Fair Isaac Corporation (0TIQ.L) delivered a strong QQ4 2024 with revenue of $453.8 million, up 16.4% year over year and 1.3% sequentially. The quarter showcased broad profitability with a gross margin of approximately 80.3%, EBITDA of $203.7 million, and operating income of $197.2 million, translating into a net income of $135.7 million and diluted EPS of $5.44-$5.54. Free cash flow was robust at $219.4 million, supported by $226.5 million of operating cash flow and modest capital expenditures. These results underscore the resilience of FICO’s software and analytics footprint, particularly in high-margin, subscription-like offerings such as the FICO Platform and scores-based solutions.
However, the quarterly strength sits against a leveraged balance sheet: total liabilities of about $2.681 billion exceed total assets of roughly $1.718 billion, yielding negative total stockholders’ equity of about $0.963 billion. Net debt stood at roughly $2.092 billion, with debt totaling approximately $2.242 billion. Financing activity included a large share repurchase of $323.5 million and debt repayments of $88.2 million, contributing to a net cash outflow from financing of about $228 million. While cash generation and margins are compelling, the capital structure implies meaningful leverage risk that investors should monitor as growth investments and potential M&A or platform expansion continue to weigh on the balance sheet.
Taken together, FICO remains well-positioned in the analytics software space, leveraging high-margin product lines and a strong free cash flow profile to fund R&D and platform development. The key questions for investors revolve around deleveraging trajectory, the sustainability of high-margin revenue, and the pace at which management can convert platform adoption into durable, multi-year revenue streams.