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Non-GAAP Net Income for the quarter was $143.8 million versus $121.2 million in the prior year period. Non-GAAP EPS for the quarter was $5.79 versus $4.81 in the prior year period. Free cash flow was $186.8 million for the current quarter versus $120.8 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.

•Scores revenues, which include the company’s business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) solutions, were $235.7 million in the first quarter, compared to $192.1 million in the prior year period, an increase of 23%. B2B revenue increased 30%, driven largely by higher unit prices and an increase in volume of mortgage originations. B2C revenue increased 3% from the prior year period due to increased revenue from our indirect channel partners.

•Software revenues, which include the company’s analytics and digital decisioning technology, were $204.3 million in the first quarter, compared to $189.9 million in the prior year period, an increase of 8%, mainly due to increased recurring revenue and license revenue. Software Annual Recurring Revenue was up 6% year-over-year, consisting of 20% platform ARR growth and 1% growth in non-platform. The Software Dollar-Based Net Retention Rate was 105% on December 31, 2024, with platform software at 112% and non-platform software at 100%.


	Fiscal 2025 Guidance
Revenues	$1.98 billion
GAAP Net Income	$624 million
GAAP EPS	$25.05
Non-GAAP Net Income	$712 million
Non-GAAP EPS	$28.58

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 80 countries do everything from protecting four billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top U.S. lenders, is the 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.

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 Decision Management strategy and reengineering initiative, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use 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 in global economic conditions or in the markets we serve. 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 year ended September 30, 2024 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.


	December 31, 2024		September 30, 2024
	(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	184,254	$	150,667
Accounts receivable, net	350,924		426,642
Prepaid expenses and other current assets	60,658		40,104
Total current assets	595,836		617,413
Marketable securities	45,925		45,289
Property and equipment, net	43,018		38,465
Operating lease right-of-use assets	28,309		29,580
Goodwill	775,551		782,752
Other assets	217,969		204,385
Total assets	$	1,706,608	$	1,717,884
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable and other accrued liabilities	$	73,852	$	102,285
Accrued compensation and employee benefits	77,109		106,103
Deferred revenue	165,359		156,897
Current maturities on debt	15,000		15,000
Total current liabilities	331,320		380,285
Long-term debt	2,406,100		2,194,021
Operating lease liabilities	20,881		21,963
Other liabilities	86,471		84,294
Total liabilities	2,844,772		2,680,563

Stockholders’ deficit	(1,138,164)		(962,679)
Total liabilities and stockholders’ deficit	$	1,706,608	$	1,717,884


	Quarter Ended December 31,
	2024		2023
	(In thousands, except per share data)
Revenues:
On-premises and SaaS software	$	186,011	$	168,668
Professional services	18,282		21,279
Scores	235,675		192,112
Total revenues	439,968		382,059
Operating expenses:
Cost of revenues	87,345		83,461
Research and development	45,145		42,635
Selling, general and administrative	127,950		104,329
Amortization of intangible assets	—		275


Total operating expenses	260,440		230,700
Operating income	179,528		151,359
Other expense, net	(29,399)		(20,769)
Income before income taxes	150,129		130,590
Income tax provision (benefit)	(2,399)		9,525
Net income	$	152,528	$	121,065
Earnings per share:
Basic	$	6.26	$	4.89
Diluted	$	6.14	$	4.80
Shares used in computing earnings per share:
Basic	24,378		24,764
Diluted	24,827		25,219


	Quarter Ended December 31,
	2024		2023
	(In thousands)
Cash flows from operating activities:
Net income	$	152,528	$	121,065
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,535		2,824
Share-based compensation	40,654		31,574
Changes in operating assets and liabilities	(1,235)		(30,343)

Other, net	(1,485)		(3,000)
Net cash provided by operating activities	193,997		122,120
Cash flows from investing activities:
Purchases of property and equipment	(841)		(1,361)
Capitalized internal-use software costs	(6,330)		—
Net activity from marketable securities	(1,771)		(1,057)


Net cash used in investing activities	(8,942)		(2,418)
Cash flows from financing activities:
Proceeds from revolving line of credit and term loans	275,000		170,000
Payments on revolving line of credit and term loans	(63,750)		(70,750)


Proceeds from issuance of treasury stock under employee stock plans	3,261		4,499
Taxes paid related to net share settlement of equity awards	(196,126)		(131,911)
Repurchases of common stock	(162,581)		(71,704)
Other, net	(22)		—
Net cash used in financing activities	(144,218)		(99,866)
Effect of exchange rate changes on cash	(7,250)		3,807
Increase in cash and cash equivalents	33,587		23,643
Cash and cash equivalents, beginning of period	150,667		136,778
Cash and cash equivalents, end of period	$	184,254	$	160,421


	Quarter Ended December 31,
	2024		2023
	(In thousands, except per share data)
GAAP net income	$	152,528	$	121,065
Amortization of intangible assets	—		275

Share-based compensation expense	40,654		31,574
Income tax adjustments	(9,863)		(7,915)
Excess tax benefit	(39,530)		(23,775)

Non-GAAP net income	$	143,789	$	121,224

GAAP diluted earnings per share	$	6.14	$	4.80
Amortization of intangible assets	—		0.01

Share-based compensation expense	1.64		1.25
Income tax adjustments	(0.40)		(0.31)
Excess tax benefit	(1.59)		(0.94)

Non-GAAP diluted earnings per share	$	5.79	$	4.81

Free cash flow
Net cash provided by operating activities	$	193,997	$	122,120
Capital expenditures	(7,171)		(1,361)
Free cash flow	$	186,826	$	120,759

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.


	Fiscal 2025 Guidance
	(In millions, except per share data)

GAAP net income	$	624
Share-based compensation expense	157
Income tax adjustments	(39)
Excess tax benefit	(30)
Non-GAAP net income	$	712

GAAP diluted earnings per share	$	25.05
Share-based compensation expense	6.31
Income tax adjustments	(1.58)
Excess tax benefit	(1.20)
Non-GAAP diluted earnings per share	$	28.58