FICO Announces Earnings of $8.12 per Share for Fourth Quarter Fiscal 2026

FICO (NYSE:FICO), a global analytics software leader, today announced results for its fourth fiscal quarter ended September 30, 2026.

Fourth Quarter Fiscal 2026 GAAP Results

Net income for the quarter totaled $175.0 million, or $8.12 per share, versus $155.0 million, or $6.42 per share, in the prior year period. Net income for the quarter included three significant one-time items: 1) a $65 million accrual for a proposed settlement of the antitrust class action lawsuits related to our Scores business; 2) a $48 million non-operating gain related to the sale of an equity investment in which we had a minority interest; and 3) a $27 million restructuring charge related to a committed plan for workforce reduction.

Net cash provided by operating activities for the quarter was $294.2 million versus $223.7 million in the prior year period.

Fourth Quarter Fiscal 2026 Non-GAAP Results

Non-GAAP Net Income for the quarter was $239.3 million versus $187.0 million in the prior year period. Non-GAAP EPS for the quarter was $11.10 versus $7.74 in the prior year period. The three significant one-time items noted above are excluded from Non-GAAP Net Income and Non-GAAP EPS, along with other adjustments consistent with prior periods.

Free cash flow was $284.3 million for the current quarter versus $210.8 million in the prior year period.

The Non-GAAP financial measures are described in the financial table captioned “Non-GAAP Results” and are reconciled to the corresponding GAAP results in the financial tables at the end of this release.

Fourth Quarter Fiscal 2026 GAAP Revenue

The company reported revenues of $657.0 million for the quarter as compared to $515.8 million reported in the prior year period, an increase of 27%.

“I am proud of our performance in FY26,” said Will Lansing, chief executive officer. “Our team continues to execute well despite a turbulent macro environment.”

Revenues for the fourth quarter of fiscal 2026 for the company’s two operating segments were as follows:

• Scores revenues, which include the company’s business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) solutions, were $413.8 million in the fourth quarter, compared to $311.6 million in the prior year period, an increase of 33%. B2B revenue increased 39%, primarily attributable to a higher mortgage origination scores unit price, partially offset by a decline in mortgage originations volume. B2C revenue increased 3% from the prior year period, primarily due to increased royalties derived from scores sold indirectly to consumers through credit reporting agencies.

• Software revenues, which include the company’s analytics and digital decisioning technology, were up 19% year-over-year with $243.2 million in the fourth quarter, compared to $204.2 million in the prior year period. On September 30, 2026, Software Annual Recurring Revenue (ARR) was up 14% year-over-year, consisting of a 72% increase in platform ARR and an 18% decline in non-platform ARR. The total Software Dollar-Based Net Retention Rate was 112% on September 30, 2026, with platform software at 156% and non-platform software at 82%.

Outlook

We are transitioning to bespoke mortgage originations pricing, tailored to the individual needs of our customers. One bespoke pricing program, the FICO Preferred Program, has had several deals already announced, and we continue to work with others on programs that will cover calendar-year 2027. At the same time, elevated interest rates and ongoing affordability challenges continue to weigh on the mortgage market, keeping loan originations below historical norms. We are in the middle of this pricing transition, where programs and agreements are still being finalized, and the outcomes of mortgage market challenges are uncertain. Because of these factors, we are not providing fiscal year 2027 guidance at this time.

Company to Host Conference Call

The company will host a webcast on November 4, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its fourth quarter fiscal 2026 results and provide various strategic and operational updates. The call can be accessed at FICO’s web site at www.fico.com/investors. A replay of the webcast will be available on our Past Events page through November 4, 2027.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 U.S. and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 70 countries do everything from preventing fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO^® Score is a standard measure of consumer credit risk in the U.S. and has been made available in over 40 other countries, improving risk management, credit access and transparency.

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FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.

Statement Concerning Forward-Looking Information

Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of macroeconomic conditions on FICO’s business, operations and personnel, the success of the company’s business strategies, the maintenance of its existing relationships and ability to create new relationships with customers, distributors and other business partners, its ability to continue to develop new and enhanced products and services and to enter new markets, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use or costs of consumer credit and other data, the failure to protect such data, the failure to realize the anticipated benefits of any acquisitions or divestitures, and material adverse developments or uncertainty in global economic conditions or in the markets or industries that the company serves. Additional information on these risks and uncertainties and other factors that could affect FICO’s future results are described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and its subsequent filings with the SEC. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. FICO disclaims any intent or obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise.

About Non-GAAP Financial Measures

To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude, to the extent applicable, such items as the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making.

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