Fair Isaac

FICO helps businesses make better decisions by using data and math. Its tools help banks and other companies predict if a person can pay back a loan. The company also lets people check their own credit scores online.

The Scoring and Software Mix

• Scores: Predictive credit and other scores used by businesses for transaction and decision-making streams; includes consumer services like myFICO.com. This segment accounted for roughly 59% of total revenues in Q1 2026.
• Software: Pre-configured analytic solutions for fraud detection, customer management, and marketing, as well as the modular FICO Platform. This segment accounted for roughly 41% of total revenues in Q1 2026.
• Professional Services: Implementation, support, and consulting services for software products. This category represents approximately 4% of total revenues in Q1 2026.

Growth and Expansion Plans

• Signed the One Big Beautiful Bill Act into law on July 4, 2025, which allows the company to immediately expense research and experimental costs starting in fiscal 2026.
• Issued $1.5 billion in new senior notes in May 2025 to manage debt and support general corporate purposes.
• Updated the stock repurchase program in June 2025, authorizing the buyback of up to $1.0 billion in common stock.

Why FICO Stands Out

FICO maintains a deep relationship with the three major credit bureaus, TransUnion, Equifax, and Experian, which collectively accounted for 51% of total revenue in Q1 2026. Its presence in more than 80 countries allows it to scale analytic software across global banking, insurance, and retail industries.

A Look at the Numbers

• Total revenue reached $512 million in Q1 2026, up 16.4% year-over-year.
• Operating income rose to $234 million in Q1 2026, a 30.4% increase from the previous year.
• Scores segment revenue grew to $304.5 million in Q1 2026, up 29% from Q1 2025.
• Free cash flow was $173.9 million in Q1 2026, down 6.9% compared to $186.8 million in Q1 2025.
• Annual Recurring Revenue for the Software segment reached $766 million as of December 31, 2025, up 5% from the prior year.

Evolution to the Platform

FICO has transitioned from a data-focused analytics firm into a global leader in decision management software. By shifting toward cloud-based services and modular platforms, the company has stabilized its recurring revenue while maintaining its role as the standard for credit risk measurement.