Fair Isaac Corporation (FICO) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $498.7M, up 15% year-over-year, with GAAP net income of $162.6M, up 25% year-over-year, and diluted EPS of $6.59, up 28%.

• Non-GAAP net income was $193M ($7.81 per share), up 25% and 27% year-over-year, respectively.

• Free cash flow for Q2 was $65.5M, with $677M generated over the last four quarters, a 45% increase over the prior trailing 12 months.

• Adjusted EBITDA rose 22% year-over-year to $287.8M.

• Fiscal 2025 guidance was reiterated, reflecting confidence in double-digit growth despite macroeconomic uncertainty.

Financial highlights

• Scores segment revenue was $297M, up 25% year-over-year; B2B up 31%, B2C up 6%.

• Software segment revenue was $201.7M, up 2% year-over-year, with on-premises and SaaS software revenue up 4% and professional services down 9%.

• Non-GAAP operating margin expanded to 58%, up 5 percentage points year-over-year.

• Q2 FY25 gross margin was approximately 82.4%.

• Free cash flow for Q2 2025 was $65.5M, compared to $61.6M in Q2 2024.

Outlook and guidance

• Fiscal 2025 revenue guidance reiterated at $1.98B, with GAAP net income of $624M ($25.05 EPS) and non-GAAP net income of $712M ($28.58 EPS).

• Management expects double-digit percentage growth for both revenue and earnings for the full year.

• Free cash flow is expected to accelerate in the second half of the fiscal year.

• Management expects cash, cash equivalents, available credit, and operating cash flows to be sufficient for at least the next 12 months.