Fair Isaac Corporation (FICO) Q3 2025 earnings summary

Executive summary

• Q3 revenue reached $536.4 million, up 20% year-over-year, with GAAP net income of $181.8 million, up 44%, and diluted EPS of $7.40, up 47%.

• Non-GAAP net income was $210.6 million, up 35%, and non-GAAP EPS was $8.57, up 37%.

• Free cash flow for Q3 was $276.2 million, up from $205.7 million year-over-year.

• Raised full-year guidance: revenue at $1.98 billion, GAAP net income at $630 million, and non-GAAP net income at $718 million.

• Continued innovation in credit scoring and software, including new BNPL scores and AI-driven platform enhancements.

Financial highlights

• GAAP EPS was $7.40, up 47% year-over-year; non-GAAP EPS was $8.57, up 37%.

• Non-GAAP operating margin expanded to 57%, up 5 percentage points year-over-year.

• Free cash flow for the trailing 12 months was $748 million, up 36%.

• Cash and investments at quarter end were $239.8 million, up 25% sequentially.

• Effective tax rate for the quarter was 23.3%.

Outlook and guidance

• FY2025 revenue guidance updated to $1.98 billion; GAAP net income expected at $630 million, non-GAAP at $718 million.

• GAAP EPS projected at $25.60; non-GAAP EPS at $29.15 for FY2025.

• Q4 revenue guidance is $505 million, reflecting expected seasonality and lower point-in-time revenues.

• Management expects cash and available borrowings, along with operating cash flows, to be sufficient for capital requirements for at least the next 12 months.

• Expect increased interest and marketing expenses, plus one-time items exceeding $10 million in Q4.