Fair Isaac's Q1 2025 Earnings Call: Discrepancies in ARR Growth, Mortgage Volume, and Pricing Strategy

These are the key contradictions discussed in Fair Isaac Corporation's latest 2025 Q1 earnings call, specifically including: Platform ARR Growth Expectations, Mortgage Volume Growth, Software Revenue Growth Expectations, and Pricing Strategy:



Revenue Growth and Diversification:
- FICO reported revenues of $440 million for Q1 2025, up 15% over the prior year.
- Growth was driven by strong performance in the Scores segment, particularly in mortgage originations, and an 8% increase in Software segment revenues.

Scores Segment Performance:
- The Scores segment saw revenues of $236 million, up 23% year-over-year.
- This was primarily due to a 30% increase in B2B revenues, driven by mortgage originations, and a 3% increase in B2C revenues from indirect channel partners.

Impact of Foreign Exchange Rates:
- The Software segment experienced a 2% negative impact on total ARR and 3% on platform ARR due to foreign exchange rates, particularly in Brazil.
- Despite this impact, the segment saw ARR growth of 6% with platform ARR up 20%.

Free Cash Flow and Capital Returns:
- FICO delivered free cash flow of $187 million in Q1, representing a 55% increase from the prior year, and a 36% increase over the last four quarters to $673 million.
- The company repurchased shares with $79,000 in Q1 and an additional 47,000 in January, reflecting its commitment to returning capital to shareholders.