AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 19/10/2026
Moat69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Broad lender adoption of an established scoring standard, supported by realized repricing and integration friction, demonstrates a structural advantage. Proprietary technology alone would not establish it.
durability · 3/4 · The disclosed three-decade framework history and continuing adoption support strong persistence. Distributor dependence and uneven Software retention prevent an exceptional durability assessment.
customer dependency · 3/4 · Use across major lenders and compatibility with underwriting systems support substantial dependency. Software implementation commitments and Platform cohort expansion reinforce this, although non-platform contraction limits breadth.
erosion resilience · 2/4 · Scores growth and realized repricing indicate current resilience, but non-platform cohort contraction and Software margin deterioration are realized weaknesses. Distributor risks remain prospective rather than demonstrated Scores displacement.
Pricing power56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 3/4 · March and June 2026 disclosures explicitly attribute stronger Scores economics to higher unit prices, with mortgage volume also contributing in March. This demonstrates realized pricing power in Scores; Software pricing is not isolated.
retention · 2/4 · Total Software DBNRR of 109% and Platform DBNRR of 148% demonstrate retained-customer expansion, offset by non-platform DBNRR of 82%. Scores repeat demand is assessed indirectly from broad use and continued revenue growth; no Scores retention rate is disclosed.
margin resilience · 3/4 · Nine-month consolidated operating income grew faster than revenue, and Scores margins benefited from realized repricing. Software margins declined because of hosting costs and sales mix, limiting the breadth of resilience. Margins corroborate pricing outcomes rather than independently establish the moat.
contractual freedom · 1/4 · Software bookings disclose a concrete constraint: qualifying contracts initially last at least 24 months and include fixed contractual amounts alongside estimated usage fees. Incremental revenue at renewal provides some flexibility, but neither unilateral repricing rights nor reset schedules are disclosed. This supports weak demonstrated contractual freedom for the disclosed software arrangements; Scores contract rights remain unestablished.
Predictability100
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 4.25
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 3.08
Financial strength39
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 57.59
- netDebtEbitGrade
- 36.82
- interestCoverageGrade
- 53.82
- currentRatioGrade
- 6.43
- Debt / FCF (x)
- 3.97
- Net debt / operating income (x)
- 3.16
- Interest coverage (x)
- 6.92
- Current ratio (x)
- 0.83
Capital allocation91
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 71.99
- 3-year average dilution (%)
- -2.36
- 3-year average SBC / revenue (%)
- 8.25
- cashConversionGrade
- 100.00
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 1/4 · Operating cash generation improved, but nine-month repurchase spending of $3.1 billion substantially exceeded $777.9 million of operating cash flow. An explicitly debt-funded accelerated repurchase and debt growth from $3.1 billion to $5.6 billion demonstrate aggressive financing. Repurchase value creation is unproven.
incentive alignment · 3/4 · Actual ownership requirements, hedging restrictions, clawbacks and multi-year vesting support alignment. Realized market-based awards included a zero payout for the fiscal 2025 one-year performance period. One-year PSU measurement and unavailable individual ownership compliance limit the conclusion.
execution · 3/4 · Scores revenue, Software ARR and operating cash flow grew, with Platform cohort expansion providing operating evidence of execution. Management contribution is inferred from business outcomes; non-platform contraction and declining Software profitability temper the assessment.
governance · 3/4 · A separate independent chairman, independent committees, annual director elections, majority director voting and effective audited reporting controls support strong governance. Stockholders cannot call special meetings, and proposed elimination of the supermajority provision is not treated as adopted.
Evidence
Scores Our B2B scoring solutions include the FICO® Score, which is the standard measure of consumer credit risk in the U.S.
Business — Scores standard · Filed 07/11/2025
It is used in most U.S. credit decisions, by nearly all major banks, credit card issuers, mortgage lenders, and auto loan originators.
Business — lender adoption · Filed 07/11/2025
For over three decades it has been the common framework for evaluating and communicating consumer credit risk across consumer credit markets, efficiently enabling billions of decisions across these markets every year in an objective and fair manner.
Proxy summary — credit-scoring framework history · Filed 27/01/2026
Our proprietary analytic algorithms are applied to credit data collected and maintained by the three U.S.
Business — proprietary scoring algorithms · Filed 07/11/2025
Scores segment operating income as a percentage of segment revenue increased to 91% from 88%, primarily due to higher business-to-business scores revenue driven by a higher mortgage origination scores unit price.
MD&A — realized mortgage-score unit pricing · Filed 29/07/2026
Scores segment operating income as a percentage of segment revenue increased to 91% from 89%, primarily due to higher business-to-business scores revenue driven by a higher unit price and an increase in volume of mortgage originations.
MD&A — Scores pricing and mortgage origination volume · Filed 28/04/2026
We also derive a substantial portion of our Scores segment revenues and operating income from our contracts with the three major consumer reporting agencies in the U.S., Experian, TransUnion and Equifax, and other parties that distribute our products to certain markets.
Risk factors — consumer reporting agency concentration · Filed 07/11/2025
Failure of our existing and future distributors or partners to generate significant revenues or otherwise perform their expected services or functions, demands by such distributors or partners to change the terms on which they offer our products, or our failure to establish additional distribution or sales and marketing alliances, could have a material adverse effect on our business, operating results and financial condition.
Risk factors — distributor performance and terms · Filed 07/11/2025
We encounter competition from several sources, including: •in-house analytic and systems developers; •developers and providers of neural networks, machine learning, and AI systems; •fraud solutions providers; •scoring model builders; •providers of credit reports and credit scores, including consumer reporting agencies; •software companies supplying predictive analytic modeling, rules, or analytic development tools; •entity resolution and social network analysis solutions providers; •providers of customer engagement and risk management solutions; •providers of account workflow management software; •business process management and decision rules management providers; •enterprise resource planning and customer relationship management solutions providers; •business intelligence solutions providers; •providers of automated application processing services; and •third-party professional services and consulting organizations.
Competition — generic competitor categories · Filed 07/11/2025
This protection of our proprietary technology is limited, and our proprietary technology could be used by others without our consent.
Risk factors — limited proprietary technology protection · Filed 07/11/2025
Both scores maintain the same score to risk relationship as standard FICO® Scores, enhancing their compatibility with existing credit underwriting systems and models.
Business — compatibility with underwriting systems · Filed 07/11/2025
Customers are often cautious in making decisions to acquire our products because purchasing our products typically involves a significant commitment of capital and may involve shifts by the customer to a new software and/or hardware platform or changes in the customer’s operational procedures.
Risk factors — customer capital and operational commitments · Filed 07/11/2025
The following table summarizes our DBNRR for on-premises and SaaS software exiting each of the dates presented: September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 DBNRR Platform 123 % 112 % 110 % 115 % 112 % 122 % 136 % 148 % Non-platform 99 % 100 % 96 % 97 % 97 % 91 % 90 % 82 % Total 106 % 105 % 102 % 103 % 102 % 103 % 109 % 109 % RESULTS OF OPERATIONS We are organized into two reportable segments: Scores and Software.
Software metrics — Platform, non-platform and total DBNRR history · Filed 29/07/2026
To calculate DBNRR for any period, we compare the ARR at the end of the prior comparable quarter (“base ARR”) to the ARR from that same cohort of customers at the end of the current quarter (“retained ARR”); we then divide the retained ARR by the base ARR to arrive at the DBNRR.
Software metrics — existing-customer cohort definition · Filed 29/07/2026
Our calculation includes the positive impact among this cohort of customers of selling additional products, price increases and increases in usage-based fees, and the negative impact of customer attrition, price decreases, and decreases in usage-based fees during the period.
Software metrics — pricing, usage and attrition components · Filed 29/07/2026
Software segment operating income as a percentage of segment revenue decreased to 26% from 32%, primarily attributable to a decrease in sales of higher-margin software recognized at a point in time and an increase in third-party data center hosting costs.
MD&A — Software margin deterioration and causes · Filed 29/07/2026
•Annual Recurring Revenue for our Software segment as of June 30, 2026 was $815.8 million, a 10% increase from June 30, 2025.
Operating highlights — Software ARR growth · Filed 29/07/2026
19 Table of Contents •Revenues for our Scores segment were $458.9 million during the quarter ended June 30, 2026, a 41% increase from the quarter ended June 30, 2025, and $1.2 billion during the nine months ended June 30, 2026, a 45% increase from the nine months ended June 30, 2025.
Operating highlights — Scores revenue growth · Filed 29/07/2026
Net cash provided by operating activities increased to $777.9 million during the nine months ended June 30, 2026 from $555.1 million during the nine months ended June 30, 2025.
Liquidity — operating cash generation · Filed 29/07/2026
During the quarter and nine months ended June 30, 2026, we expended $2.3 billion and $3.1 billion, respectively, under the June 2025 program, the February 2026 program, and the June 2026 program, as applicable, including $1.5 billion under the ASR Agreement entered into as part of the June 2026 program.
Liquidity — executed share repurchases · Filed 29/07/2026
•In June 2026, we amended our credit agreement to provide for a $1.5 billion term loan, the proceeds of which were used to fund an accelerated share repurchase agreement (“ASR Agreement”).
Operating highlights — borrowing to fund accelerated repurchase · Filed 29/07/2026
•Total debt balance was $5.6 billion as of June 30, 2026, compared with $3.1 billion as of September 30, 2025.
Operating highlights — increased debt balance · Filed 29/07/2026
Quality Pay Practices and Policies Highlights Only “double-trigger” accelerated vesting or payment for equity awards upon a change in control of the Company Executive stock ownership guidelines that require ownership and further align our executive officers’ interests with those of our stockholders; only shares owned outright and time-based full value equity awards count towards meeting these guidelines Prohibition on hedging of Company common stock A compensation recovery, or “clawback,” policy pertaining to all performance-based compensation in the case of a restatement Supplemental clawback policy triggered in the event of misconduct situations that covers annual and long-term incentive compensation, including time-based equity awards Mandatory minimum vesting period of one year for equity awards Annual compensation peer group review with appropriate updates to ensure valid comparisons No tax “gross-ups” allowed except with respect to relocation benefits, required spousal travel and certain required regulatory filings Independent compensation consultant engaged by the LDCC that does not provide any other services to the Company EXECUTIVE COMPENSATION PROGRAM Compensation Philosophy and Objectives Our compensation program is designed to meet the following objectives: Attract, retain and reward high caliber talent ∎ Attract, retain, motivate and reward our outstanding leaders in a competitive market, who are instrumental in maintaining our position as a leading analytics software company Pay for Performance ∎ Set rigorous performance targets that drive achievement of our financial goals and strategic plans ∎ Responsive payouts that reward leaders for outperformance and result in a lower, or no, payout for results that fall short of high expectations Align Executive and Stockholder Interests ∎ Encourage long-term, sustained value creation for stockholders ∎ Heavily weight equity incentives to maximize alignment between executives’ pay outcomes and stockholder experience Account for Individual Performance ∎ Calibrate pay levels and opportunities relative to individuals’ contributions and track record of performance Fair Isaac Corporation l 2026 Proxy Statement 43 Table of Contents Proxy Summary Board of Directors Corporate Governance Executive Compensation Audit Committee Matters Charter Amendments Stock Ownership Other Matters 2025 Elements of Compensation The fiscal 2025 executive compensation program consisted of the following key elements.
Executive compensation — ownership, clawbacks and vesting policies · Filed 27/01/2026
The number of MSUs earned for each performance period is calculated as follows: The relative return factor for each performance period of the fiscal 2025 MSUs is determined based on the Company’s total shareholder return relative to the S&P 500 Index for such performance period, with performance at the 55th percentile of the Index required to achieve target payout, as follows (with earned amounts interpolated between relative performance points): Fair Isaac Corporation l 2026 Proxy Statement 51 Table of Contents Proxy Summary Board of Directors Corporate Governance Executive Compensation Audit Committee Matters Charter Amendments Stock Ownership Other Matters The following table sets forth, for the applicable performance period that includes fiscal 2025 for each of the MSUs granted in fiscal 2025, 2024 and 2023, the Company’s TSR and percentile of performance relative to the TSR of the applicable comparator group – the S&P 500 Index for fiscal 2025 MSUs and the Russell 3000 Index for fiscal 2024 and 2023 MSUs - which on a relative basis for each performance period resulted in the relative return factor reported for each performance period: Award Performance Period Total TSR of FICO Russell 3000 Index TSR percentile(1) S&P 500 Index TSR percentile MSUs Earned (as a percentage of target) FY23 MSU 3-Year 251.33% 72.83% n/a 200% FY24 MSU 2-Year 80.92% 53.48% n/a 181% FY25 MSU 1-Year -19.87% n/a 5.05% 0% (1) Performance for MSUs granted prior to FY25 is determined based on the Company’s TSR performance relative to the Russell 3000 Index, with target payout awarded for performance matching the index, and scaling ranging as follows (with earned amounts interpolated between relative performance points): (i) 0% of target earned for relative performance of -25% or less; (ii) 50% of target earned for relative performance of -12.5%; (iii) 100% of target earned for performance matching the index; (iv) 150% of target earned for relative performance of +16.67%; and (v) 200% of target earned for relative performance of +33.33% or greater.
Executive compensation — realized performance award outcomes · Filed 27/01/2026
Performance Share Units (“PSUs”). The PSUs granted in fiscal 2025 were earned on the basis of a one-year performance period, with any earned shares vesting in equal installments over the first three anniversaries of the date of grant.
Executive compensation — granted PSU performance and vesting periods · Filed 27/01/2026
Fair Isaac Corporation l 2026 Proxy Statement 5 Table of Contents Proxy Summary Board of Directors Corporate Governance Executive Compensation Audit Committee Matters Charter Amendments Stock Ownership Other Matters Corporate Governance Highlights Board and Committee Summary Number of Director Nominees 8 Number of Independent Director Nominees 7 Board Committees Consist Entirely of Independent Directors Yes All Directors Attended at least 75% of Meetings Held Yes Annual Election of All Directors Yes Majority Voting for Directors Yes Plurality Carveout for Contested Elections Yes Director Resignation Policy Yes Separate Chairman and CEO Yes Chairman is Independent Director Yes Independent Directors Meet Regularly in Executive Session Yes Annual Board and Committee Self-Evaluations Yes Risk Oversight by Full Board and Committees Yes Annual Advisory Vote on Executive Compensation Yes Prohibit Hedging and Short Sales of FICO Securities Yes Stock Ownership Requirements for Directors and Executive Officers Yes Executive Compensation Recovery Policy Yes Stockholder Rights Summary Controlled Company No Classified Board No Vote Standard for Charter or Bylaw Amendment Majority* Stockholder Ability to Call Special Meetings No Stockholder Ability to Act by Written Consent Yes Cumulative Voting No Board Ability to Issue Blank-Check Preferred Stock Yes Poison Pill No * “Majority” with respect to the vote standard for a charter or bylaw amendment refers to the affirmative vote of the holders of a majority of the outstanding shares of the Company entitled to vote thereon.
Governance highlights — board structure and stockholder rights · Filed 27/01/2026
It further assumes that the sole supermajority provision in the Company’s Charter is eliminated, as further described in Proposal 5 in this proxy statement.
Governance highlights — proposed supermajority elimination assumption · Filed 27/01/2026
Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
Auditor opinion — effective financial reporting controls · Filed 07/11/2025
The following tables set forth certain summary information on a segment basis related to our operating income for the nine-month periods ended June 30, 2026 and 2025: Nine Months Ended June 30, Period-to-Period Change Period-to-Period Percentage Change Segment 2026 2025 (In thousands) (In thousands) Scores $ 1,117,215 $ 753,452 $ 363,763 48 % Software 176,248 192,008 (15,760) (8) % Total segment operating income 1,293,463 945,460 348,003 37 % Unallocated corporate expenses (152,411) (133,478) (18,933) 14 % Unallocated share-based compensation (141,910) (124,288) (17,622) 14 % Operating income $ 999,142 $ 687,694 311,448 45 % Scores Software Nine Months Ended June 30, Percentage of Revenues Nine Months Ended June 30, Percentage of Revenues 2026 2025 2026 2025 2026 2025 2026 2025 (In thousands) (In thousands) Segment revenues $ 1,238,404 $ 857,023 100 % 100 % $ 639,420 $ 618,095 100 % 100 % Segment operating expense (121,189) (103,571) (10) % (12) % (463,172) (426,087) (72) % (69) % Segment operating income $ 1,117,215 $ 753,452 90 % 88 % $ 176,248 $ 192,008 28 % 31 % The year-to-date period-over-period increase of $311.4 million in operating income was attributable to a $402.7 million increase in segment revenues, partially offset by a $54.7 million increase in segment operating expenses, an $18.9 million increase in corporate expenses, and a $17.7 million increase in share-based compensation expense.
MD&A — nine-month segment and consolidated operating results · Filed 29/07/2026
mortgage industry. We entered into a multi-year direct license and distribution agreement with Xactus, a fintech and market leader in verification solutions for the mortgage industry and the largest credit verification and tri-merge provider of FICO® Scores, for it to participate in the FICO Mortgage Direct License Program.
Scores highlights — executed multi-year direct distribution agreement · Filed 27/01/2026
We only include contracts with an initial term of at least 24 months and we exclude perpetual licenses and other software revenues that are non-recurring in nature.
ACV Bookings: qualifying software contract terms · Filed 29/07/2026
The expected contract value equals the fixed amount — including guaranteed minimums, if any — stated in the contract, plus estimates of future usage-based fees.
ACV Bookings: fixed contractual amounts, minimums and usage fees · Filed 29/07/2026
For renewals of existing software subscription contracts, we count only incremental annual revenue expected over the current contract as ACV Bookings.
ACV Bookings: incremental revenue at subscription renewal · Filed 29/07/2026
B2B revenue increased 36%, primarily attributable to a higher mortgage origination scores unit price and an increase in volume of mortgage originations.
First-quarter fiscal 2026 B2B revenue drivers · Filed 28/01/2026
B2B revenue increased 72%, primarily attributable to a higher mortgage origination scores unit price and an increase in volume of mortgage originations.
Second-quarter fiscal 2026 B2B revenue drivers · Filed 28/04/2026
B2B revenue increased 49%, primarily attributable to a higher mortgage origination scores unit price.
Third-quarter fiscal 2026 B2B revenue drivers · Filed 29/07/2026
The total Software Dollar-Based Net Retention Rate was 109% on June 30, 2026, with platform software at 148% and non-platform software at 82%.
June 30, 2026 software net retention by platform · Filed 29/07/2026
Our calculation includes the positive impact among this cohort of customers of selling additional products, price increases and increases in usage-based fees, and the negative impact of customer attrition, price decreases, and decreases in usage-based fees during the period.
DBNRR methodology: expansion, pricing, usage and attrition · Filed 29/07/2026
1 Table of Contents FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) Quarter Ended June 30, Nine Months Ended June 30, 2026 2025 2026 2025 (In thousands, except per share data) Revenues: On-premises and SaaS software $ 196,969 $ 187,915 $ 584,421 $ 557,752 Professional services 18,322 24,191 54,999 60,343 Scores 458,897 324,309 1,238,404 857,023 Total revenues 674,188 536,415 1,877,824 1,475,118 Operating expenses: Cost of revenues 87,017 87,571 265,477 262,546 Research and development 53,708 47,212 157,536 137,394 Selling, general and administrative 170,835 139,114 455,669 387,484 Total operating expenses 311,560 273,897 878,682 787,424 Operating income 362,628 262,518 999,142 687,694 Interest expense, net (59,877) (32,899) (146,462) (93,765) Other income, net 11,908 7,372 9,939 6,207 Income before income taxes 314,659 236,991 862,619 600,136 Provision for income taxes 77,487 55,202 202,616 103,204 Net income 237,172 181,789 660,003 496,932 Other comprehensive income (loss): Foreign currency translation adjustments (536) 13,003 (4,031) 3,356 Comprehensive income $ 236,636 $ 194,792 $ 655,972 $ 500,288 Earnings per share: Basic $ 10.46 $ 7.49 $ 28.28 $ 20.41 Diluted $ 10.45 $ 7.40 $ 28.12 $ 20.12 Shares used in computing earnings per share: Basic 22,670 24,284 23,341 24,350 Diluted 22,703 24,575 23,470 24,696 See accompanying notes.
Consolidated income statements: quarters and nine months ended June 30, 2026 and 2025; thousands of dollars · Filed 29/07/2026
The following tables set forth certain summary information on a segment basis related to our operating income for the nine-month periods ended June 30, 2026 and 2025: Nine Months Ended June 30, Period-to-Period Change Period-to-Period Percentage Change Segment 2026 2025 (In thousands) (In thousands) Scores $ 1,117,215 $ 753,452 $ 363,763 48 % Software 176,248 192,008 (15,760) (8) % Total segment operating income 1,293,463 945,460 348,003 37 % Unallocated corporate expenses (152,411) (133,478) (18,933) 14 % Unallocated share-based compensation (141,910) (124,288) (17,622) 14 % Operating income $ 999,142 $ 687,694 311,448 45 % Scores Software Nine Months Ended June 30, Percentage of Revenues Nine Months Ended June 30, Percentage of Revenues 2026 2025 2026 2025 2026 2025 2026 2025 (In thousands) (In thousands) Segment revenues $ 1,238,404 $ 857,023 100 % 100 % $ 639,420 $ 618,095 100 % 100 % Segment operating expense (121,189) (103,571) (10) % (12) % (463,172) (426,087) (72) % (69) % Segment operating income $ 1,117,215 $ 753,452 90 % 88 % $ 176,248 $ 192,008 28 % 31 % The year-to-date period-over-period increase of $311.4 million in operating income was attributable to a $402.7 million increase in segment revenues, partially offset by a $54.7 million increase in segment operating expenses, an $18.9 million increase in corporate expenses, and a $17.7 million increase in share-based compensation expense.
Segment operating results: nine months ended June 30, 2026 and 2025; thousands of dollars · Filed 29/07/2026
Software segment operating income as a percentage of segment revenue decreased to 28% from 31%, primarily attributable to an increase in third-party data center hosting costs and a decrease in sales of higher-margin software recognized at a point in time.
Nine-month Software operating-margin decline and causes · Filed 29/07/2026
Unaudited Financial Statements FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2026 September 30, 2025 (In thousands, except par value data) Assets Current assets: Cash and cash equivalents $ 248,444 $ 134,136 Accounts receivable, net 592,530 529,148 Prepaid expenses and other current assets 40,589 41,881 Total current assets 881,563 705,165 Marketable securities 56,093 54,625 Property and equipment, net 90,988 67,713 Operating lease right-of-use assets 23,087 26,213 Goodwill 791,815 783,340 Deferred income taxes 92,384 118,553 Other assets 101,443 112,524 Total assets $ 2,037,373 $ 1,868,133 Liabilities and Stockholders’ Deficit Current liabilities: Accounts payable $ 26,878 $ 32,315 Accrued compensation and employee benefits 110,863 115,369 Other accrued liabilities 102,026 114,618 Deferred revenue 205,424 187,372 Current maturities on debt 300,000 399,541 Total current liabilities 745,191 849,215 Long-term debt 5,282,389 2,656,150 Operating lease liabilities 15,621 19,187 Other liabilities 91,307 89,365 Total liabilities 6,134,508 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 21,597 and 23,764 shares outstanding at June 30, 2026 and September 30, 2025, respectively) 216 238 Additional paid-in-capital 1,062,618 1,331,120 Treasury stock, at cost (67,260 and 65,093 shares at June 30, 2026 and September 30, 2025, respectively) (10,276,707) (7,537,908) Retained earnings 5,212,819 4,552,816 Accumulated other comprehensive loss (96,081) (92,050) Total stockholders’ deficit (4,097,135) (1,745,784) Total liabilities and stockholders’ deficit $ 2,037,373 $ 1,868,133 See accompanying notes.
Consolidated balance sheets: June 30, 2026 and September 30, 2025; thousands of dollars · Filed 29/07/2026
During the quarter and nine months ended June 30, 2026, we expended $2.3 billion and $3.1 billion, respectively, under the June 2025 program, the February 2026 program, and the June 2026 program, as applicable, including $1.5 billion under the ASR Agreement entered into as part of the June 2026 program.
Repurchase expenditures for the quarter and nine months ended June 30, 2026 · Filed 29/07/2026
•In June 2026, we amended our credit agreement to provide for a $1.5 billion term loan, the proceeds of which were used to fund an accelerated share repurchase agreement (“ASR Agreement”).
June 2026 term-loan proceeds used for accelerated repurchases · Filed 29/07/2026
Current liabilities:
Accounts payable and other accrued liabilities
$
128,904
$
146,933
Accrued compensation and employee benefits
110,863
115,369
Deferred revenue
205,424
187,372
Current maturities on debt
300,000
399,541
Total current liabilities
745,191
849,215
Long-term debt
5,282,389
2,656,150
Operating lease liabilities
15,621
19,187
Other liabilities
91,307
89,365
Total liabilities
6,134,508
3,613,917
Stockholders’ deficit
(4,097,135)
(1,745,784)
Total liabilities and stockholders’ deficit
$
2,037,373
$
1,868,133
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Quarter Ended June 30,
Nine Months Ended June 30,
2026
2025
2026
2025
(In thousands, except per share data)
Revenues:
On-premises and SaaS software
$
196,969
$
187,915
$
584,421
$
557,752
Professional services
18,322
24,191
54,999
60,343
Scores
458,897
324,309
1,238,404
857,023
Total revenues
674,188
536,415
1,877,824
1,475,118
Operating expenses:
Cost of revenues
87,017
87,571
265,477
262,546
Research and development
53,708
47,212
157,536
137,394
Selling, general and administrative
170,835
139,114
455,669
387,484
Total operating expenses
311,560
273,897
878,682
787,424
Operating income
362,628
262,518
999,142
687,694
Other expense, net
(47,969)
(25,527)
(136,523)
Nine Months Ended June 30,
2026
2025
(In thousands)
Cash flows from operating activities:
Net income
$
660,003
$
496,932
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
12,123
10,931
Share-based compensation
141,910
124,288
Changes in operating assets and liabilities
(66,268)
(64,961)
Other, net
30,112
(12,052)
Net cash provided by operating activities
777,880
555,138
Cash flows from investing activities:
Consolidated operating cash flows: nine months ended June 30, 2026 and 2025; thousands of dollars · Filed 29/07/2026
On June 30, 2026, Software Annual Recurring Revenue (ARR) was up 10% year-over-year, consisting of a 62% increase in platform ARR and a 17% decline in non-platform ARR.
June 30, 2026 platform and non-platform ARR growth · Filed 29/07/2026
