- FICO delivered a solid QQ2 2025 performance with total revenue of $498.7 million, up 15% year over year, driven by the Scores segment (+25% YoY) and supported by software revenue (+2% YoY). GAAP net income reached $162.6 million and GAAP EPS $6.59, while non-GAAP net income was $193 million with non-GAAP EPS of $7.81, reflecting strong operating leverage and margin expansion.
- Platform-driven metrics remained a leading growth pillar: total ARR rose to $715 million (platform ARR $235 million, up 17% YoY; platform ARR represented 33% of total ARR), and total NRR stood at 102% (platform NRR at 110%, non-platform at 96%). ACV bookings were $21.8 million, underscoring healthy demand for FICO Platform despite macro headwinds affecting CCS usage.
- Management maintained a constructive but cautious stance: guidance for fiscal 2025 was reaffirmed amid macro uncertainty, with expectations of higher back-half spend due to FICO World and related marketing activities. Management also highlighted a healthy backlog and a robust pipeline for H2, alongside ongoing platform innovation and expanding indirect channel partners. The quarter featured meaningful mortgage-originations strength and early adoption of FICO Score 10 T for non-GSE loans, as well as strategic partnerships (e.g., Fujitsu in Japan; Dacadoo integration) that broaden go-to-market scope.
- Investors should monitor: (1) platform growth reacceleration versus macro volatility, (2) CCS usage tailwinds or headwinds and their impact on ARR/Nrr, (3) progression of non-platform ARR and the trajectory of professional services in Software, and (4) the evolution of debt levels and free cash flow generation given elevated net debt position.