FICO (NYSE: FICO), the global leader in analytics software, announced its second quarter fiscal 2025 earnings on April 29, 2025, reporting impressive financial results that underscore its robust operational performance and strategic growth initiatives. This authoritative update provides detailed insights on who FICO is, what it achieved in Q2 2025, when and where these results were reported, along with forward-looking fiscal year guidance. The information is sourced from the official SEC filing report here.
Who is FICO? Founded in 1956, FICO is a pioneering entity in predictive analytics and data science, powering decision-making for businesses across financial services, insurance, telecommunications, healthcare, and retail sectors worldwide. The FICO Score, trusted by 90% of top U.S. lenders and utilized in over 40 other countries, stands as a cornerstone of consumer credit risk management.
What were the Q2 2025 results? - Total revenues surged to \(498.7 million, a 15% increase compared to \)433.8 million in Q2 2024. - Net income rose to \(162.6 million (GAAP), translating to \)6.59 per diluted share, up from \(129.8 million and \)5.16 per share a year earlier. - Non-GAAP net income reached \(192.7 million, with Non-GAAP EPS at \)7.81, marking significant gains over the prior year’s \(154.5 million and \)6.14 respectively. - Net cash provided by operating activities increased to \(74.9 million from \)71.0 million. - Free cash flow improved to \(65.5 million versus \)61.6 million in the previous year.
Revenue Breakdown and Segment Performance: - Scores segment revenue climbed 25% to \(297.0 million, driven by a 31% rise in B2B revenues and a 6% increase in B2C revenues. - Software segment revenues increased by 2% to \)201.7 million, with License revenue growth and a 3% uplift in platform Annual Recurring Revenue (ARR). - Software platform ARR exhibited a 17% increase, contributing to a total software dollar-based net retention rate of 102%, highlighting strong customer loyalty and recurring revenue.
When and Where: The earnings release was issued on April 29, 2025, with a conference call hosted at 5:00 p.m. Eastern Time accessible via FICO’s investor relations website.
Forward-Looking Fiscal Year 2025 Guidance: - Revenue is anticipated to reach \(1.98 billion, reflecting sustained double-digit percentage growth. - GAAP net income is projected at \)624 million with GAAP EPS forecasted at \(25.05. - Non-GAAP net income guidance of \)712 million, with a Non-GAAP EPS estimate of $28.58.
Financial Position Highlights as of March 31, 2025: - Total assets stood at \(1.84 billion, up from \)1.72 billion at the end of FY 2024. - Total liabilities increased to \(2.96 billion compared to \)2.68 billion, largely due to long-term debt rising to \(2.51 billion. - Stockholders’ deficit deepened to \)1.12 billion from $0.96 billion, influenced by buybacks and other capital management activities.
Impact Analysis: FICO’s robust revenue growth and earnings expansion reflect successful execution of its strategy focused on analytics and decision management solutions. The 15% revenue growth in Q2 boosts confidence in the company’s ability to meet its fiscal 2025 revenue target of nearly $2 billion. Notably, the 25% increase in Scores segment revenues, driven predominately by B2B pricing improvements, demonstrates pricing power and market demand strength.
The firm’s strong cash flow generation and improvement in free cash flow relative to the prior year indicate effective operational efficiency and capital allocation, despite an uptick in long-term debt. This debt increase underscores FICO’s ongoing investments in technology and growth initiatives.
Earnings Call Themes Correlation: The Q2 results confirm themes from prior earnings calls, emphasizing sustained demand in business-to-business scoring solutions and digital decisioning software. CEO Will Lansing’s remarks reaffirm commitment to double-digit growth in revenue and earnings, consistent with earlier fiscal forecasts.
Conclusion: FICO’s second quarter fiscal 2025 performance exemplifies a financially disciplined company capitalizing on its leadership in predictive analytics and credit risk assessment. With a strong balance sheet, improving cash flows, and positive market dynamics, the company is well-positioned for continued success in the increasingly data-driven financial services landscape.
For further details, view the official SEC filing here.
Tags: #FICOFinancialResults #CreditRiskAnalytics #PredictiveAnalyticsGrowth #B2BRevenueBoost #Fiscal2025Guidance