Fair Isaac (FICO) Q4 2024 earnings summary

Executive summary

• Fourth quarter revenue reached $454 million, up 16% year-over-year, with full-year revenue at $1.718 billion, up 13% from the prior year.

• GAAP net income for the quarter was $136 million, up 34%, and $513 million for the year, up 19%.

• Non-GAAP net income for the quarter was $163 million, up 29%, and $595 million for the year, up 19%.

• Free cash flow for the quarter was $219 million, up from $163 million year-over-year, and $607 million for the year, up 31%.

• Adjusted EBITDA for Q4 2024 was $242.2 million, up 20% year-over-year.

Financial highlights

• GAAP EPS for the quarter was $5.44, up 36% year-over-year; full-year GAAP EPS was $20.45, up 21%.

• Non-GAAP EPS for the quarter was $6.54, up 30%; full-year non-GAAP EPS was $23.74, up 20%.

• Software ARR reached $721 million, up 8% year-over-year; platform ARR up 31%.

• Non-GAAP operating margin for the quarter was 52%, up from 51% a year ago.

• Free cash flow for Q4 2024 was $205.7 million.

Outlook and guidance

• Fiscal 2025 guidance projects revenue of $1.98 billion, up 15% year-over-year.

• GAAP net income expected at $624 million (+22%), GAAP EPS at $25.05 (+23%).

• Non-GAAP net income guided to $712 million (+20%), non-GAAP EPS to $28.58 (+20%).

• Double-digit percentage growth is expected across all key metrics in fiscal 2025.

• Expense growth in FY25 is expected to be lower than FY24, supporting margin expansion.