FICO Announces Earnings of $7.40 per Share for Third Quarter Fiscal 2025
Revenue of $536 million vs. $448 million in prior year
BOZEMAN, Mont.--(BUSINESS WIRE)—July 30, 2025—FICO (NYSE:FICO), a global analytics software leader, today announced results for its third fiscal quarter ended June 30, 2025.
Third Quarter Fiscal 2025 GAAP Results
Net income for the quarter totaled $181.8 million, or $7.40 per share, versus $126.3 million, or $5.05 per share, in the prior year period.
Net cash provided by operating activities for the quarter was $286.2 million versus $213.3 million in the prior year period.
Third Quarter Fiscal 2025 Non-GAAP Results
Non-GAAP Net Income for the quarter was $210.6 million versus $156.4 million in the prior year period. Non-GAAP EPS for the quarter was $8.57 versus $6.25 in the prior year period. Free cash flow was $276.2 million for the current quarter versus $205.7 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.
Third Quarter Fiscal 2025 GAAP Revenue
The company reported revenues of $536.4 million for the quarter as compared to $447.8 million reported in the prior year period, an increase of 20%.
“In our third fiscal quarter, we again delivered strong results with revenue growth of 20%, and even stronger earnings growth,” said Will Lansing, chief executive officer. “We are pleased to announce that we are raising our full year guidance.”
Revenues for the third quarter of fiscal 2025 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 $324.3 million in the third quarter, compared to $241.4 million in the prior year period, an increase of 34%. B2B revenue increased 42%, primarily attributable to a higher unit price, an increase in volume of mortgage originations and a multi-year US license renewal on our insurance score product. B2C revenue increased 6% 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 $212.1 million in the third quarter, compared to $206.4 million in the prior year period, an increase of 3%, mainly due to increased Software as a Service revenue. Software Annual Recurring Revenue at June 30, 2025 was up 4% year-over-year, consisting of an 18% increase in platform ARR growth and a 2% decline in non-platform ARR. The total Software Dollar-Based Net Retention Rate was 103% on June 30, 2025, with platform software at 115% and non-platform software at 97%.
Outlook
The company is updating its previously provided guidance for fiscal 2025:
Previous Fiscal 2025 Guidance | Updated Fiscal 2025 Guidance | |
| Revenues | $1.98 billion | $1.98 billion |
| GAAP Net Income | $624 million | $630 million |
| GAAP EPS | $25.05 | $25.60 |
| Non-GAAP Net Income | $712 million | $718 million |
| Non-GAAP EPS | $28.58 | $29.15 |
The Non-GAAP financial measures are described in the financial table captioned “Reconciliation of Non-GAAP Guidance.”
Company to Host Conference Call
The company will host a webcast on July 30, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its third quarter fiscal 2025 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 July 30, 2026.
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 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.
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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 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.