr | |
| Buybacks | 0.2 | 0.3 | 0.2 | 0.2 | 0.9 | 1.1 | 0.4 | 0.8 | 1.4 | 3.0 | +36.3%/yr | |
| Dividends | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | – | |
| Net cash | -0.4 | -0.4 | -0.5 | -0.6 | -0.8 | -1.7 | -1.7 | -2.1 | -2.9 | -5.0 | −$4.7B | |
| Margins & returns (%) | ||||||||||||
| Gross margin | 69.2 | 68.7 | 71.0 | 72.1 | 74.7 | 78.1 | 79.4 | 79.7 | 82.2 | 86.1 | +16.9 pts | |
| Operating margin | 19.5 | 17.5 | 21.9 | 22.9 | 38.4 | 39.4 | 42.5 | 42.7 | 46.5 | 49.9 | +30.4 pts | |
| Net margin | 14.3 | 12.6 | 16.6 | 18.3 | 29.8 | 27.1 | 28.4 | 29.9 | 32.7 | 32.9 | +18.7 pts | |
| FCF margin | 22.0 | 19.2 | 20.4 | 26.5 | 31.6 | 36.6 | 30.7 | 35.4 | 37.1 | 40.8 | +18.8 pts | |
| ROIC | 17.5 | 19.1 | 25.4 | 25.6 | 56.9 | 48.3 | 51.5 | 52.9 | 62.2 | 85.6 | +68.1 pts | |
| Return on equity | 28.6 | 44.0 | 66.3 | 71.4 | – | – | – | – | – | – | – | |
| R&D % of revenue | 11.9 | 12.8 | 12.9 | 12.9 | 13.0 | 10.7 | 10.6 | 10.0 | 9.5 | 8.3 | -3.6 pts | |
| Stock pay % of revenue | 6.5 | 7.5 | 7.2 | 7.2 | 8.5 | 8.4 | 8.2 | 8.7 | 7.9 | 7.3 | +0.8 pts | |
| Capex % of revenue | 2.1 | 3.1 | 2.1 | 1.7 | 0.6 | 0.4 | 0.3 | 1.5 | 2.0 | 1.5 | -0.6 pts | |
Change uses 2017 and 2026 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2017 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Oligopoly
- Durability
- medium
- Trajectory
- narrowing
- Pricing power
- strong
- Scores65.2%2 claims
- Software34.8%1 claim
Moat claims
- Applies to
- Scores
- Confidence
- Durability
- medium
- Trajectory
- narrowingas of Nov 11, 2026
U.S. lenders widely use FICO scores. Direct mortgage licensing adds a distribution option, but all approved GSE lenders can now use VantageScore 4.0, and loan pricing fees are aligned across the two models.
The October Preferred Program holds the wholesale mortgage bundle at $10 as lenders gain rival-model choice; fiscal 2027 guidance is withheld during bespoke-price negotiations, so historic fee growth no longer proves protected pricing.
- Scores revenue$414M+33%
- Direct-license participating reseller volume coverage73.1%
- FHFA/GSE policy enabling competitor models (e.g., VantageScore 4.0) or multi-model regimes
- Fee/pricing scrutiny or regulation in mortgage credit scoring
- Large lenders increasing reliance on internal underwriting models using alternative data/AI
- FilingFair Isaac Corporation Form 10-K (FY ended Sep 30, 2025) - Scores businessNov 7, 2025
- FilingFair Isaac Corporation Form 8-K Exhibit 99.1 (Q3 FY2026 results)Jul 29, 2026
- SourceFHFA - Credit ScoresApr 22, 2026
- FilingFair Isaac Corporation Form 10-Q (quarter ended June 30, 2026)Jul 29, 2026
- Applies to
- Scores
- Confidence
- Durability
- medium
- Trajectory
- narrowingas of Nov 11, 2026
Backwards-compatible score scales and stable score-to-risk relationships reduce change costs for lenders and keep legacy underwriting processes usable across model versions.
Classic FICO remains eligible but FHFA permits rival scores; the $10 Classic/10T bundle rewards committed lenders without restoring exclusive format protection.
- Scores revenue$414M+33%
- Direct-license participating reseller volume coverage73.1%
- Multi-model requirements reduce reliance on one score format
- Middleware/decision engines make it easier to swap scoring inputs
- Applies to
- Software
- Confidence
- Durability
- medium
- Trajectory
- stableas of Nov 11, 2026
FICO's software is embedded in high-stakes decision workflows (fraud, onboarding, credit risk), creating operational switching costs once data, rules, and models are in production.
Software ARR reached $850.9 million and net retention 112%, but non-platform retention remains 82%; platform migration and expansion support recurring revenue without proving higher switching costs.
- Software annual recurring revenue$851M+14%
- Platform annual recurring revenue$453M+72%
- Non-platform annual recurring revenue$398M-18%
- Software dollar-based net retention112.0%+10.0 pts
- Platform dollar-based net retention156.0%+44.0 pts
- Non-platform dollar-based net retention82.0%-15.0 pts
- Customers consolidate onto hyperscaler-native data/ML stacks and build in-house decisioning
- Implementation complexity or platform migration risk reduces renewal/expansion
- Competitive displacement by broader suites (core banking, CRM, cloud platforms)
- FilingFair Isaac Corporation Form 10-Q (quarter ended June 30, 2026)Jul 29, 2026
- FilingFair Isaac Corporation Form 10-K (FY ended Sep 30, 2025) - Business (software embedded across enterprise decisions)Nov 7, 2025
- FilingFair Isaac Corporation Form 10-K (FY ended Sep 30, 2025) - Business (multi-year subscription model)Nov 7, 2025
- FilingFair Isaac Corporation Form 8-K Exhibit 99.1 (Q3 FY2026 Software DBNRR)Jul 29, 2026
Profile change log
- Nov 11, 2026 · analyst revision
Segment weights now use the complete FY2026 revenue mix. Removed operating-profit shares because segment earnings exclude corporate costs; retained moat strengths and narrowing mortgage trajectories.
- Nov 11, 2026 · business change
FICO withheld FY2027 guidance during mortgage-pricing negotiations, increasing uncertainty around the Scores growth model despite $850.9 million Software ARR.
- Nov 11, 2026 · business change
FICO and plaintiffs agreed a proposed $65 million antitrust settlement term sheet; a Q4 accrual recognizes the cost, but final court approval remains outstanding.
- Nov 11, 2026 · business change
FICO held its wholesale mortgage bundle at $10 for Preferred Program lenders, defending usage while limiting year-over-year price expansion.
- Oct 8, 2026 · analyst revision
Removed the 90% market-share estimate: the source measures adoption among top U.S. lenders, not sales share. Added narrowing Scores trajectories, software comparison and current policy and capital-return risks.
- Oct 8, 2026 · business change
UWM reaffirmed FICO on every broker credit pull alongside other models, supporting continued use without exclusivity.
- Oct 8, 2026 · business change
FICO approved a workforce reduction of about 15%, with an expected $27 million pretax charge and completion by Q3 FY2027.
- Oct 8, 2026 · business change
The GSEs aligned upfront loan fees across Classic FICO and VantageScore, removing a pricing disadvantage for the rival model.
- Oct 8, 2026 · business change
TransUnion extended standalone VantageScore mortgage pricing at $0.99 through 2028, increasing price pressure on FICO.
- Oct 8, 2026 · business change
Rocket announced VantageScore as its preferred model on eligible Q4 loans, creating a direct risk to FICO mortgage usage.
- Oct 8, 2026 · business change
IDC ranked FICO as a leader in decision intelligence platforms, supporting its software position without establishing market share.
- Oct 8, 2026 · business change
FHA set January 1 2027 for FICO 10T and VantageScore 4.0 eligibility, creating a second model-choice channel.
- Oct 8, 2026 · business change
The GSEs opened VantageScore 4.0 to all approved lenders, removing a permission barrier to competing mortgage scores.
- Oct 8, 2026 · business change
Informative Research joined direct mortgage score licensing; participating resellers represented 73.1% of reseller volume, although commercial availability was still pending.
- Oct 8, 2026 · business change
FICO funded an accelerated share repurchase with a $1.5 billion term loan, increasing debt and interest exposure.
- Oct 8, 2026 · business change
FICO launched direct mortgage score licensing for resellers, adding an alternative to credit-bureau distribution.
- Oct 8, 2026 · business change
FICO sold Siron compliance assets, reducing legacy software scope.
- Oct 8, 2026 · business change
FICO sold its Collections and Recovery software business to Jonas, focusing investment on Platform products and recording a large disposal gain.
Industry & peers
Peer map
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
U.S. consumer credit score models
Predictive consumer credit score models licensed for U.S. mortgage, card, auto and other lending decisions, including consumer access to those scores. Excludes credit-bureau data files, commercial credit ratings and enterprise decision software.
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| FICO | 82 | 86.1% | 49.9% | |
| Industry median | 31 | 78 | 75.8% | 19.9% |
| Sector median | 77 | 75 | 64.7% | 23.8% |
| All stocks median | 398 | 76 | 53.1% | 20.0% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Lower mortgage rates can lift purchases and refinancing, increasing score transactions. High rates reduce lending demand.
- Lender integrations and investor familiarity sustain established models even after formal access restrictions end.
- Trended credit and rental data can score additional borrowers and improve risk assessment, but lenders must validate performance.
- Direct reseller licensing changes distribution economics and can reduce the role of bureau markups.
- Alternative-model approvals and aligned mortgage loan pricing reduce exclusive demand for the incumbent score.
- Price competition and scrutiny of mortgage credit-report costs can limit royalty increases.
- Recession reduces loan applications and changes observed borrower risk; model performance must hold through stress.
- Antitrust litigation, privacy rules and fair-lending requirements can affect scoring contracts and permissible data.
Bulls & bears
Can FICO preserve mortgage score use and cash generation once lenders can choose cheaper scores on the same GSE loan-pricing terms?
Arguments
What to watch
- 1Mortgage score transaction volumes and unit prices
- 2GSE loan deliveries by score model
- 3Software net retention and total ARR
- 4Platform ARR excluding migrations
- 5Interest expense and operating cash flow
Next check: FY2027 Q1 results and calendar-2027 mortgage pricing agreements; check actual Preferred Program volumes, lender model choice and settlement approval. No release date has been announced.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Nov 10, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 82/100 by <a href="https://www.findmymoat.com/stocks/XNYS:FICO">Find My Moat</a> (as of September 2026)Curation & Accuracy
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