Fair Isaac Corporation reported a robust Q3 2025, delivering strong profitability and cash generation against a backdrop of elevated leverage. Revenue reached USD 536.4 million, up 19.8% year over year and 7.6% quarter over quarter, underscored by a high gross margin of ~83.7% and an operating margin of ~48.9%. Net income was USD 181.8 million with basic EPS of USD 7.49, reflecting disciplined cost management within the Software and Scores segments.
Cash flow remained a meaningful strength, with operating cash flow of USD 286.2 million and free cash flow of USD 276.2 million. The company ended the quarter with USD 189.0 million in cash, but carried total debt of USD 2.8007 billion and net debt of USD 2.6116 billion, contributing to negative stockholders’ equity of USD -1.397 billion. Management’s capital allocation appears to prioritize immediate shareholder value via share repurchases (USD 486.8 million) and debt repayment (USD 246.5 million) while preserving optionality for future platform investments. Trailing-twelve-month revenue is approximately USD 1.929 billion, with gross margins and operating margins still signaling a high-quality software earnings profile.
Given the lack of explicit forward guidance in the provided dataset, investors should monitor deleveraging progress, platform-driven growth (notably the FICO Platform within the Software segment), and any cadence shifts in software spending. The two-segment model (Scores and Software) remains a durable differentiator, with platform-enabled analytics positioned to support cross-sell and multi-use-case deployments across risk, fraud, marketing, and origination workflows.