Fair Isaac Corporation (0TIQ.L) reported a robust QQ4 2025 set of results characterized by solid top-line momentum, exceptional gross margins, and strong cash generation, anchored by ongoing investments in analytics platforms and decisioning solutions. Revenue for the quarter was $515.8 million, up 13.65% year over year, while sequential performance showed a modest QoQ decline of 3.85% from Q3 2025, reflecting typical quarterly cadence and customer deployment cycles. Gross profit reached $424.6 million with a gross margin of 82.32%, underpinning the software-centric business model and high-value offerings such as FICO Platform and Scores solutions.
Operating income stood at $248.1 million, up 25.81% YoY, with an EBITDARatio of ~0.39 and an operating margin of 48.10%. Net income was $155.0 million, delivering a net margin of 30.06% and an EPS of $6.48 (diluted $6.42). The quarter showcased exceptional cash generation: operating cash flow per share of $9.36 and free cash flow per share of $9.18, with cash per share at $5.61. Management commentary, where available, emphasized continued platform-driven growth and prioritization of scalable analytics offerings to expand recurring revenue streams. The company’s liquidity indicators show a current and quick ratio of 0.83, underscoring disciplined balance sheet management amid a high-margin software model. While leverage indicators appear elevated in the reported metrics (debt-related measures such as debt ratio and capitalization figures show elevated levels in the dataset), the quarterly cash flow outpaces debt service in the near term, supporting a constructive view on internal funding for R&D and platform enhancements.
Overall, FICO remains well-positioned in the technology software services space, with a compelling profitability profile and strong cash generation. The key near-term questions relate to sustaining high recurring revenue growth via FICO Platform adoption, managing any customer deployment cyclicality, and converting platform investments into durable, long-term revenue streams.”