FICO's Q3 2025 Earnings Call: Navigating Contradictions in Adoption, Regulation, and Growth Expectations

Adoption of FICO 10 T, regulatory environment, platform ARR growth expectations, impact of FHFA announcement on industry migration are the key contradictions discussed in Fair Isaac Corporation's latest 2025Q3 earnings call.



Revenue and Earnings Growth:
- Fair Isaac Corporation (NYSE:FICO) reported Q3 revenues of $536 million, up 20% year-on-year, and GAAP earnings of $7.40 per share, up 47%.
- Growth was driven by strong performance in the Scores segment and increased Software ARR.

Scores Segment Expansion:
- The Scores segment revenues reached $324 million, up 34% versus the prior year, with B2B revenues up 42%.
- This growth was attributed to higher unit prices, increased mortgage originations, and a multiyear U.S. license renewal for Insurance Scores.

Software Segment and Platform ARR:
- Software revenues were $212 million, up 3% from the prior year, with Platform ARR representing 34% of total Q3 ARR, an increase from 30% the year before.
- This was driven by growth in platform SaaS and expansion in customer usage, as well as new product innovations announced at FICO World.

Strong Free Cash Flow and Share Repurchase:
- FICO reported record-breaking free cash flow of $276 million in Q3, and repurchased 284,000 shares.
- The company continues to return capital to shareholders through buybacks, with over $0.5 billion repurchased in the quarter.