fico-20251231

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-11689

Fair Isaac Corporation

(Exact name of registrant as specified in its charter)


Delaware		94-1499887
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

5 West Mendenhall, Suite 105		59715
Bozeman,	Montana
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 406-982-7276

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 share	FICO	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		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. ☐

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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


Yes			☐			No			☒

The number of shares of common stock outstanding on January 21, 2026 was 23,722,134 (excluding 65,134,649 shares held by us as treasury stock).

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TABLE OF CONTENTS


	PART I – FINANCIAL INFORMATION

Item 1.	Unaudited Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	28

	PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults Upon Senior Securities	30
Item 4.	Mine Safety Disclosures	30
Item 5.	Other Information	30
Item 6.	Exhibits	31
Signatures		32

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PART I – FINANCIAL INFORMATION

Item 1. Unaudited Financial Statements

FAIR ISAAC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	December 31, 2025		September 30, 2025
	(In thousands, except par value data)
Assets
Current assets:
Cash and cash equivalents	$	162,034	$	134,136
Accounts receivable, net	495,117		529,148
Prepaid expenses and other current assets	41,656		41,881
Total current assets	698,807		705,165
Marketable securities	55,866		54,625
Property and equipment, net	73,711		67,713
Operating lease right-of-use assets	24,725		26,213
Goodwill	783,520		783,340

Deferred income taxes	110,980		118,553
Other assets	106,551		112,524
Total assets	$	1,854,160	$	1,868,133
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	26,565	$	32,315
Accrued compensation and employee benefits	76,809		115,369
Other accrued liabilities	75,576		114,618
Deferred revenue	173,371		187,372
Current maturities on debt	399,738		399,541
Total current liabilities	752,059		849,215
Long-term debt	2,797,091		2,656,150
Operating lease liabilities	17,895		19,187
Other liabilities	95,249		89,365
Total liabilities	3,662,294		3,613,917
Commitments and contingencies
Stockholders’ deficit:
Preferred stock ($0.01 par value; 1,000 shares authorized; none issued and outstanding)	—		—
Common stock ($0.01 par value; 200,000 shares authorized, 88,857 shares issued and 23,763 and 23,764 shares outstanding at December 31, 2025 and September 30, 2025, respectively)	238		238
Additional paid-in-capital	1,262,018		1,331,120
Treasury stock, at cost (65,094 and 65,093 shares at December 31, 2025 and September 30, 2025, respectively)	(7,689,462)		(7,537,908)
Retained earnings	4,711,189		4,552,816
Accumulated other comprehensive loss	(92,117)		(92,050)
Total stockholders’ deficit	(1,808,134)		(1,745,784)
Total liabilities and stockholders’ deficit	$	1,854,160	$	1,868,133

See accompanying notes.

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FAIR ISAAC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)


	Quarter Ended December 31,
	2025		2024
	(In thousands, except per share data)
Revenues:
On-premises and SaaS software	$	188,221	$	186,011
Professional services	19,204		18,282
Scores	304,534		235,675
Total revenues	511,959		439,968
Operating expenses:
Cost of revenues	87,261		87,345
Research and development	49,912		45,145
Selling, general and administrative	140,737		127,950



Total operating expenses	277,910		260,440
Operating income	234,049		179,528
Interest expense, net	(42,006)		(29,488)
Other income (expense), net	(112)		89
Income before income taxes	191,931		150,129
Income tax provision (benefit)	33,558		(2,399)
Net income	158,373		152,528
Other comprehensive loss:
Foreign currency translation adjustments	(67)		(16,054)
Comprehensive income	$	158,306	$	136,474
Earnings per share:
Basic	$	6.68	$	6.26
Diluted	$	6.61	$	6.14
Shares used in computing earnings per share:
Basic	23,723		24,378
Diluted	23,958		24,827

See accompanying notes.

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FAIR ISAAC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(Unaudited)


	Common Stock			Additional Paid-in-Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Deficit
(In thousands)	Shares	Par Value
Balance at September 30, 2025	23,764	$	238	$	1,331,120	$	(7,537,908)	$	4,552,816	$	(92,050)	$	(1,745,784)
Share-based compensation	—	—		44,269		—		—		—		44,269
Issuance of treasury stock under employee stock plans	94	1		(113,371)		11,123		—		—		(102,247)
Repurchases of common stock	(95)	(1)		—		(162,677)		—		—		(162,678)
Net income	—	—		—		—		158,373		—		158,373
Foreign currency translation adjustments	—	—		—		—		—		(67)		(67)
Balance at December 31, 2025	23,763	$	238	$	1,262,018	$	(7,689,462)	$	4,711,189	$	(92,117)	$	(1,808,134)

	Common Stock			Additional Paid-in-Capital

SEC Form 10-Q filed by Fair Isaac Corporation