# Fair Isaac Moat

Status: published. Policy: company-analysis-1.

FICO has an evidenced moat centered on its established credit-scoring standard, with supporting switching friction in underwriting systems and software workflows. Broad lender use, decades of adoption and realized mortgage-score repricing support customer dependency and pricing power. A wide company-level verdict is not established: Software retention is sharply divided, non-platform revenue retention is deteriorating, and Scores distribution depends heavily on partners.

## intangible_assets

FICO's established credit-risk standard and proprietary scoring technology support a current advantage. Broad lender adoption and observed mortgage-score price increases provide operating support beyond management's claims of differentiation.

Durability: The disclosed history of more than three decades as a common framework supports persistence. Continued broad use and realized repricing support durability, but do not establish immunity to substitution.

Risks: Distributor concentration, competing scoring models and lower-priced alternatives could weaken the standard or its economics. Intellectual-property protection is explicitly limited. These competitive risks are possibilities, rather than disclosed realized displacement of Scores.

Invalidation: Material lender migration to alternative scores, sustained loss of FICO's role as the common credit-risk framework, or price reversals accompanied by substitution-driven revenue losses would invalidate this advantage.

Competitors: Not established
## switching_costs

Compatibility with existing underwriting systems and the capital, platform and procedural changes involved in software purchases support switching friction. Platform customer expansion demonstrates an existing foothold, although the advantage is uneven across Software.

Durability: Embedded systems and operational procedures can sustain dependency. Platform DBNRR of 148% supports expansion within existing customers, but total Software DBNRR of 109% and non-platform DBNRR of 82% limit the company-wide conclusion.

Risks: Implementation complexity can also deter new purchases. Non-platform contraction demonstrates that switching friction does not prevent revenue erosion; the passages do not separate migration, attrition, pricing and usage effects.

Invalidation: Persistent total Software DBNRR below 100%, sustained Platform cohort contraction, or demonstrated replacement of FICO systems without meaningful operational friction would undermine this advantage.

Competitors: Not established
- [https://www.sec.gov/Archives/edgar/data/814547/000081454725000030/fico-20250930.htm](https://www.sec.gov/Archives/edgar/data/814547/000081454725000030/fico-20250930.htm) · 2025-11-07
- [https://www.sec.gov/Archives/edgar/data/814547/000081454726000030/fico-20260630.htm](https://www.sec.gov/Archives/edgar/data/814547/000081454726000030/fico-20260630.htm) · 2026-07-29
- [https://www.sec.gov/Archives/edgar/data/814547/000119312526024403/d27709ddef14a.htm](https://www.sec.gov/Archives/edgar/data/814547/000119312526024403/d27709ddef14a.htm) · 2026-01-27
- [https://www.sec.gov/Archives/edgar/data/814547/000162828024045719/fico-20240930.htm](https://www.sec.gov/Archives/edgar/data/814547/000162828024045719/fico-20240930.htm) · 2024-11-06
- [https://www.sec.gov/Archives/edgar/data/814547/000081454723000022/fico-20230930.htm](https://www.sec.gov/Archives/edgar/data/814547/000081454723000022/fico-20230930.htm) · 2023-11-08
- [https://www.sec.gov/Archives/edgar/data/814547/000081454726000021/fico-20260331.htm](https://www.sec.gov/Archives/edgar/data/814547/000081454726000021/fico-20260331.htm) · 2026-04-28
- [https://www.sec.gov/Archives/edgar/data/814547/000081454726000031/exhibit991erq32026.htm](https://www.sec.gov/Archives/edgar/data/814547/000081454726000031/exhibit991erq32026.htm) · 2026-07-29
- [https://www.sec.gov/Archives/edgar/data/814547/000081454726000020/exhibit991erq22026.htm](https://www.sec.gov/Archives/edgar/data/814547/000081454726000020/exhibit991erq22026.htm) · 2026-04-28
- [https://www.sec.gov/Archives/edgar/data/814547/000081454726000010/exhibit991erq12026.htm](https://www.sec.gov/Archives/edgar/data/814547/000081454726000010/exhibit991erq12026.htm) · 2026-01-28

[JSON](https://beanvest.com/stock/fico/moat.json)