Fair Isaac (FICO) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $536.4 million, up 20% year-over-year, with GAAP net income of $181.8 million, up 44%, and GAAP EPS of $7.40, up 47%. Non-GAAP net income was $211 million, up 35%, and non-GAAP EPS was $8.57, up 37%.

• Record free cash flow for Q3 was $276.2 million, up from $205.7 million year-over-year.

• Over $500 million in share repurchases were executed, marking the largest single-quarter buyback in company history.

• Full-year 2025 guidance was raised: revenue at $1.98 billion, GAAP net income at $630 million, and non-GAAP net income at $718 million.

• Adjusted EBITDA for Q3 was $312.3 million, up 32% year-over-year.

Financial highlights

• Scores segment revenue was $324.3 million, up 34% year-over-year, driven by B2B scores (up 42%) and mortgage originations (up 53%).

• Software segment revenue was $212.1 million, up 3% year-over-year, with ARR at $739.1 million, up 4% year-over-year.

• Non-GAAP operating margin expanded to 57%, up 5 percentage points year-over-year.

• Free cash flow for the trailing 12 months was $748 million, up 36%.

• Cash and marketable investments totaled $240 million at quarter end.

Outlook and guidance

• Q4 revenue guidance is $505 million, reflecting expected seasonality and lower point-in-time revenues.

• Full-year 2025 guidance: revenue $1.98 billion, GAAP net income $630 million, GAAP EPS $25.60, non-GAAP net income $718 million, non-GAAP EPS $29.15.

• Management expects cash and available borrowings, along with operating cash flows, to be sufficient for capital requirements for at least the next 12 months.