In This Article:
Fair Isaac FICO reported second-quarter fiscal 2025 earnings of $7.81 per share, which surpassed the Zacks Consensus Estimate by 5.68% and jumped 27.2% year over year.
Revenues of $498.7 million beat the consensus mark by 0.51% and increased 15% year over year. The Americas, EMEA and the Asia Pacific contributed 86%, 9% and 5% to total revenues, respectively.
However, following the results, FICO shares declined 2.37% in the after-hours trading on April 29, as increased debt and reduced free cash flow raised concerns among investors.
FICO has a mixed earnings surprise history. The company’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed in the remaining three, the average negative surprise being 0.92%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Fair Isaac Corporation Price, Consensus and EPS Surprise
Fair Isaac Corporation price-consensus-eps-surprise-chart | Fair Isaac Corporation Quote
FICO’s Top-Line Details
Software revenues, which include Fair Isaac’s analytics and digital decisioning technology, as well as associated professional services, increased 2.4% year over year to $201.7 million, largely attributable to higher license revenue recognized at a specific point in time.
Software Annual Recurring Revenues (ARR) increased 3% year over year, consisting of 17% platform ARR growth and a 3% decline in non-platform. Software Dollar-Based Net Retention Rate was 102% in the fiscal second quarter, with platform software at 110% and non-platform software at 96%.
On-premises and SaaS Software (36.9% of revenues) increased 3.8% year over year to $183.8 million. Professional services (3.6% of revenues) were $17.9 million, down 9.5% year over year.
Scores (59.6% of revenues) increased 25.4% year over year to $297 million. Scores include FICO’s business-to-business (B2B) scoring solutions and business-to-consumer (B2C) scoring solutions.
B2B revenues increased 31% year over year, driven primarily by higher unit prices. B2C revenues increased 6% year over year due to increased revenues from indirect channel partners.
Mortgage originations revenues increased 48% year over year. It accounted for 54% of B2B revenues and 44% of total scores revenues. Auto originations revenues increased 16% year over year. Credit card and personal loan revenues inched up 1% year over year.
FICO continues to advance financial inclusion on a global scale. In the second quarter of fiscal 2025, a Kenya-specific FICO Score was launched in collaboration with TransUnion. The company is also driving strong adoption of FICO Score 10 T for non-GSE loans and is seeing promising outcomes from our early adopter program.