Fair Isaac (FICO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $440 million, up 15% year-over-year, with GAAP net income of $153 million and GAAP EPS of $6.14, both up over 25% year-over-year.

• Non-GAAP net income was $144 million and non-GAAP EPS was $5.79, both up 19–20% year-over-year.

• Adjusted EBITDA for Q1 2025 was $223.1 million, up 18% year-over-year.

• Operating income rose 19% to $179.5 million; operating margin was about 41%.

• Free cash flow for the quarter was $205.7 million, up 55% year-over-year.

Financial highlights

• Scores segment revenue was $236 million, up 23% year-over-year; B2B up 30%, B2C up 3%.

• Software segment revenue was $204 million, up 8% year-over-year, with SaaS and license revenue growth.

• Software ARR reached $729 million, up 6% year-over-year; platform ARR up 20%, non-platform up 1%.

• Non-GAAP operating margin was 50%, up from 48% year-over-year.

• Effective tax rate for the quarter was -1.6% due to excess tax benefits from stock awards.

Outlook and guidance

• Fiscal 2025 guidance reiterated: revenue of $1.98 billion, GAAP net income of $624 million, GAAP EPS of $25.05, non-GAAP net income of $712 million, and non-GAAP EPS of $28.58.

• Management expects ARR growth to accelerate in the back half of the year, driven by strong bookings and anticipated normalization of usage.

• Expense increases expected to be modest, with a $5–6 million one-time cost for FICO World in Q3.

• Company expects liquidity and capital resources to be sufficient for at least the next 12 months.