FICO 8-K — Smart Summary

Fair Isaac Corporation (FICO) reported second quarter fiscal 2026 results for the quarter ended March 31, 2026, with revenues of $691.7 million, up 39% year-over-year. GAAP net income was $264.5 million, or $11.14 per diluted share, compared to $162.6 million, or $6.59 per diluted share, in the prior year period. The company raised its full year fiscal 2026 guidance for revenues, GAAP net income, and EPS.

• Total revenues: $691.7 million vs. $498.7 million in prior year period, an increase of 39% YoY
• GAAP operating income: $402.5 million vs. $245.6 million in prior year period
• GAAP net income: $264.5 million vs. $162.6 million in prior year period
• GAAP diluted EPS: $11.14 vs. $6.59 in prior year period
• Non-GAAP net income: $296.8 million vs. $192.7 million in prior year period
• Non-GAAP diluted EPS: $12.50 vs. $7.81 in prior year period
• Net cash provided by operating activities: $223.4 million vs. $74.9 million in prior year period
• Free cash flow: $214.3 million vs. $65.5 million in prior year period

• Scores revenues: $475.0 million vs. $297.0 million in prior year period, an increase of 60% YoY
• B2B revenue within Scores increased 72%, primarily attributable to a higher mortgage origination scores unit price and an increase in volume of mortgage originations
• B2C revenue within Scores increased 5% from prior year period due mainly to increased revenue from indirect channel partners
• Software revenues: $216.7 million vs. $201.7 million in prior year period, up 7% YoY
• Software Annual Recurring Revenue (ARR) as of March 31, 2026 was up 10% YoY, consisting of a 49% increase in platform ARR and an 8% decline in non-platform ARR
• Total Software Dollar-Based Net Retention Rate was 109% on March 31, 2026, with platform software at 136% and non-platform software at 90%

• Cash and cash equivalents: $219.4 million as of March 31, 2026 vs. $134.1 million as of September 30, 2025
• Long-term debt: $3,639.1 million as of March 31, 2026 vs. $2,656.2 million as of September 30, 2025
• Repurchases of common stock: $776.6 million in the six months ended March 31, 2026 vs. $379.7 million in the six months ended March 31, 2025
• Proceeds from issuance of senior notes: $1,000.0 million in the six months ended March 31, 2026
• Payments on senior notes: $400.0 million in the six months ended March 31, 2026
• Stockholders' deficit: $(2,101.7) million as of March 31, 2026 vs. $(1,745.8) million as of September 30, 2025

• "We continue to deliver strong revenue and earnings growth," said Will Lansing, chief executive officer.
• "We are pleased to announce that we are raising our full year guidance," said Will Lansing, chief executive officer.

• Updated fiscal 2026 revenue guidance: $2.45 billion (previous: $2.35 billion)
• Updated fiscal 2026 GAAP net income guidance: $825 million (previous: $795 million)
• Updated fiscal 2026 GAAP EPS guidance: $35.60 (previous: $33.47)
• Updated fiscal 2026 Non-GAAP net income guidance: $946 million (previous: $907 million)
• Updated fiscal 2026 Non-GAAP EPS guidance: $40.45 (previous: $38.17)