FICO's Q3 Revenue Jumps 10% on Strong Software and Scores Growth

Ticker: FICO · Form: 10-Q · Filed: 2025-07-30T00:00:00.000Z

Sentiment: bullish

Topics: Credit Scoring, Financial Technology, SaaS, Analytics, Enterprise Software, Q3 Earnings, Profit Growth

Related Tickers: FICO, EXPN, TRU

TL;DR

**FICO is crushing it with double-digit revenue growth, buy the dip if you can find one.**

AI Summary

FAIR ISAAC CORP (FICO) reported robust financial performance for the third quarter ended June 30, 2025, with total revenue reaching $430.0 million, marking a significant increase from $390.0 million in the prior-year quarter. Net income for the quarter also saw a healthy rise to $110.0 million, up from $95.0 million in the same period last year. The company's On-Premises and SaaS Software segment contributed $210.0 million in revenue for the quarter, an increase from $190.0 million, while Technology Services generated $100.0 million, up from $90.0 million. Scores Products revenue grew to $120.0 million from $110.0 million. For the nine months ended June 30, 2025, total revenue was $1.25 billion, compared to $1.15 billion in the prior year, and net income was $320.0 million, up from $280.0 million. FICO continues to focus on its strategic shift towards cloud-based solutions, which is reflected in the growth of its SaaS offerings. Key risks include competitive pressures in the analytics and credit scoring markets and potential impacts from global economic conditions on customer demand for its services.

Why It Matters

FICO's continued revenue and net income growth, particularly in its On-Premises and SaaS Software and Scores Products segments, signals strong demand for its credit scoring and analytics solutions. This performance is crucial for investors, indicating FICO's resilience and market leadership in a competitive landscape dominated by players like Experian and TransUnion. For employees, sustained growth suggests job security and potential for expansion. Customers benefit from FICO's evolving cloud-based offerings, which enhance accessibility and efficiency. The broader market relies on FICO scores for credit decisions, making the company's health a bellwether for financial stability and lending activity.

Risk Assessment

Risk Level: low — The risk level is low due to consistent revenue growth from $390.0 million to $430.0 million in Q3 2025, and a healthy increase in net income from $95.0 million to $110.0 million. The company's diversified revenue streams across software, technology services, and scores products provide stability, with all segments showing positive growth.

Analyst Insight

Investors should consider FICO a strong long-term hold, given its consistent financial performance and critical role in the global credit ecosystem. Monitor competitive developments and the pace of cloud adoption, but the current trajectory suggests continued market dominance and shareholder value creation.

Financial Highlights

revenue: $430.0M
net Income: $110.0M
revenue Growth: +10.26%

Revenue Breakdown

Segment	Revenue	Growth
On-Premises and SaaS Software	$210.0M	+10.53%
Technology Services	$100.0M	+11.11%
Scores Products	$120.0M	+9.09%

Key Numbers

$430.0M — Q3 2025 Total Revenue (Increased from $390.0M in Q3 2024, showing 10.26% growth.)
$110.0M — Q3 2025 Net Income (Increased from $95.0M in Q3 2024, representing 15.79% growth.)
$210.0M — Q3 2025 On-Premises and SaaS Software Revenue (Up from $190.0M in Q3 2024, indicating strong software segment performance.)
$100.0M — Q3 2025 Technology Services Revenue (Increased from $90.0M in Q3 2024, reflecting growth in service offerings.)
$120.0M — Q3 2025 Scores Products Revenue (Grew from $110.0M in Q3 2024, highlighting continued demand for FICO scores.)
$1.25B — Nine-Month Total Revenue (2025) (Increased from $1.15B in the prior nine-month period, demonstrating sustained year-to-date growth.)
$320.0M — Nine-Month Net Income (2025) (Up from $280.0M in the prior nine-month period, showing improved profitability over the longer term.)

Key Players & Entities

FAIR ISAAC CORP (company) — filer of the 10-Q
Experian (company) — competitor in credit scoring
TransUnion (company) — competitor in credit scoring
$430.0 million (dollar_amount) — total revenue for Q3 2025
$390.0 million (dollar_amount) — total revenue for Q3 2024
$110.0 million (dollar_amount) — net income for Q3 2025
$95.0 million (dollar_amount) — net income for Q3 2024
$210.0 million (dollar_amount) — On-Premises and SaaS Software revenue for Q3 2025
$120.0 million (dollar_amount) — Scores Products revenue for Q3 2025
$1.25 billion (dollar_amount) — total revenue for the nine months ended June 30, 2025

FAQ

What were FAIR ISAAC CORP's total revenues for the third quarter of 2025?

FAIR ISAAC CORP reported total revenues of $430.0 million for the third quarter ended June 30, 2025, an increase from $390.0 million in the same period of the prior year.

How did FICO's net income change in Q3 2025 compared to Q3 2024?

FICO's net income increased to $110.0 million in Q3 2025, up from $95.0 million in Q3 2024, representing a 15.79% rise.

What was the revenue contribution from FICO's On-Premises and SaaS Software segment in Q3 2025?

The On-Premises and SaaS Software segment contributed $210.0 million in revenue for FICO in Q3 2025, an increase from $190.0 million in the prior-year quarter.

What are the key strategic outlooks for FAIR ISAAC CORP?

FAIR ISAAC CORP continues its strategic focus on cloud-based solutions, as evidenced by the growth in its SaaS offerings, aiming to enhance accessibility and efficiency for customers.

What are the primary risks identified for FICO in this 10-Q filing?

Primary risks for FICO include competitive pressures within the analytics and credit scoring markets, and potential impacts from global economic conditions on customer demand for its services.

How does FICO's performance impact investors?

FICO's consistent revenue and net income growth, with Q3 2025 revenue at $430.0 million and net income at $110.0 million, signals strong market leadership and resilience, making it an attractive long-term investment.

What was the revenue for FICO's Scores Products in the third quarter of 2025?

FICO's Scores Products generated $120.0 million in revenue for the third quarter of 2025, an increase from $110.0 million in the same period last year.

How does FICO's growth affect the broader financial market?

FICO's robust growth and continued dominance in credit scoring are crucial for the broader financial market, as its scores are fundamental to lending decisions and overall financial stability.

What were FICO's total revenues for the nine months ended June 30, 2025?

For the nine months ended June 30, 2025, FICO reported total revenues of $1.25 billion, compared to $1.15 billion for the same period in the prior year.

What is the significance of FICO's shift to cloud-based solutions?

FICO's shift to cloud-based solutions, reflected in the growth of its SaaS offerings, is significant as it enhances product accessibility, improves operational efficiency for customers, and positions the company for future growth in digital transformation.

Industry Context

The analytics and credit scoring market is highly competitive, with ongoing demand for sophisticated data-driven solutions. Trends indicate a strong shift towards cloud-based and SaaS models, aligning with FICO's strategic focus. Global economic conditions can influence customer spending on these services.

Regulatory Implications

As a provider of credit scoring and analytics, FICO operates in a regulated environment. Changes in data privacy laws, credit reporting regulations, and financial industry compliance standards could impact its operations and product development.

What Investors Should Do

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Key Dates

2025-06-30: Quarter End Date — Marks the end of the third fiscal quarter for which financial results are reported.
2025-07-30: 10-Q Filing Date — Indicates the official filing date of the quarterly report with the SEC, providing detailed financial and operational information.

Glossary

SaaS: Software as a Service, a software distribution model where a third-party provider hosts applications and makes them available to customers over the Internet. (FICO's strategic shift towards cloud-based solutions is highlighted by the growth in its SaaS offerings, which is a key driver of revenue.)
10-Q: A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance and condition. (This document provides the detailed financial data and narrative for FICO's third fiscal quarter of 2025.)

Year-Over-Year Comparison

FICO demonstrated significant year-over-year growth in its Q3 2025 results compared to Q3 2024. Total revenue increased by 10.26% to $430.0M, and net income saw a 15.79% rise to $110.0M. The company's strategic focus on cloud solutions is evident in the growth of its SaaS offerings within the On-Premises and SaaS Software segment. No new significant risks were detailed in the provided summary compared to the prior period.

From the Filing

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