Fair Isaac Corporation (FICO) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue was $440 million, up 15% year-over-year, with Scores segment up 23% and Software segment up 8%.

• GAAP net income was $153 million ($6.14 per share), up 26% year-over-year; non-GAAP net income was $144 million ($5.79 per share), up 19-20%.

• Operating income rose 19% to $179.5 million; adjusted EBITDA was $223.1 million, up 18% year-over-year.

• Free cash flow reached $205.7 million, up from $120.8 million in Q1 2024.

• Share repurchases totaled $196.1 million in Q1 FY25.

Financial highlights

• Scores segment revenue was $235.7 million, up 23% year-over-year; B2B up 30%, B2C up 3%.

• Software segment revenue was $204.3 million, up 8% year-over-year, with SaaS and license growth.

• Software ARR reached $729.3 million, up 6% year-over-year; platform ARR grew 20% to $228 million.

• Non-GAAP operating margin was 50%, up from 48% a year ago.

• Effective tax rate for the quarter was -1.6% due to excess tax benefits from stock awards.

Outlook and guidance

• Fiscal 2025 guidance reiterated: revenue of $1.98 billion, GAAP net income of $624 million, GAAP EPS of $25.05, non-GAAP net income of $712 million, and non-GAAP EPS of $28.58.

• ARR growth for platform expected to accelerate in the second half of the year as bookings convert.

• Guidance assumes interest rates will not decline significantly in 2025; upside possible if rates fall.

• Management expects liquidity and capital resources to be sufficient for at least the next 12 months.