Fair Isaac keeps executing its price increase strategy and still has room for further increases in the scores segment. Volume growth in mortgage originations (110% YoY), on top of the increase in prices, should boost its free cash flow in FY2025. The growth rate has decreased in the software segment, but management expects it to accelerate in the coming quarters.
Explore the exciting world of Fair Isaac Corporation (FICO -1.51%) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
I reiterate my hold rating for Fair Isaac due to its high valuation multiple and potential for further derating if growth slows in 2Q25. FICO's Scores segment shows strong growth with a 110% y/y increase in mortgage scores revenue, driven by significant pricing power and volume demand. Despite concerns in the software segment, FICO's strong free cash flow and underpenetrated TAM offer long-term growth potential.
FICO's first-quarter fiscal 2025 results benefit from higher revenues from mortgage originations.
Fair Isaac Corporation. (NYSE:FICO ) Q1 2025 Earnings Conference Call February 4, 2025 5:00 PM ET Company Participants Dave Singleton - Vice President, Investor Relations Will Lansing - Chief Executive Officer Steve Weber - Chief Financial Officer Conference Call Participants Manav Patnaik - Barclays Jason Haas - Wells Fargo Faiza Alwy - Deutsche Bank Surinder Thind - Jefferies Owen Lau - Oppenheimer Kyle Peterson - Needham George Tong - Goldman Sachs Jeffrey Meuler - Robert W.
Analytics and decision management technology specialist Fair Isaac (FICO -1.00%) reported fiscal 2025 first-quarter earnings on Tuesday, Feb. 4, that fell short of analysts' consensus estimates. Revenue for the quarter of $440 million was up 15% year over year but fell short of the forecasted $452 million.
Following a joint study with buy now, pay later (BNPL) firm Affirm, FICO has said that it is planning to add BNPL data to its credit score analysis. The analytics firm said in a Tuesday (Feb. 4) news release that over the course of a year, it had studied how BNPL usage — if incorporated into its FICO scoring system through a simulation — could raise FICO scores for some new BNPL borrowers.
While the top- and bottom-line numbers for Fair Isaac (FICO) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Fair Isaac (FICO) came out with quarterly earnings of $5.79 per share, missing the Zacks Consensus Estimate of $6.21 per share. This compares to earnings of $4.81 per share a year ago.
Fair Isaac Corporation , widely known as FICO, reports a 18.6% rise in first-quarter profit on Tuesday, helped by continued growth in its scores and software segments.
Get a deeper insight into the potential performance of Fair Isaac (FICO) for the quarter ended December 2024 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.
FICO's fiscal first-quarter performance is likely to have benefited from strong platform growth and customer adoption drive momentum despite ACV challenges.